Article

Facebook Ads Bid Strategies: Lowest Cost, Cost Cap, Bid Cap

Jon Loomer · Jon Loomer Digital Free Advanced

Once you know the auction has a bid component, this is the clearest breakdown of which bid strategy actually controls what, since cost cap and bid cap are commonly confused even by experienced media buyers.

  • Cost cap targets your average cost per result, bid cap sets your ceiling in the auction itself, they are not interchangeable
  • Bid cap is for advanced advertisers who understand their own marginal cost of a conversion
  • Picking the wrong one is a common reason campaigns overspend or stop delivering entirely
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The question it answers

  1. How do Meta (Facebook & Instagram) ads actually work?

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