A bid cap allows one to deliver ads to target audiences that have a better chance at conversion. The bid cap sets a limit on costs associated with conversion. A key step in setting up a bid cap is to define a maximum cost for each lead. You don’t want to spend this amount on every lead but you never want to exceed it. From a maximum or cap one then decreases the cost per lead in tiers usually around 15% for each segment. With the established tiers one can then build a Facebook lookalike audience around each segment. From there you will want to further hone the ads to optimize for each segment. This should usually occur a few days after launch.
- You can use Tiered Bid Cap with Lookalike audiences to enable you to scale your conversions while setting a limit.
- Once you have budgeted your maximum for a lead price you will want to calculate around fifteen percent decrease in each expansion of your lookalike audience.
- With a broad range in your lookalike audience you will want to add more parameters so you don’t get too much diminished returns.
“At first, you believe it’s solely due to the salesperson’s newness to the company and you expect his performance will improve over the coming weeks. Despite your patience, though, he only manages to convert about 5% of the incremental lead volume.”