Facebook Ads Bidding Stategy

Optimize your Ad Campaign to get the most out of your budget. When you’re creating an Ad Campaign in Falcon, you can apply a bidding strategy which will determine how your budget is spent. This article will help you choose the right bidding strategy to utilize your budget and achieve your goal as efficiently as possible.

What is a bidding strategy?

In Facebook’s terms, a bid is how much you’re willing to spend on a desired action, for example a click or an impression. The result of the amount spent is considered the cost per action (CPA). In Facebook’s Ads Manager, you can view your average cost per action for each Ad Campaign.

Using a Bidding Strategy, you can use this information to control your budget and instruct Facebook to cap your bid amount, set an average cost per action, or set a target cost for every action. Otherwise, you can choose to have your entire budget utilized without any caps.

What bidding strategies are available in Falcon?

In Falcon, there are four available bidding strategies:

  • Lowest cost without cap
  • Bid cap
  • Target cost
  • Cost cap

Note:

Not all bidding strategies are available for each chosen Campaign Objective. Please see below for more information on which bidding strategies you can choose from based on your Objective.

What to consider when choosing a bidding strategy

Below, you can see some of the main focuses and considerations for each available bidding strategy

Lowest cost without cap
The default bidding strategy for Facebook Ad Campaigns, this bidding strategy is best when you'd like to use your entire budget, you’d like Facebook to manage the bidding, and you’d like to find out more about how your money was spent for future strategy considerations. However, you lose direct control over the cost for every bid or action.
Bid cap
Control your own cost by setting a maximum bid for each auction. Facebook will stick to your bid cap, allowing you to maintain a competitive advantage for actions and limit spending. If all bids are available at amounts exceeding your cap, you may risk missing out on opportunities and not spending your full budget.
Target cost
Set your cost amount and allow Facebook to pursue the most conversions at that target cost. This allows you to maintain and predict a consistent cost throughout, but you may miss out on cheaper opportunities and you may not utilize your entire budget if the necessary cost-per-action rises.
Cost cap
Once you enter a cost amount, Facebook will consider it a threshold and optimize your budget to achieve results while maximizing cost-efficiency. Similar to ‘Target cost’, this strategy allows you to take advantage of more inexpensive opportunities while maintaining an average cost-per-action. As the cost rises over the duration, you also may not utilize your entire budget.

How to select a bidding strategy in Falcon

You can choose your bidding strategy when creating a new Ads Campaign in Falcon. Please follow the steps below:

    1. Go to ‘Advertise’ from the menu on the left-hand side.
    2. Under the Overview heading, select ‘Campaigns’.
    3. Select ‘Create New Campaign’ from the top right.
    4. Choose your Campaign Objective.
    5. Select ‘Budget Optimization’.
    6. Next to ‘Bid Strategy’, use the dropdown to select from the available strategies.
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Note:

It’s only possible to select a bidding strategy when you’re creating a new Ad Campaign and this can't be edited later.

Which bidding strategies can I use for each Campaign Objective?

Your chosen Campaign Objective determines which bidding strategies you can choose from. The table below shows which bidding strategies are available for each Campaign Objective:

Campaign Objective Lowest cost without cap Bid cap Target cost Cost cap
Conversions
Lead generation
App installs
Traffic
Post engagement
Page likes
Brand awareness
Video views
Reach
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