Madgicx is excited to present the upgraded version of our Bid Testing tool! We now offer 4 different Bid testing strategies so that more of our users can benefit from this tool!
What is Bid testing?
Bid testing serves as a common Media buying technique to uplift your results by manipulating the amount you offer Facebook for each impression in a bidding auction.
How does bidding work?
The Bidding System on Facebook-As an advertising platform is based on impressions, (Ad placed on digital real estate once will count as one impression). The entire Facebook advertising billing system is based on counting impressions.
Advertisers who offer the highest bid win the bidding war and are charged per impression. Because competition is fierce, this makes specific audiences more expensive to show your ads to.
Bidding on Facebook
Impressions on Facebook can be compared to commercial real estate spaces, imagine Starbucks were to be placed in a rough neighborhood, no one would be willing to pay 6$ for a latte. The same thing is true for Facebook real estate, if your ads aren't shown to the right audiences, then you might not be profitable. Cheaper audiences allow you to get impressions from lower bids but aren’t always the most likely to buy your product or service.
Using the manual bidding system will allow advertisers to reach different segments within their target audience. For example if you want to reach “Expensive” users within a specific audience you can place higher bids, and to reach “Cheap” users within a specific audience you can lower the bids. Learn more about who should use Bid Testing as a great way to scale your performance, in our Bid Testing User Index.
When using Cost control bidding you determine the bid according to your goals. Bid testing is used to control your reach within an audience and allows you to experiment with your scalable audiences and find your best bids.
The Bid strategies we offer in Madgicx
Different bid strategies are used to control your bids and are defined by your business goal. In Madgicx we offer 4 bid strategies:
Bid cap - Set a cost per event cap, and Facebook will make sure that you get the minimum available bids up to your set limit and without exceeding this limit.
Cost cap - Set a Cost per event cap, and Facebook will search for opportunities to get impressions within this cap. The objective is to reach conversions within all audience segments,Facebook will try to reach audiences within your cap however if it doesn’t reach conversions within this cap it may go above and below your bid.
Target Cost - Set a target Cost per Event, and Facebook will only use your target bid without trying to get the minimum bids below set cost. Assuring you are getting a consistent bid level.
Value - Input a minimum ROAS value and let Facebook optimize toward that value
Madgicx Bid Testing will find your Top scalable prospecting acquisition ad sets and run experiments with different bidding values to find the most profitable bids and scale / save them. To use the proper technique refer to the Bid Testing User Index, if you want to get started right away check out this Step by Step Guide for Bid Testing and if you want to go through the steps manually you can do so here.
In addition to that, our Madgicx Wizards are always here to help you out! Don’t hesitate to reach out to us through the chat!