Five Tips to maximize the effectiveness of the Facebook advertising auction system
Sellers often have no idea of the bidding on advertisement. Fearing to overbid or miss opportunities. So the improvement of Facebook ad bidding competitiveness is the key point to get a satisfactory advertising effect.
1.The main part of the Facebook advertising bidding system
The Facebook advertising system has three main parts: the first is the bidding, which can bring the most effective advertising by matching and sorting the advertising content and the audience. The second is the budget optimization system, which can help the seller win the most in the advertising period; The third are factors that sellers can control, including budget, ranking, bidding, audience targeting, and more.
Then, you can see the comprehensive value of Facebook ads = advertiser bid x estimated operating rate + advertising quality relevance. How to effectively improve the Facebooking ad bidding competitiveness? There’re several options sellers can do:
（1）Increase the competitiveness of the unit price: it is better to set the bid based on the value of a single conversion, than the cost per action (CPA).
(2) Improve the user engagement possibility on the ads: optimize conversion events and ensure adequate ad operation rates. Optimize ideas to increase ad engagement rates.
(3) Deliver higher-correlation ads to target audiences: Choose the right ad formats, copywriting, and ideas to resonate with your audience.
2. How does Facebook's advertising auction work to maximize the budget?
(1) Set bid and budget to improve ad bidding competitiveness
Sellers can choose these two bidding strategies according to the advertisers’ needs: one is the minimum cost; the other is the cost balance.
Minimum cost: Sellers can choose to set a bidding cap, similar to the upper limit. Thus, the delivery system won’t exceed the maximum amount for a single bid. Choosing the "minimum cost" without a bidding cap is like using the minimum bid.
Cost balance: As spending increases, the delivery system will attempt to maintain a stable, near-balanced average cost. Based on the balance cost set by the seller, this strategy also predicts how much budget you might spend during the advertising of a campaign. The cost balance strategy is an enhanced version of the previous average cost bidding option.
(2) Optimize the event to maximize estimated ad engagement rate
To increase ad engagement and avoid under-delivery situations, sellers can test conversion events and ad targeting options at the top of the marketing funnel.
First, optimize your ad targeting with conversions that best fit your campaign goals. Sellers need to ensure 50 conversions per week to determine an ad’s benchmark value based on sufficient data.
Second, if you are experiencing insufficient ad targeting, sellers can try to optimize the following:
1) High frequency conversion events. For example, if the purchase volume is low, the seller can try to improve the advertising engagement rate by optimizing "add to the shopping cart".
2)Advertising options. For example, when your audience scope is relatively narrow, you can try to optimize your impressions or coverage, while optimize link clicks when your audience gets wider.
Finally, improve your professional skills. If the under-delivery issue is still not resolved, the seller can use the system's default minimum cost bidding option to increase competitiveness.
(3) Customize the content, make the advertising content more personalized
One more thing sellers need to pay attention to is placing ads that are highly relevant to their target audience. The following image shows different ad pages set for different audience targets.
3. Settings tips for Facebook advertising bidding system
(1) Set fewer restrictions to allow the system exploring more options and achieve the desired results.
(2) Choose a broader target audience or enable target audience extensions to adjust interest targeting, so as to explore more options.
(3) Understand the advertising tips, such as making important changes during the learning phase and then the system will restudy to optimize the tips.
(4) Place advertisements on different platforms, such as Facebook, Instagram, Audience Network, Messenger, etc.
(5) Learn how to improve ad targeting and performance with Delivery Insight.