Starting from scratch, learn to open a shop on shopify in 30 days and manually bidding—Day22
Starting from scratch, learn to open a shop on shopify in 30 days and manually bidding—Day22
Today we are talking about manual bidding.
You may have heard the term manual bidding, and FB has also updated their name for manual bidding.
Next, I will teach you how to create a campaign, how to choose conversion volume as a target, what is meant by manual bidding, and when to use manual bidding.
Enter the advertising management tool and click Create to create a new campaign:
Select the campaign goal as conversion volume, fill in the campaign, ad group, and ad name, and save it as a draft:
I named all the names as DELETE to facilitate my deletion of this campaign later. This is only for demonstration purposes. Of course, you should name them according to your actual situation.
After saving it as a draft, the right panel will automatically pop up. Here you can actually click the second DELETE to edit the ad group and the third DELETE to edit the ad.
If you don’t know what the three DELETEs mean, you can click the red box icon below to collapse the panel:
Click on the corresponding campaign to enter the ad group:
Check the ad group and click the edit icon on the right to enter the ad group edit panel:
Then we drag the mouse to the bottom to see the bidding strategy for optimization and placement.
Minimum cost: In the past, it was called automatic bidding. If you choose this strategy, Facebook will bid with the lowest cost per optimization event as much as possible. However, the cost of a single optimization event may continue to increase as the cost increases or the auction intensity increases, and at the end of the day or the ad group ( Or campaign) spend the entire budget at the end of the flight.
Bidding cap: In the past, it was called the "maximum" manual bidding. Tell FB that the bid price in each bid is lower than the amount you enter, so you can better control the cost of a single optimization event. The actual cost per performance you see in the report is not the upper limit of the bid.
If you set the bid limit to 15 US dollars, then the cost of your order will be 15 US dollars or less.
Target cost: In the past, it was called "average cost" manual bidding. If you check this option, FB will ensure that the difference between the average fee and the amount you enter is kept within 10%. The target cost is best used to keep the cost of a single optimization event at a certain amount.
Note: During the entire campaign period, FB may not be able to achieve a single performance cost that is exactly the same as the target average cost, but FB will get as close as possible to this target cost after you exit the learning phase. In addition, not all optimization goals are applicable to target costs.
If your target fee is 15 dollars, then the cost of each order you get will always remain or be as close as possible to 15 dollars.
So, if you know from the data report, it costs an average of $8 for each order. If you set the bid limit to 10 dollars, then FB will spend 10 dollars or more likely less than 10 dollars to bring you orders. If you set the target fee to 8 dollars, the average cost of getting an order will always remain or be as close as possible to 8 dollars.
Suppose you spent 80 dollars on the first day of the advertisement and you got 5 sales, so the average cost is 16 dollars. But according to your previous data report, the average cost is only 8 US dollars, and our target fee should be set at 10 US dollars.
If we spread the expenses evenly over the next 2 days, the single-day budget is 40 US dollars. If we get 5 sales per day, then the total sales for these three days will be 15 and the average cost of the next two days will be 8 US dollars.
You have to remember that in the target cost, once you finish the learning phase, the cost will reach the average.
Therefore, the target cost will reach an average cost over time. If you set a target cost of $8, it does not mean that you can immediately get $8 in sales. Your sales may be higher, and the cost per order may be more, but over time, the average cost will be as close as possible to the amount you set.
The bid limit means that this amount will never be exceeded, and the minimum fee is that FB bids with the lowest single optimization event cost as much as possible.
Should you choose the lowest cost, the lowest cost with a bid cap, or the target cost? This depends on your own needs.
After we set the budget, we can check the bidding strategy.
Assuming that the budget is set to 15 dollars, if you check the bid limit and the bid limit is set to 5 dollars, then facebook will bid less than 5 dollars in each auction; if you check the target cost, then facebook will do its best It is possible to control the average cost between $13.5 and $16.5.
So when do we choose manual bidding?
If your single-day budget is more than $75, you can choose to bid manually. Of course, if you have a lower budget, you can also bid manually.
It's just that I personally use 50 dollars as the limit. Automatic bidding is used for less than 50 dollars, and manual bidding can be used for more than 50 dollars. Under normal circumstances, if my single-day budget is between US$75-100, I will choose manual bidding.
Manual bidding involves different variables and is considered a relatively advanced bidding technique. If you choose manual bidding, one thing to pay special attention to is your budget.
In other words, not everyone is suitable for manual bidding at the beginning. In fact, I think that 98% of sellers should not start manual bidding without understanding how to correctly create ads and sufficient funds, because manual bidding does require more funds.
Manual bidding is very suitable for volume expansion. After you understand the target cost and profit, you can set as many daily budgets as you want.
Suppose your profit for each sale is $20, and suppose your automatic bidding data shows that it costs $8 for each sale, which means that your final profit is $12. Then, you can set the upper limit of the bid to 12 dollars, or set the target fee to 12 dollars (the average cost is between 10.8 dollars and 13.2 dollars).
At this time, all we have to do is to modify the single-day budget. Once you know the sales data through the previous campaign, you can put the profit in the manual bidding, like the 12 dollars mentioned above.
Then we need to modify the one-day budget, because you have already told FB in the bidding strategy section: I am willing to spend $12 on advertising for each sale, so you have to find a way to spend my budget.
If my average cost is 12 dollars, or less than 12 dollars, it's all right. If I break even, I won’t worry, because I will have follow-up upsells, email marketing, etc.
Facebook does not have data for your reference. We need to obtain data from other campaigns before manually bidding. So, if you don’t know the data, manual bidding will be blind.
My following advertisement is an automatic bidding. Assuming that its single performance cost is 10 dollars, and my profit without advertising is 20 dollars, then the net profit after excluding the advertising cost is 10 dollars.
Then I will create a new campaign and set the bid limit to $10 in the bidding strategy section of the ad group, because I want to spend less than $10 in advertising costs per sale.
Then adjust the budget, such as increasing the budget to $150. In this way, I can get 15 or more sales.
In this way, we are telling Facebook: I am willing to spend less than $10 on advertising for each sale.
Once again, I set the bid limit to 10 dollars here because the result I got from previous campaign data is not my imagination.
When we bid manually, there are two methods: one is to set the fee based on past data; the other is to set the fee as much as you want. Obviously, the second method is too subjective and not based on objective data. Every penny we invest in advertising is to gain sales, so I strongly recommend manual bidding when we have data.
I know that some people started bidding manually without collecting data through automatic bidding. You can also try, but if you manually bid at the beginning, the budget will be spent quickly, but they can find potential explosive products faster, and it is easier to expand advertising.
It’s not that easy to understand what I said today. I suggest you read it several times.
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