As you probably know there are three bid strategies that you can use on Facebook: lowest cost, lowest cost with a bid cap and target cost. This post is about switching between the strategies automatically and why you’d want to do that.
One of possible use cases is this. Say, you’ve launched an ad set with the lowest cost bid strategy which means Facebook automatically bids on your behalf and tries to get you lowest cost results based on your optimisation goal.
But what if you are not satisfied with the cost that Facebook gets you? You could pause the ad set or just put a bid cap on it.
Therefore I select set bid strategy task, lowest cost with cap strategy and set the cap at my true value - in this example $15:
This will swtich the bid strategy for ad sets that spent $30 today and either haven't gotten any purchases or the cost per purchase is over $18.
Think about your advertising objective and bid the maximum amount you’re willing to pay for that objective. If Facebook algorithm doesn’t manage to get you the results at the cost you set as a bid cap, the ad set will spend just a fraction of the budget until it finds you conversions at the desired cost.
Hope that'll come in handy ;)