Facebook 101 – Bids, Budgets, & Segments, Oh My!
When looking at a Facebook marketing pie, some of the main ingredients are the bids, budgets, and segments. Here are some tricks of the trade we recommend.
Facebook provides a suggested bid range when advertisers upload their ads. Our recommendation is to start at the lowest end of the bid range, and gradually increase if you have a more conservative budget. If you have a more flexible/aggressive budget, start at the higher end of the range, and work your way down. The logic behind this plan is that the higher initial bid will give you better intent in Facebook’s algorithm.
Facebook offers two budget options (set on the account level): lifetime and daily. Lifetime is more akin to accelerated on Google, while daily is similar to the standard option on Google. The lifetime budget option will bleed through your budget immediately, so our recommendation is to go with the daily budget option, so you can ensure that ads are running throughout the day. Use the daily budget as a cap because it will all be spent by day’s end.
The real fun with Facebook is in the segments, which are set on the campaign level. The segments are essentially all of the likes and interests, as well as demographic information, available to target. You can target based on all the basics, like age, gender, relationship status, interested in, schools, work, etc, as well as the many likes and interests available. Since this pool is so large, our recommendation is to start with a handful (i.e., 20 – 50) of these demographics and likes/interests you’d like to test, and then refine, refine, refine. If a particular segment works well for you (for example, women ages 25 – 35 interested in traveling), then target them with more specific ads/images. If a particular segment converts poorly, feel free to cut it. The best results I’ve seen so far have been from starting broad and then refining segments.
It’s also important to align yourself with a company that can handle auto-splitting. Auto-splitting is automatically splitting your segments so you can set unique bids on those ads. For example, if you have two ad variations and want to target both men and women between the ages of 18 – 20 who are interested in hiking and biking, through auto-splitting, you can take those two ads and actually create 24 unique ads with unique bids. See below:
This not only gives you more insight, but more control over your bids and performance. There will be more to come in terms of likes and interests and some interesting tools our engineers are working on, so stay tuned. For now, enjoy these insights and have fun getting started.
Senior Account Manager