The Facebook ad bidding method is something that can be explained as the budget that you are going to spend on your campaign results. This depends on a number of factors such as the objective or goals of the ad campaign.
For people who have just started up with the Facebook ad, there can be a number of questions in the mind. Here is a guide that can help you in getting answered all such questions about how to optimize Facebook Ad Spend –
What Can Be The Cost Of The Facebook Advertising?
It happens a number of times when the advertisers may end up having not so satisfying return on investment because they have spent on the cost per result in the wrong way. So, what should be the average cost that one should spend on Facebook ads?
This entirely depends on a number of elements and factors. So, let us have a look upon the factors upon which Facebook Ad Optimization depends-
One of the major factors is the country that you are targeting for your advertisement. The demand for the particular product in that particular country or so decides whether people will get attracted towards the ad or not. Hence, you should invest accordingly.
Second is the offer or the ad design that you are having. There are so many advertisements out on the Facebook platform and hence it becomes at times quite difficult to compete. Hence, it is very much important to come up with an ad design that is highly competitive and can bring in good view and responses.
Based on such factors, the investment on the cost per click is determined.
If you are a starter and are not sure how to determine your cost, you can start with a cost of about $1 per click. This can be improved upon later on depending upon the responses coming on your ads. You can easily increase the cost to about $5 per click.
Let us now understand how the bidding proceeds in Facebook advertising, so you can comprehend how to optimize Facebook Ad Spend like a pro-
The Working of The Facebook Ads Bids
While you are setting up the ad campaign on Facebook, there are a number of tools and options that will be provided to you by Facebook. If you are a beginner, you may get a bit confused with such options that are being provided to you. But when you have understood about them in details, you can surely make use of them in the right way.
The ad delivery of Facebook depends on two of the most important goals.
- Helping the advertisers to reach out to the right audiences and getting proper results in the form of responses from them.
- The offering relevant experiences for the users of different social platforms such as Facebook, and many others.
The Facebook ad bidding system has been created so that such goals can be achieved in the right way.
You need to understand that the space of the advertisement on Facebook is limited and within that limit, Facebook tries to satisfy almost all the users. The delivery of the ads depend upon a number of factors:
- The first factor is the bidding of your ad campaign. The higher you are bidding on the ad, the higher Facebook will deliver your ads.
- The relevance of the ads will directly affect ad delivery. The more relevant is your ad, the more Facebook will deliver your ads.
- The last factor that determines ad delivery is action rates.
When you are posting an ad, Facebook will determine delivery of ads based on all these three factors and hence will optimize your ad. This is the reason; the posting of the ads and bidding on them can be also stated as auctioning off the ads.
Now, when you have put up the highest bids and have won the auction, what charge can you expect from Facebook?
You can be sure that Facebook will not charge you something higher. This is because there are two things on which it works.
- Facebook will always charge you much lesser than the initial bid.
- Secondly, even if you are putting a high bid on the ads, Facebook will only charge you a cost that is needed to win in the competition.
This is the reason; it is always advised to put a higher bid depending upon the relevance of your advertisement. This is one of the best ways to run a positive Facebook campaign with a higher ROI.
The Bidding Options
There are different bidding options that Facebook offers for the ads that the users put up.
- Cost Per Mile Bidding
In this type of bidding, you need to pay exactly the amount that you are using in the bidding. Such type of bidding options is mainly used by people who are not looking for conversions but are mainly willing to spread the awareness of the brand among the audiences.
- Cost Per Click Bidding
When you are using this bidding technique, you can be sure that you just need to pay when a user will click on the ad. It was it 2015 when Facebook made a bit of revision in the cost per click bidding.
You need to pay per click only when the user is clicking to visit your site, call to action, install an app, view a video, or so. Such type of bidding is known to be the best option for optimizing your Facebook ads and the ad costs.
- Cost Per Conversion Bidding
When you are bidding on the conversions, Facebook will make use of the best tricks to reach out to most relevant audiences to deliver the ads so that you can enjoy higher conversions.
This can be said to be one of the bidding options that is sure to bring you the most relevant results. To make use of such a bidding option, it is a great idea to install Facebook Pixel.
Manual Vs Automatic Bidding
Currently, Facebook has come up with two different bidding options for better ad optimization. When you visit the section of ‘Optimization and Delivery’, you will come across both manuals as well as the automatic bidding option.
Target bidding or the manual bidding can be used for a number of options such as installing apps, generating leads, conversions, store visits, and catalog sales. On the other hand, the lowest bidding or the automatic bidding can be used in a number of other options such as brand awareness, traffic, page likes, app installs, lead generation, conversions, store visits, reach, post engagement, event responses, video view, messages, and catalog sales.
There is another option where you can flag the bid cap and Facebook will allow you to bid for a specific result.
Whatever you wish to choose, this can be done easily by going to the Business Manager. You go over the ad and click on the edit option. Here, you can make the necessary changes and then can click on the publish option.
Caping And Pacing
Caping is a method that saves you from overspending on the ad bids. To start the bid cap, you need to have a budget that is five times more than the bid cap. This is very much important because Facebook requires about 50 events in a week time to get the optimization done in the right way.
In case if you have not selected the caping for the bids, Facebook will make use of the pacing technique. This method is used by Facebook to offer you the best optimization results based on the goals set.
Some Hacks to learn how to Optimize Facebook Ad Spend
After getting familiar with the different bidding methods, it is also a great thing to know about some of the bidding hacks.
- Optimizing For Conversions
The best way is to optimize ad campaigns for the available conversions. This is a trick that ensures the Facebook will surely optimize the ad campaigns going on in the very right way.
- Bidding The Maximum Amount For Conversions
Many of the users are stressed up with the thinking that they might get overcharged for the bidding. If you are of the same thought, you can use a trick to safeguard yourself. This can be done by bidding an amount that is maximum for the worth conversions.
- Starting With A Small Budget
This is the most important trick that can actually bring up great results. You should start with a small budget. An ideal start is at $1. Later on, when you check that your ad is running successfully and is bring more traffic and having good responses, you can increase it is $5. Now, you can have a close check on the insights and the results and keep on increasing the amount accordingly.
Facebook offers a number of options for users to put up their ads through different formats. But just knowing about the putting up of the ads is not enough; you also need to know about the ad bidding cost properly so that you do not overpay it.
Having a proper Facebook ad spend optimization done is the best thing in such a case. Getting through the tactics can be highly helpful in getting great results and also in not paying more than what you should actually do.