If you want to beat your competitors through Facebook ads, you need to master the art of flashy advertising, good copywriting and bidding methods. You also need to use all targeting options to attract your customers. In addition, you must be able to optimize ads well. What is the point of having a large audience and carefully selected ad if the results are unsatisfactory? Through advertising you can grow and achieve a lot, but the opposite can also happen - you can pay too much for your campaign and get minimal results. In this article you will…
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If you want to beat your competitors through ads on Facebook, you will need to master the art of flashy advertising, good copywriting and bidding methods. You also need to use all targeting options to attract your customers. In addition, you must be able to optimize ads well. What is the point of having a large audience and a carefully selected ad if the results are unsatisfactory? Through advertising you can grow and achieve a lot, but the opposite can also happen - you can pay too much for your campaign and get minimal results. In this article you will get all the information about Facebook strategies for bidding methods. With this information, you will be able to update your knowledge and achieve the best results. If you fail to choose the right strategy, two things can happen.
You will pay too much to achieve results from the ad.
Your ads will never be delivered because of the low bids.
In this article you will learn how to choose among the various bidding methods.
Bidding methods? Is this an auction?
Yes! This is the first thing you need to understand if you want to succeed with Facebook. When you create a new ad, you join a huge global system. You will compete with thousands of advertisers trying to buy what is sold on Facebook: Real Estate, News, Messages, a network of mobile apps that show ads to users. While Facebook tries to satisfy the requests of every advertiser, even with 1.79 million monthly users, ad space is limited. Sometimes Facebook will not be able to fulfill all requests. When that happens, the most valuable candidates will get the most impressions. There are still three factors that contribute to ad delivery: the bid, the placement and the action estimates. So, not every expensive ad wins all the time. For example, let's assume Facebook has only 3 ad placements and there are 4 advertisers.Advertiser A bids $0.3Advertiser B bids $0.5Advertiser C bids $0.5Advertiser D bids $10In this case, advertiser A will be dropped and will get close to 0 impressions. Advertisers B and C will get a good price between $0.31 and $0.5. Advertiser D will probably get more impressions at a price higher than B & C - around $0.35 and $0.6, but there is no way they will pay $10!
There are two important things here:
If you try to bid too low, your campaign may not get the exposure it deserves and you will not achieve your goals. Remember that you always get what you pay for. Don't be afraid to bid high. You will pay the lowest possible amount depending on the amount offered by the highest bidder after you.
Facebook Ads Bidding Methods, Strategies
Just a few years ago, the life of an advertiser was simple and clear. They could only bid on their ads by clicks or impressions. However, with the incredible rapid development of Facebook's ad platform, modern advertisers have to deal with many bidding strategies: CPC, CPM, conversions, Daily Unique Reach, Post Engagement, etc. You are probably wondering what these complicated words mean? Let’s go through each one and try to understand how to work with them.
CPM Bidding Methods
CPM (Cost Per Impression) is a quantity-based bidding method, the maximum amount you want to pay to deliver 1000 ad impressions to members of your target audience. CPM is the most unpredictable method among all bidding methods, and you can spend a lot of money and get almost no results. If you want to achieve specific results related to promoting a brand, CPM can be a suitable bidding method.
CPC Bidding Method
The most commonly used of all bidding methods is CPC (Cost Per Click), which allows you to bid for clicks. This means that you will pay only when a user clicks on your ads. Sounds great, right? When bidding for CPC, keep one thing in mind: Facebook wants to maximize its profits. If your ad has low engagement and no one clicks on it, Facebook will stop showing it. After all, it is more profitable for them to show an ad for $0.10 that gets 1,000 clicks than an ad for $5 that gets only 5 clicks. The key to effective CPC is this: How high is your CTR (click-through rate) and your quality score? In the end, a higher click-through rate means more money for Facebook.
Conversion bidding
When bidding for conversions, Facebook will do everything possible to deliver ads to members of the target audience who are most likely to convert. The type of conversion depends on your objective. When the goal of your ad campaign is to get more leads, the conversion will be for getting a new lead. Conversion bidding will most likely bring you the best campaign results, as Facebook will deliver your ads to people who are most interested in your offer. If you bid for conversions and set a manual bid, you can tell Facebook how much you are willing to pay per conversion (app install). When bidding for conversions that happen on an external website, make sure you have the Facebook Pixel installed. Otherwise, Facebook will not be able to collect the optimization results.
