Facebook Ad Bidding Strategy: How to Choose the Right One?

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Choose the right bidding strategy for your Facebook ads and achieve better results.
Did you know that Facebook advertising should also have a strategy? We shouldn't approach it in a "set it and forget it" style, like many advertisers do. Come learn more about the different strategies you can use for your ads and use this information to choose the right strategy for you.

Facebook bidding and ad auctions
You've probably heard that Facebook advertising works on an auction basis. You choose how Facebook's algorithm bids for you in the auctions when you create your ad. Your position in the auction determines whether your ad is shown to the right people at the right time, in line with your budget and business goals.

Are you curious about what factors affect how your ad is displayed? Whenever there is an opportunity to display an ad to a user, all advertisers who have that person in their Facebook ad targeting are included in the auction. This is why costs for a narrower audience tend to be much higher. In this case, there is much more competition than when targeting a wider circle of people. Competition and with it advertising costs also increase during holidays and major marketing holidays, such as Black Friday.

How does Meta (formerly Facebook) choose the winner of an auction? According to the company, the winner of an auction is the ad that maximizes value for people and businesses and has the highest total value of the ads offered. The total value is then made up of the advertiser's bid, i.e. how much they are willing to pay, the estimated action rate, i.e. how likely it is that a user who sees the ad will interact with it, and the quality of the ad, which reflects, for example, the language used or the content of sri lanka mobile database the ad itself.

How important is it to choose the right strategy?
It is believed that the right strategy is important for success in auctions, not only on Facebook. This is what the advertiser can control. However, strategy is of course not the only thing that can be worked with in advertising. You should also focus on the advertising texts themselves, the graphic side of the advertisement and targeting the selected audience. However, if you have all these components resolved and perfected, the next step is to choose the right strategy, which now plays a much more important role on the path to achieving the success of your ads.

Facebook Bidding Strategy
Facebook offers three possible goals to track on which campaigns can be built. Strategies can be divided into spend-based bidding, goal-based bidding, and manual bidding.

Spend-based offers
They focus on using your entire budget and getting the best possible results or value. Spend-based bidding is the simplest type of ad campaign. It is the default strategy type. It includes the Highest Quantity strategy and the Highest Value strategy.

Highest quantity
Delivery optimization is set up to drive the most conversions possible within a given budget. It essentially instructs Facebook to use the budget you have set to get the most conversions possible. This concept is similar to the "Maximize Clicks" feature in Google Ads.

This strategy should be chosen by those who plan to use their entire budget and do not have a specific cost per action (CPA) or return on ad spend (ROAS). If competition in the auction decreases, your CPA may also decrease. Conversely, if competition increases, your CPA may increase.