Bid Strategy

Starting September 2020, target_cost will be deprecated. Campaigns using this bid strategy will be paused, unless advertisers change it. Instead of target_cost, we recommend that you use cost cap bidding.

Use the bid_strategy field to provide your bid preferences. With this field you can select:

  • LOWEST_COST_WITHOUT_CAP: Facebook automatically bids on your behalf and gets you the lowest cost results. Automatically increase your effective bid as needed to get the results you want based on your given optimization_goal. If you choose Value as an optimization_goal, in Ads Manager, we display Highest Value as your bid strategy.
  • LOWEST_COST_WITH_BID_CAP: We automatically bid for you and get the lowest costs. We automatically increase your bid as needed to get the results you want, however do not surpass your specified limit.
  • TARGET_COST: We try to maintain a stable, average cost given your budget. You'll also need to provide a target cost with bid_amount field for us to maintain the same average cost as you increase your budget.
  • COST_CAP: Get the most results possible while staying within the cost per action you set. You must provide a cap number in the bid_amount field. See Cost Cap.
  • LOWEST_COST_WITH_MIN_ROAS: Specific bidding option for value optimization. You must specify a roas_average_floor, which is the minimum return wanted from ads spend. See Minimum Return on Advertiser Spend Bidding.

bid_strategy was announced in Marketing API V 3.0 to replace two boolean fields is_autobid and is_average_price_pacing on ad sets.

See the table below for more details on each strategy:

Bid StrategyCompatible ObjectivesWhen To UseConsiderations

LOWEST_COST_WITHOUT_CAP

APP_INSTALLS

CONVERSIONS

EVENT_RESPONSES

LEAD_GENERATION

LINK_CLICKS

MESSAGES

PAGE_LIKES

POST_ENGAGEMENT

PRODUCT_CATALOG_SALES

REACH

STORE_VISITS

VIDEO_VIEWS

You want to spend your full budget.


You need to understand what bid and cost to use for other bid options.


You need to spend your given budget as efficiently as possible.

No control over your cost.


Costs can rise as you exhaust least expensive opportunities or as you increase budget.

LOWEST_COST_WITH_BID_CAP

APP_INSTALLS CONVERSIONS EVENT_RESPONSES LEAD_GENERATION LINK_CLICKS MESSAGES PAGE_LIKES POST_ENGAGEMENT PRODUCT_CATALOG_SALES REACH STORE_VISITS VIDEO_VIEWS

You want to set a max bid across auctions to control cost and reach as many users as possible at that bid.

Need to spend more time managing bids to control cost.


Costs can rise as you exhaust cheaper opportunities or increase your budget.


May not spend full budget.


Bid is not the cost you’ll see in reporting.

TARGET_COST

APP_INSTALLS CONVERSIONS LEAD_GENERATION PRODUCT_CATALOG_SALES STORE_VISITS

You want to try to maintain a consistent cost.

Lose out on all cheaper results.


May not spend your entire budget.

COST_CAP

APP_INSTALLS CONVERSIONS EVENT_RESPONSES LEAD_GENERATION LINK_CLICKS MESSAGES

PAGE_LIKES POST_ENGAGEMENT PRODUCT_CATALOG_SALES VIDEO_VIEWS

You want to maximize cost-efficiency.


You need to keep cost within a specific threshold.

Cost may rise as you run out of cheapest opportunities.


Learning phase requires more aggressive exploration.


May not spend full budget once you hit the cap.

LOWEST_COST_WITH_MIN_ROAS

APP_INSTALLS

CONVERSIONS PRODUCT_CATALOG_SALES

If Return On Ad Spend is the primary measure of success, and you are able to pass back transaction values to our platform.

Specific to value optimization.


Setting the benchmark too high may lead to under-delivery.

LOWEST_COST_WITH_BID_CAP and TARGET_COST are also called manual bidding and enables you to add additional cost controls in the bid_amount field. For background, see Ads Help Center, About bid strategies: Lowest cost and Ads Help Center, About bid strategies: Target cost.

