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Last month we published our 2017 Complete Guide to Facebook Advertising. In it, you get a full run-down of Facebook account structure, tracking, ad types, and more from 3Q experts. We not only go over Facebook best practices but also include tips that we’ve learned over years of using Facebook advertising for ourselves and our clients.

Below is an excerpt from the guide.

In our excerpt, we reference two fictional clients:

  1. FashionFinds is an ecommerce site focused on women’s fashion retail. They have a range of product lines including dresses, shoes, jewelry, etc. and ship to 10 countries. They do not have a mobile app.
  2. GoodFood2U is a restaurant food delivery service that has a website and app component. They’re very geo-based, serving specific markets in the US only.

Budgeting

Daily budgets are much easier for pacing evenly and are the preferred method for the vast majority of 3Q clients, especially when our client has a set monthly budget. In the example case of FashionFinds, daily budgets would be preferred since Facebook’s algorithm starts to learn site traffic patterns and will learn how to pace impressions throughout the day to maximize the daily budget.

Lifetime budgets should generally only be used when dayparting is part of your needed strategy. Day-parting is only available on Facebook when using Lifetime budgets. Since the fictional GoodFood2U client has very specific delivery hours in different geographic markets across the US with campaigns that are broken out by geo, they would require a day-parting strategy to keep the program efficient.

Bidding

There are four main bidding methods available at the ad set level:

  1. CPC (cost per click) bidding is a basic strategy for performance advertisers where advertisers pay on a per-click basis and the system optimizes for the click traffic. CPC will reach users likely to engage (click) on your ad. We see a high CTR and low CPC on this placement. It is recommended for small audiences where oCPM does not work or where audience pools are smaller but are highly qualified.
  2. CPM (cost per thousand impressions) bidding is a method that strictly aims to optimize for the cost of serving 1,000 impressions, regardless of the quality of impression. CPM should be reserved for when you want to reach as many users in an audience as possible. For example, if you have an audience of 2,500 who always purchases when there is a promo… you would want to use CPM for them.
  3. oCPM (optimized CPM) is a more common route than CPC and CPM bidding, and optimizes for conversion on a cost per thousand impressions basis. With oCPM you’ll pay to reach the portion of a given audience that Facebook thinks is most likely to convert.
  4. CPA (cost per action) is a bidding method that optimizes towards actions such as mobile app install, page likes, offer claims, and link clicks. Under the CPA bidding method, advertisers pay on a per-action basis. Facebook allows you to choose which time window it should optimize off of (1 day click or 7 day click). You also need to choose either an automatic or manual bid.

To learn more about when to use what bidding type, and delve more into Facebook advertising, download our 2017 Complete Guide to Facebook Advertising.