Bids Bidding Strategies

Bids Bidding Strategies

In this important part of the explanation of ads on Facebook, we will learn about the calculation methods for subsidies on Facebook, which intimidate many advertising users. We will answer many important questions that arise. Perhaps the most famous of those questions is the budget that you have set, how is it spent, how does Facebook hold me accountable, and what are the bidding strategies? But let us first discuss the ways in which I can buy ads, and this is what we will explain below.

How to buy ads on Facebook

Facebook has two ways to buy ads or the so-called “Buying Type”:

• The “Auction” or the bidding.
• The “Reach And Frequency” means payment on arrival. Where the payment is made according to the number of people to whom the advertisement is delivered.
• It is assumed that when doing a new advertising campaign, but from an old advertising account that has a lot of advertising campaigns and a large budget is spent.
• By clicking on the “create” button, the page called “Create New Campaign” appears, from which we choose the type of advertisement. At the top left of that page we will find a box called “Buying Type” or the way to buy Facebook ads. You will find the options we talked about before, which are:
• “Auction”
• “Reach And Frequency”
• But remember this and do not worry in case you did not see those options, because these options only appear in the old advertising accounts that have already spent a large budget that makes Facebook ask about the way to buy you want.
• In case you return again to your new ad account. You will not find that choice because it determines the method of purchase automatically and is more than 90% by the “Auction” or auction method.
• We have no choice but to use the “Auction” method or the auction, because our advertising account is new or has not yet reached the budget limit that allows Facebook to give us those choices.

What are the bidding strategies for “Auction”?

Bidding or auctioning is the same concept as traditional auctions. In the sense that whoever pays the most is the one who gets the service, meaning that Facebook is doing an auction to see who deserves to reach his ad better. But we all know that the auction is always on a product or commodity, and people start bidding. Whoever pays a higher price wins the auction. You may be wondering here what is the commodity on Facebook? The item here that Facebook is bidding on is the audience that the ad reaches. Simply, if you make an ad targeting a specific audience, hundreds or even thousands of people other than you are targeting the same audience. Facebook, in this case, delivers an advertisement to the one who pays the most.

There is a question that arises, why the bidding and why not all advertisements reach equally and equally?

The problem here is that Facebook is not an advertising network, but rather, it is a social network. It cannot publish all ads because it is basically a social networking site. The ads here are secondary, interspersed with the main content of Facebook. As a user, I can only see 3 to 4 ads. If we assume that there are a thousand advertisers targeting me, I personally will be the one who pays more so that the ads do not increase and users are alienated from the entire Facebook application. Bidding here on Facebook determines the priority in the ad’s appearance, not only the audience that the ad reaches. The one who wins the auction is the one who gets his ad first, and it is obvious that whoever gets his ad first has a greater chance of achieving the goal of the ad, especially if the area of ​​competition is similar.

Bidding Strategies

There are three ways or strategies for bidding:

• “Bid Cap”
• “Cost Cap”
• “Lowest Cost”

Method 1 “Bid Cap”

• It is the method that we will deal with first, which means the maximum bid or price offer. Meaning, I, as an advertiser, determines the maximum budget that I will spend to obtain the customer, for example, 20 pounds. If it is found that someone offers a higher price than you, he will win the bid.
• In the event that another advertiser wins the bid, my ad will reach an audience that is less than the audience I was targeting first.
• The important thing here is that the maximum limit or the “Bid Cap” that you set is 20 pounds. Auctions less than the maximum you will win, but those higher than this limit you will not have anything to do with them and you will not win them.

The second method “Cost Cap”

It is the maximum cost. In the sense that if you specify your “Cost Cap”, for example, 20 pounds, this is the average of the auctions in which you can bid. With this average, for example, you can enter auctions with 10 or 12 pounds that you can earn. Reverse the “Bid Cap” If you specify a certain amount, you will never enter auctions higher than this amount.

Method 3 “Lowest Cost”

Meaning the lowest possible cost for advertising. In this way, we do the advertisement and ask him to specify the lowest possible value. without specifying any numbers. This is the default method that everyone follows, which is that you ask Facebook to determine the lowest cost and bill for you. There is a question that arises, which is the appropriate number to enter the auctions? No one can answer this question until after actually entering the experience, it means that you are supposed to make, for example, the “lowest cost” for a period of advertising work.

