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How To Successfully Compete In Facebook Ads
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How To Successfully Compete In Facebook Ads
May 18, 2017 / ClickMaven

How To Successfully Compete In Facebook Ads

Facebook’s auction is where value is created for advertisers by giving them the capabilities to reach target audiences and drive results.

How the Facebook Ad Auction Works
Facebook’s auction is similar to that of Google AdWords, where value is created for advertisers by giving them the capabilities to reach target audiences and drive results. The caveat is that the “value” derived for the advertiser must also create a relevant and positive experience for the end user. The Facebook auction is designed to balance these principles and reward the advertiser who does both the best. In a regular auction, the winner is the one with the highest bid. This is not the case with Facebook advertising.
To clarify: Every time an ad is created on Facebook and set live against a target audience, you are entering the Facebook Auction. You enter this auction with the bid that you specify within your ad set.

Automatic vs Manual Bidding

Automatic Bidding:
In this bidding option, Facebook places an automatic bid within each auction. The bid is calculated to spend the entirety of your specified budget while accumulating the most results for your ad. Facebook wants their users to trust the platform to achieve the most results for the best possible price. If you are still trying to gauge an “average” cost per conversion on Facebook, this may be a better option for you. However, to truly be competitive with your bidding and to ensure that you reach that next level of quality user, manual bidding is the way to go.

FB Bidding Method

 

Manual Bidding:
As with many aspects of online advertising (and life), you can put faith into a platform that is inherently designed to take your money to make decisions for you…or you can take control of the vehicle and get to where you want to be without all of the fluff. Manual bidding allows you to have strategic control over the delivery of your ads and could lead to better results for a lower cost than automatic bidding. The method for manual bid is slightly different depending on how you choose to optimise your delivery.

 

FB Delivery method

 

It’s more advantageous to optimise ad delivery for the result you are looking for. Facebook’s delivery system and auction optimise for the desired action within each campaign objective. For example, when optimising for conversions, Facebook looks for individuals within the audience who are most likely to convert or commit the specified action. The only time I would suggest using the other delivery methods would be if you have a smaller audience and confidence that the audience would convert or commit the action you want.

When you are manually bidding for actions like conversions or clicks, you have two options, maximum or average:
Maximum bid allows you to set the absolute limit you are willing to pay for a result, while Average takes your bid and is able to enter the auction with the flexibility of leveraging your specified bid amount as a median, not a ceiling. Average bidding allows for greater flexibility when entering the Facebook auction due to the ability to bid slightly higher than you would with a maximum bid in order to reach “higher quality” users.

Facebook Ad Quality and Relevance

Another element of the auction is your Relevance Score, which takes into consideration the “quality” and relevance of your ad.
These factors are based on how your audience reacts to your ad. For example, if your ad receives negative feedback, that can decrease its total value. If a user is historically interested in what you’re advertising or reacts positively to your ads, those actions can increase the value of an ad. Positive feedback increases your Facebook Relevance Score.

Relevance score essentially gives you the ability to receive a discount within the Facebook ad auction while simultaneously extending your reach to that audience. The ability to maintain a high Relevance Score can be a crucial competitive advantage when it comes to clicks, visibility, brand awareness, brand engagement, and very top-funnel marketing metrics.

Relevance Score can be an extremely effective metric to focus on when it comes to particular advertising goals; it’s just not the gold standard it is often made out to be.

If you’re going to spend money on marketing, no matter what the channel, you need to create value in order for that investment to be worthwhile. The beauty of paid channels like Facebook ads and Google AdWords is that if you have the right strategy and capability to play the game well, you can compete with almost any budget.

Source: business2community.com

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