This episode debunks the myth that ad budget not spending with cost controls is a bug. Instead, it's a feature providing critical feedback on your creative and offer. Ecommerce operators should embrace this signal to optimize their campaigns for profitable growth rather than forcing spend on underperforming ads.
Key takeaways
If your ad budget isn't spending with cost controls, view it as a signal that your creative or offer needs improvement, not a platform error.
Cost controls act as a safeguard, preventing wasteful ad spend by only allowing platforms like Meta to spend within predefined performance parameters.
Avoid hybrid ad account models where cost-controlled campaigns compete with highest volume campaigns; this starves cost-controlled campaigns of delivery and skews performance data.
Use bid caps for the strictest cost control to acquire customers at or below a specific CPA/ROAS target, suitable when you have a hard ceiling on acquisition cost.
Implement cost caps for an average cost per conversion, offering more flexibility than bid caps while still optimizing for a target average.
Utilize minimum ROAS when driving traffic to collection pages with varied AOV to ensure a desired return on ad spend despite fluctuating product values.
Themes
ad creativecost controlpaid acquisitionprofitability
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!
Frequently asked about this episode
What does this episode say about ad creative?
If your ad budget isn't spending with cost controls, view it as a signal that your creative or offer needs improvement, not a platform error.
What does this episode say about cost control?
Cost controls act as a safeguard, preventing wasteful ad spend by only allowing platforms like Meta to spend within predefined performance parameters.
What does this episode say about paid acquisition?
Avoid hybrid ad account models where cost-controlled campaigns compete with highest volume campaigns; this starves cost-controlled campaigns of delivery and skews performance data.
What does this episode say about profitability?
Use bid caps for the strictest cost control to acquire customers at or below a specific CPA/ROAS target, suitable when you have a hard ceiling on acquisition cost.
What does this episode say about ad creative?
Implement cost caps for an average cost per conversion, offering more flexibility than bid caps while still optimizing for a target average.
