In one of your past videos you said that Bid Cap was the way to go, now you said it’s better to use Cost Per Result, I didn’t quite get the difference in the video. Could our explain a little more in detail the differences?
None is correct. Both can work depending on your business. Rule of thumb: - Cost per result goal is usually the better option for most businesses. It doesn’t require too much data to keep spending. - Bid cap needs a lot of data to work. It will in most cases not spend if you don’t have historic data in the account and the campaign you use it on.
Hey Ole, I have mixed feelings about Cost per result strategy. I handle two accounts and one is usually performing decently and other is usually horrible. The horrible one is only ever profitable with the Cost per result strategy while I noticed the better one spends more money with highest bid (duh) but is also better in terms of CPA. Sure, it's more hands-on but on my good account I only use highest bid.
Great insight! Could be many factors that I don’t know about that causes this. We sometimes see that highest volume makes accounts perform better because it gives the campaign more consistent spend and the algorithm more consistent data. Hence it improves the CPA over time. This is often the case for accounts with “small” spend. Less than 1000 usd per day budget.
I've been using this strategy ever since seeing your first video about it. I must say, it changed everything for me. I used to waste a lot of budget on the bad days and always be worried about spending too much. Now I can comfortably set the budget higher and not worry about profitability too much. I have a question though: would you still recommend setting up an automatic rule to adjust the daily budget? Or just set the budget high and let the cost cap do the work? I want to scale more and am wondering what the best approach would be - the rule or just increasing budget. What do you think?
Awesome! We see great results for many of our clients with this strategy as well 😊 You can definitely use the auto scaling rule approach or manually set it high and adjust the cap to get the ideal spend.
Thank you very much for the video. I didn't understand the last part very well. Do you recommend not doing a remarketing campaign if I use a TOFU campaign with cost per lead? Do you say to do a unique campaign with TOFU adset and a MOFU/BOFU remarketing adset?
Thanks! No, if you run a separate remarketing campaign, it will likely take credit for all sales, even though the TOF (Top of Funnel) campaign with the cost per result goal (or ROAS goal) did most of the work by generating interest. The reason is that the remarketing campaign is more precisely targeted towards your warm audience, resulting in a higher frequency of ad impressions. This means your warm audience sees your ads more often and is therefore more likely to see an ad from the remarketing campaign just before making a purchase. As a result, the TOF campaign may stop spending because it appears not to be meeting its cost goal, when in reality, the remarketing campaign is simply taking credit for the conversions.
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