You can then enter the auctions that suit you based on the number you specified. No one can answer this question but you, because every field of competition is different. You are the only person who can determine the average value with which you can enter the auction.

There is another question that arises, which is: How is the cost calculated and what is the return? The cost you pay, whatever it is, is supposed to be the cost of getting a result. For example, if the cost of your “Bid Cap” is 1 and for example, you make a message announcement, the cost of the message is supposed to be 1 EGP. In the event that I specify the “lowest cost”, he starts publishing the advertisement so that it gives me the lowest cost for the message price. But this depends on the type of advertising campaign and on the “optimization”.

Let’s say we’re doing a Brand awareness campaign to reach an audience. So, the Bid Cap, Cost Cap, or Lowest Cost, it is assumed that they are the value through which we will get 1,000 hits. Meaning that the ad in the event that it reaches the audience 1,000 times aims how many? This is what you specify. Does this mean This is the method of calculation? The number of accesses or the “impression” is not the only way to calculate. You can calculate in several ways, but we will now explain the “impression”.

Account by access times or “impression”

This is the basic calculation method in bidding strategies, which is the number of times the ad is reached. Meaning that if the ad reaches 1000 times, you will have made 1000 “Impression”. Your ad has reached 20,000 thousand times, so you have made 20,000 thousand “Impression” and so on.

Facebook calculates with the 1000 “Impression”. If you enter the auction on the 1000 “Impression” or the thousand times the ad arrives, you will pay $ 1, there are those who pay $ 1.5. Naturally, the one who pays the most is the one who wins 1000 times the ad access before you. This means that “Impression” or the number of times an ad is reached is the primary calculation method.

How do low cost bidding strategies work?

In the case of choosing the “lowest cost” and leaving Facebook to determine the lowest cost. Certainly someone else chose the lowest cost over the same audience he was targeting. In this case, Facebook will deliver any ad, my ad, or the other person’s ad. In this case, there are other factors that determine the most important of these factors is the quality of advertising, which has several criteria. It is important to agree that advertising is one of the most important criteria that affects the “lowest cost.” Facebook begins by comparing the quality of advertising and the best or who has high quality is Who wins the bid or the number of times the ad is received? Is this only the one who determines? No, there are also other factors that determine the winning of the bid, such as the total budget of the advertisement and the size of the audience. All of these factors make Facebook determine who wins the auction if you set the “lowest cost”

How do I define these conditions

• Suppose we have an advertising campaign and let the “Traffic” be as we see:

• After selecting the campaign type, click on “Continue”.
• We will go to the campaign page itself. By scrolling down the page, we will see the option called “Campaign Budget Optimization” and this item is in an active state, meaning that I want to pay at the same campaign level. Meaning that if the campaign contains 100 ads, it will determine the budget of the campaign as a whole. But your budget can be for each ad and not for the campaign as a whole. Now we will choose to pay at the campaign level as a whole and this is by activating this option as we see:

• Scrolling down, we will find the “Campaign Budget” item. Facebook asks you to specify the budget and whether it is daily. Meaning that Facebook will spend the specified amount daily, as we see:

• Or there is another option to determine the budget, not for the day, but for the campaign as a whole. is to choose the “life time budget”, and here we determine the amount that you pay during the campaign as a whole, as we see:
• 
• The next item asks you to select the strategy that you will follow in the payment, which is through the “Campaign bid strategy” and here we will choose the “Lowest Cost” which is the lowest cost for the campaign objective that you have chosen, this is what we always start with as we see:

• In the event that you did not specify the budget at the campaign level and turned off the “Campaign Budget Optimization” item. You set the budget from the same Ad Set from the same ad as we can see:

• On the advertisement page at the bottom, you will find the so-called “Cost control.” If this box is empty, it means that you have specified the payment strategy as “Lowest Cost”, and thus you have left to Facebook to determine the appropriate campaign goal. In the event that you specify any amount, let it be 15 pounds. With this choice, you have specified the amount paid for each result or for each “Link clicks” as we can see:

Here we have learned about the different bids and bidding strategies, and in the next article we will know about the bear algorithm in Facebook ads.