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.

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.

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

Certain campaign objectives support only certain ad set optimization_goals:

---

FAQ