Bidding strategies help you control your cost per optimization event in the same way budgets help control your overall spend.
The four ad types include:
Lowest cost
Bid cap
Cost cap
Target cost
What’s the difference?
Lowest Cost Strategy for Volume of Results
The lowest cost bid strategy is the only automatic bid type — meaning, you are not controlling the way that Facebook spends your budget.
Instead, you’re telling Facebook to go get the lowest possible result with the creative ad audience you chose.
Oftentimes, with stores pakistan phone number list that have zero historical data or a brand new pixel and want to learn quickly while not necessarily needing to maintain profitability, lowest cost is the best route.
Bid Cap Strategy for Maximum Profitability
Choosing the bid cap strategy is a safe way to control spend according to your performance goals.
Facebook’s algorithm is smart. If it doesn’t believe it can acquire the customer you’re trying to target, it won’t spend your money.
Set bid caps 30% above your target CPA.
Cost Cap Strategy for Maximum Consistency
Cost cap is about maximizing cost efficiency by trying to get the most results at or below your desired CPA.
Let’s say your target cap cost is $25. Facebook will not spend your budget unless it can find customers at your target CPA.
At CTC, we recommend using Cost Caps above all other bid strategies.
Set cost caps right at your target CPA.