In this day and age, the best path for marketing is an online advertisement through broadly utilized applications. Social networking plays a vital role in connecting various groups of people and individuals worldwide, resulting in communication being much easier and accessible than before the existence of such a system.
Advise this idea to somebody a few decades back, and they will presumably believe you to be a lunatic. However, this implies that associating the buyers and brands has gotten simpler than in recent memory. Cool, no? With a broad scope of crowd, social media has extra-customary limits of boosting brand awareness.
The application, which is the focal point of our article today is Facebook, presumably the first-ever social networking site to get an extensive acknowledgment and ubiquity scope. Facebook’s daily active users have increased by 8% year over year from 2018 to 2019, reaching 1.59 billion. Monthly active users topped 2.41 billion.
On average, people access Facebook 8 times each day and are frequently checking and engaging with their newsfeed. As a result of acknowledging the power it holds, Facebook has figured out a way to assist individuals with various new start-ups in advancing their image. This prompted the existence of Facebook bidding strategies.
To make use of such an attractive tool for business and marketing, we should be aware of what it is, how it works, and what it has to bring to the table for us? From where to get all this information? No worries, because this is the right article for you!
Facebook bidding strategies determine how frequently your advertisement is conveyed to your intended audience. 93% of social media marketers use Facebook ads.
A Facebook campaign like this can help you achieve your optimal KPIs by expanding your brand reach, pulling in more clients, and eventually increasing sales since it provides exposure to extraordinary skylines.
Facebook disperses advertisements dependent on an auction. Facebook utilizes a promotion sale to decide the best advertising to show to an individual at a given point as expected. The winner is the most noteworthy action rates, estimated total value, and advertisement quality.
Facebook promotions appear through a bidding system where Facebook Ads are straightforwardly influenced by the number of different sponsors focusing on similar individuals and audiences and what they are offering. In simple words, people who bid more get wider coverage than those who bid less.
A bid shows what you're willing to pay to accomplish your desired outcomes from somebody in your intended audience. Thus, choosing the right strategy will help you boost your campaign’s proficiency and achieve your ideal results within the spending restrictions you can bear.
One of the most basic bid strategy types is the Lowest Cost (Auto) Bid Strategy, where Facebook tries to give you as many ad placements as possible while keeping the costs at a minimum. New businesses mostly use it with a tight budget, and because Facebook is the one that deals with optimization, and hence it is efficient for getting fast, cheap leads.
However, this bid strategy is only suitable for short-term ad campaigns and can get relatively unstable when competition increases; hence one might have to move to other types of bid strategies.
“Bid Cap” is a strategy managed by the advertiser rather than Facebook. The Advertiser sets a bid cap “specific amount” for each auction. It helps you determine a budget over which you cannot spend. It is unnecessary to use the entire amount, as often the amount paid can be lesser than the amount specified in the bid cap.
It gives you more control over the cost. Just like the Lowest Cost (Auto), it is only suitable for short term ad campaigns.
“Cost Cap” is another strategy managed by Facebook, unlike Bid Cap. It sets an overall cost within specified limits, unlike in Bid Cap, where the amount was set for each auction. Facebook adjusts your bids automatically to maximize the results within your target Cost per Actions and Costs per Install.
Target Cost Bid Strategy allows you to set an approximate target cost; however, it is an average cost, not specified. This means, at times, the actual costs can be either over or under the approximate target cost. This is better suited for advertisers with a flexible budget but not for advertisers with tight budgets.
It is easy to scale and is stable across the entire ad campaign. It is beneficial for long-term campaigns. On the other hand, as its costs fluctuate, it can be rather expensive than Lowest Cost Bid. And it is only recommended for experienced advertisers who know the ins and outs of Facebook Ads.
The choice of selecting a strategy is influenced by various factors, such as your business, your spending plan, availability to face a challenge, taking the risk of experimenting, and your ideal results. Hence, if one strategy offers admirable outcomes for one brand, it doesn't ensure a similar accomplishment for other brands.
A more significant part of Facebook sponsors selects the Lowest Cost alternative, also known as automatic bidding. As the second name implies, it lets Facebook handle all the bidding on behalf of the sponsors, increasing competition, and making it even harder to survive in the market than it already is.
If you are willing to take the risk, you should opt for Target cost (manual bidding) to increase opportunities to find different hacks to race ahead of the competitors. For instance, you set your Facebook offer multiple times higher than what Facebook recommends.
Of course, you may be dubious of yours at first and believe that the impressions are very costly. However, following a couple of days, you see things balance out, and because you went high, you get the most pertinent clients who respond well to the advertisements since you were given better coverage than those who bid lower and played safe.
Just like this strategy, don't fear testing. Make a few promotion sets inside a similar advertisement campaign with various bidding settings, contrast the outcomes, and select the one that indicated the best presentation.
Many have suggested taking the path of manual bidding. Jack Choros of Iron Monk says, “Handle your bidding manually and take note of three different factors:
The average engagement rate for an organic Facebook post is 3.91%, and engagement is the best way to increase your reach, and posts with a higher engagement rate are less expensive to promote.
However, take the risk only when you are willing to invest in a long-run campaign since disappointing outcomes resulting from exceeding your budget are highly expected in this option. Thus, Target cost is a safe option for small group investors with high or flexible budgets.
While investing, the most troubling question that arises in any advertiser’s mind is, “What amount is advisable for me to pay for my Facebook ads?”
Well, bids are just one of the enormous number of elements that can influence how much your Facebook Ads may cost.
These other elements can include:
The long stretch of the year, the day of the week, and even the particular hour of the day can influence promotion costs. There are top occasions, and when the opposition is most elevated, the prices go up.
Regardless of whether you select the most reduced cost or pick a particular offer cap can, at last, decide your promotion conveyance and price.
Diverse promotion positions will have various expenses – the more rivalry a specific arrangement has, the higher the cost.
Facebook has three separate measurements to decide your advertisement’s nature – Engagement Ranking, Quality Ranking, and Conversion Ranking. Having a low score in any of these regions will build your expenses.
On the off chance that different promoters are attempting to contact similar crowd individuals, costs go up as newsfeed space isn't limitless.
As seen above, there is no universally defined answer for questions like ‘Which bidding strategy is the best?” or “What amount is advisable for me to pay for my Facebook ads?” since all of this varies according to our requisites.
The wisest thing to do is give great thought to your idea before investing or choosing a strategy and plan according to all the different factors highlighted above. Hope you do wonders with the strategy you choose to flourish your businesses and start-ups.
Work with a few different bid strategies before you decide to put all your money on one type. This will help you to make the best and the most profitable decision.