== Facebook Bids - Choosing Budget and Ad Schedule ==
Facebook advertising is an auction in which advertisers bid against each other to obtain a spot on Facebook’s platform. Your bid amount represents your level of interest in showing your ads: low bids show low interest; high bids show high interest. There are two ways you can set your bid. First, you can set it on automatic and allow Facebook to bid on your behalf. Second, you can set it on manual and choose the amount of money you’re willing to pay per 1,000 impressions. My advice: choose automatic bid if you don’t have a set value in mind and choose manual bid if you know how much you’re willing to pay per bid. If you do choose manual bid, don’t bid too low. Remember that Facebook advertising is an auction. If you bid too low, your competitors will outbid you for the spot that you want.
When You Get Charged
You have two options for when you want Facebook to charge you. You can choose to be charged every time 1,000 impressions occur or every time someone clicks on your ad. If you choose per 1,000 impressions, Facebook will charge you every time your ad appears on your audience’s screen. If you choose link clicks, Facebook will charge you every time someone clicks on any part of your ad. This includes clicking to react, to comment, to share, or to claim your offer. If you’re unsure which method would be more financially beneficial to you, you can test two different ad sets: one in which you’re charged per impressions and one in which you’re charged per clicks. See which ad is more inexpensive and continue to run that one.
If you chose a lifetime budget, you’ll have the option to either run your ads continuously or to run them according to a schedule. Running your ads on a schedule would be helpful if you knew when your audience is most often on Facebook, information that you can access through audience insights. Let’s say Audience Insights shows you that you audience accesses Facebook from noon to 1:00 p.m. on the weekdays. To ensure that your audience sees you ads, schedule your ads to run every weekday from noon to 1:00 p.m.
After you’ve paid for your ad and after Facebook has approved it, Facebook will deliver your ad to your target audience using two methods: standard delivery and accelerated delivery. If you choose standard delivery, the recommended delivery type, Facebook will deliver your ads evenly over the course of your campaign (this process is also called pacing). When choosing this option, keep in mind that, because Facebook paces your budget, Facebook may lower your bid when there are more inexpensive opportunities available to get the best results out of your budget. Pacing is advantageous to you because you will have the funds to spend on more inexpensive opportunities that may come later. If you choose accelerated delivery, Facebook will deliver your ads as quickly as possible. The focus will be on speed rather than efficiency.
Although this option may prevent you from getting the most statistical value from your ads (aka the most cost-effective delivery options), it will be beneficial to you if your campaign is time sensitive. Sometimes you might find that your ad is not delivering. That’s because your ad doesn’t have the highest total value, a value that is calculated by four factors: your bid, your ad quality and relevance, and your estimated action rates.
The following is a checklist of what you can do to increase your highest total value: 1. Enter a decent bid: Although you can bid any amount you want, it’s important not to bid too low. If a competitor bid a higher amount for a spot in News Feed that you want, you will lose the bid and the spot.
2. Create high-quality ads: Low-quality ads may affect delivery.
3. Target a relevant audience: If you target the wrong audience, an audience that isn’t relevant to your offer (for example, targeting young women for an ad that advertises men’s shoes), you will receive a low relevance score, which will result in low estimated action rates, the number of people Facebook predicts will respond to your ad. It’s important that your ad has a high total value; otherwise, your ad will not deliver.
Estimated Daily Results
As you’re creating your ad in the ad set level, you will likely notice a square on the right column of your screen labeled “Estimated Daily Results.” That square gives you an estimate of your daily reach and results based on your ad settings, such as your target audience, budget, and optimization. You’ll notice that after you’ve chosen your objective, placement, schedule, and budget and created your audience, the estimated daily results bar will give you a predicted outcome based on what your campaign is optimized for.
With the estimated daily results prediction, you can adjust your daily budget, optimize ad set performance, and use the information of your ad set that you have so far to improve your results. Estimated daily results are best suited for advertisers who have actions (e.g., video views, conversions, and installs) as their objective.
Choosing Your Budget and Schedule
The next step is to create your budget and schedule, which you can do at the ad set level. So many curious advertisers and potential clients ask me how much Facebook ads cost. Here’s the thing: Facebook doesn’t have a fixed fee for its ads because the ad buying process is a bid. Rather than charging you a set amount per month, Facebook charges you by the amount you’re willing to pay. Do you want to spend $20 a day? You can do that. Do you want to spend $5 a day? You can do that too. You establish your budget with Facebook, and Facebook will charge you within your budget. There’s no maximum daily spend you need to abide by, but I don’t recommend that you cheap out on your ads. You have to bid for a spot for Facebook’s platform, afterall, and throwing in a few dollars helps you win a good spot. In this section you’ll learn how to create your budget and schedule.
Your budget is the amount of money you’re willing to pay over the period of time you chose your ads to run. In the example below, I have a $20 daily budget, which means I’ll spend a maximum of $20 each day. Although I have $20 to spend each day, I may not necessarily have to spend that entire budget. For example, Facebook may decide to charge me $15 on one day or $5 on another. Although the charge per day may differ, Facebook will never charge you more than your daily budget. When setting a budget, you have the option to choose between a daily budget and a lifetime budget. Your daily budget is the amount you’re willing to spend each day, and your lifetime budget is the amount you’re willing to spend over the duration of your ad set. Once you’ve chosen a budget type, you can’t switch to a different one while the ad is running. You can, however, duplicate an ad set and create a different budget type for that ad set.
After you’ve set your budget, you must then choose your schedule. Your default option is to run your ad set continuously. If you select that option, Facebook will run your ads until your budget has been completely spent. Your second option is to set a start and end date. Facebook will run your ad based on the start date that you choose and end it on the end date that you choose. The times entered must comply with the times of each ad’s location. Thus, if you start your ads targeted in New York and London at 5:00 p.m., both ads will begin at 5:00 p.m. in their respective locations.