Facebook Ads Bid Strategies: Lowest Cost, Cost Cap, Bid Cap

If you enter a Cost Control, Facebook will automatically use Cost Cap. ... In some cases, you'll be able to edit the bid strategy and change to ... Genericselectors Exactmatchesonly Exactmatchesonly Searchintitle Searchintitle Searchincontent Searchincontent Searchinexcerpt PostTypeSelectors Hidden Hidden 5FacebookAdsTips:(FreeWebinar) 00Days:00Hrs:00Mins:00Secs FindOutMore 181SHARESFacebookTwitterBufferLinkedin FacebookadvertiserscanusebidstrategiestohelpcontrolhowFacebookspendsyourbudgetAbudgetisanamountyou'rewillingtospendonyourFacebookcampaignsoradsetsonadailyorlifetimebasis.intheadauctionFacebookusesanadauctiontodeterminethebestadtoshowtoapersonatagivenpointintime.Thewinneroftheauctionistheadwiththehighesttotalvalue,basedonbid,estimatedactionrates,andadquality..Whenusedproperly,thiscanleadtomoreprofitableads. Theprimarybidstrategiesareasfollows: LowestCost CostCap BidCap MinimumROAS Theproblem,ofcourse,isthatmostadvertisersdon’tunderstandwhenandhowtousethesebidstrategies.Inthispost,we’llwalkthroughwhattheyareandwhenyoushouldconsiderusingthem. LowestCost LowestCostisthedefaultbidstrategy,anditdoesn’tinvolveanyeffortatall. WithintheOptimizationHowyouoptimizeimpactswhoseesyourFacebookad.Facebookwillshowyouradtopeoplemostlikelytoperformyourdesiredaction.&Deliverysectionoftheadset,you’llseeanoptionalCostControlfield. Ifyouleavethatfieldblank,Facebookwillaimtogetthemostresultspossiblefromyourbudget.WhenyouuseLowestCost,Facebookwilltrytouseupyourbudget.Therewon’tbeagoalorconcernrelatedtotheCostPerActionorROAS. UsingthedefaultLowestCostisbestinthefollowingscenarios: Youwanttospendyourentirebudget Youdon’tcareabouttheCostPerAction Thinkofitthisway:IfyouusethedefaultsanduseLowestCostbidding,Facebookdoesn’thaveaspecificgoalorguidelineinmindwhenrunningyourads.Facebookwilltrytogetyoutheactionyouareoptimizingforandthey’lltrytospendyourbudget.That’sit. Ifyouaddsomemanualcontrols,itmaylimithowmuchyouarewillingtospendintheauctionoritmaysetCPAorROASgoalsthatFacebookwilltrytoreach. CostCap IfyouenteraCostControl,FacebookwillautomaticallyuseCostCap. Insomecases,you’llbeabletoeditthebidstrategyandchangetotheBidCapBidControl. IfyouuseCostCap,FacebookwilltrytokeeptheaverageCostPerActionatorbelowthecostcontrolthatyouset. Let’sassumeyouareoptimizingforconversions.Ifyouseta$10.00costcontrolwhileusingCostCap,Facebookwillaimtomaintaina$10CostPerConversion.Someconversionswillcostmoreandsomeless. FacebookrecommendsthatyouuseaCostCaptotellFacebookthehighestCPAthatwillkeepyourcampaignThecampaignisthefoundationofyourFacebookad.Thisiswhereyou'llsetanadvertisingobjective,whichdefineswhatyouwantyouradtoachieve.profitable.Keepinmindthatthismaymakeitmoredifficulttospendyourbudget.Asaresult,itmaytakelongertoexittheLearningPhase.Yourresultsmayfluctuateuntilthen. BidCap