This episode makes a strong case for implementing cost controls on Meta ads, arguing that understanding and managing CPAs is crucial for sustainable growth. Andrew Faris presents six compelling arguments, challenging the common modern media buying approach that often neglects direct CPA management. This is a must-listen for anyone looking to optimize their Meta ad spend and achieve predictable profitability.
Key takeaways
Prioritize average CPA as a key metric for Meta ad performance, even when platforms encourage focusing solely on ROAS.
Implement a "micro-bidding" strategy by setting cost caps at the ad set level, forcing Meta to find conversions within your target CPA.
Regularly monitor creative and audience performance to identify and cut underperforming assets, ensuring your budget is allocated efficiently.
Don't be afraid to test different cost controls, including bids and cost caps, to discover what works best for your specific products and target CPAs.
Understand that Meta’s algorithm can be guided: by clearly communicating your target CPA, you can train it to find customers within your desired spend parameters.
You should be buying your Meta Ads with Cost Controls.
I've believed that for awhile now, but in the last six months my conviction on this point has solidified to where I now believe advertisers are costing themselves huge amounts of money in both efficiency AND scale when they refuse to implement this incredible tool.
In today's episode I'm explaining that belief with 6 arguments aimed at convincing you to see the light of Bid Caps, Cost Caps/Cost Per Result Goal, and Minimum ROAS bidding.
EPISODE HIGHLIGHTS [01:19]What are cost controls? [03:58] Argument 1: Cost Controls make obvious theoretical sense [07:45] Argument 2: Humans are much worse forecasters than Machine Learning [13:16] Argument 3: Especially when human media buyers are running lots of accounts [14:37] Argument 4: Risk-free creative testing [20:12] Argument 5: Adjusting spend up and down with changes in Meta's Daily Active Users (DAU) [24:07] Argument 6: Risk-free scaling [29:15] Why people are annoyed at cost controls THIS WEEK'S SPONSOR: More Staffing
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FOLLOW UP WITH ANDREW
Follow Andrew on Twitter: @andrewjfaris
Email Andrew: podcast@ajfgrowth.com
Work with Andrew: www.ajfgrowth.com
EPISODE MUSIC
Music Intro: "Tell Me Mama" by The
What does this episode say about paid acquisition?
Prioritize average CPA as a key metric for Meta ad performance, even when platforms encourage focusing solely on ROAS.
What does this episode say about dtc strategy?
Implement a "micro-bidding" strategy by setting cost caps at the ad set level, forcing Meta to find conversions within your target CPA.
What does this episode say about analytics & attribution?
Regularly monitor creative and audience performance to identify and cut underperforming assets, ensuring your budget is allocated efficiently.
What does this episode say about paid acquisition?
Don't be afraid to test different cost controls, including bids and cost caps, to discover what works best for your specific products and target CPAs.
What does this episode say about paid acquisition?
Understand that Meta’s algorithm can be guided: by clearly communicating your target CPA, you can train it to find customers within your desired spend parameters.
