Meta Ads Management Term

Cost Cap

Cost Cap is a Meta bid strategy that sets a maximum average cost per result you're willing to pay. Unlike Bid Cap (hard limit per auction), Cost Cap allows individual bids to exceed the cap while keeping the average within target. Better for maintaining volume with cost control.

Example in Practice

"Setting a £40 Cost Cap kept our average CPA at £38 while maintaining 80% of the volume we got with Lowest Cost bidding."

Related Terms

Bid Cap

Bid Cap sets a maximum bid Meta can place in any single auction. Unlike Cost Cap (average), Bid Cap is a hard limit that prevents any bid from exceeding your cap. It gives maximum cost control but can significantly limit delivery if set too low.

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