Ad bid strategies are the methods used to determine the amount an advertiser is willing to pay for a specific action, such as a click, a lead, or a sale, in a digital advertising campaign.
In Facebook advertising, bid strategies determine the amount an advertiser is willing to pay for an action, such as a click, lead, or conversion, on their ad. There are several bid strategies available on the Facebook advertising platform, including:
Cost per Click (CPC) bidding: Advertisers set a maximum bid for each click on their ad. The bid amount is used to determine the ad’s eligibility to be shown to users, with higher bids increasing the chances of the ad being shown.
Cost per Impression (CPM) bidding: Advertisers set a maximum bid for every thousand impressions (views) of their ad. The bid amount is used to determine the ad’s eligibility to be shown to users, with higher bids increasing the chances of the ad being shown.
Cost per Action (CPA) bidding: Advertisers set a target cost per action, such as a lead or conversion, and Facebook optimizes the ad delivery to reach that target.
Cost per Mille (CPM) bidding: Advertisers set a target cost per thousand impressions, and Facebook optimizes the ad delivery to reach that target.
Optimized CPM bidding: Advertisers set a target cost per action. Facebook optimizes the ad delivery to reach that target by showing the ad to users who are most likely to take the desired action.
Each ad bid strategy has advantages and disadvantages, and the best strategy for a particular advertiser will depend on its goals, target audience, and budget. By using bid strategies, advertisers can effectively manage their advertising spend, reach their target audience, and achieve their advertising goals.
Also, See: Automated Bidding