Facebook Ads Cost Controls: What Are They?

Last month Facebook released a new cost control option for their ad set level Optimization and Delivery. Wait, what are cost controls? I’m glad you asked. Many Facebook Ads users didn’t know these existed in the first place.

When you’re creating a new ad set in Facebook Ads, when you scroll towards the bottom you’ll see a box that says Optimization & Delivery. The following options are in this window:

facebook optimization and delivery.png

Depending on the optimization for ad delivery you choose will determine which cost controls are available. Since we most commonly use “conversions.” we’re going to focus on that.

The cost controls option has been there for years now, but in April, 2019 Facebook added a new option. Previously the two options were either bid cap or target cost. Well technically the third option is not choosing any of these as they are optional. In fact most experts (us and others we’ve spoken with) recommend not choosing any of these and letting Facebook maximize conversions at the lowest cost.

What’s The Difference For Each Cost Control?

Target Cost

Target cost is recommended for the most consistent cost per conversion goals. Facebook will aim it’s bidding on hitting your target cost as your average cost per conversions. Some conversions may come in lower and some many come in higher.

Bid Cap

A bid cap is different because it doesn’t necessarily take into consideration anything that happens on your website. Facebook is using this to determine what CPM it bids in their auction for your ad to show. Regardless of whether they convert well or not. If you’re particularly concerned about what your paying for your ads versus your goals, this bidding option is for you.

Cost Cap

The latest edition is cost cap bidding. Facebook claims this is very similar to using the recommended method previously which is not choosing Target Cost or Bid Cap, but it at least gives Facebook some guidance on the goal you’re looking to hit as your cost per acquisition. Their goal here is to get you the most conversions at or below your cost cap. It sounds very similar to Target Cost, but isn’t supposed to limit your conversions as much.

We’ll update once we’ve further tested this bid strategy. If you have an eCommerce company and are looking for help with your Facebook ads strategy and management, feel free to reach out and we’ll be happy to discuss further.