This episode debunks the common myth that cost controls (bid caps, cost caps, minimum ROAS) hinder ad spend. Instead, it argues that a lack of spend when using these systems signals underlying issues with creative, offers, or unrealistic financial targets, effectively serving as a diagnostic tool. Ecommerce operators will learn how to leverage cost controls to identify and resolve these hidden inefficiencies rather than simply throwing more money at underperforming ads.
Key takeaways
Implement cost controls (bid cap, cost cap, or minimum ROAS) across your entire ad account to ensure spend aligns with performance goals and acts as a safeguard against wasteful ad spend.
If your budget isn't spending with cost controls active, view it as a critical signal that your creative, offer, or target CPA/ROAS is misaligned with market realities, rather than a flaw in the cost control system itself.
Avoid hybrid ad account models that run cost control campaigns alongside highest volume campaigns, as the latter will always get priority delivery, leading to an unfair assessment of cost control performance.
Continuously test and iterate on creative and offers. If cost controls aren't spending, it indicates your current creative/offers aren't compelling enough to meet your set performance targets.
Adjust target CPA or ROAS if consistent non-delivery occurs, recognizing that sometimes initial targets may be too aggressive for current market conditions or audience engagement.
In the first Bottomline episode of 2025, Cody and Taylor take on the contentious topic of cost controls in Facebook advertising, offering a masterclass in advanced media buying strategies. They begin by demystifying the three types of cost controls - bid caps, cost caps, and minimum ROAS - and explain why they exclusively use cost controls across all their accounts. They systematically dismantle common myths, particularly the notion that cost controls restrict spending. Through compelling arguments and real-world examples, they demonstrate how cost controls can actually lead to increased spend and better performance by eliminating wasteful ad spend on underperforming creatives. Cody and Taylor also delve into the pitfalls of manual budget adjustments and the "hybrid model," advocating instead for trusting Facebook's sophisticated algorithm to optimize spend based on performance. The episode concludes with a discussion on using cost controls as a diagnostic tool to identify and address underlying issues in your advertising strategy, from creative quality to offer optimization and goal-setting.If you don't watch this episode, you're missing out!
What does this episode say about paid acquisition?
Implement cost controls (bid cap, cost cap, or minimum ROAS) across your entire ad account to ensure spend aligns with performance goals and acts as a safeguard against wasteful ad spend.
What does this episode say about analytics & attribution?
If your budget isn't spending with cost controls active, view it as a critical signal that your creative, offer, or target CPA/ROAS is misaligned with market realities, rather than a flaw in the cost control system itself.
What does this episode say about dtc strategy?
Avoid hybrid ad account models that run cost control campaigns alongside highest volume campaigns, as the latter will always get priority delivery, leading to an unfair assessment of cost control performance.
What does this episode say about paid acquisition?
Continuously test and iterate on creative and offers. If cost controls aren't spending, it indicates your current creative/offers aren't compelling enough to meet your set performance targets.
What does this episode say about paid acquisition?
Adjust target CPA or ROAS if consistent non-delivery occurs, recognizing that sometimes initial targets may be too aggressive for current market conditions or audience engagement.
