Which Campaign Bid Strategy Should You Use With Your Facebook Ads?

0:00hi guys is Ben Heath from lead guru and in this video I'm going to talk about which campaign bid strategy you should be using with your Facebook ads with your Facebook ad campaigns it's something I'd asked about quite a lot they put their campaigns together they get to the campaign level turn CBO won and they go what is this campaign bid strategy what should I select it so I explain the options and tell you which one I think you should be should be using in a sec before I do that wanna quickly let you know that at the end of this video I'm going to tell you about a

0:28free facebook advertising resource they think you're gonna find really interesting all about Facebook advertising strategy and how to make sure you are using the right strategy for your products and services to make sure you stick around to the end of the video and for that with that said let's get into it okay so I'm in a demonstration Facebook ad account right now I've created all these sort of demonstration campaigns and previously on when I'm recording these videos and stuff like that don't worry about all this stuff what I'm gonna do is just go into one of these campaigns there's personal trainer campaign in here I'm going to scroll

0:58down to campaign bid strategy as you can see I've got campaign budget position turned on which is what I would recommend the vast majority of people do and people usually just set their budget X etc they get to this campaign bid strategy and they can get a little bit lost so it's important to were to talk through the options so let's bring up the list we've got lowest cost we've got cost cap and then we've got two other options and here with bid cap and target cost so I'll go through the options explain which one I think you should be using let's start at the sort

1:27of Bonneville and work our way up we've got target cost in here now target cost the idea behind tire cost why Facebook introduced it was to help you generate a more consistent cost per conversion than you would typically with let's say lowest cost which is Facebook's default okay so instead of seeing fantastic results for the first few days and then results drop-off for was ought to get better and go up and down up and down in that sort of rollercoaster effect there are a lot of Facebook advertisers are very familiar with target cost was designed to be like look we're just gonna take out the peaks and troughs and try and

2:00give you a steady even cost per conversion and have things operate that way it sounds good in theory what tends to happen in reality when you select a cost is you just end up or you pay more at the beginning yes there may be times where with one of the other cost one of the big strategies you see spikes above what your target cost would be but they're usually very small very temporary when we've tested target cost alongside lowest cost and we've generated better results with those costs we've just entered pain welcomed per conversion which is obviously not what you want so I wouldn't recommend using target cost I've written another

2:36video about that I'll make sure I put that in the in the video description but but yet that's something I would I would just say off the bat is that's what target cost is intended for at the moment I'm not a big fan Facebook may make adjustments to it the future but the time being I'm gonna leave it off then we get into the to sort of Facebook cause then bid strategies they used to be referred to as cost controls they changed the user interface and the terminology all the time to try and make it more simpler for people but these two are similar this big cap here and this

3:05cost cap are quite similar and I explain how they work so target cost is as I said designed to get you a consistent cost per conversion bid cap and cost cap aren't structured in the same way they were designed to stop you spending money on Facebook if your cost per conversion reaches or looks like it is going to reach a figure that is above an acceptable amount that you set okay so that's what a cost control does it stops you spending I think it's led to pick up there it stops you spending and too much money on your facebook ads when they're not profitable so let's say for example

3:45I've got an e-commerce company and I'm willing to pay $25 to acquire a new customer that's my absolute maximum I can set a bid cat at $25 I would recommend directories at a bid cap quite a bit higher than that because Facebook seems to throttle reach on a campaign if you get anywhere close I've got other videos talking about that so I'll clear the link at the video description that's not what this one's about but then but that's what a bid cap is designed to do well that's what a bid cap and a cost cap is designed to do that they're designed to do that the reason why

4:14they're different is depending on whether the throttling of reach and AD spend occurs before it happened or after I know it's really confusing and I try to explain let's say for example will you set a bid cap of $25 if Facebook thinks it cannot get you conversions for over $25 it won't show your ads it won't spend your money you'll end up saving money okay that's what a big cap will do if Facebook thinks it can't get you conversions for $25 and they obviously use all sorts of data points to sort of make that prediction including how the campaign is performed previously etc etc cost cap weights until after the fact

4:55so let's they won't Facebook one make a prediction and go we don't think you're going to get conversions for list of $25 therefore we won't spend your money they'll spend your money and then react so let's say your average cost per conversion is $30 it goes above the $25 mark then they will start to bring down your reach and spend less in your in your campaign than what you've set and that's how it works so that's why they say a cost cap control cost while getting the most volume is your going to get more volume because it's happening after the facts you are gonna spend that extra let's say

5:28a few days worth of ad spend before things start to get pared back if your cost per conversion is above an acceptable amount whereas bid cap is going to try and predict it gonna try and do it in advance okay so in general I don't often use either cost caps or big caps if you are going to set a bid cap I'd recommend you do so significantly above what your actual accept will cost target cost per conversion is so let's say you're generating conversions for $30 don't set a thirty dollar bid cap otherwise your campaigns basically unlikely to run you want to set a fifty or sixty dollar bid

