Bid capping can help marketers restrict the amount Facebook can spend on each bid.
This piece suggests that marketers can set up a bid cap to control how much they want to spend per bid on Facebook. It enables brands to get the most opportunities within a pre-set bid and increase the chances of acquiring customers before their competitors.
Using a higher bid cap cost can also help pressurise a competitor out of the auction. This option also enables marketers to accelerate the delivery of their ads. Accelerated delivery is a useful approach, while a brand is running a time-sensitive campaign.
The author also suggests that brands should establish benchmarks for costs per the objective of their campaigns. They should also use inspection tools to closely monitor their campaigns on the platform.
[10 minute read]