How does Facebook Bidding work?
Advertising on Facebook has been on the basis of bidding i.e. Facebook Bidding since years. Facebook utilizes auction method for selling their advertisement slots. Right from News Feed on Facebook to Instagram stories, every ad slot has a competitive edge. Digital Marketers need to smartly optimize the allocated budgets to make the most of the advertising.
Before knowing more about Bidding for Facebook Ads, make sure you get a detailed insight about Facebook Advertising.
You ought to fulfill these 3 pre-requisites before moving ahead with bidding on Facebook.
1. Choose a Goal
Before you start any type of ad campaign, you need to choose an objective. Objectives are divided into three categories:
2. Define Your Audience
You need to decide what audience you want to reach. You can use a saved audience or create a new one. Learn more about targeting your audience on Facebook over here.
3. Determine Your Budget
Before you go ahead with bidding, you need to decide how much money you want to spend for your campaign. You can set daily budget targets or even opt for a life time budget and shut the ad as and when required.
For instance, if you choose a lifetime budget of INR 200 and the ad will run for 20 days, you’ll probably spend about INR 10/day. While if you choose a daily budget of INR 200, Facebook won’t spend more than INR 200 per day till the due date of your ad campaign.
After the pre-requisites are fulfilled, you should know more about delivery options and the budget for the same.
4. Delivery Options:
Facebook provides three delivery options.
– Link Clicks
– Daily Unique Reach
It is crucial to understand the difference between these three as all three categories cater to a different set of delivery. Know more about it over here.
5. Bid Amount
Bidding on Facebook is variable. It changes as per the target audience. If you change the demographics of the ad set, the bid amount shall change.
Bidding on Facebook is variable. It changes as per the target audience. If you change the demographics of the ad set, the bid amount shall change
For example, if a bunch of advertisers are targeting an age group of 18-21 in Mumbai and Navi-Mumbai. The bid amount shall vary if there is less number of competitors for the same.
Bid amount for this age group suggested INR 12.
If we select a different target audience or go deeper, the amount shall change.
Bids are based on our objectives. That means, bids are based on the ‘call to action’ you want your users to take. While bidding on Facebook, you can optimise around the goal. You can test between impression and clicks and see what suits for your business model.
While bidding, Facebook will give you a bid range. Facebook will want you to bid between that ranges. For example, if your objective is to generate link clicks, you can set INR 10 as the maximum for a link click. Generally, you will pay lower than that.
However, you can bid higher to make sure your ad is seen more. The ads shall appear at the delivery options which you have selected. You can also bid lower if the click is worth less than the amount Facebook suggests. By this way, you can decrease costs.
If you bid too low, you can be out of the range and your ad won’t appear anywhere.
Keep checking the bid amount frequently and update it time to time.