Types of bidding strategies in Facebook Ads
There are currently 4 types of bidding strategies available on Facebook Ads:
– Higher value, higher volume or lower cost
-Cost limit or cost per result target
-Minimum ROAS
-Bid limit
We will explain below what they consist of:
Highest value, highest volume or lowest cost Oman Mobile Number List bidding strategy:
This is the one in which Facebook’s algorithm will try to achieve the highest number of conversions possible or to obtain higher value purchases with the budget that we establish. Normally, it consumes all the investment that we set.
By increasing the budget, we will give the algorithm more freedom to win more auctions and thus obtain more conversions. Of course, CPAs will increase and there will be a lower ROAS (return on investment). The opposite will happen if we reduce the investment, the cost per acquisition will decrease and the ROAS will increase.
The main advantage is that it is an automatic bidding strategy in which the Facebook system will manage the bids.
Bid Cap Strategy:
With it we will be able to establish what is the cost per purchase France Phone Number List that we want to receive . But it will not be the average cost per purchase, but rather the maximum cost per purchase . Facebook’s algorithm cannot exceed this cost that we set. For example, if we set a cost per purchase of 10 euros, Facebook will not exceed this cost, although it can be lower or equal (6 or 8 euros).
One of the disadvantages is that it may not consume the entire budget since it will not have as much freedom because we are setting a bid limit. To consume more budget we can increase the cost per purchase.
Bidding strategy Bid limit
Cost limit strategy or cost per result objective.
With this strategy we can establish the average cost per purchase that we want to receive in our campaigns.
For example, if we set a limit of 10 euros, Facebook will try to keep the cost per purchase of our campaigns to a maximum of 10 euros.
Sometimes it may be 7 or 8 euros and sometimes it will be 11, 12 or 13 euros but on average the system will try to keep it below 10 €.
In short, Facebook will bid in a way that achieves the highest number of conversions within the target cost per conversion that you have set.
