Madgicx recently upgraded our bid tests to include four new strategies: Bid Cap, Cost Cap, Target Cost, and Value Cost. This article is a step-by-step guide to help you learn more about each of these bid tests and about bid testing strategies. If you want to check out a manual click through tutorial, click here.
Step 1: The Dashboard
Note: You’ll only see the full dashboard below if you’ve already run a bid test before. If you’ve never run a bid test, skip ahead to Step 2.
Welcome to the dashboard; where you can see the uplift of your performance on your bid testing campaigns. The Madgicx dashboard has three sections:
- Last 14 days Bid Testing Performance
- Compare your bid testing performance with your non-bid testing performance over the last 14 days. Check out three metrics side-by-side to determine how your bid tests have performed overall.
- Select the black arrows to view several different metrics. In the example below, we selected Revenue, ROAS, and Website Purchases.
Bidding Performance Overall:
This section shows the overall results from each bid test according to the time frame. In the example below, the different bid test results are from the last 14 days.
- Select results from the last 7, 14, 28, or 60 days by selecting the black drop-down arrow.
- View only Madgicx Bids by selecting the square box.
- See the amount spent on a bid and what type of bidding strategy was used.
- Change the metrics to understand more about your bid performance.
- Look at the different cost-per-events, such as cost per website purchase.
Bid Testing Experiments:
- View active or inactive campaigns
- See your completed experiments and ongoing experiments. The line represents the length of the experiment.
- See the number of days the bid test ran, and the number of days the bid test will run in total.
- Pause and restart your campaign.
- Once the experiment is finished, “Experiment Completed” will appear on the Ad Set.
Step 2: Choose A Winning Ad Set
There are three requirements when selecting your best Ad Set for a bid test:
- Sizeable Audience
Madgicx will select two potentially winning ad sets for you to choose from, but you can also choose "Select a different ad set" and select any of your Ad Sets that meet the above requirements. Once you’ve selected your Ad Set, click on “Start a Bid Test” to begin.
Note: The Ad Set you choose must be active, but it doesn’t need to be delivering.
Step 3: Set Up A Bid Test
Defining your bid type: Madgicx gives you the option to choose from four different bid testing strategies. Learn more about each of these bid testing strategies here.
Bid Cap: Set a bid cap and Facebook will not exceed this bid. The objective is to reach the most people without going above your set bid.
Cost Cap: The general objective is to minimize your cost and maximize your conversion volume. Get the best results possible while staying within your desired cost-per-action.
Target Cost: Facebook stays within this set bid amount even if they can reach lower-cost optimization events.
Value Cost: Input a minimum ROAS value and let Facebook optimize toward that value. This helps you gain the most opportunities while maintaining a minimum ROAS.
Once you define which bid test you want to run, Madgicx will automatically create a new campaign and the name will automatically include the type of bid you’re running. If you’d like, you can also re-name your campaign.
Step 4: Set the Budget
The budget should be set according to your daily campaign budget. Remember that this budget will be divided by the number of Ad Sets you choose to run.
Step 5: Duplicate the Ad Set
Decide how many bid tests you’d like to conduct and select + to add more tests or - to run fewer tests. The minimum budget will automatically be divided among your Ad Sets according to your Campaign budget.
Set the Bid amount:
Madgicx will automatically select the best bids to use when conducting your test. This data is taken from your cost-per-event. You can change the bid amount if you’d like, but it’s not recommended since our default system has proven to work efficiently.
Event: An event is automatically selected based on the optimization goal of your selected Ad Set. For example, Purchase, Traffic, Brand awareness, etc.
Minimum Daily Budget: We set a minimum daily budget because we want Facebook to give all of our Ad Sets a fair chance at succeeding.
Step 6: Run the Experiment
- Decide how many days you want to run your experiment. We recommend 3-5 days, but you can adjust the number of days by selecting the + or - sign.
- After selecting the number of days the experiment will run, you must then choose what to do with your Ad Sets once the bid test is complete. The options are as follows:
- Keep the minimum daily budget and then turn off all the Ad Sets that have a ROAS below x. Madgicx will select your ROAS based on your average ROAS performance, but you can choose a different ROAS value.
- Remove the minimum daily budget and turn off all Ad Sets that have a ROAS below x.
- Remove the minimum daily budget form the Ad Set and let Facebook optimize. This means Facebook will disperse the budget freely inside the CBO.
Step 7: Decide When to Launch the Bid Test
We recommend you let Madgicx optimize the launch time since this is a powerful way to see positive results as you run the test during your best performance hours.
As seen in the photo below, you can
- Launch now
- Launch time optimization*
- Launch at midnight
- Create it now and schedule to start at your desired time
Once you select "Create" on the top right-hand side of the screen you’re all finished!
If you want further information about bid testing, check out some of our articles in the App guide. If you want to go through these steps on a click-through tutorial, you can find that here.
If you have any further questions, feel free to reach out to our support team. We’re always happy to help! 🎉