Some Insights on Bid Caps

Joined
Oct 24, 2025
Messages
12
Reaction score
6
Early Stage

If your new product generates three orders in a single day or accumulates over five orders, don't hesitate—

immediately activate the bid cap to assess scaling potential.

Testing Phase

We recommend setting bid caps in increments of 1-5-5. Allocate group budgets to test five distinct values:

- US market: Start at $20

- European market: Start at $15

Note: In highly competitive general merchandise markets where many sellers bid on similar products, start with values above $30.

To identify optimal values faster, set bid increments between $2–$5 per group.

Examples: $20–$22–$24–$26–$28–$30 or $20–$25–$30–$35–$40. Allocate $30 per group to prevent rapid budget exhaustion from excessive bidding.

Testing values requires flexibility, not rigid adherence to rules. If a group's 30 budget generates orders or spends over 15, it confirms the correct value lies within that range.

Then adjust other values by increments of 0.5 around that point. For example, if 25 generates orders, set other groups to 24.5-24-26-25.5.

Adjust daily based on spending trends.

Note: During testing, limit adjustments to once per group/value per day. If initial testing shows stagnant spending, widen bid increments for flexible optimization.

Scaling Phase

After identifying optimal value ranges, adjust budgets up or down daily based on group performance.

This filters high-performing ad groups for the final round.

For budget increases, I limit myself to a maximum of two adjustments per day.

Adjustment amounts should be flexible based on performance, but generally:

- Increase by 100 when spending 30 yields one order

- Increase by 500 when spending 100 yields three to four orders

- Increase by 1000 when spending 500 shows good ROI

I typically adjust budgets between 10 PM and midnight.

Budget Reduction:

If a bid performed well for several days but shows poor results one day, consider reducing its budget. Restore the original budget when ROI recovers; otherwise, do not restore it.

CRITICAL!!! Even during scaling phases, maintain fine-tuning adjustments. I recommend reviewing data daily to adjust bids:

- Slow spending: Increase by 0.5 to 1

- Fast spending: Decrease by 0.5 to 1

- Normal spending with low ROI: Decrease by 0.5 to 1

- Slow spending with high ROI: Increase by 0.5 to 1

- Fast spending with low ROI: Decrease by 0.5 to 1

- Fast spending with high ROI: Hold steady and monitor closely

Decisive Phase

Review weekly performance to retain top-performing ad groups.

PS: If a product remains underperforming or fails to spend budget after one week of bidding, abandon it immediately if any condition is met.

When a product consistently performs well with low competition, its bidding value diminishes.

Crucially, if results are poor, reducing the budget yields immediate effects, whereas lowering bids takes much longer. I recommend cutting the budget first. Of course, if performance is weak during the early night hours, you can temporarily increase the budget.

and wait until performance recovers to 1.5+ during peak US hours before restoring the original budget. At that point, no bid adjustment is needed.

Ultimately, it all comes down to your understanding of bid value, spend velocity, and ROI. The deeper your grasp, the better you'll master bidding.

For example, if a product's optimal market bid is 25, bidders above 25 are willing to pay higher CPAs for traffic.

Though volume is high, quality varies wildly. Eventually, they can't sustain the high CPAs and drop out. Meanwhile, bidders at 25 get lower volume but excellent CPAs, allowing them to run indefinitely—

even scaling up.

Moreover, a product's optimal value fluctuates constantly—today it might be 25, tomorrow 26, and the day after it could drop back to 24.

This demands dynamic adjustment skills from the optimizer in both bidding and budget management. There's much more to discuss, but I'm running out of space.

For instance, the relationship between category market competition and bidding value, as well as advanced bidding strategies.
 
Sustainable success doesn't come from bidding the highest price, but from a deep understanding of the relationship between bids, CPA, traffic quality, and market competition. A good optimizer is someone who accepts market volatility, reacts promptly to data, and maintains an ROI that allows the product to survive and expand in the long term.
 
Early Stage

If your new product generates three orders in a single day or accumulates over five orders, don't hesitate—

immediately activate the bid cap to assess scaling potential.

