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Home Marketing & Tech Advertising

Tips on Facebook Ads Bidding Strategies

byInside Network
March 16, 2020
inAdvertising, Facebook, Marketing & Tech, Social media
Mobile facebook AD

Facebook Ads can be profitable, but results depend on the offer, audience, measurement and bidding strategy. A lower price is not automatically better when it produces fewer valuable outcomes. Connect the choice to one clear objective and a cost the business can support.

The original guide contrasted “Lowest cost” with “Target cost”. Treat that as historical terminology, not a complete list of current choices. Check the options offered for your campaign and read what each control actually constrains before entering a number.

Start with the result you need

Define the action that matters: a completed purchase, a relevant enquiry or another meaningful event. Then check that it is measured correctly. A campaign optimised around a weak signal may find more of that signal without improving the business outcome you intended.

For a lead campaign, distinguish a submitted form from a qualified opportunity. If many forms are unsuitable, reducing the price per form may not be progress. Review a sample of actual enquiries and make sure the measurement supports the decision being made.

Estimate a defensible acquisition cost using the economics of the offer. Consider margin and the costs of fulfilment, support and returns rather than treating revenue as money available for advertising. Use realistic assumptions; expected repeat purchases are not guaranteed cash.

Target your market without assuming smaller is cheaper

Research who can use the offer and where it can be delivered. A larger audience does not automatically make a campaign more expensive, and a narrow audience does not guarantee lower costs. Relevance, available opportunities and delivery conditions all matter.

Use necessary restrictions, such as an actual service area, and distinguish them from assumptions about who might respond. Tailor the message to a recognisable need. If the advertisement attracts the wrong people, examine the promise and destination as well as audience settings.

Record which restrictions are essential and why. This makes it easier to assess a test without removing a genuine business constraint simply to increase reported reach.

Understand budget, cost goals and bids

A budget concerns spending over the relevant period. A cost-per-result goal concerns the average outcome cost the system is asked to pursue. A bid control concerns auction bidding. These are different mechanisms and should not be treated as interchangeable guarantees about the final price of every conversion.

When Facebook offers a control in the account, inspect its current explanation and eligibility. A restrictive setting can reduce delivery rather than produce the same volume at a lower price. Investigate the result instead of assuming the system will always spend the full budget.

The appropriate choice depends on the objective, available data and trade-off between volume and cost control. Campaign duration alone is not a reliable rule for choosing a strategy. A short campaign can still require careful economics, and a long one does not automatically need a particular historical option.

Schedule your ads for a reason

Review the scheduling options available to the selected campaign and budget type. Do not assume every setup supports identical hourly controls. Confirm the account’s time zone and the period during which the offer is valid.

Restricting delivery to staffed hours may be sensible for an action that requires immediate contact. For an online purchase, customers may complete the task at other times. Base the decision on the customer journey and observed outcomes, not only on when the team is in the office.

Avoid treating a small number of quiet hours as proof that a whole time window never works. Look at enough observations and account for the time between seeing an ad and completing the action.

Run a controlled bidding test

Write down the current performance, proposed change, test budget and decision rule. Keep the offer, destination and other major settings as stable as practical. If several elements change together, it becomes difficult to identify why the result moved.

Choose a review period that suits the volume and buying cycle. Do not react to every early fluctuation. At the same time, monitor for obvious problems such as incorrect tracking, an unavailable destination or spending outside the approved plan.

Assess useful results and total spend together. A lower average cost with almost no delivery may not satisfy the campaign’s purpose. Conversely, higher volume is not desirable when the additional outcomes cannot justify their cost.

Diagnose before increasing a limit

If delivery is low, check status, measurement, audience restrictions, schedule and the offer before changing the bid. If costs rise, examine lead quality, landing-page performance and changes in demand. A bidding adjustment cannot fix every issue in the customer journey.

Document the outcome and the next decision, including tests that did not help. Keep the strategy only while it supports the business objective at an acceptable cost. Review the setup when the offer, margin or measurement changes rather than treating one successful setting as permanent.

Tags: GuideTargeting

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