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The LayMan’s Guide: Facebook Ad Bidding Strategies (Lowest Cost And Target Cost)

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The LayMan’s Guide: Facebook Ad Bidding Strategies (Lowest Cost And Target Cost)

Back in the year 2007, on November 6, at Facebook Social Advertising Event in New York, for the very first time, Mark Zuckerberg announced Facebook advertising. Of course, the objective of this social media giant has changed over the years as far as Facebook ads are concerned. However, the chief idea of Mark behind Facebook advertising has been to connect businesses with their most potential users all across the demographics.

Simply put, Facebook advertising is a broader concept. Understanding it (how Facebook ads work, different Facebook bidding strategies, and all) completely can take you a while. So, you have to start somewhere. And, this might be the right place for you to begin with this.

In this blog, we will talk about different Facebook ad bidding strategies and related facets. To know it all, continue reading!

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What Do You Mean By Facebook Ad Bidding?

In a nutshell, Facebook bidding is a process of auctions, where advertisers bid for ads based on different aspects, be it keywords, ad sets, event optimization, and much more. There are various Facebook bidding strategies available, according to which you can achieve Facebook advertising for your business. However, the first two main types of bidding methods are-

  • Lowest Cost
  • Target Cost


Let’s talk about them in detail!

Lowest Cost Bidding Strategy (the default)-

Earlier, the lowest cost bidding strategy was better known as automatic bidding. Following this, Facebook operates the ad bidding process to acquire the lowest possible cost as per event optimization. Also, the budget you have both as per the ad set level or campaign level will get used eventually after the complete procedure.



Under this by default bidding strategy, Facebook will charge the lowest possible cost for your ad as of the short period.


It is quite an unstable bidding procedure. The lowest charged bids can stay for short term and later outcomes in various uncertain situations. Especially, if in case, competition increases or budget you spend gets more.

Target Cost Bidding Strategy-

In the case of target cost bidding strategy, your Facebook ad average costing will remain the same throughout the process. You have to set the target cost once, and then, according to your ad delivery optimization, the whole process continues. This cost bid strategy was earlier known as manual bidding.


Target cost bid tactic works mainly for the following Facebook advertising goals-

  1. Lead generation.
  2. Conversion.
  3. App Installations.
  4. Catalog Sales.

As I have mentioned above, how this bidding metric is more about getting stable and long-term objectives. Whereas, Lowest cost bid strategy is more suitable for short-term Facebook ads endeavors. Also, it works quite well when you want to increase your ad spend.

At the time of implementing this Facebook ad bidding process, you will ask about the target cost parameter, that too based on your selected conversion window like 1-day view by default or 7-day click.

Initially, it would be better for you to invest the average amount as per events. And, try to explore more about the lowest costs by reducing the amount. But, after you become able to stand on your feet, you can spend your complete budget for the event optimization.


According to this cost bid strategy, you will always get a stable cost per event outcomes. Most importantly, at the time of various scaling attributes.


You can come across a varied degree of fluctuations under target cost bid strategy. In addition, you can find it quite expensive too.

There’s one more basic bidding process we have, which is known as the Lowest Cost with a Bid Cap.

Lowest Cost With A Bid Cap-

In the case of the Lowest cost with a bid cap strategy, you can set a limit on specific ad events. That prohibits Facebook from spending too much. And, when you want to bid a certain amount for a campaign, then you can tick the bid cap checkbox and type the respective figure. It is one of the best ways to control your overall ad budget.


However, always remember, to not set a much lowest bid cap, because this can make it difficult for Facebook to utilize your ad budget when needed.

Some More Quick Links:

Facebook Ad Guidelines and Policies: Everything You Need To Know.

Facebook Advertising: 05 Mistakes To Avoid By Any Means.



Tips Regarding Setting A Bid Cap-

As a beginner, Facebook suggests advertisers keep their ad budget at least five times more than their bid cap. Because, according to Facebook, it needs almost 50 runs in the initial phase to go for event optimization.

Also, Facebook recommends that you should use an average cost from your initial campaigns to get started with a bid cap. And, also, consider paying more on events, so it can turn into a profitable deal.

Once you reach an end to your learning phase, you can go for increasing your bid cap. But, if you are getting decent results, then doing so is not that necessary.

No matter, based on which parameter, you’re setting your bid cap. But, always make sure to do it with a lot of care, as it can work in either way. It can also work in your benefit, as this restrains Facebook to overspend. Or, on the other hand, it can also cause difficulty to Facebook while processing your ad event optimization.

What Is Best For You?

Well, there is no such on-print theory about what can work best for you regarding Facebook ad bidding strategies. Because, to be very honest, it’s a slightly unpredictable place to be in. At the end of the day, it is completely in your hands to understand what works or can go with your business flow. Right!

However, according to sayings, a lowest cost bid strategy is appropriate for short-term advertising goals. Whereas, on the other side, target cost bidding is for people who want a long run in the Facebook ads periphery. And, applying a bid cap can direct Facebook from not overspending your ad budget. The bottom line is you have to be aware of where you are in this jungle.

Although, the use of advanced Facebook ad intelligence software like PowerAdSpy can help you immensely in this direction. By using it, you can access data about world’s best Facebook adverbs as per different metrics like, ad positions, keywords, competitors, domains, and much more.

Final Thoughts:

These were the three main types of Facebook ad bid strategies. All of them have their significance in the Facebook advertising realm. Although, there might be possibilities that not all of them work for your business equally, as they do for some other one. So, be vigilant before you pick and implement any of them for your business.

What’s your favorite Facebook ad bidding strategy? Do you prefer to execute a bid cap all the time in your ad Lowest cost bid process?

Don’t forget to share your views on different Facebook bidding processes in the comment section below! I would love to hear from you.