There are 3 bid strategies in Spotify Ads Manager (depending on the delivery goal you select):

• Automated bid - no CPM bid cap set, the auction will set & optimize bids

• Maximum Bid - set a cap for your bids on ad impressions; or

• Cost per result (Goal-Based Bidding) - set a target cost per result for the action your ads are optimized for

The automated bid strategy is the best way to achieve full budget delivery. If you want strong delivery but have a clear CPM cap in mind, use the maximum bid strategy. Cost per result is the best way to optimize for conversions at a target cost per result. It prioritizes conversion potential and cost efficiency.

Automated bid (available for all objectives & delivery goals)

Automated bid is a bid strategy that automatically sets and optimizes your bids to help you achieve full delivery. Instead of entering a manual bid cap, Spotify will dynamically adjust your bid in real time to compete in the auction.

This strategy takes the guesswork out of bidding - ideal for advertisers who prioritize delivery and want a simpler setup experience. You’ll see an estimated CPM (what you're likely to pay) in the ‘Estimated Results’ panel, along with your Budget Delivery Likelihood, which updates as you refine your ad set.

Automated bid strategy is available for all objectives & delivery goals.

Maximum Bid (available for all objectives & delivery goals)

Maximum Bid strategy lets you set a bid cap for how much you’re willing to pay for 1,000 ad impressions. You can think of this as a ceiling that you never bid above in the auction. The price you pay in the auction is just enough to beat the next highest bid, so you'll never pay more than your bid cap.

We’ll set a default bid cap based on the information that you’ve selected for your ad set with estimated results and the budget delivery likelihood displayed on the right hand side. You can see your estimated CPM (what you’re likely to pay) under ‘Estimated Results’. We’ll also display the recommended bid cap range if you want to manually set your bid. 

Maximum Bid strategy is available for all objectives & delivery goals.

Cost per result (Goal-Based Bidding) (available for clicks delivery goal only)

The cost per result strategy in Ads Manager lets you set bids with the goal of getting as many results (as defined by your delivery goal) as possible at a target cost. 

In the cost per result strategy, you set a target CPC. Ads Manager provides recommendations for your target CPC, based on the information you’ve selected for your ad set. You can also use performance from previous campaigns as a guide. If you don’t have a reference point, we recommend starting your target CPC at the upper end of our recommended range.

The system will aim to keep your effective CPC close to your specified target CPC. Please note that we can’t guarantee that the effective CPC for your campaign will be at or lower than your set target.

Cost per result is available when using the ‘Clicks’ delivery goal under the ‘Website Traffic’ or ‘Engagement on Spotify’ objectives, and helps you reach people more likely to click on your ad at a specified target cost per click (CPC). 

Editing your bid strategy

You set your bid strategy when you create your ad set. You cannot edit the bid strategy after your ad set has been submitted. 

Editing your bid cap or target cost per click

When using the maximum bid or cost per result strategies, you can edit your bid cap or target CPC at any time during the campaign. If you find that your ad set is spending your budget too slowly, it may indicate that there's strong competition for your target audience. 

Optimizing your bid cap with maximum bid

If you notice that your ad set’s average CPM is very close to your bid cap, it may indicate that a higher bid cap could help you get more impressions within your target audience.

If you notice that your effective CPM is significantly lower than your bid cap, it may indicate that you could achieve similar performance at a lower bid cap.

Optimizing your target cost per click with cost per result

Cost per result highlights a natural trade off between delivery and performance. If our system can’t find ad delivery opportunities to meet your goal at your target cost, delivery may slow down.

Raising your target CPC can increase delivery by finding more opportunities, but may result in a higher effective CPC. Lowering your target CPC can increase efficiency, but at the risk of reduced delivery.

Bid Strategy capability summary - capabilities not listed here are consistent across bid strategies