Facebook Bidding and Delivery
Facebook utilises ad auctions when serving creative and allows marketers to determine how much they value the delivery of their creative to their target market. Before delivering an ad, FB considers all ads targeting that same user and ranks the potential ads based on the “Total Value” of that ad. This value is represented in the below equation.
Total Value = Advertiser Bid x Estimated Action Rates + Relevance and Quality
Maximising Advertiser Value – First two components
Maximising Consumer Experience – Third component
Total Value and an ads ability to be served is not simply based on the highest bid, but also takes into account the probability of the objective being met together with both positive and negative customer engagement.
Quality creative has a direct impact on an ads relevance for it’s intended target market, and the positive engagement it generates. This then increases the Total Value of the ad and it’s probability of winning the auction without the need to increase the bid.
Bidding for Website Conversion Objectives
Bidding for conversions is the recommended bidding style when using this campaign objective.
However, conversion campaigns that are under serving impressions and therefore not meeting campaign budgets are common.
The following are some recommendations for testing bidding (as all campaigns are different based on vertical, creative, target market, etc.):
- If “Automatic” bidding is being utilised, try “Manual” bidding and increasing the bid incrementally to determine the point where daily pacing budget is being realised while maintaining target CPAs. The reason for the incremental bid is to not overbid for a particular ad sets target market.
- Your manual bid is not always a reflection of what you will pay for a conversion and will often occur well below the bid. Monitor any ad sets that are overbidding your true conversion value though to determine if this is the case.
- For more targeted ad sets which include Website Custom Audiences (WCA) or Custom Audiences, bidding for “Link Clicks to your Website” is often a recommendation as these audiences represent an already targeted/engaged audience.
- Bidding for “Link Clicks to your Website” to your core audience will also assist in getting a campaign delivering again if manual bidding is still not serving sufficiently.
- Optimise for a conversion event on an ad set that occurs further up your sales funnel if there is a limited number of conversions that occur further down the funnel. This can also assist in under serving campaigns as it provides a stable conversion rate for Facebook’s bidding algorithm.
Note: Check budget pacing on an ad set level to determine if there are any ad sets that are preventing the campaign from meeting it’s daily spend before increasing bids across all ad sets.