Meta offers three types of Facebook bid strategy: spend-based (highest volume or highest value), goal-based (cost per result goal or ROAS goal) and manual (bid cap). Spend-based spends your full budget for the most results, goal-based keeps your average cost or return near a target you set, and bid cap sets a hard ceiling on every single auction bid.
If you're looking for cost cap or lowest cost, Meta's current help pages use these names instead: cost per result goal for controlling average cost, and highest volume for getting the most results from your budget. Here's what each one does and how to pick.
The five options at a glance
| Bid strategy | Type | What it aims for | Use it when |
|---|---|---|---|
| Highest volume | Spend-based | The most results from your full budget | Cost per result doesn't matter as much as volume |
| Highest value | Spend-based | The highest value purchases from your full budget | You sell items of different value and want the biggest baskets |
| Cost per result goal | Goal-based | An average cost per result near your target | You know what a sale or lead can cost and stay profitable |
| ROAS goal | Goal-based | An average return on ad spend near your target | You track purchase value and need a minimum return |
| Bid cap | Manual | Never bidding above a set amount in any auction | You can predict conversion rates and calculate the right bid |
Meta's own examples make the split clear: an event planner chasing as many festival attendees as possible uses highest volume, a florist selling as many bouquets as the budget allows uses highest value, and a retailer that knows the cost per purchase that keeps it profitable uses a cost per result goal.
How goal-based bidding behaves
Goal-based bidding uses AI to move bids above or below your target, balancing out on a weekly average. Meta recommends 50 to 100 or more conversions a week for it to perform well, and it's clear that results may not exactly match your goal. When the market gets competitive, the system protects your target rather than chasing extra volume.
A ROAS goal is written as a decimal. Meta's example: if you want every 100 you spend to bring in around 110 in purchases, you'd set the ROAS goal at 1.100. It's only available when your ad set's performance goal is Maximize value of conversions.
How bid cap works in the auction
Meta calculates a bid per impression as your bid per estimated action multiplied by the estimated action rate. A bid cap limits the bid per estimated action, not the price per impression, and Meta may bid lower if spending faster would burn your budget too quickly. It controls the highest bid, not the cost you'll see in reporting.
Meta's worked example: a skin care brand found conversions costing more than 40 usually meant a loss. Through testing, it set a bid cap of 50, which reduced the days with conversions over 40 without cutting spend too much on other days. That's the point of bid cap: it's a tool for advertisers who already know their numbers. Meta says that if you simply want to control costs, a cost per result goal may suit you better because it handles more of the calculation.
What target to set first
- Cost per result goal: Meta suggests starting one-tenth to one-fifth above your recent average cost per acquisition.
- ROAS goal: start one-tenth to one-fifth below your recent average ROAS.
- No history? Run highest volume or highest value first to set a baseline, then use those results.
- Match your attribution window. Base the target on results within the conversion window you report on, such as 7-day click.
Meta also warns against bidding lower for audiences you think convert better. It doesn't improve cost efficiency and can cost you conversions. Set the goal at the most you can afford per result, or the lowest ROAS you can accept, and use value rules if some segments are worth more to you.
Where you set it in Ads Manager
| Budget setup | Where the bid strategy goes |
|---|---|
| Advantage+ campaign budget (formerly campaign budget optimization) | Choose the campaign bid strategy when you create the campaign, then set the control amount in each ad set's Performance goal section |
| Ad set budgets | Enter a cost control in the ad set's Performance goal section; Meta then selects cost per result goal for you. Choose Show more options to switch to bid cap |
| Ad set budgets, no amount entered | Meta uses highest volume |
Each campaign using Advantage+ campaign budget runs a single bid strategy, so you can't mix strategies across its ad sets. If you want a different one, build a separate campaign. And if you choose a cost per result goal or ROAS goal for people on iOS 14.5 or later, Meta says the ad set should run for at least 3 full days.
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My verdict
Start every new account on highest volume or highest value. That's the route Meta suggests for building a baseline when you have no history. Once you have a few weeks of data and enough weekly conversions, switch the campaigns that matter to a cost per result or ROAS goal set from those numbers. Leave bid cap until you can explain your conversion rate without looking it up. If you're still deciding how much to spend in the first place, read how much to budget for Facebook ads each month and keep the structure simple with my ad account structure cheat sheet.
If you want the full set, start at the Facebook Help: 80 Guides to Pages, Groups, Ads, Stories and Fixes.
Frequently asked questions
What bid strategies does Facebook offer?
Meta offers spend-based bidding (highest volume and highest value), goal-based bidding (cost per result goal and ROAS goal) and manual bidding (bid cap).
Is cost cap still available on Facebook ads?
Meta's current help pages describe the cost control option as cost per result goal, which keeps your average cost per result near the amount you set.
What's the difference between bid cap and cost per result goal?
Bid cap sets the maximum bid in every single auction. A cost per result goal lets Meta bid above or below your target to keep the average cost near it over a week.
How many conversions do I need for goal-based bidding?
Meta recommends 50 to 100 or more conversions a week for the best performance with cost per result goal or ROAS goal.
Can I use different bid strategies in one campaign?
Not with Advantage+ campaign budget. Meta says each campaign uses a single bid strategy, so set up a separate campaign for a different one.