For example, create an ad set with TARGET_COST bid strategy with a target cost of $2 USD:

curl \
  -F 'name=My Ad Set' \
  -F 'optimization_goal=REACH' \
  -F 'billing_event=IMPRESSIONS' 
  -F 'bid_strategy=TARGET_COST'
  -F 'bid_amount=200' \
  -F 'daily_budget=1000' \
  -F 'campaign_id=<CAMPAIGN_ID>' \
  -F 'targeting={"geo_locations":{"countries":["US"]}}' \
  -F 'status=PAUSED' \
  -F 'access_token=<ACCESS_TOKEN>' \
  https://graph.facebook.com/<VERSION>/act_<AD_ACCOUNT_ID>/adsets

To read bid_strategy from an ad set:

curl -G \
  -d 'fields=bid_strategy' \
  -d 'access_token=<ACCESS_TOKEN>' \
  https://graph.facebook.com/<VERSION>/<AD_SET_ID>

To update an ad set's bid strategy from TARGET_COST to LOWEST_COST_WITH_BID_CAP with a bid cap of $3 USD:

curl
  -F 'bid_strategy=LOWEST_COST_WITH_BID_CAP' \
  -F 'bid_amount=300' \
  -F 'access_token=<ACCESS_TOKEN>' \
  https://graph.facebook.com/<VERSION>/<AD_SET_ID>

In earlier versions of the API, you choose bidding strategy by setting is_autobid, is_average_price_pacing and bid_amount.

is_autobid and is_average_price_pacing were boolean flags which indicated if you choose automatic bidding or average price bids. Both were deprecated with the release of Marketing API version 3.0.

Cost Cap

Cost cap is a cost-based bid feature that enables advertisers to express and optimize against the actual cost (CPA/CPI) of conversions. This feature allows advertisers to get the most results possible without exceeding their desired cost, allowing them to maximize cost efficiency, reducing complexities of managing bids, and helping advertisers scale more profitably and confidently.

To use cost cap:

  • billing_event must be IMPRESSIONS
  • pacing_type must be standard
  • optimization_goal must be compatible with cost cap

To use a cost cap bid strategy in campaign budget optimization, in addition to the requirements listed above, your objective should also work with cost cap. For more information about compatible objectives, see Your Guide to Facebook Bid Stategies, Cost Cap.

For example, to use a cost cap at the ad campaign level:

curl 
 -F "name"="L3 With Lifetime Budget" \
 -F "objective"="LINK_CLICKS" \
 -F "lifetime_budget=100000" \
 -F "bid_strategy"="COST_CAP" \
 -F "access_token"="ACCESS_TOKEN" \
https://graph.facebook.com/VERSION/AD_ACCOUNT_ID/campaigns

To set a cost cap at the ad set level:

curl \
  -F 'name=My Ad Set' \
  -F 'optimization_goal=CONVERSIONS' \
  -F 'billing_event=IMPRESSIONS'-F 'bid_strategy=COST_CAP'-F 'bid_amount=200' \
  -F 'daily_budget=1000' \
  -F 'campaign_id=<CAMPAIGN_ID>' \
  -F 'targeting={"geo_locations":{"countries":["US"]}}' \
  -F 'status=PAUSED' \
  -F 'access_token=<ACCESS_TOKEN>' \
  https://graph.facebook.com/<VERSION>/act_<AD_ACCOUNT_ID>/adsets

Minimum Return on Advertiser Spend (Min ROAS) Bidding

This is a specific bidding option for value optimization. As such, you must already be eligible for value optimization, which has several prerequisites:

  • optimization_goal must be VALUE.
  • The account should have access to value optimization, which you can query from your ad account:

    • CAN_USE_ROAS_VALUE_OPTIMIZATION - Account is eligible to value optimization when campaign objective = “Website Conversion”
    • ADS_NEKO_MAI_ROAS - Account is eligible to value optimization when campaign objective = “App Install”
    • CAN_USE_DYNAMIC_ADS_VALUE_OPTIMIZATION - Account is eligible to value optimization when campaign objective = “Catalog Sales”
  • Min ROAS bidding uses bid_constraints to pass the “ROAS floor”, but you cannot use with bid_constraints. Instead use roas_average_floor.

