Bidding Overview
A bid expresses how much you value your ad reaching a target audience and delivering results on your optimization_goal. bid_amount is the amount you want to spend to acquire a given event based on optimization_goal, and bid_strategy is the the how you want to control your spend on a given event based on optimization goal.
At Facebook's ad auction, Facebook evaluates your bid strategy, bid_amount, the probability of acquiring your optimization_goal to calculate an effective bid so that you only win auctions and have your ads delivered when you are likely to reach your optimization_goal at a centain bidding constraints such as cost per result.
As part of our effort to simplify our product offering, we consolidated Reach and Impressions optimizations to help advertisers achieve their reach goals more effectively.
In the API, selecting the Reach optimization will return the value of "Impressions" in optimization_goal and with the advertiser’s frequency control setting.
Bidding and Optimization core concepts include:
- Bid Strategies - How you want to place your bids.
- Optimization Goals - Advertising goals you want to achieve when Facebook delivers your ads.
- Budgets
- Pacing and Scheduling - How your ads budget is spent over time.
- Campaign Budget Optimization - A way of optimizing the distribution of a campaign budget across your campaign's ad sets.
- Billing Events - Events you want to pay for such as impressions, clicks, or various actions.
iOS 14.5 Updates
In response to Apple’s new policy, we are announcing breaking changes that will affect SDKAdNetwork, Marketing API and Ads Insights API endpoints.
Optimization goals that will be impacted by the new attribution fields are as follows:
Campaign objectives that are either
WEBSITE_CONVERSIONSorPRODUCT_CATALOG_SALESmust have the following optimization goal:- offsite conversion
- return on ad spend
- incremental offsite conversions
For apps, only the
APP_INSTALLSobjective can haveis_skadnetwork_attributionset totrue.- Exception: Mobile App Install CPA Billing will no longer be supported;
billing_eventcannot beAPP_INSTALLSifoptimization_goalisAPP_INSTALLS.
- Exception: Mobile App Install CPA Billing will no longer be supported;
- The API call would fail if
conversion_domaindoesn't match the domains mapped to the pixel+event or custom conversion selected on the ad set level.
Enforcement will only occur after Apple requires their AppTrackingTransparency prompt.
To learn more about how Apple’s iOS 14.5 requirements will impact Facebook advertising, visit our Business Help Center aricles and our changelog:
Bid Setup
When you choose your bid:
- Bid your true value: Think about your advertising objective and bid the maximum amount you're willing to pay for that objective.
- Decide whether you want to maximize for profit or for growth.
You can also set objective and billing_event but neither directly impact bid_amount or your effective bid. If a bid_amount is set, your actual cost per result is usually around or less than bid_amount, depending on your Bid Strategies.
For example, use these settings to spend about $10.00 for 1,000 daily unique views:
- Campaign
objective:APP_INSTALLS - Ad set
optimization_goal:REACH - Ad set
billing_event:IMPRESSIONS
However, to spend $10.00 for each app install, use these settings:
- Campaign
objective:APP_INSTALLS - Ad set
optimization_goal:APP_INSTALLS - Ad set
billing_event:IMPRESSIONS
Optimization Goals
Define advertising goals you want to achieve when Facebook delivers your ads. We use your ad set's optimization_goal to decide which people get your ad. For example with APP_INSTALLS, Facebook delivers your ad to people who are more likely to install your app.
optimization_goal defaults to a goal associated with your objective. For example, if objective is APP_INSTALLS, optimization_goal defaults to APP_INSTALLS.
Validation
These older objectives are deprecated with the release of Marketing API v17.0. Please refer to the Outcome-Driven Ads Experiences mapping table to find the new objectives and their corresponding destination types, optimization goals and promoted objects.
Certain campaign objectives support only certain ad set optimization_goals:
| Campaign Objective | Default optimization_goal | Other valid optimization_goal |
|---|---|---|
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