Millions of advertisers try to reach their users every day through Facebook ads auctions, but doing so at the best price and being profitable is not an easy task.
The bidding concept in Facebook Ads has a series of variants that make it unique and little used even though it can be very useful to us.
If you have a fixed budget, this strategy is ideal. Facebook will optimize your bids to consume the designated amount daily. By increasing the budget, conversions will increase, but so will costs. By reducing it, the opposite will happen. The Facebook automation in bid management is its greatest advantage.
This strategy is effective for those without budget limits. Here, the goal is keep CPA within a set limit. Increasing the limit expands bidding opportunities, while lowering the limit results in fewer conversions at a lower cost. This strategy maximizes conversions at the desired CPA.
If you are looking for profitability but do not have a defined CPA, this strategy is well suited. Facebook will work to achieve desired ROAS. If it cannot achieve this, it will reduce bids, optimizing profitability. Bidding aggressiveness depends on the ROAS target, delivering fewer conversions but higher profitability.
In this option, you set a maximum limit for the CPC or CPM. Facebook searches for best profitability for each conversion without exceeding the limit. If the budget is not spent, raising the limit can improve competitiveness in bidding. It is effective for audiences similar to your competitors.
Although less common, this strategy seeks conversions close to the defined CPA. Ignore the most expensive and cheapest conversions. Ideal for stable costs, but profitability may vary. It is predictable in terms of campaign cost.
In short, choosing your Facebook Ads bidding strategy should be based on your goals and audience. Proper segmentation and a clear strategy are crucial to success. Remember, as a performance agency, we love achieving results. We can establish and execute concrete objectives on Facebook Ads to boost your results.