6 Tips for Bidtest Success
Bidtesting was built for prospecting, not remarketing, or customer marketing. We highly recommend focusing your bidtests on prospecting ad sets. The reason being is if you have a strong and relevant offer for a remarketing audience, the performance of that ad set is far less impacted by demand swings in the Facebook auction. Often you’re already paying a premium CPM to reach them. However with prospecting campaigns, that’s not the case. Prospecting performance often is much more sensitive to demand swings in the Facebook auction.
Only bidtest ad sets. If you add bidtest to the end of a campaign name or an ad name in Ads Manager nothing will happen. :-)
Bidtest a winner (i.e.: start with a winning, "A" grade ad set). You should only bidtest ad sets that are part of a campaign that is already performing well, both from a targeting and creative perspective. Specifically, you shouldn't bidtest any ad set that is performing below your A grade performance threshold per your Personalized Grade Guides. Also, you don’t want to bidtest an ad set that has multiple untested ads that Facebook has yet to optimize. Let Facebook optimize first, shut off the ads that are not getting delivery by Facebook, then bidtest. Manual bid levels, especially on the lower and mid range, will simply not get as much delivery. You want to make sure you are using solid performing ads during these low bid opportunities.
We recommend bidtesting automatic ad sets. First, this will give you a good baseline of performance between your manual bidding strategies that you’re scaling and what the result would have been if you were relying largely on automatic bidding. But second, and more importantly, you’ll never quite know when demand is going to drop in the Facebook auction. If you see your EBU percentages spike to over 90% in your mid to low bid ranges, this means that demand is low in the auction. This is a perfect opportunity to scale your automatic ad set. Even if it’s off, having it ready to go is a good thing.
Bidtest with meaningful budgets. We highly recommend starting with a daily budget of at least $50 USD on the automatic ad set that you’re going to bidtest (i.e.: the source or original ad set). This will make the daily budget for each bidtest ad set $6.25 USD. If you want to specify an overall budget for your bidtest that is different than the source ad set budget, use the Bidtest Budget Parameter. Click here to watch how to use it. You need to remember that just because you have many ad sets created, your budget will not be 100% utilized, and if you get delivery in the lower range, it will likely be a good thing (low cost conversions). There is also an optimization cost to getting the grades, so the more budget that’s allocated the quicker you can shut off the C’s, D’s, and F’s versus never obtaining them. And because you’re doing this in a manner that is statistically significant, it will make your performance gains consistent and repeatable across campaigns.
Scale your bidtests with Predictive Budget Recommendations. After you start establishing "A" grade bid levels, CompanionLabs will start to provide you with Predictive Budget Recommendations to scale these ad set budgets. You'll be notified daily via email that you have recommendations and you can review them at any time at https://app.companionlabs.com/recommendations. Keep in mind that the degree of budget increase recommendations balances how much budget our algorithm predicts can be utilized while maintaining A and B grade performance for your ad account.