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Heads up, digital marketers: Facebook recently announced that they’re planning to remove target cost bidding this fall. This bidding method, which was formerly called “manual bidding” and allows marketers to set target costs for events including leads, app installs, and sales, is expected to fully depreciate by September 15, 2020. At that point, all campaigns still utilizing this bidding method will be paused.
Facebook’s announcement gives advertisers ample time to adjust their bidding strategies. Here’s a quick download covering the bidding methods that will still be available:
- Cost Cap: maximizes conversion volume within an acceptable CPA.
- Cost caps are a good option when you’re migrating your campaigns away from target cost bidding. Make sure to monitor daily spend and time spent in the learning phase.
- Lowest Cost: the default bidding method when setting up new campaigns.
- Lowest cost doesn’t provide control over costs; the algorithm will prioritize the cheapest actions. This bidding method is great for reaching low-hanging fruit, but CPAs are likely to rise with budget increases or small audience pools.
- Bid Cap: designed to maximize control when it comes to bidding.
- Bid caps allow campaigns to reach as many users as possible at a specific bid. Bid caps are handy if your business is in an ultra-competitive space with many brands targeting the same audience.
Don’t wait until the first week of September to turn off target cost bidding in your campaigns! Check out a few strategies we use when it comes to trying a new bidding method, and keep a methodical approach to minimize major fluctuations in performance:
- Avoid mass-updating your campaigns; making changes broadly will reset your campaigns into the learning phase, which may impact performance.
- To gauge how performance will react to changing bid types, consider first updating your bids on campaigns with the largest reach.
- Ensure stability among budget and efficiency with automatic rules. Check out this overview of Facebook Rules written by one of our in-house social experts.
Unsure of where to start? Our social team is ready to brainstorm the best social bidding strategies to meet your unique business goals.