Start Free Trial
  1. SEJ
  2.  » 
  3. News

Facebook Introduces Cost Cap Bidding to Maximize Cost-Efficiency

Facebook Introduces Cost Cap Bidding to Maximize Cost-Efficiency

Facebook is introducing a new bid strategy for advertising which is focused on driving results while keeping costs down.

Bid strategies for Facebook ads were previously focused on maximizing conversion volume (bid cap) or cost predictability (target cost).

To help businesses better reach certain goals, Facebook will offer a bidding strategy that combines both of its previous offerings.

“Cost cap maximizes cost efficiency by getting you the most results, such as purchases or installs, at or below your set maximum cost per optimization event.”

What separates cost cap bidding from other cost-optimized bidding strategies is that it allows advertisers to set the max CPA/CPI they’re willing to pay.

When it rolls out, cost cap bidding will be accessed through an updated, guided bid experience.

Facebook Introduces Cost Cap Bidding to Maximize Cost-Efficiency

As shown in the example above, advertisers can enter a cost control, which Facebook will aim to meet with the cost cap bidding strategy.

Continue Reading Below

There is no set date for when cost cap bidding will be available. Facebook says it’s rolling out to advertisers throughout the year.


Subscribe to SEJ

Get our daily newsletter from SEJ's Founder Loren Baker about the latest news in the industry!

Topic(s) of Interest*

Matt Southern

Lead News Writer at Search Engine Journal

Matt Southern has been the lead news writer at Search Engine Journal since 2013. With a degree in communications, Matt ... [Read full bio]

Read the Next Article
Read the Next