TheBidCapbidstrategyisavailableformostoptimizationoptions. BidCapallowsyoutosetthemaximumbidacrossauctions,ratherthanallowingFacebooktobiddynamicallybasedonyourcostorvaluegoals.Thisismeantforthosewhohaveastrongunderstandingofpredictedconversionratesandcancalculatetherightbid. Here’sagraphicthatFacebookusestotryanddifferentiateCostCapandBidCap… BidCapisconsideredthevery“advanced”method.BetterforthemostsophisticatedadvertiserwithhighvolumeandadeepunderstandingofKPIsandcosts. BONUS:MinimumROASandValue IfyouoptimizeforValue,Facebookwillaimtospendyourbudgetwhilegeneratingthemostbudget.IfyouuseMinimumROASControl,youcansetaMinimumROAS(ReturnonAdSpend),andFacebookwillusethatMinimumROASasaguidewhilespendingyourbudget. IactuallywroteaboutoptimizingforValueandsettingaMinimumROASrecentlyinthepostsbelow: HowtoUseValueOptimizationforFacebookAds HowtoUseMinimumROASFacebookBidStrategy AdSetvs.CBO IfyouturnCampaignBudgetOptimizationCampaignbudgetoptimization(CBO)automaticallymanagesyourFacebookcampaignbudgetacrossadsetstogetyoutheoverallbestresults.(CBO)on,youwillsetyourbidstrategyatthecampaignlevel. ThatstrategywillthenbeappliedacrossalladsetsAnadsetisaFacebookadsgroupingwheresettingsliketargeting,scheduling,optimization,andplacementaredetermined.withinthecampaign. IfCBOisturnedoff,thebidstrategyisdeterminedwithintheOptimization&Deliverysectionoftheadset. Don’tGetCute Theinstinctmaybetobidaslowaspossibleand“trick”Facebook’ssystems.Thisishowyouget100salesfor$.01each,right? Well,no.TheresultofsettingmanualBidandCostControlstoolowisthatyouwon’tgetanydistributionatall.Oryouwon’tgetthevolumeofresultsyouwant.Oryouwon’treachthepeoplemostlikelytoconvert. ACostCap,forexample,doesn’tguaranteethatyou’llbeabletomaintainanaverageCPAcostthatyoudesire.Itsimplyestablishesagoal. Usebidstrategiestomanagecosts,butdon’tusethembecauseyouthinkyoucanmanipulatethesystemtogiveyouresultsthatareotherwiseimpossible. Therealityisthis:Formostadvertisers,mostofthetime,usingthedefaultLowestCostbidstrategyisfine.FeelfreetoexperimentwithCostCaps,inparticular.Butalsodon’tfeellikeyouneedtouseanyoftheseifyou’reoverwhelmedbyhowtousethem. BidStrategybyOptimization IfyouaretryingtosetaCostCapandcan’t,that’sprobablybecauseit’snotanoptionfortheoptimizationyouhavechosen. BidCapisavailableformostoptimizationoptions.YoucanuseCostCapsforthefollowing: 2-secondVideoViews AppInstalls Conversions ConversionEvents(CatalogSales) EventResponses LandingPageViewsLandingPageViewisaFacebookadsmetricthatrepresentswhenpeoplelandonyourdestinationURLafterclickingalinkinyourad. Leads LinkClicksThelinkclickmetricmeasuresallclicksonlinksthatdriveuserstopropertiesonandoffofFacebook. PageLikes PostEngagement VideoViews Documentation Thepurposeofthispostwastoexplainassimplyaspossiblethedifferencesbetweenbidstrategiesandwhenyoumightusethem.Thatsaid,youcouldgoREALLYdeepintotheweedsonthese(particularlyBidCap,whichstillmakesmybrainmutatesometimes). Checkoutthefollowingformoreinfo: YourGuidetoFacebookBidStrategies AboutBidStrategies AboutLowestCost AboutCostandBidControls AboutCostCap AboutBidCap BestPracticesforBidCap AboutHighestValue AboutMinimumROAS YourTurn What’sbeenyourexperiencewithFacebookadsbidstrategies? 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