How to Use Bid Caps to Boost Your ROI: 5 Tips for Digital Marketers
As a digital marketer, or a marketing manager trying to make the most of set numbers, you know how important it is to manage your budget. Overspending on campaigns can eat into profits and hurt the success of your organisation. That’s where cost controls come in. Specifically, a cost control that is often overlooked – the bid cap!
What is a Bid Cap?
A bid cap is a tool that lets you set the most you’re willing to pay for a particular action, like a click or conversion. This is especially useful if you know the worth of your conversions. You set a bid cap based on the average value of a user’s actions. Then you never spend more than that action is worth.
5 Tips for Implementing Bid Caps.
By following these tips, you can ensure your ad spend is aligned with your business goals. For those that don’t have the data to pinpoint a profitable bid cap, there’s still room to benefit! Big or small, new or old; we outline several ways you can utilise this cost control.
Here are our 5 top tips for implementing bid caps:
- Set a bid cap based on the average value of a user’s actions. This will help you avoid overspending on events that aren’t worth it.
- Test different bid cap amounts to find the perfect one for your business. One way to do this is by setting a broad cap and selecting “Target CPA”. Let it run for 1-2 weeks and see if your cost per click improves. Adjust as needed and repeat until you find the right amount.
- Use bid caps in combination with other cost controls, such as cost caps and budgets. This will create a more comprehensive budget management strategy.
- Monitor your campaigns regularly to ensure your bid caps are still effective. Adjust them as needed.
- Experiment with different bid cap amounts and settings to find what works best. The key is to be proactive and adjust your strategy.
Bid caps can be a valuable tool for managing your digital marketing budget. Every business will approach cost controls differently. So, it’s important to know how and when to implement it.
If you’re interested in learning more about how to implement bid caps in your digital marketing strategy, our team at IGNITE is here to help. Contact us today to learn more and get started.