Assessing the cost-per-lead (CPL) allows brands to tier-bid Facebook ads and drive conversions.
A tiered bidding approach allows brands to target their ads for their lookalike audiences without losing the conversion characteristics of the primary audience. Additionally, tiered bidding cap enables marketers to drive higher lead conversions without going beyond the specified bid amount.
To implement tiered bidding strategy brands should work with finance teams to determine their maximum CPL. This article says that once marketers have determined their maximum CPL, they can target their ads to lookalike audiences with additional parameters like household income.
Brands can further scale the size of their lookalike audiences on Facebook Ads manager based on their location. The author contends marketers can then apply their bidding caps on the lookalike audience and optimise their ads to enhance their CPL.
[9 minute read]