We all know how exhausting having to control your Facebook advertising budget is.
Afterall, costs are rising and you need to make sure you stay profitable.
… Which is where cost caps come in handy.
If you’re looking for more ways to optimize your ads account, it might be time to update your bid strategy.
Here’s what you need to know about Cost per result (the new name for Facebook’s cost cap):
What it is
Cost caps allow you to set a maximum cost per acquisition (CPA) for a single purchase.
If you set your cap at $25, then the average CPA won’t exceed $25.
When to use it
When you want to control your ad spend and make sure that your CPAs stay profitable.
It’s best to use cost caps if your product’s costs tend to fluctuate around the same CPA, and if you already have an idea of what your average CPA is.
What not to do
Set a Cost per result with a new Facebook Ads account. Big no no.
You need past data to accurately set a cost cap that makes sense for your brand, and that means knowing what your brand’s average CPA is.
With that all being said, let’s not forget that creative is still the biggest lever of your Facebook Ads. Setting a cost cap alone will not improve the performance of your ad creatives.
Happy budget planning!