Testing Phase

We recommend setting bid caps in increments of 1-5-5. Allocate group budgets to test five distinct values:

- US market: Start at $20

- European market: Start at $15

Note: In highly competitive general merchandise markets where many sellers bid on similar products, start with values above $30.

To identify optimal values faster, set bid increments between $2–$5 per group.

Examples: $20–$22–$24–$26–$28–$30 or $20–$25–$30–$35–$40. Allocate $30 per group to prevent rapid budget exhaustion from excessive bidding.

Testing values requires flexibility, not rigid adherence to rules. If a group's 30 budget generates orders or spends over 15, it confirms the correct value lies within that range.

Then adjust other values by increments of 0.5 around that point. For example, if 25 generates orders, set other groups to 24.5-24-26-25.5.

Adjust daily based on spending trends.

Note: During testing, limit adjustments to once per group/value per day. If initial testing shows stagnant spending, widen bid increments for flexible optimization.

Scaling Phase

After identifying optimal value ranges, adjust budgets up or down daily based on group performance.

This filters high-performing ad groups for the final round.

For budget increases, I limit myself to a maximum of two adjustments per day.

Adjustment amounts should be flexible based on performance, but generally:

- Increase by 100 when spending 30 yields one order

- Increase by 500 when spending 100 yields three to four orders

- Increase by 1000 when spending 500 shows good ROI

I typically adjust budgets between 10 PM and midnight.

Budget Reduction:

If a bid performed well for several days but shows poor results one day, consider reducing its budget. Restore the original budget when ROI recovers; otherwise, do not restore it.

CRITICAL!!! Even during scaling phases, maintain fine-tuning adjustments. I recommend reviewing data daily to adjust bids:

- Slow spending: Increase by 0.5 to 1

- Fast spending: Decrease by 0.5 to 1

- Normal spending with low ROI: Decrease by 0.5 to 1

- Slow spending with high ROI: Increase by 0.5 to 1

- Fast spending with low ROI: Decrease by 0.5 to 1

- Fast spending with high ROI: Hold steady and monitor closely

Decisive Phase

Review weekly performance to retain top-performing ad groups.

PS: If a product remains underperforming or fails to spend budget after one week of bidding, abandon it immediately if any condition is met.

When a product consistently performs well with low competition, its bidding value diminishes.

Crucially, if results are poor, reducing the budget yields immediate effects, whereas lowering bids takes much longer. I recommend cutting the budget first. Of course, if performance is weak during the early night hours, you can temporarily increase the budget.

and wait until performance recovers to 1.5+ during peak US hours before restoring the original budget. At that point, no bid adjustment is needed.

Ultimately, it all comes down to your understanding of bid value, spend velocity, and ROI. The deeper your grasp, the better you'll master bidding.

For example, if a product's optimal market bid is 25, bidders above 25 are willing to pay higher CPAs for traffic.

Though volume is high, quality varies wildly. Eventually, they can't sustain the high CPAs and drop out. Meanwhile, bidders at 25 get lower volume but excellent CPAs, allowing them to run indefinitely—

even scaling up.

Moreover, a product's optimal value fluctuates constantly—today it might be 25, tomorrow 26, and the day after it could drop back to 24.

This demands dynamic adjustment skills from the optimizer in both bidding and budget management. There's much more to discuss, but I'm running out of space.

For instance, the relationship between category market competition and bidding value, as well as advanced bidding strategies.
If a product gets 3 orders in a day (or 5 total), I turn on bid cap. I test 5 bids (US ~20, EU ~15; higher if it’s super competitive) with $30 per ad set. When one bid converts or spends ~15+, I tighten bids around it by 0.5. Scale budgets slowly and adjust bid ±0.5–1 daily based on spend speed + ROI.
 
This strategy focuses on testing bid caps early, identifying optimal bid ranges through controlled budget allocation, and then scaling gradually based on spend velocity and ROI with daily fine-tuning. Success depends on dynamic bid and budget adjustments, disciplined testing, and quickly cutting underperforming products.
 
Back
Top