Welcome to the sixth part of the series on becoming a true expert on Facebook Ads commanding 400% sales on each Ad.
Today let’s talk about Bidding for Ads, or Facebook Ads bidding.
When you literally place an Ad or boosting a post, you have successfully joined thousands of people to compete on people’s news feed, instagram feed, audience network etc, the highest and more relevant post wins.
But it is all done by Facebook algorithms. So is this bidding of a thing like auction?
Is bidding An Auction?
That’s the first thing you need to understand to master bidding management of Facebook Ads. When you’re creating a new campaign, you’re joining a huge, worldwide auction.
You’ll be competing with hundreds of thousands of advertisers to buy what Facebook is selling: Real estate on the News Feed, Messenger, Audience Network, and mobile apps to display your ads to the users.
While Facebook will try to satisfy every advertiser, even with 1.79 Billion monthly users, the space for advertisement is limited. Sometimes, Facebook won’t be able to fulfill all the requests. When this happens, the highest bidders will get the most impressions.
However, there are three factors that contribute to your ad delivery: your bid, relevance score, and “estimated action rates” So the highest bid doesn’t always win.
The amount you bid for a click –1,000 impressions or a conversion — is not what you’re actually going to pay. It’s just the maximum amount you’re willing to pay to win the bid. Facebook (and Google AdWords) will always make you pay only the lowest amount possible to win the bid and have your ad displayed.
Let’s map out an example, assuming that Facebook only has 3 available spots to display ads and there are 4 advertisers bidding. The real system is much more complicated than this; this is an hyper-simplification:
Advertiser A bid #3
Advertiser B bid #5
Advertiser C bid #10
Advertiser D bid #20
In this example, advertiser A will likely be left out and will receive low to zero impressions. Advertisers B and C will get a good amount of impressions at a price somewhere between #4.5 and #5, Advertiser D will probably get more impressions at a price just slightly above those of B & C. Around #4.5 and #6. No way is he going to pay #20
There are two important takeaways here:
If you try to bid too low, your campaign may not get the exposure it deserves, and you won’t reach your goals. Remember, you always get what you pay for.
Don’t worry about bidding a high amount. You’ll still end up paying the lowest amount possible in the auction to get your ads delivered.
There are three major ways to bid or pay for your Ads:
1: Cost Per Impression (CPM)
2: Cost Per Click (CPC)
3: Landing Page View
There are others like Conversion and post engagements but we shall focus today on the 3 points above.
COST PER IMPRESSION:
On this, you are allowed to pay thousand people reached. Facebook charges you or takes record of a charge when per thousand people are reached by their system.
The cost for a thousand impression all depends on your targeting options and placements (newsfeed, desktop, instagram feed etc). If you choose automatic placement and then chose CPM, you will likely get a cheaper cost per thousand but not all that cheap, just slightly because you allowed facebook to use all their available Ad placement options for you.
So on this facebook do not care on the number of clicks you might get. if you eventually have all the reach click, all good for you, if you get no click but a thousand people are reached, you will still have to pay.
COST PER CLICK:
You get charged on exact clicks you get on your Ad. Whether a mistake click or real click all counts for you.
You may have on your phone while scrolling on your newsfeed on facebook mistakenly click a post and quickly close it, you clicked and it would be counted for the owner of the Ad.
The owner of the Ad would be charged equally with the clicks that are real. The real clicks are those that are on purpose. People that clicked were actually interested, and such click is what that would likely bring in result.
Again you might likely want to place your ads for landing page views. When you do this, you get charged only when people click and wait patiently for your page to load. If the pixel is professionally placed you will get to be charged when the visitors scrolls down to the page and read to the end.
This is the best and bidding option I recommend for every expert.
Click here to get full details on installing pixel the right way for this bidding option.
Facebook allows Nigerians to link their mastercard and visa cards for payments for Ads. You link your cards with simple three step processes.
1: Get a mastercard from any of the local banks in Nigeria. I recommend: Fidelity, Access bank, Eco Bank, and GTB.
2: Locate your billing bar or payment settings on your Ad account. Or follow the process of boosting a post, at the middle you will be prompted to add your card details.
3: Add your card details: Card number, Card expiration date, and Credit Card Verification (CVV) found at the back of your card. Yea yea, you are done.
Click here to get our Ads strategy for best practices on result oriented Ads
You can equally link a payu account to pay for your Ads.
Time to get it all together with a proven Ads strategy hotter than the sun that works today tomorrow and months to come. Yes, the true way I command real life sales on my businesses and client’s businesses spending near to nothing on Facebook Ads… ARE YOU READY?
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