Project Management Answers

What is cost cap bidding?

Q: What is cost cap bidding?


Q: Cost cap bidding: what is it?

  • Set a maximum cost per key result
  • Get the most results with your bid while controlling your bid in the auction
  • Get the most results possible with your full budget

Explanation: Advertisers use cost cap bidding to place a maximum restriction on the amount of money they will spend on a certain important outcome, such as a conversion or other desired actions. The objective of this technique is to get optimal outcomes while guaranteeing that the cost per result stays below the designated threshold. Stated differently, the goal of advertisers’ cost control efforts is to indicate the highest amount they are prepared to pay for each desired result; the bidding system then optimizes the delivery of results while staying within that cost limit.

Leave a Reply

Your email address will not be published. Required fields are marked *