Brands must choose strategies that offer ideal control over ad budgets, meet relevant campaign goals and generate required revenue.
With the lowest-cost bidding, Facebook tries to win ad spots at the lowest cost available. The goal here is to secure as many ad spots as possible within the ad budget. This strategy helps brands focus on goals like brand awareness, reach or video views.
By choosing cost cap bidding, brands can set a limit on the average cost per action. Whatever the ad bid maybe, Facebook will ensure it remains at or below the cost cap. The strategy is ideally meant for an objective like traffic, lead generation and conversions.
While the cost cap keeps the average bid below the limit, bid cap bidding sets a hard limit on every single bid. This strategy gives brands the most control over their Facebook ad budget. Finally, the minimum ROAS strategy enables brands to inform Facebook what the minimum revenue the brand wants to earn from the ads.
[9 minute read]