Facebook Never Sleeps
We see various changes being made month after month. You will find all useful news related to the topic in the following lines. The biggest change in Facebook bidding tactics is this: when optimizing ad delivery for conversions and you choose the manual bidding method, you can choose between maximum and average bids. If you choose an average bid, you are telling Facebook what the average amount is that you are willing to pay. Facebook will do everything possible to achieve the most results during the campaign within your budget and bids. When you set an average bid, Facebook will use pacing. Pacing helps avoid spending the entire budget early in the day, making it possible to miss conversions and achieve lower costs in the second half of the day. With the pacing option, you will get conversions that are much lower than the average bid, but you may also get more expensive conversions. As a result, you will get more conversions relative to your average price. When to use the maximum bid: If your goal is to maximize profit relative to the ad budget, then use this method. When to use the average bid: If your goal is to increase ad delivery and get as many conversions as possible, even if they cost a little more, set an average bid.
Where can you customize and view your bidding options?
To customize and view bidding options, go to the "Budget and Schedule" tab. You can find this in the Ad Set part of creating a Facebook campaign. You will see "show advanced options" below, where you can set additional bidding options. In the Advanced Options tab, you will be able to choose what you want to optimize ad delivery for, set certain manual bids if you decide to use them, and decide which payment method you will choose.
Your optimization choice
When you run a campaign aimed at optimizing for more clicks, you pay on a CPC basis (or Cost Per Click). If the optimization is for conversions, that means we will pay on a CPA (Cost Per Action) basis. Now that you have chosen which ad method and optimization you need, you should also match it to the groups of people who are most likely to want to see your ad. If, for example, you can optimize for conversions, Facebook will show your ad to users who are most likely to be interested in your products. If you decide to optimize for Post Engagement, Facebook will deliver the ads to people who have commented on, liked, or shared them.
Almost all ad types allow optimization for:
Conversions - optimize your ad campaigns for conversions with a recommendation strategy. By using this method, Facebook will deliver ads to people who are most likely to interact, so you will get the most results at the lowest cost.
Bidding methods for Link clicks
Facebook will focus on getting users to click the ad. If you are trying to get more traffic to your landing page, or promote your Facebook page, CPC can be a good option.
Bidding methods for impressions
This option focuses on showing your ads to more people. This is great for businesses that want to remind their audience about themselves. Unlike the conversion bidding method, Facebook will not optimize your ads to be delivered to the most engaged audience. The ads will be delivered to the audience as many times as possible.
Bidding methods for Daily Unique Reach
Choosing the Daily Unique Reach bidding method allows Facebook to show ads to people only once per day. This can be a good idea when targeting a small retargeting audience or whenever you want to make sure your ad reaches all members of the audience. If you are concerned about a high ad frequency, bidding with Daily Unique Reach can be a good solution.
Post Engagement
When choosing Post Engagement optimization, Facebook will deliver your ads to people who are most likely to like or comment on them (engage with your ads). This could be a good option for your blog articles.
Brand Awareness
Facebook will prioritize showing your ads to those who will pay the most attention to them. They are suitable for ad campaigns that aim to impress the audience and introduce them to a product or brand.
Is optimization worth it?
Optimization can affect your costs, even if this is not immediately obvious, because it is difficult to track accurately. One ad can be successful with little spend. That is why the members of the audience who see your ads will vary depending on what is being optimized. Some audience members may not be as interested as others, but someone will always click on the ad. This can affect the goals and relevance of your ad.
What can be said about CPC, CPM, and CPA?
In Facebook advertising, bidding options depend on the campaign objective. For example, if the campaign objective is set to brand awareness, you will not be able to bid for conversions (since there is no conversion). Here is a list of campaign objectives and their bidding options: Conversions, which allow you to connect with others - Link clicks and impressions. Traffic, which gives you the ability to bid for link clicks (CPC) and impressions. App installs, which allow you to bid for app installs, impressions, and link clicks.
Factors that influence
So, how do you make sure you "win" a bid as Facebook offers? There are several factors you need to keep in mind and that determine whether your ad will be shown or not. They include: Your bid. Facebook runs an auction, and here you need to be able to pay more if you want to win more. So your bid should be high enough to win in the bidding system. Be careful not to set bids that are too high, as the results could be unpredictable. This way, you may end up with a negative ROI on the campaign and lose money.
Quality score.
The score has a direct and very valuable impact. If you have a higher score, Facebook is likely to prioritize your ad and lower costs. "Estimated action rates." Facebook determines your "estimated action rates" from a number of different factors.
