A lot of marketers use bidding in terms of trying to get the cheapest click possible. Getting super cheap clicks is indeed what you want but you have to look at it in terms of your objective.
Is your objective to get cheap clicks, or is your objective to get cheap leads, brand awareness?
Below we will go through the different types of bidding and why you should try testing all different types to see which one fits your specific Ad Set.
1. Optimizing & Pricing: Clicks To Website
Facebook will help you out at best as the can! You just have to tell them specifically what you want. So for example if we were to select Get the most website clicks at the best price Facebook will show your ad to the most likely people who will click it and go to your website.
This includes their algorithm of finding the top % of people who click ads and reach them first. Later this ad will be shown to others who are likely to click and based off of the history of users not clicking ads it will show them the least.
More or less, once it starts to developer history of your potential clickers the almighty algorithm will start to show your ad to people who have clicked your ad. So for example if women 24-35 years of age are clicking your ad more often and they are on mobile they it will likely give it's fair share of impressions to them more.
If you Set the amount a click to your website is worth to you this means you will tell Facebook that if people are not clicking then the maximum I am willing to pay for a click is .75 cents (for example).
Facebook will still charge you for impressions because sometimes people may click the image of the ad and go to your website (hence, website click) and sometimes they may click your Facebook profile name and go to your Fan Page.
If they were to click comment, share, or like this would not be considered a website click. So they will charge you for impressions first to see what is the likely hood of people clicking that particular ad and help you get the cheapest clicks possible over a period of time.
2. Daily Unique Reach
There has come a time where our audience size is very small, or our ad has reached it's stage of fatigue. That means we have shown our ad so many times that people are not clicking it or engaging it anymore.
You may want to change your bidding type when this occurs. By implementing Daily Unique Reach you are able to serve your ad to people only once a day. So they will not get fatigued and plus you will likely not spend your daily budget every day!
You will be charged for impressions with Daily Unique Reach.
Best Used For:
We use this commonly when we are doing Website Custom Audience Retargeting because our lists are not big quite yet or if we are just targeting a very specific audience that has a size of 1,000 or less.
The worst thing that can happen to you is your ad has been shown to people far to many times and they start to block your ads or complain!
3. CPC Bidding: My All Time Favorite
All of your Google Adwords marketers are familiar with this method. This method is very useful if you are targeting a brand new audience and you have a set budget!
You will only be charged for clicks for this one. So for example if your ad is shown to 1 million people and no one clicks you will not be charged, but if your ad is shown to 1 million people and only 2 people click then you will only be charged maximum .88 cents per click (example above).
You have full control of your ads spend bidding with this method. Normally if you are targeting a small audience and you would like to get your ad out to the audience evenly without using Facebook's algorithm.
Best Used For:
Targeting a smaller audience and wanting to get a much more fair share of impressions shown to them without the fear of paying for them if no one clicks.
Remember!!! You will only pay for clicks. If they do not click, you do not pay!
4. CPM Bidding: AKA Impresssions
If you want your ad to be shown to everyone and their mother as well as as many times as possible then CPM bidding is what you want to use.
Preferably this is best used with super large audiences but also keep in mind you won't be utilizing Facebook's algorithm to where they can help you reach the people you want to reach.
You will be charged only for impressions (per 1 thousand impressions). That means that regardless if they click or not you will still be charged for the ad showing.
Best Used For:
The only time we use this is when we are trying to get a brand awareness out to a particular audience and preferable on the right column we shoot a low budget to people just to build a reminder for them. So if we have a webinar coming soon we could show this ad to the people who signed up for the webinar and just kindly remind them of the date, time and also what we will be covering.