Facebook’s auction is designed to give you the least expensive delivery possible regardless of your bid. On Facebook, the bid is assumed to be the values (e.g., revenue) captured from each click, impression or action. Wondering how to be more effective with your bidding for ads on Facebook? Read these 7 best practices for Facebook bidding strategies:
1. Bid your maximum
Start with your objective and bid the maximum amount you’re willing to pay for that objective. Within your target audience, calculate the average profit for each action they take and this will determine what your max bid should be.
2. Avoid going for the cheapest clicks or impressions
Reaching the people that are easier to reach won’t necessarily provide the LTV (Life Time Value) customers you want. Additionally, scaling your campaign will be difficult.
3. Different bids for low and high LTV customers
Segment your audiences by low and high LTV customers. Then bid higher for shoppers that bring more value in the long run and bid less for those with a lower LTV.
4. Increasing the bid for your objective
Facebook advertising prices are calculated based on the position won in the auction and the weighted average of your competitors’ bids. Therefore, the cost is almost always less than the bid. If you’re willing to spend more to meet your objective, then increase your bid to maximize delivery.
5. Accurate end times for your ads sets
If the system thinks it has to spread your spend over a long period of time, you might get slower delivery. Therefore, set the end time appropriately.
6. Don’t change bids and budgets too frequently
Fluctuations in bids may affect delivery.
7. Avoid creating offensive or intrusive ads
This can really cost you. The more “x-outs” you receive on your ads, the more you will have to pay to reach people, and the smaller your target audience will become.
Facebook Bidding Strategies
Getting your bidding tactics correct should be part of your overall Facebook advertising strategy. Are there any other Facebook bidding strategies you use?