Bid Price Calculation Algorithm (4)
Have been reading around to better understand the CPC bid price algorithm in Facebook. Found these two interesting posts:
1. Some aggregate analysis of median suggested CPC bids and ideas on factors influencing them
2. Look at correlations between CPC and bids, CPC and CTRs
Food for thought, but doesn't really answer the questions I have right now based on what I'm seeing.
Question 1.
We ran a few high CTR campaigns (in non-competitive areas), and then a campaign with low CTR (in competitive areas). The result? Bids started exceptionally low in the competitive area, and then rose to benchmark / more normal levels. The only explanation I could find for this: the bid level in the competitive niche was influenced by our previous artificially high CTR in the less competitive niche.
So the question is, does account average CTR strongly influence bid price, or does FB only look at CTR campaign by campaign?
Question 2. Bids are varying a lot by day, and during the day, and I see that some of you are day-parting. What is an appropriate strategy to maximizing profit while balancing 'impressions momentum'?
Related to this, has anyone experienced any of the following impact 'impressions momentum'? I.e. having the ad lose the volume of impressions it was receiving.
A. Changing the bid price
B. Pausing and restarting the campaign
c. Having the day's budget run out
It's not an efficient use of time to check and modify bids every few hours. I've seen there are a few FB ad optimizing tools. Is anyone using one of these specifically to automate pausing / restarting ads / changing bid price, based on a schedule or based on Facebook's changing suggested bids?
So the question is, does account average CTR strongly influence bid price, or does FB only look at CTR campaign by campaign?
i've calculated avg CTR over time and yes.... facbeook considerers this for sure.
Question 2. Bids are varying a lot by day, and during the day, and I see that some of you are day-parting. What is an appropriate strategy to maximizing profit while balancing 'impressions momentum'?
create a day part and a night part... not sure how ads during the day but its worth something 
hope this helped...
Originally Posted by caffeineclicks
I have another question hope someone can help too:
If the account average CTR influence the bid price, then what if I deleted the campaigns / ads that have low CTR and keep only those with high CTR so my account average CTR could be increased. Is this possible?
I have heard yes, but perhaps someone else here can answer your question better;
related:
Accounts are categorized based on what you run. (This is why Facebook puts on TOS you are actually only suppose to run one type of campaign per account)
I have 5 accounts, one of which ran gaming offers.
I later ported it over to dating.
That account has its line items approved in under 1 hour... its unreal. CTRs are slightly better.
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