11 Jul What You Need to Know About Facebook’s New Cost Cap Bidding
Last month, Facebook released another cost control bidding option, Cost Cap bidding. This bid strategy allows advertisers to indicate the average cost per action they would like to stay under to get the maximize results possible. This is the newest addition to the cost control options (Bid Cap and Target Cost) that allow advertisers to directly control the cost of an outcome. Here’s what you need to know about Cost Cap bidding.
Differences between Cost Cap, Bid Cap, and Target Cost:
When placing ads, advertisers can tell Facebook how to bid for them in an ad auction by selecting no cost control or cost control bidding. With no cost control, Facebook will spend your budget to get the most results, while with cost control, you tell Facebook which results to spend money on. Below are brief descriptions of the three available cost control options.
- Cost Cap (New): Maximize your results while staying below your average cost per action.
- Bid Cap: Drive volume without exceeding your bid cap by setting a max bid.
- Target Cost: Maintain consistent costs by seeking results that are close to your goal, even if there are lower-cost results available.
Available in select ad objectives and delivery optimizations
Cost Cap bidding is only available in select ad objectives and delivery options. Some of these include traffic, conversion, catalog sales ad objectives and landing page view and link clicks optimizations. Check out the Your Guide to Facebook Bid Strategies Facebook article for the complete list.
Setting your Cost Cap
When setting Cost Cap, make sure not to use an aggressive cost per action (CPA), as this may negatively impact your reach. Not sure what to use as your average CPA? A great way to figure this out is to run Facebook ads without cost control at the lowest cost, which gets you the most results for your budget. Once you determine your average cost and start running your ads with Cost Cap bidding, make sure to keep an eye on your spend. If your campaign is having difficulty spending, your Cost Cap may be too low. Note that you may experience an increase in cost throughout the duration of your campaign as Facebook typically delivers the most cost-efficient results first.
Cost Cap bidding is a great option if your CPA is important to your media buy. If you’re interested in learning more about how Ignite can help you build your Facebook buy using this new strategy, contact us here and be sure to check out our Targeting for the Customer Journey eBook by clicking the button below.