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Using cost caps on your Facebook Ads? Two things you should know about that…

Yes, cost per result (also known as “cost caps”) bids are a great way to optimize your Facebook Ads while boosting profitability.

But it’s important to make sure you’re using Facebook’s bidding strategies the right way, or it could adversely affect your ad performance.

Here are two common mistakes – and how to fix them:

Mistake #1 – Setting your cost caps too low. If you tell Facebook to bring you conversions at a cost it can’t deliver on, your campaigns will stop spending.

What to do instead: Use historical data and your past cost per acquisition (CPA) to set your cost cap. Set your cost cap based on your current CPA, and decrease it over time.

Mistake #2 – Making extreme changes. Setting a cost cap after making extreme changes to your ads forces your ads to go through the learning phase all over again.

It also risks setting the cap too low and not letting your budget spend.

What to do instead: Set cost caps as a way to optimize your best performing ads, instead of when you first create an ad.

It’s best to set caps on ads that are already performing, as a way to optimize them further.

Our takeaway? Cost caps aren’t the answer to your underperforming ads, nor are they a prerequisite for new ads.

Just use them as a way to squeeze better performance out of your ads, and you’ll be golden.