“Cost cap simplifies campaign management and helps you focus on scaling volume of results while controlling costs. Unlike other bid strategies that help optimize for cost, cost cap enables you to set the max CPA/CPI you're willing to pay for results, reducing complexities in managing bids while maximizing your campaign results.” – Facebook
In an attempt to strike a balance between getting results while still being cost-and-budget-friendly, Facebook has given us a new way to make the most out of our bids, by introducing the Cost Cap Bidding strategy. And advertisers couldn’t be more thrilled!
Previously, the bid strategies offered by Facebook were either centered around maximizing conversion value or cost predictability and there wasn’t really a ‘middle ground’ to ensure both. With that said, Facebook has launched the Cost Cap Bidding strategy so that users are now able to combine from both the features AND get the most out of their ad campaigns.
so how does it work?
What separates cost cap bidding from other cost-optimized bidding strategies is that it allows advertisers to set the max CPA/CPI they’re willing to pay. To start with, cost cap bidding will be accessed through an updated, guided bid experience.
For instance, if you’re someone looking forward to grow your business through app installs, subscriptions or purchases within a specified cost per action then this bidding strategy is perfect for you. By enabling this feature you will be able to set a ‘cap’ on these actions, so you don’t waste your budget on just a few high-priced conversations.
After your campaign goes live, Facebook will look at leads that are below or at your set max cost per optimization event; that will be the key differentiator between your current cost and target cost, maintaining the consistency of your budget the entire campaign lifespan, regardless of if there are lower-cost opportunities available. What this does is give you more control on what you spend per conversion.
IS COST CAP BIDDING FOR YOU?
It’s a great option for marketers who want to maximize their cost efficiency and reach their business goals at the same time. For those who want to be in control of ad budgets but are yet to decide on an accurate max CPA/CPI in the initial setup stage should base their cost-cap on real data rather than going with their gut. In short, it should be realistic.
As for those who are still sceptical about the new feature can also check out the help guide on Facebook Business, which explains the process pretty clearly. It gives us comprehensive and detailed suggestions on how to choose the right bidding strategy that’s best relevant to your needs. It shows us all the available bid strategies, who sets those bids, available objective/goals of each different strategy, when you can use them, their individual benefits and considerations.
So, are you ready to take the next step towards personalizing your campaigns yet?