Bid settings are used to control the bids for individual Ad Sets, based on ad set performance. These rules boost bids on high-performing Ad Sets and lower bids on poor performing Ad Sets. The closest matching rule will be used. When an Ad Set has no activity or has not yet established a CPA value, the highest Set Bid To value will be used.
Note: Bid and Budget data is downloaded from Facebook every 30 minutes and compared against the rules below to see if an Ad Set should be changed.
How do they work?
Basic idea is a horse race, Ad Sets that are performing well are given higher bids and can run faster while Ad Sets that are performing poorly, are given lower bids and and slowed down.
When an Ad Set has no activity or has not yet established a CPA value, the highest Set Bid To value will be used.
Strategy and recommendations
Note: In the example above there are multiple tiers but that is not required, you can easily add / delete tiers. We recommend starting with one or two rules to avoid having bids change too frequently. Once you get comfortable with Bid Rules, you can easily add more levels. Recommended Reading: Facebook Automatic Bidding vs AdRules Bidding
By increasing bids for ads that are performing well, we are able to reduce portfolio CPA while increasing volume
- We drive a higher percentage of total spend from the best ads, which helps reduce portfolio CPA
- We maximize portfolio volume by driving higher spend for individual ads with good performance
Two inputs are used to set rules and each can be adjusted to reduce CPA or increase volume.
- Reduce CPA
- CPA: Lower CPA values
- Bids: Lower bid values
- Increase volume
- CPA: Higher CPA values
- Bids: Higher bid values
We recommend starting with one or two rules to avoid having your bids change too frequently. Once you get comfortable with Bid Rules, you can easily add more levels. Try classifying ads into 3 buckets basis their CPAs and applying a different bid for each:
- Top ads » High bid
- Avg ads » Normal bid
- Bottom ads » Low bid
How should I divide ads into top, average and bottom?
Note: Make sure you have a good spread in bids to avoid having bids change too frequently. Ideally bids would change only two to three times per day.
Top ads: If CPA < (10%-25% lower than target CPA), bid 'higher than target'
- This increases volume from top ads and minimizes portfolio CPA
Average ads: If CPA between +/- 10% of target CPA, bid 'normal'
Bottom ads: If CPA > (10%-25% higher than target CPA), bid 'lower than target'
- This reduces volume from expensive ads and protects portfolio CPA from going up