6:03cap because that prediction that Facebook makes when it comes to trying to work out if you are going to spend more than your target cost per conversion and pairing that back is a very accurate isn't very good I prefer cost caps out of the big caps because it takes that predictive element out of it again if you're gonna have a cost cap I would not recommend having it at what you're paying cost per conversion I recommend having it a little bit over the times when cost caps can be useful is when you want to take out particularly expensive times in your advertising so if you just want to leave your

6:39Facebook I can frame running you're not going to be monitoring it and making adjustments yourself you may be aware that if you're a service based business the last two weeks of December are just a write-off your cost per lead is going to be enormous no one's looking to hire an accountant let's say on December the 20th or December the 30th and you know everyone's got minds on their mind on other things so maybe you want to put cost caps in that will then prevent you from spending money during those most expensive times it's designed to take out the peak so if you want to leave a

7:09campaign running without much monitoring and you want to make sure that you don't spend your full budget when things are getting very expensive as I said holidays is a big one and as a lot of seasonality around certain businesses I mean services are tied to the weather so you know if the weather is terrible you know you might not sell swim shorts very well or sunglasses therefore you don't want to advertise them as much and a cost cap will make sure you don't spend whilst your conversion costs are really high okay that's when you want to use that though is cost is the default and it's basically the one I would

7:43recommend people use almost exclusively use all the time as you get to see the description that facebook gives is get the most results for your budget who doesn't want that I want the most results of my budget I'm sure you want the most results of your budget no matter what I'm spending I want the most purchases the most needs etc for that budget now what that may mean is that you might launch a Facebook ad campaign and your conversion cost once you go through the lesson learning phase of course conversion costs are really really good and then they start to climb they start to get more expensive there

8:17are things you could do to adjust that you could create new ad creative avoid ad fatigue or that's what the stuff check out my other videos on my channel where I've talked about those sorts of things to help with that but that's something that you might see but that still doesn't mean that lowest cost isn't the right move I think in the vast majority of the time it is I said we tested this against the other options we've tested this extensively against target cost and lowest cost is the one I go for you may see here that if you're running an e-commerce person like that this says highest value or lowest cost

8:46again effective not the same thing but for the purposes of selecting the right option here it is the same that's the one you want to go ahead and use basically could basically just use the value of your customers into their and delivery system and if you select lowest cost as I've done there then that's what face was going to try and get you they're gonna try and get you conversions for the lowest cost possible as many results as possible within your budget which is absolutely what you want to go ahead and do okay so that's what you need to know about campaign bid strategy is actually really

9:21straightforward now something that's not as straightforward is your Facebook advertising advertising strategy the sales funnel that you are using to advertise your products and services I said at the beginning of the video I was going to talk about a free resource and this resource is a free webinar it's called three killer Facebook ad strategies to double all more your revenue and in that webinar I go through what you'd expect that go through strategies that we use the Facebook Ads agency we generate millions of dollars every year for our clients in fact sometimes on a monthly basis using these strategies if our clients are spending enough on Facebook ads and their tried

9:58and tested proven they work really well and not only do I demonstrate these strategies that a lot of details I'll show you the exact sales funnels that we're using I also explain which one you want to use or which two you want to use out of the three depending on your products or services and that's really important you cannot advertise a twenty dollar product in the same way that you advertise a 10,000 dollar service doesn't work you need to tailor your approach and so I think if you're not generating outstanding you know blow up your business results with with Facebook advertising already or even if you are I

10:30strongly recommend you check out this webinar I think you'll find it really valuable completely free link will be in the video description down below go ahead and and register for that watch that go through the entire thing I think again it get a ton of value out of it thousands of people have watched it already and the feedback has been awesome another thing I want to quickly mention is my Facebook Ads mastermind group which is my free private Facebook advertising group it's currently got twenty six thousand plus members an amazing online community full of Facebook advertisers there's hundreds of questions asked and answered by experts in that group every single day as I said

11:05it's completely free to to join a link via the video description go ahead and get involved we'd love to have you and yeah I think you get a lot of value with out of it I know tens of thousands of people have already by being a member if you enjoyed this video please give it a thumbs up that's always appreciated please comment below to let me know if you liked it if there's anything you want me to you know any recommendations you'd make other content your me to cover if you've got any questions about any of this problem in the comments below I get to all my

11:33YouTube YouTube comments and so I will answer your questions and yeah don't forget to subscribe to my channel turn on click the little Bell notifications so that you are notified when I release a new facebook advertising related video and I were told you guys see thanks a lot bye