The right bidding strategy for your Instagram advertising
Posted: Sun Apr 20, 2025 5:27 am
You now understand that the cost of your Instagram advertising is determined within an auction. But what bidding strategies are there, and which one is right for you?
There are two options for you to choose from:
A manual bidding strategy: You set your maximum bid yourself.
An automatic bidding strategy: Instagram decides for you how high your maximum bid usa phone number data can be and delivers your ads accordingly.
Please note: The bid is not the price for your ads. Rather, it is the amount you, as an advertiser, would be willing to pay to display your Instagram ads. This amount should be set so that you can run your ads profitably.
The manual bidding strategy with a cost cap
Bidding with a cost cap is essentially semi-automatic bidding at auctions. While you manually specify the maximum amount you're willing to spend, Instagram automatically allocates the amount based on the algorithm. The cost cap refers to the maximum value per purchase, i.e., the CPA.
Manual bidding strategy with cost cap
The maximum bid with the bid cap
With the bid cap, you specify your cost limit per auction. So, if you set a maximum bid of, say, €4, this will always be undercut in the auctions. Bids of €4.01 will not be accepted. This naturally limits the scope for the auction and can negatively impact ad delivery due to a lack of suitable offers.
This may not sound so positive at first, but it's not the case. Especially with tight bid caps, the algorithm tries to auction them off as quickly as possible. A bid cap is therefore ideal for promotions that need to be completed quickly. This includes, for example, limited-time promotions.
There are two options for you to choose from:
A manual bidding strategy: You set your maximum bid yourself.
An automatic bidding strategy: Instagram decides for you how high your maximum bid usa phone number data can be and delivers your ads accordingly.
Please note: The bid is not the price for your ads. Rather, it is the amount you, as an advertiser, would be willing to pay to display your Instagram ads. This amount should be set so that you can run your ads profitably.
The manual bidding strategy with a cost cap
Bidding with a cost cap is essentially semi-automatic bidding at auctions. While you manually specify the maximum amount you're willing to spend, Instagram automatically allocates the amount based on the algorithm. The cost cap refers to the maximum value per purchase, i.e., the CPA.
Manual bidding strategy with cost cap
The maximum bid with the bid cap
With the bid cap, you specify your cost limit per auction. So, if you set a maximum bid of, say, €4, this will always be undercut in the auctions. Bids of €4.01 will not be accepted. This naturally limits the scope for the auction and can negatively impact ad delivery due to a lack of suitable offers.
This may not sound so positive at first, but it's not the case. Especially with tight bid caps, the algorithm tries to auction them off as quickly as possible. A bid cap is therefore ideal for promotions that need to be completed quickly. This includes, for example, limited-time promotions.