Cost Caps After Meta Andromeda: Huge Mistake or Hidden Advantage?
Manual Bidding Strategies in Andromeda: Are They Still Relevant?
Introduction to Manual Bidding
- The speaker introduces the video, focusing on manual bidding strategies within the context of Andromeda and mentions their experience with cost cap scaling strategies.
- Acknowledges Tim Bird's influence on their bidding methods from 2018 to 2020, highlighting how it inspired curiosity and success in client campaigns.
Best Campaign Overview
- Describes a successful campaign where ā¬500,000 was spent at a return on spend (ROS) of 3.7, generating ā¬2 million over 2.5 years starting August 2022.
- Mentions speaking at the Affiliate World Conference Europe about hyperscaling cost caps and wave surfing strategies.
Current Relevance of Cost Caps and Bid Caps
- Questions whether cost caps and bid caps are still used in 2026 after the introduction of Andromeda; promises to explain their purpose later in the video.
- Plans to provide examples for different ad account scenarios while discussing manual bidding frameworks.
Manual Bidding Framework
- Emphasizes understanding Meta's new algorithm as foundational for effective manual bidding within their scaling strategy.
- Outlines four blocks involved in scaling: manual bidding, wave surfing, flash campaigns, and expansion strategies like new product lines or countries.
Performance Insights from Recent Campaigns
- Confirms continued use of cost caps and bid caps for scaling due to consistent low costs per purchase observed over the last month.
- Provides data showing that manual bidding consistently yields lower costs per purchase compared to other methods like CBO (Campaign Budget Optimization).
Case Studies Demonstrating Effectiveness
- Shares an example of a bit cap campaign created in October 2024 with a total ad spend of ā¬100k achieving an ROS of 2.4.
- Discusses another campaign active from June 2025 until January 2026 that had significant spending with high ROS values before being paused for a conversion lift study.
Recommendations for Coaches and New Users
- Advises new users to watch onboarding modules focused on selecting winning ads and building CBO campaigns as initial steps towards effective ad management.
- Highlights success stories from recent users who have increased their daily ad spend through these recommended practices.
Changes After Andromeda Implementation
Understanding Manual Bidding in Advertising
The Role of Algorithms and Audience Targeting
- Changes in algorithms allow for more aggressive exploration of diverse audiences, leading to increased volatility in ad delivery.
- Despite improvements in creative exploration and signal detection through systems like Andromeda, advertisers must still compete in auctions to win placements.
- Manual bidding influences delivery metrics such as impression share and auction win rates, which are crucial for effective advertising strategies.
Auction Dynamics and Bidding Strategies
- Understanding the auction formula is essential; the ad with the highest total value wins. Advertisers aim to maximize this total value through strategic bidding.
- Automatic bids do not condition the auction outcome, while manual bids allow advertisers to adjust their influence on bid values actively.
Cost Caps vs. Bid Caps
- A cost cap signals Meta regarding the desired average cost per result over time but does not guarantee that every purchase will be at that price.
- A bid cap restricts participation in auctions based on a maximum acceptable cost per result, potentially limiting ad spend significantly.
Delivery Settings and Manual Bidding Framework
- Cost caps offer more flexibility compared to bid caps, allowing for broader audience reach while still aiming for specific cost targets.
- The speaker refers to "manual bidding" even when discussing settings like max value or minimum ROAS because they involve active adjustments affecting delivery.
Scaling Strategies with Manual Bidding
- Using max value settings can help achieve higher Average Order Values (AOV), particularly when targeting high-quality users who historically spend more.
- The speaker emphasizes using manual bidding for scaling campaigns effectively while maintaining consistency across media buying efforts.
Auction Diversification Approach
- The speaker advocates for auction diversification by entering multiple auctions simultaneously rather than adhering strictly to one Campaign Budget Optimization (CBO).
- Emphasizing data-driven decisions, the speaker believes that successful manual bidding requires a solid account structure and understanding of algorithm dynamics.
Ad Bidding Strategies and Scaling Techniques
Understanding Ad Spend Goals
- The speaker emphasizes the importance of competing against different advertisers for various users, advocating against automatic bidding with high daily ad spend.
- A common scenario involves accounts spending $500 a day aiming to scale up to $2,000. This audience often finds technical content more relevant.
- For scaling from $500 to higher spends, manual bidding tests are recommended. Two distinct bidding strategies should be identified and used to build Campaign Budget Optimizations (CBOs).
Manual Bidding Tests
- Suggested bidding strategies include high/low bid caps and cost caps, as well as max value options. Testing is crucial without being overly selective due to limited budgets.
- Accounts with fewer than 1,000 purchases should utilize max value and overbidding strategies while considering budget inflation tactics.
Adjusting Bid Caps
- If the target CPA is $50, start with a bid cap of $20 on a CBO with a budget of around $5K. If it doesn't spend within 48 hours, increase the bid by 20% until reaching a maximum of $40.
- The goal is to find optimal spending patterns that allow for increased daily ad expenditure when conditions permit.
Scaling Higher Budgets
- For accounts looking to scale from $2K to between $5K-$10K daily, maximizing opportunities through various CBO strategies becomes essential.
- Different CBO types such as overbidding cost cap or incremental attribution can help capture new high-value users effectively.
Creative Strategy Considerations
- Using similar creatives across different bidding strategies can be effective; however, it's not always ideal due to varying audience overlaps.
- Overbidding aims at winning expensive auctions while max value focuses on attracting high-value users who may not engage otherwise.
Targeting New Audiences
- Incremental attribution seeks new customers using top-of-funnel creatives that build trust through social proof like featured logos in ads.
- Underbidding targets cheaper auctions but requires careful selection of product offers that align with Meta's capabilities for quick purchases.
In conclusion, these insights provide actionable steps for optimizing ad spend through strategic bidding techniques tailored for different account sizes and goals.