Facebook Bidding Unraveled: Who are your Ads reaching?

How do I choose the right bid type?

To recap, the four bid types are closely related. When choosing your bid type, you should consider the following:

  1. What your advertising goals are
  2. Who will actually receive your ads 

2. Targeted vs Effective Audience

As an advertiser, it is important to understand who your audiences are, and what they respond to. You can choose your 'target audience' by selecting particular demographic aspects (e.g. age, gender, geography, interests) when creating an Ad Set. Facebook then further refines who within that audience is likely to see your Ads (your 'effective audience') based on the bid type selected, and other factors*. It is important that you understand who your Ads are likely to be shown to within your Ad Set so you that are spending your advertising budget efficiently. 

Bid type has the following effect on who gets to see your Ads:

*In addition to bid type, other factors influencing your Ads' effective reach include:

  1. Your Campaign’s objective - some users within your targeted reach group are more likely to perform certain types of actions than others. 
  2. Your Ad Set’s bid value - the higher your bid value, the more likely you are to reach a higher percentage of your targeted reach group audience. 
  3. Your Ad Set’s budget - the higher your daily or lifetime budget, the larger percent of the targeted reach group audience you're likely to reach.
  4. Your Ad Set’s flight dates - the longer the time period you run your ad sets, the more likely you are to reach a higher percent of your targeted reach group audience. 
  5. Your Ad's historical quality score - this is determined based on user feedback from your ad, however this score is not exposed anywhere on Facebook for you to keep track of and measure. 
  6. General auction dynamics - this is the wild card which is represented by all the other advertisers bidding on your targeted reach group audience; the more competitive the time period, the more you are going to have to bid and eventually pay Facebook to reach a higher percentage of your targeted audience. 

Using A/B testing to find the right bid type for you

Still not sure which bid type to use? Read on...

How much do I bid?

Decided on a bid type? Great! Now, how much should you be bidding? Read on...


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