Facebook Bid Strategy

Facebook offers several different bidding options for ad campaigns, each with its own unique set of features and benefits. Understanding the different bidding types can help you to choose the best option for your business goals and budget.

Automatic bidding, also known as highest value bidding, is a hands-off option that allows Facebook to automatically adjust your bids to maximize the value of your ad campaigns. This bidding type is based on Facebook’s machine learning algorithms, which analyze historical data to determine the optimal bid for your ads. With automatic bidding, you set a budget for your ad campaign and Facebook takes care of the rest, adjusting your bids to get the best results possible. Automatic bidding is a great option for businesses that want to maximize the value of their ad campaigns without having to spend a lot of time and effort managing their bids. For example, a small business owner with limited time and resources might choose automatic bidding to save time and effort while still getting the best possible results from their ad campaigns. Automatic bidding is also a good choice for businesses that are new to Facebook advertising and want to get up and running quickly without having to worry about the technical details of bid management.

Manual CPA goal bidding is a more hands-on option that allows you to set a specific cost-per-action (CPA) goal for your ad campaigns. With this bidding type, you set a target CPA and Facebook will adjust your bids to try to achieve that goal. This bidding type is ideal for businesses that want to drive specific actions, such as conversions or lead generation, and are willing to pay a certain amount per action. Manual CPA goal bidding is a good option for businesses that want to drive specific actions, such as conversions or lead generation, and are willing to pay a certain amount per action to do so. For example, an e-commerce business that wants to drive sales might choose manual CPA goal bidding to focus on driving conversions and be willing to pay a higher CPA in order to do so. Similarly, a B2B company that wants to generate leads might choose manual CPA goal bidding and be willing to pay a higher CPA in order to get more qualified leads.

ROAS Target bidding is similar to manual CPA goal bidding, but instead of targeting a specific CPA, you set a target return on ad spend (ROAS). With this bidding type, you set a target ROAS and Facebook will adjust your bids to try to achieve that goal. This bidding type is ideal for businesses that want to maximize the return on their ad spend and are willing to pay more for conversions that have a higher value. ROAS Target bidding is a good option for businesses that want to maximize the return on their ad spend and are willing to pay more for conversions that have a higher value. For example, a luxury brand that sells high-end products might choose ROAS Target bidding and be willing to pay more for conversions in order to get a higher return on their ad spend. Similarly, a business that sells services with a high average order value might choose ROAS Target bidding and be willing to pay more for conversions in order to get the best possible return on their ad spend.

Bid Cap bidding is a more advanced bidding option that allows you to set a maximum bid for your ad campaigns. With this bidding type, you set a maximum bid and Facebook will never exceed that amount, regardless of the performance of your ads. This bidding type is ideal for businesses that want to have more control over their ad spend and want to set a hard limit on the amount they are willing to pay for ad placements. Bid Cap bidding is a good option for businesses that want to have more control over their ad spend and want to set a hard limit on the amount they are willing to pay for ad placements. For example, a small business with

Highest Volume (Formally Lowest Cost)

Bid Strategy Type

Automatic Bid

General Bid Strategy

  • Generally, the easiest to start with.
  • Start at a small budget and determine results.
  • Increase budget as you start seeing results.
  • Increase budget 25-35% per day until you achieve consistent CPA and adequate volume of acquisitions.
  • This is an automatic bid type — only budget can be adjusted.

Cost per Result Goal (Formally Cost Cap)

Bid Strategy Type

Manual Bid

General Bid Strategy

  • Set budget slightly higher than you normally would with Highest Volume.
  • Start slightly higher than the target CPA and bid down until you achieve a good balance of impressions and realized CPA.

Return on Ads Spent Goal (ROAS Goal, Formally, Minimum ROAS)

Bid Strategy Type

Manual Bid

General Bid Strategy

  • Set budget at your target budget and determine results.
  • Increase budget and adjust bid as needed until you’ve achieved your ROAS goals.
  • Start higher than your target ROAS down until you get a good balance of volume of impressions and realized ROAS.

Bid Cap

Manual Bid on Accelerated Delivery

General Bid Strategy

  • Set budget much higher than you normally would with Highest Volume.
  • Make sure that your campaign is delivering on Accelerated Delivery.
  • Start slightly lower than your target CPA and bring the bid cap up until you achieve a good balance of volume of impressions and realized CPA.
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