Which is the best facebook ads bidding strategy?
There is no doubt that Facebook ads are one of the most commonly used platforms by marketers. It helps in getting more engagements, traffic for a website or a starter blog. And also FB ad campaigns have the potential to increase the revenue of the business. It’s important to note that “Facebook ads bidding strategy” is not just about setting up the campaigns live and getting charged up for impressions irrespective of the campaign objectives. With advanced targeting options, advertisers can set up facebook bid caps, maximum CPA (set max cost per lead), Target cost. Also, it allows in setting cost per link click, Min & Max charges per 10-second Video views, etc. In this article let us try to practically understand the advanced Facebook ads bidding strategy of a campaign.
Facebook ads bidding strategy for Lead generation.
Let’s say you are running a Facebook campaign with an objective to get more leads. Obviously, in this case, it would not be good to allow Facebook to charge you for impressions. Because what you actually need as results for this particular campaign is leads and not clicks or likes. Assuming that you have some budget of around 5600 INR and are willing to pay 50 rupees per each lead generated through Facebook. Now, what you would actually need to do is just hover down to budget and schedule under ad sets in your FB ads manager. And then choose advanced options and select a bid strategy.
Facebook Bid cap.
Select the bid cap and enter the maximum amount that you are willing to pay for facebook for every lead that is being generated. For the tutorial purpose, I have entered the bid cap as 50 rupees & total budget as 5600 per week. So, what Facebook would do know is that it would not charge me more than 50 rupees per lead.
50(50 rupees per lead)*120 (120 leads are generated with 5.6k rupees budget & by paying 50 rupees per lead) =5600 rupees.
So, going by the above-mentioned calculations, you would be getting 120 leads by paying 50 INR/Lead with a budget of 5600 rupees. And in this way, you might need to bother about paying facebook only for impressions but instead pay Facebook for leads when you actually need leads. In simple words, the Facebook algorithm will not charge you more than 50 rupees per lead if you opted to set bid cap of 50 INR.
Facebook Target Cost Bidding strategy.
When you don’t want to fix up a specific bid value to generate leads, you can use the target cost strategy. By using this strategy you would enter an average bid amount & allow the Facebook algorithm to automatically set bids to generate leads by maintaining your average bid amount. For example, if you set Target cost to 40 rupees with a budget of 5600 rupees. Then Facebook will automatically set bids for each lead generated by maintaining the average CPA of 40 rupees. So, in this way When there is a high probability of generating lead facebook algorithm would slightly decrease the bid to above 40 rupees and when there is a low probability of a lead getting generated facebook algorithm would slightly increase the bid amount of below 40 rupees. But yet Facebook will not charge you on average more than 40 rupees per lead.
Facebook ads bidding strategy for Traffic.
Most marketers would want to drive traffic from Facebook ads. Advertisers will pay for impressions if they don’t use advance bid strategies. It is important to ensure that advertisers pay facebook only when they get a valid click.
To implement this do the following:
- Select Traffic under campaign objectives.
- And then select Budget and schedule.
- Finally, choose Link click under Optimization for ad delivery. And then select the bid cap and enter the max amount that you wish to pay for a Link click.
For the tutorial purpose, I have entered it as 10 rupees. For a few specific types of optimization strategies, you can directly indicate Facebook to charge you only for Link Clicks. Refer to the below screenshot for better understanding of this.
Facebook ads bidding strategy for video views.
Similarly, if you plan to launch a video campaign on facebook then you could ensure that you pay for video views only. Select video views in the campaign objectives. And then select the bid caps. You can even imply to Facebook to charge you only for each 10-second unique video view.
You can use bid caps in engagement campaigns as well.
One can implement all the strategies discussed in this post via FB business manager account as well. But for now, the Target cost bid strategy is not available on the business management platform. So, in case if you wish to use it you would have to use the old FB ads manager.
Facebook ads bidding strategy allow advertisers to spend the budget in a flexible way. It is always important to set up Facebook campaigns with a proper bid strategy. I hope you enjoyed reading this article. Please do share this article on social media sites.
Thanks for reading.