When I first learned to ride a bike, I remember being scared. It was a daunting process as I had never done it before and I was terrified of falling.
In fact, I remember feeling the same when I first started to engage in paid advertising campaigns at the marketing agency where I worked. Doing anything for the first time can be a daunting process.
But as a marketer, it’s important to understand how to set up your paid advertising campaigns in order to get the most out of your budget.
You can do this by using multiple types of bidding strategies for different types of ads.
Below, let’s review the bidding strategies that will drive results when you use Facebook Ads and PPC / Google Ads.
Facebook Ads bid strategy
When you’re new to Facebook Ads, it’s not easy to figure out which strategy to use.
Fortunately, Facebook has a guide which explains the different bidding strategies you can use. Let’s dive into these strategies and see how to determine which one is right for you.
1. Lowest cost (automatic auction)
With this strategy, you won’t have a lot of manual work to do. In fact, Facebook automatically configures the offer.
If you want to spend all your budget, this is a good choice for you. It’s a hands-off strategy and you can get more for your money while spending your budget.
So how do you know if this is a strategy you want to implement? Well, it’s a good idea if the goal of your campaign is brand awareness, impressions, traffic, post engagement, or lead generation.
2. Bid ceiling
This strategy is slightly different due to manual processes. For this one, you will be the one who will set up the auctions.
This is a good option if you want more cost control. In fact, with this strategy, you might not even be spending your entire budget.
This type of strategy works for the same types of ads as the lower cost strategy, it is just more manual and gives you more control over your spending. In addition, it can help you increase your competitiveness against other advertisers.
3. Ceiling cost
If the focus of your ads is traffic, event responses, offsite conversions, or lead generation, this is also a good option.
With this strategy, Facebook sets the bids while you determine the maximum amount you’re willing to spend.
You can use this type of bidding strategy if you want to maximize profitability and keep costs within a certain threshold.
4. Target cost
Another semi-automatic option, this strategy will allow Facebook to choose the auction while setting a target price. This is the price you’d like to aim for, but Facebook could slightly overspend or under-spend.
If you want to keep the cost constant, this is a good strategy to consider. You’ll be able to forecast your cost and get as many conversions as possible at your target cost.
However, it’s important to keep in mind that you might lose out on other cheaper options.
This is a good strategy if the goal of your ad is traffic, lead generation, or conversions.
5. Optimization of value with minimum return on advertising spend (ROAS)
If you’re setting your goals around app installs, conversions, or catalog sales, this is an interesting bidding strategy to consider.
With this strategy, Facebook sets up the specific auction for value optimization. If you use ROAS as a primary measure of success, this is a good option.
This bidding strategy will focus the campaign on results, so you get the most opportunities while maintaining minimum ROAS.
6. Highest value
If you want to spend your entire budget and get the highest ROAS, this is a good bidding strategy.
It’s hands off, which means Facebook manages the auctions. You can spend your budget while still getting the best results.
This is a good strategy if the goal of your ad is app installation, conversions, or catalog sales.
Now that we know more about Facebook ad bidding strategies, let’s dive into the strategies you can use with pay per click (PPC), whether through Google or another search engine.
Google Ads / PPC bidding strategy
Like Facebook Ads, getting started with PPC Ads can seem like a difficult task if you’ve never done it before.
Before looking at the options for Google bidding strategies, it’s important to understand how to create a campaign.
In the video below, HubSpot Academy takes a look at how to create your first Google ads campaign and explains how the Google Ads auction system works.
Now let’s dive into the options that Google a for bidding strategies.
1. Cost per manual click (CPC)
Similar to manual strategies for Facebook, if you want to have more control over costs and expenses, this is a good strategy for you.
With manual CPC, you select the price you’re willing to pay for each click. Then Google will make sure to never spend more than that amount for a click.
2. Target cost per acquisition (CPA)
With this strategy, you can set a target CPA that lets Google know how much you want to spend to produce an action.
According to Google, “By using historical information about your campaign and evaluating contextual signals present at the time of auctioning, Target CPA bids automatically find an optimal bid for your ad whenever it’s likely to be. Google Ads sets these bids to achieve an average CPA equal to your goal in all campaigns using this strategy. “
With this setup, you pay for conversions rather than clicks.
3. Target ROAS
Similar to the ROAS strategy for Facebook, you can also determine how much you want to recoup from your ad spend with PPC ads.
This is a great strategy to use if you want to get more conversion value with a target ROAS that you have set yourself.
4. Maximize clicks
Sometimes when you set up a PPC campaign all you care about is maximizing your clicks.
When this is the case, you can use this strategy to let Google automatically adjust your campaign to get the most clicks.
This is the easiest and most direct way to bid for clicks. All you have to do is set your average daily budget and Google will take care of the rest.
5. Optimize conversions
On the other hand, if conversions are the primary metric you use to be successful, you might want to consider a conversion optimization strategy.
With this strategy, Google will focus on optimizing your bidding strategy to help you get conversions.
This is a good strategy to use if you want to spend your entire budget while getting as many conversions as possible.
6. Location of target search page
If you want your ad to rank in a specific place on the search engine results page, this is a good strategy to consider.
Google will optimize your bidding strategy so that your ad appears in a specific location.
7. Target upgrade share
With this type of strategy, Google lets you choose how often you want to outperform your competition.
This is a good strategy if you are focusing on increasing the competitiveness of your ads.
8. Optimized CPC
With this strategy, you can automatically adjust your manual bids to try and maximize conversions.
This is just an improved version of the manual CPC strategy. If you’re testing CPC ads, it’s a good strategy to find out more.
Ultimately, you have to experiment and figure out which strategies work for your business. Even if you are using an automatic bidding strategy, you should carefully monitor it and monitor the results.
Originally posted 2020-08-29 20:28:34.