Bid testing is best suited for people who have already set up a full-funnel campaign on Madgicx using our ARR Audiences. If you are just starting out, you can still try, however you may want to stick with a Cost Cap bid test since the flexibility it provides will help assure delivery. Once you see positive results on your account after setting up all the basic tools to begin scaling, such as Automation Tactics, Ad Copy Insights, and Creative Insights, it's time to consider a bid testing strategy.
With the release of our updated bid testing, users will now have the ability to choose from a variety of different bid strategies; allowing you to customize according to your specific needs. Each bidding technique is set according to your end goal and should be used by advertisers who want low-cost opportunities while reaching the desired outcome. There are four different bid testing strategies that are currently compatible, and below we describe which strategy is right for who.
The Four Bid Strategies Offered in Madigcx
- Bid Cap: Prior to the update, this was the only bid strategy that we offered on Madgicx. Bid Cap is a strategy in which Facebook will attempt to obtain the lowest price bid while not allowing the cap to be surpassed. This is great for people who have low priced products and cannot afford a high cost per purchase, or for people who just want the absolute lowest possible bid price. Keep in mind that "you get what you pay for”...
- Cost Cap: This is a great strategy for people who may need a little more flexibility than the Bid Cap strategy provides. With Bid Cap, the delivery may be affected since the bid is limited by the cap. However, in Cost Cap, Facebook will still try to generate the lowest cost bid, but will not be limited by the cap in order to assure delivery. If your performance is not exactly where you want it to be, the extra flexibility this strategy provides might be a good option.
- Target Cost: While the two previous strategies are great for low-cost bids, Target Cost strategy is better suited for people who are more focused on quality bids. Facebook will not try to optimize for the lowest possible cost, but rather tries to stay within a thin margin of the targeted cost. If you have a niche market or expensive product, this may be a good option for you.
- Value Cost: All of the other strategies listed above take cost-per-purchase into consideration, but what happens if you have multiple products with different pricing, wouldn’t the cost-per-purchase be irrelevant in this scenario? This is when the Value Cost strategy comes into play. With Value Cost, Facebook will optimize bids based on ROAS; making it perfect for people who have many different items that they sell.
Do you think that a bid test can help your needs? If so, now is the time to get started! You can follow our useful pre-built process in order to reveal the most profitable bids for your most valuable audiences by checking out this step-by-step article here.
As always, feel free to reach out to our support team. We’re always happy to help! 🎉