Skip to Content

Advertising: Why you should use cost caps to manage your Facebook Ads budget

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!

Alex Lim is a certified book reviewer and editor with over 10 years of experience in the publishing industry. He has reviewed hundreds of books for reputable magazines and websites, such as The New York Times, The Guardian, and Goodreads. Alex has a master’s degree in comparative literature from Harvard University and a PhD in literary criticism from Oxford University. He is also the author of several acclaimed books on literary theory and analysis, such as The Art of Reading and How to Write a Book Review. Alex lives in London, England with his wife and two children. You can contact him at [email protected] or follow him on Website | Twitter | Facebook

    Ads Blocker Image Powered by Code Help Pro

    Your Support Matters...

    We run an independent site that is committed to delivering valuable content, but it comes with its challenges. Many of our readers use ad blockers, causing our advertising revenue to decline. Unlike some websites, we have not implemented paywalls to restrict access. Your support can make a significant difference. If you find this website useful and choose to support us, it would greatly secure our future. We appreciate your help. If you are currently using an ad blocker, please consider disabling it for our site. Thank you for your understanding and support.