Bid testing is an advanced technique that lets you optimize your results by testing different bidding strategies.
Facebook's advertising billing system is based on counting impressions. Ads compete for the highest quality impressions by bidding, and the highest bidder will win the best advertising 'real estate.' The more competitive a placement or audience is, the more expensive the bids will be. Since the competition is fierce, targeting specific audiences is also more expensive.
Bid testing is best suited for people who have already set up a full funnel strategy on Madgicx. If you are just starting out, you should stick with a Cost Cap bid test, since the flexibility it provides will help assure delivery.
The different bidding strategies fit different goals. You should choose the strategy that works best with your account and goals to help you reach the most high-quality impressions for the lowest spend. Use bid testing to experiment with different bidding strategies and discover which ones are best for you.
In this strategy, you set a bid cap and Facebook will attempt to obtain the lowest bid while making sure not to surpass the cap.
This is great for people who have low-priced products and cannot afford a high cost-per-purchase, or for people who just want the absolute lowest possible bid price. However, keep in mind that the quality of the impressions might go down.
This is a great strategy for people who may need a little more flexibility than the Bid Cap strategy provides. With Bid Cap, the delivery may be affected since the bid is limited by the cap. However, in Cost Cap, Facebook will still try to generate the lowest priced bid, but will not be limited by the cap in order to assure delivery.
If your performance is not exactly where you want it to be, the extra flexibility this strategy provides might be a good option.
All of the other strategies listed above take cost-per-purchase (CPP) into consideration, but what happens if you have multiple products with different pricing—wouldn’t the cost-per-purchase be irrelevant in this scenario? This is when the Value Cost strategy comes into play.
With Value Cost, Facebook will optimize bids based on ROAS; making it perfect for people who sell many different items.
Click on the Bid Testing button on the Madgicx app and you will see the Bid Testing Dashboard. This is where you can see the uplift of your performance on your bid testing campaigns.
You’ll only see the full dashboard below if you’ve already run a bid test before. If you’ve never run a bid test, skip ahead to Step 2.
The Bid Testing dashboard has three sections:
Compare your bid testing performance with your non-bid testing performance over the last 14 days.
Check out three metrics side-by-side to determine how your bid tests have performed overall.
Select the black arrows to view several different metrics. In the example below, we selected Revenue, ROAS, and Website Purchases.
This section shows the overall results from each bid test according to the time frame. To adjust the time frame, use the drop-down menu on the top right.
In this table, you can see the amount spent on a bid and what type of bidding strategy was used. You can change the metrics to understand more about your bid performance, and look at the different cost-per-events, such as cost-per-website purchase, and view only Madgicx bids by selecting the square box.
Here you can view active or inactive experiements. See the number of days the bid test ran, and the number of days the bid test will run in total. The line represents the length of the experiment.
You can also use this table to pause and restart your experiment. Once the experiment is finished, the table will display a green checkmark and say Experiment Completed.
Next, you need to choose a winning ad set.
When selecting your best ad set for a bid test, you should choose the one with the best:
Madgicx will select two potentially winning ad sets for you to choose from, but you can also choose Select a different ad set, and select any of your ad sets that meet the above requirements. Once you’ve selected your ad set, click on Start a Bid Test to begin.
The ad set you choose must be active, but it doesn’t need to be delivering.
Also, in the duplicated ad sets created for bid testing, all the ads will be turned on.
The next step is to define your bid type. Madgicx gives you the option to choose from four different bid testing strategies. Madgicx gives you the option to choose from four different bid testing strategies: Bid Cap, Cost Cap, Bid Cost, and Value Cost.
Once you define which bid test you want to run, Madgicx will automatically create a new campaign, and the name will include the type of bid you’re running. If you’d like, you can also re-name your campaign.
Set the budget! You should calculate it based on your daily campaign budget.
Remember—this budget will be divided by the number of ad sets you choose to run.
This is where you duplicate the ad set. First, decide how many bid tests you’d like to conduct. To adjust the number of tests, select ➕ to add or ➖ to remove tests. The minimum budget will automatically be divided among your ad sets according to your campaign's budget.
Set the Bid Amount: 💰
Madgicx will automatically select the best bids to use when conducting your test. This data is taken from your cost-per-event. You can change the bid amount if you’d like, but it’s not recommended since our default system has proven to work efficiently.
Event: An event is automatically selected based on the optimization goal of your selected ad set. For example, Purchase, Traffic, Brand awareness, etc.
Minimum Daily Budget: We set a minimum daily budget because we want Facebook to give all of our ad sets a fair chance at succeeding.
You're almost ready to run the experiment!
Decide how many days you want to run your experiment. You can adjust the number of days by clicking the ➕ or ➖ buttons. We recommend running the experiment for 3-5 days.
After selecting the number of days, you must choose what to do with your ad sets once the bid test is complete. The options are:
Finally, decide when to launch the experiment.
As seen in the photo below, you can:
We recommend you choose Madgicx Time Optimization and let Madgicx optimize the launch time since this is a powerful way to see positive results as you run the test during your best performance hours.
Once you select Create on the top right-hand side of the screen, you’re all done! Enjoy scaling with Madgicx.