Advertising glossary

What is Cost cap?

Definition

A cost cap is a bid strategy that tells Meta to keep your average cost per result near a target. It trades some volume for cost control.

Cost cap explained

Cost caps work best when the cap reflects a realistic, profitable CPA. A cap set too low can stop delivery entirely.

Example

A store sets a 30 dollar cost cap because it earns 35 dollars profit per order before ads.

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