Are you looking to boost your business's presence, generate leads, or achieve goals offered by Meta Ads Manager for your business? Meta provides detailed targeting based on Behaviour, Demographics, and Interest to reach the audience who can be your potential customers. But when it comes to planning and launching Meta ads, going with the right bid strategy is always a task with a dilemma list. 

Throwing light on the outcome you are aiming for from the campaign, opting for the appropriate bid is a ladder to get the measurable results your business desire to see, be it generating leads, more website traffic, or app instalment. It can maximise your campaign's efficiency and increase the ROI, leading to profitability. To begin with, you first need to set an objective and identify KPIs. 

How Does Bidding for Meta Ads Work?

There are vacant spots for Meta ads at any given point in time. If you win a bid, Meta goes ahead with your ad. If someone else wins, the money stays in your account. 

Another point to note is that it doesn't happen every time. Apart from bidding, Meta considers other factors such as ad quality, relevance, conversion, and probability.

Meta takes charge and automatically bids on your behalf. Even if you have spent years running Meta ads, still often you will be forced to think- 

• How exactly do the Meta ads work?
• When, How, and Why does it decide which ad to show?
• Why don't some campaigns utilise the budget you have set? and
• Why do some campaigns consume their budget before the expected timeline?

In the end, it all comes down to the Meta Ads bid strategy. Instead of letting Meta do it for you, come forward and be amenable to control bids for ads placements. 

That's, it is said to choose a bid strategy that goes well with your KPIs and an ad objective that gives you the maximum return by spending less. You will find a variety of options to explore from. Follow along to understand them:

Types of Bidding Strategy:

There are four ways to bid on your next ad. Each one of them has performance goals, and factors to consider-

• Lowest Cost Bidding: It is the default option available for every ad object By opting in for this option, Meta will try to fetch as many as possible ad spots for your type with the minimum budget possible while spending your budget limit as fast as possible.

When to use: Best for the campaigns on which you want a high volume of results in a short period. Want to get eyeballs on your video view and create brand awareness? Then this bid strategy is for you to go with!

• Cost Cap Bidding: This bid strategy controls the cost while getting the most volume of results for your budget. It works by setting a limit on the average cost per action (CPA). Meta restricts it for campaigns like reach and brand awareness.

Nevertheless, you can use it for Traffic, Engagement, Video-view, Lead-generation, conversion, and Catalogue sales. 

When to use: Although it works best to balance lower costs with a high volume of ad views and responses, using it for ads aimed at your potential customers who are already aware of your brand will more likely get converted. 

• Bid Cap Bidding: The option is available for just a few ad types. It sets a limit on how much Meta can spend in a bid. In this, you will supervise each ad individually. 

When to use: Best to use when you want to decide on each ad. 

• Minimum ROAS: Like Bid Cap, Minimum ROAS is also available for a few campaign types. Your business should be verified for using this bid type, or you have a history of running ads for some time, and you need an active pixel installment. As it directly measures the revenue from an app, website, and Meta Messenger.

You can only use minimum ROAS for:

• App installs
• Conversions
• Catalogue sales

Make sure to supplement your ads by creating creative and engaging ad stories, graphics, and copy. For starters, it is recommended to get comfortable with low-cost and cost-cap bids before making an advance move forward to Minimum ROAS and Bid Cap bidding. 

Moreover, for the right Meta Ads bid strategy, you need to consider other factors like- campaign objective, timeframe, budget, and KPIs. Getting the drift can be overwhelming when you will get your feet wet but with the experimenting and practice, you will get the hang of it.