Using a higher Facebook Ads bid strategy may cost you more in ad spend, but it does provide several benefits over lower bid strategies, as follows:
Better engagement – A high bid strategy gives you the greatest chance to serve ads to people who are most likely to convert. This means your ads receive more clicks and a better click-through rate, relevance score, and ROI.
If your ad is performing badly with a high bid strategy, then you know 100% that there is a problem with your ad copy or audience.
If your ads perform poorly on a low bid strategy, you won’t be sure if it’s your low bid, targeting, or ad copy that is the problem.
Consistency in performance – If you noticed any inconsistencies in your campaigns on a day-to-day basis (varied sales, impressions, or click-through rates), then in most cases this is due to a low bid strategy as ads are not shown to the prime audience.
The upper hand on competitors – By paying above what Facebook suggests you should bid per action, your campaign will score better in the ads algorithm, ensuring your ads are shown more than your competitors’.
If your competitors are using automatic bidding, they’ll also notice their ad spend rise dramatically and may decide to stop running the campaign. This will reduce the competition within the auction and lower your overall costs after the first few days.
If they are using manual bidding, then they’ll notice their reach dropping and will have to decide whether they want to increase their spend or cut the campaign.