When I first learned how to ride a bike, I remember being scared. It was a daunting process because I’d never done it before and was terrified of falling.
I actually remember feeling similarly when I first started getting into paid advertising campaigns at the marketing agency I worked at. The first time doing anything can be an intimidating process.
But as a marketer, it’s important to understand how to set up your paid advertising campaigns so you get the most out of your budget.
To do this, you can use several types of bidding strategies for different types of ads.
Below, let’s review the bidding strategies that will drive results when you use Facebook ads and PPC/Google Ads.
Facebook Ads Bidding Strategy
When you’re just getting started with Facebook Ads, it’s not easy to figure out what strategy to use.
Luckily, Facebook has a guide that explains the different bidding strategies you can use. Let’s dive into those strategies and figure out how to determine which one is right for you.
1. Lowest Cost (Auto Bid)
With this strategy, you won’t have a lot of manual work to do. In fact, Facebook is the one who sets up the bid automatically.
If you want to spend your full budget, this is a good choice for you. It’s a hands-off strategy and you can get more bang for your buck while spending your budget.
So, how do you know if this is a strategy you’d want to implement? Well, this is a good idea if the goal of your campaign is brand awareness, impressions, traffic, post engagement, or lead generation.
2. Bid Cap
This strategy is slightly different because of the manual processes. For this one, you’ll be the one who sets up the bidding.
This is a good option if you want more control over the cost. In fact, with this strategy, you might not even spend your full budget.
This type of strategy works for the same types of ads as the lowest cost strategy, it’s just more manual and gives you more control over your spending. Plus, it can help you increase competitiveness against other advertisers.
3. Cost Cap
If the goal of your ads is traffic, event responses, offsite conversions, or lead generation, then this is a good option as well.
With this strategy, Facebook sets the bidding while you determine the maximum amount you’re willing to spend.
You could use this type of bid strategy if you want to maximize cost-efficiency and keep cost within a certain threshold.
4. Target Cost
Another semi-automatic option, this strategy will allow Facebook to choose the bid while you set a target price. This is the price that you’d like to strive for, but Facebook could over or underspend slightly.
If you want to maintain a consistent cost, this is a good strategy to look into. You’ll be able to predict your cost and get the most conversions possible at your target cost. – Read more