Bid Multipliers: how does this Meta function impact Performance Marketing Strategies?

Mai Mejias28 August

At Boomit we specialize in Performance Marketing and we know that to maximize the performance of digital campaigns it is crucial to be aware of new tools and their optimizations. Meta, formerly known as Facebook, has introduced a new feature called “Bid Multipliers” that promises to transform how advertisers optimize their ad campaigns.

In this article, we will explore in detail what Bid Multipliers are, how they came about, their advantages and how to implement them effectively in your marketing strategies.

Digital Advertising in Meta: An Overview

Before delving into new tools, we’ll take a brief look at the beginnings of digital advertising. digital advertising on Meta. In fact, around 2004, Meta was launched under the name “Facebook” and although monetization was not an immediate priority at the beginning, the growing user base attracted the attention of advertisers. It was not until 2007 that the launch of Facebook Ads began a path that continues to develop to this day. Initially, this new tool allowed advertisers to create ads targeted to specific user segments according to their profile and behaviors, which was one of the main innovations that differentiated it from other platforms.

Over the years came new and more advanced tools such as the Facebook pixel and conversion APIs, which allow advertisers to track and optimize the performance of their ads in real time. However, with competition constantly increasing, Meta continues to innovate to provide better ways to manage and improve ad campaigns. And this is where the tool we will talk about in this article, Bid Multipliers, comes in.

Emergence of Bid Multipliers

Following the chronological line of Meta’s evolution mentioned above, one of its most recent advertising tools emerged: Bid Multipliers. Bid Multipliers. This feature allows advertisers to adjust their bids based on a number of factors, such as the user’s device, geographic location such as user device, geographic location, activity within the platform, among others, all within a single ad set. The main objective is to provide greater flexibility and precision in how advertising budgets are allocated, allowing advertisers to maximize the performance of their campaigns in different contexts..

Why use this tool?

• Greater Control and Accuracy

One of their main advantages is the control and precision they offer advertisers. Instead of having a uniform bid for all users, you can adjust your bids based on specific parameters that affect the performance of your ads. For example, if you know that your target audience is more active on mobile devices during the evening, you can increase your bids specifically for those instances, ensuring that your ads are more competitive and visible at those key times.

• Budget Optimization

You can better optimize your advertising budget by adjusting bids based on the likelihood of conversion of different audience segments and allocating your resources more efficiently. This means you are investing more in situations where you are more likely to get a positive return, and less in less favorable scenarios.

• Improved Campaign Performance

Implementing Bid Multipliers can significantly improve the performance of your campaigns. By fine-tuning your bidding strategies, you can increase both the reach and effectiveness of your ads. This translates into more clicks, conversions and, ultimately, a better return on investment (ROI).

While Meta automation drives traffic efficiently it is sometimes necessary to retarget those ads to a more relevant audience. Running separate campaigns for higher value target audiences may help, however, this can result in higher budget and unnecessary media waste. This is where Bid Multipliers come in, as they offer a solution to this problem by allowing for specific adjustments without sacrificing efficiency. Thus, an advertiser can create a single set of ads and then use this tool to bid differently for each group.

How to implement Target Bid Multipliers?

Below, we will tell you how you can take advantage of this tool to reach the right audience through different types of offers.

1. Personalized audience:

• Bid based on the custom audience the user is part of. For example, if a retail brand wants to limit the frequency of its ads for a list of customers, we can set a Bid Multiplier of 20% compared to the rest of the audience. That way, the ads will reach these users less frequently.

2. Similar audience:

• Offer based on the similar audience the user is part of. Instead of focusing only on a high-value audience within a specific segment, you can integrate this segment into your main campaign and set a 50% multiplier to better engage these users compared to the general population.

3. Age:

• You can group users by age ranges; for example, 18-25, 26-35, 36-45. For example: you may choose to bid twice as much for an older demographic than for a younger audience because they have 2x the lifetime value.

4. Genre:

• Different offer according to gender. For example, s f you sell luxury items for a specific gender, but you notice that the opposite gender tends to buy them as gifts, you could set a bid multiplier of 70% for them, maximizing the exposure of your products to an audience that pays more for gifts.

5. Location:

• Offer based on the user’s home location. This can be divided into cities, regions and countries. If you operate in multiple cities and find that your conversion rate is higher in urban areas such as New York compared to rural areas, you can apply a 40% bid multiplier for users located in these cities to optimize performance.

6. Language:

• Offer differently depending on the language. For example, s f you find that French-speaking users on your website convert at a higher rate, you can increase your bid by 25% for ads targeted to this specific audience, thus improving conversions on your main campaign.

7. Device type:

• It bids differently depending on the user’s device platform, such as mobile or desktop. Although mobile traffic is high, if you notice that desktop users tend to make larger purchases, you could set a 50% bid multiplier for desktop users, maximizing the value of each conversion without the need for separate campaigns.

8. Operating system :

• Offer based on a user’s operating system, such as iOS, Android or Windows. If iOS device users in your database have a significantly higher average purchase ticket than Android users, you could increase your bidding by 60% for iOS users, maximizing the return on investment (ROI) on your ads.

9. Device:

• Offer based on the device the user is on, such as iPhone or iPad. If you run a lead generation campaign and you notice that iPhone users have a higher conversion rate than iPad users, you can adjust your bidding by increasing it by 40% for iPhones and decreasing it for iPads, thus optimizing resources.

10. Metaplatform:

• Bid based on the Meta platform a user was on, such as Facebook, Instagram, Audience Network and Messenger. If your analytics indicate that users convert more on Instagram than on Facebook, you could apply a 35% bid multiplier for Instagram, ensuring higher delivery on the higher performing platform.

11. Meta-location:

• Bid based on where an ad is shown specifically, such as Facebook Feed, Facebook Marketplace, Instagram Stories or Instagram Reels. If you notice that ads in Instagram Stories perform better than in the Facebook Feed, you can use bid multipliers to increase the bid on Stories by 50%, thus maximizing the impact of your ads in the most effective placement.

Conclusion

Meta’s bid multipliers represent a powerful tool for advertisers looking to improve the accuracy and effectiveness of their advertising campaigns. By providing greater control over how and where advertising budgets are allocated, this feature allows you to optimize campaign performance in a variety of contexts. Implementing and adjusting bid multipliers can lead to a significant improvement in ROI, making your advertising efforts more effective and efficient. At Boomit, we are ready to help you make the most of these new tools and take your campaigns to the next level.