We are running a Facebook campaign for our mobile health platform, they are recommending 50 cents for a click through and I bid 20 cents instead. What will happen? How will I know if I need to raise the bid?
Facebook gives you an average bid based on the target audience you have specified. I have found, bidding well above the recommended ( .75-1.00) will help you to get a better rate than if you just bid lower to start with. Advertising rates,in general, are different for everyone based on the account's spending history. AKA - The more you spend, the lower your rates over time.
Try bidding higher and you'll notice FB giving your ads favor from the beginning. This is really the best way to go on most platforms.
Depending on what you are promoting, PPC might not bring the best ROI.
The more targeted your ads, the better the result and the cheaper the price. I prefer using the Power Editor the do Optimized CPM (cost per impression) BUT if you think about it.... it's only wise to pay for people to "see" an ad IF you know that those people are highly qualified people. So I make a custom audience and run the ad from the Power Editor. In doing this, I have been able to compile some astounding Click Through Rates.
Just for an example of the power in this method:
One ad cost me $3.81 before I had 3 immediate buyers 75 new page likes and over 270 clicks.
Had I paid for clicks, even with a great Cost per clck, I would have spent much more to get the same result.
Just some food for thought from a Facebook Ads nerd. :)