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How to optimize your Facebook Advertising Bidding?

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If you want to optimize your Facebook Ads campaigns you need to work with bidding, budgets, targeting or creatives. In this article I am going to show you ho to edit your bids to achieve better results from your Facebook Advertising.

We set up Bidding and Budget on Ad Set level, this is why I won’t write anything about Campaign or Ad level. If I want to optimize the costs and budgets of my ad sets, these three rules must be followed:

  • Campaigns are segmented to more Ad Sets. I can’t optimize anything if I have only one broad Ad Set for all placements and audiences.
  • I’m trying to achieve exact goal in terms of ROI, CPT, CPM or any other metric. There is no optimization without goal.
  • I have enough data to make decision. I can’t decide anything based on 10 clicks data. Make decisions by data not feelings.

Bidding & Budget adjsutment by performance

Bidding & Budget adjustment is the first think I need to do if I want to optimize and achieve better results. In Facebook Ads Manager I need to do these changes by myself regularly whilst in ROI Hunter I can just check how are my Automatic Rules working. Let’s jump to practice:

AdSet name Spent Revenue ROI
F_18-23_Interest-yoga_dnf $435 $762 1.75
F_18-23_Interest-yoga_rhc $232 $982 4.23
F_18-23_Interest-yoga_mnf $986 $887 0.90
F_24-28_Interest-yoga_dnf $652 $98 0.15
F_24-28_Interest-yoga_rhc $723 $2,027 2.80
F_24-28_Interest-yoga_mnf $812 $827 1.02
M_18-23_Interest-yoga_dnf $98 $669 6.83
M_18-23_Interest-yoga_rhc $76 $123 1.62
M_18-23_Interest-yoga_mnf $113 $871 7.71
M_24-28_Interest-yoga_dnf $343 $90 0.26
M_24-28_Interest-yoga_rhc $828 $1,345 1.62
M_24-28_Interest-yoga_mnf $231 $98 0.42


You can see that currently there are 12 Ad Sets running. Each of them is targeted to different Audience or Placement (you can read it from Ad Set names). This client’s goal is the highest revenue possible with overall ROI 3. I need to damp Ad Sets which are wasting my money and increase volume of revenue-makers to achieve this goal.

Stop Spendthrifts

Let’s handle it one-by-one. There is an alarm in my head lighting red if I see results of red-marked Ad Sets. All of 4 reds are having lower Revenue than Spend (ROI is under 1)! I have enough data to be hopeless about them.

I’ve did some edits in the past but nothing helped. I have no other choice than turn them off. My goal is ROI and I must be unforgiving in achieving it. Doesn’t matter that I have guessed that age group 24-28 will be the best. It is not! Not feelings but numbers are something you need to rely on in Performance Marketing.

Give one last Chance

OK, I’ve cut off the worst but it’d be too early to celebrate! Still there are Ad Set whose Revenue is greater than Spend but still – they’re far away from my target ROI. I’ve marked them orange in the table. I want to give them a chance to show that they can be profitable. I will try to decrease costs to achieve better ROI.

How much I will decrease the bid depends on specific situation. Theoretically I think about it this way:

  • my target ROI is 3
  • M_24-28_Interest-yoga_rhc has ROI 1,62
  • It’s about 50 % of performance I need
  • If I decrease the bid by 50 % I should start achieving my target ROI


At the end I am not so taft and for this specific example I would decrease the bid by cca. 35%. Not 50% because there is a risk to damp it at all with such a big change. I can lower the bid again next week if this 35% change doesn’t help. In short I am saying: you’ve got the last chance, if you don’t start working hard, you’re out.

Red Carpet for Superstars

Let’s finnish it positively. As last but not least, I will take care of my Superstars. The green Ad Sets from my table above. Ad Sets which are exceeding my expectations and are delivering awesome results. I want to give the the best care possible. I want to tell them: “I love you, run as much as you can, just don’t slow down.”

To a woman you can say I love you by flowers (I’ve heart that jewelry and handbags also work), for Ad Sets, budget works the best. Where possible I increase the budget of my superstars to make them feel unbounded. It’s not rare that I am using budget $ 10,000 for such a superstar. Not because I want to spend $10k daily but simply because I don’t want to limit this ad set at all. Usually I use such a high budget for remarketing or DPA Ad Sets which are delivering ROI several times greater than my goal.

For these Greens I would increase the budget by 200% – 300%, even if there is a budget limit by client. Don’t forget I will save money from red Ad Sets I stopped. Of course I can think about increasing the bids. These Green ones have 2 times greater ROI than I need to have. But it doesn’t mean I will increase the bid by 100 %, in this particular case it would be by 30-40 %. Why? As mentioned before I don’t want to make big changes at one moment. Even a Budget increase is a big change for FB algorithm and it could move my performance. Better to do smaller changes and repeat them once I see it did what I expected.

No-Color Ad Sets

You can see that there are some Ad Sets with no color. They’re performing around my target ROI, sometimes over, sometimes under it. At this moment such a small nuances are not a reason for any change. If they improve I will ad them budget, but let’s see next time.

These are my basic tips to work with bidding and budgets. Three ways to better results. I’m not saying that I included all options or thoughts I have about bidding optimization. I see this as a basic most of advertisers should know and follow. Share your optimization tips in comments or give feedback to mine!


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Founder at Jayid
Lukas founded Jayid after helping 100s of businesses both in MENA and Europe with digital marketing and building regional offices for international companies. He's passionate about developing others and his vision is to unlock digital for every entrepreneur and business in the world.