API Specification on Ad Set

Notes about roas_average_floor:

  • roas_average_floor represents “the mininum roas” = “total conversion purchase value” / “total spend”; for example, “return on ads spend”
  • IMPORTANT: In the API, roas_average_floor is an integer and scaled up 10000x. So roas_average_floor = 100 means “the minimum roas” = 0.01 (or 1%), and roas_average_floor = 23300 means “the mininum roas” = 2.33 (or 233%). For example, to set minimum ROAS to be 1.5, the corresponding API spec should be bid_constraints = {"roas_average_floor": 15000}.
  • The valid range of roas_average_floor is [100, 10000000], inclusive. This means that the valid range of “minimum ROAS” is [0.01, 1000.0] or [1%, 100000.0%], inclusive.
  • Do not set bid_info or bid_amount with the minimun ROAS bidding ad set. You can only set the 'bid' of minimum ROAS through roas_average_floor in bid_constraints.
{
  "bid_strategy": "LOWEST_COST_WITH_MIN_ROAS",
  "bid_constraints": {
    "roas_average_floor": <roas_average_floor number>
  },
}

Examples

Create new minimum bidding ad set

The API call below creates a min ROAS bidding ad set, with campaign objective = “website conversion” and ROAS floor = 1.0 (or 100%).

curl \
  -F 'name=minRoasBiddingDemo' \
  -F 'daily_budget=2000' \
  -F 'optimization_goal=VALUE' \
  -F 'promoted_object={"pixel_id": "<PIXEL_ID>", "custom_event_type": "PURCHASE"}' \
  -F 'targeting={"geo_locations":{"countries":["US"]}}' \
  -F 'campaign_id=<CAMPAIGN_ID>' \
  -F 'status=PAUSED' \
  -F 'start_time=2018-12-10T12:45:26-0700' \
  *-F 'bid_strategy=LOWEST_COST_WITH_MIN_ROAS' \
  -F 'bid_constraints={"roas_average_floor": 10000}' \*
  -F 'billing_event=IMPRESSIONS' \
  -F 'access_token=<ACCESS_TOKEN>' \
  https://graph.facebook.com/<VERSION>/act_<AD_ACCOUNT_ID>/adsets

Remove roas_average_floor from minimum ROAS bidding ad set

curl \
  -F bid_strategy=LOWEST_COST_WITHOUT_CAP \
  -F 'bid_constraints={}' \
  -F 'access_token=<ACCESS_TOKEN>' \
  https://graph.facebook.com/<VERSION>/act_<AD_ACCOUNT_ID>/<ad set ID>

Add roas_average_floor to value optimization ad set

This example sets the minimum ROAS to 1.23 (123%):

curl \
  -F 'bid_strategy=LOWEST_COST_WITH_MIN_ROAS' \
  -F 'bid_constraints={"roas_average_floor": 12300}' \
  -F 'access_token=<ACCESS_TOKEN>' \
  https://graph.facebook.com/<VERSION>/act_<AD_ACCOUNT_ID>/<ad set ID>

Change roas_average_floor for existing minimum ROAS bidding ad set

This API call changes the ad set's roas_average_floor to 2.23 (223%).

curl \
  -F 'bid_constraints={"roas_average_floor": 22300}' \
  -F 'access_token=<ACCESS_TOKEN>' \
  https://graph.facebook.com/<VERSION>/act_<AD_ACCOUNT_ID>/<ad set ID>

Ad Set Level Validation

  • LOWEST_COST_WITH_BID_CAP and TARGET_COST are also called manual bidding and enables you to add additional cost controls in the bid_amount field.
  • For COST_CAP, you must provide a cap number in the bid_amount field.
  • You cannot set bid_amount if you are using the LOWEST_COST_WITH_MIN_ROAS strategy.