Facebook gives multiple options to advertisers for ad delivery optimization. The currently available options are:
The default option. When using this option, Facebook tries to deliver ads to users who are likely to convert.
This option optimizes ads to get as many clicks as possible from users.
When used, Facebook shows ads to as many people as possible.
If your goal is to reach an audience with a limited-time offer, this is an option. Its objective is to reach your audience at least once per day.
This option is designed to deliver ads to people who are sure to pay attention to them.
This option enables an advertiser to get users’ personal information, e.g., email addresses. It shows ads to people who indeed give away their information.
Landing Page Views
It shows ads to people who are likely to view a marketer’s landing page.
Competitors, advertisers, and marketers all use bidding strategies to control how Facebook spends its budget in the ad auction. When used correctly, it can lead to more profitable ads.
Many advertisers I’ve come across aren’t educated with the bid strategies, a problematic situation. Therefore, we will be taking a brief glimpse at each Facebook ad bidding strategy.
The default strategy and this one does not involve any effort at all. When setting up an ad campaign, you’ll come across Cost Control Field within the Optimization and Delivery section.
We’re not concerned about the goal related to Cost Per Action or ROAS (Return on Advertising Spend). Facebook will aim to get the most out of your budget when left blank. If a lowest cost is set, Facebook will suck the budget and the ad will reach to maximum users.
The best scenario to prefer Lowest Cost is:
- You are spending your entire budget.
- You’re not worried about Cost Per Action
When cost control is used, Facebook automatically uses Cost Cap.
In some cases, Facebook gives the option to select Bid Cap or Cost Cap
If we set the option to Cost Cap, Facebook keeps the Cost Per Action at or below the set Cost Control.
Assuming we have a newbie and the budget is $10 for conversions. When Cost Cap is selected, Facebook will keep the Cost Per Conversion to or below $10. Facebook does recommend to prefer Cost Cap be in control.
This option is available for most optimization options.
With the Bid Cap option, you can define maximum bid across auctions instead of allowing Facebook to bid dynamically based on your goals. This is best for those who have done their homework on conversion rates and can estimate the right bid.
If your goal is to maintain an average cost per conversion, go for this Facebook ad bidding strategy as an advertiser. Facebook keeps the overall cost at a set target amount with this objective. When maximum conversions are your sole goal, then use this strategy.