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Cost Caps vs Bid Caps: Which to Use When

Shabir Malik 3 min readJuly 4, 2024

Cost cap: predictable ceiling

Keeps average CPA at or below target. Use when unit economics demand a hard ceiling, with enough creative diversity to find wins.

Bid cap: maximum efficiency

Very low bid cap delivers lowest-cost traffic but also lowest volume. Use only when volume isn't the bottleneck.

Default to cost cap

For most DTC and B2B accounts, cost cap is the pragmatic choice. Bid cap is an advanced lever for specific situations.

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