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Discover when and why direct-to-consumer brands should move beyond CPA targets to maximise order value on Meta ads. Learn how Evolare Digital drives revenue growth through smart, scalable ad strategies.
If you're running Facebook and Instagram ads for a direct-to-consumer (DTC) retail brand, you've probably asked yourself: should I prioritise cost per acquisition (CPA) or chase higher order values? In other words, is it better to get more customers at the lowest cost, or fewer customers who spend more per order? It turns out both approaches have their time and place. Knowing when to use CPA targets versus when to optimise for order value can be a game-changer for your revenue. Let's explore the difference and find out how savvy brands balance these strategies to maximise results.
Cost Per Acquisition (CPA) is the average cost to acquire one customer or conversion through your ads. It's a key metric for efficiency: a low CPA means you're getting customers cheaply, indicating your ad spend is effective and likely profitable. Utilising a CPA campaign objective in Meta’s ad platform usually means structuring campaigns and bids to achieve a specific cost per result – for example, using a "cost cap" or optimising for conversions so that each purchase stays around a desired price.
Order Value, on the other hand, means focusing on the value of each conversion rather than just the cost to get it. Instead of purely chasing cheap conversions, you aim to increase the average order value (AOV) – the amount each customer spends per order. In Meta’s ecosystem, this often involves using Value Optimisation (or setting a target ROAS) so Facebook's algorithm finds customers who are likely to spend more. Facebook itself explains that when you optimise for value, it will “bid for your highest value customers” – in other words, spend more to show ads to people who are predicted to make larger purchases, thereby maximising your return on ad spend (ROAS). This means the order value campaign objective deliberately seeks quality over quantity: you might get fewer total conversions, but each will be worth more in revenue.
When launching new campaigns or advertising a young DTC brand, focusing on a CPA target is usually the first priority. There are several benefits to starting with a CPA-driven approach:
In practical terms, you might start a Meta ads campaign with a Conversions objective and either no cost cap (using Lowest Cost bidding to let Facebook find the cheapest conversions) or a modest cost cap to ensure you don’t pay above a certain threshold. You watch the CPA like a hawk. For example, if you're paying £10 per purchase and your product is £50, that might be okay – but £20 per purchase would likely eat too much into your margin. By relentlessly optimising, you could reduce this by £10 to, say, £5 over time. And if you started above your goal, you pause, refine, and try again. Many new businesses focus on hitting a low CPA in the first few months to prove their ads can turn a profit before they worry about anything else.
Once your CPA is looking good and steady, it might be time to shift gears. Why? Because not all customers (or sales) are equal. If you’ve been optimising purely for cheap conversions, you might be attracting lots of one-time buyers making small purchases. Meanwhile, there could be customers out there who would happily spend 2–3x more on your products – and Meta can help you find them with the right strategy. So, instead of only trying to minimise CPA, you can start trying to maximise the revenue each sale brings in.
Here’s why transitioning to an order value focus makes sense once your CPA is under control:
However, a word of caution: when you first switch to value or order value optimisation, don’t be alarmed if your CPA (cost per purchase) starts to rise. That's expected – you’re telling Meta you care more about quality than quantity now. The platform will likely bid higher to win impressions from users who are predicted to spend more. You’re essentially trading a bit of efficiency for a lot more revenue. As Meta’s guidance notes, you will likely spend more per conversion when optimising for value, with the expectation that those conversions will be more valuable. Make sure your financials make sense (i.e. you can afford a higher CPA if the average order value jumps accordingly).
How do you know it’s the right time to make this shift? Look for these signs in your campaigns:
When these conditions are met, you can gradually introduce order value targets. This might mean creating a duplicate of your best-performing campaign, but this time optimising for Value instead of Conversions, or setting a target ROAS bid strategy (telling Meta the minimum return on ad spend you want). Initially, you might apply a small budget to this test while keeping your original conversion-focused campaigns running. Over time, as the value-focused campaign proves itself, you can scale it up.
To see how this plays out in real life, let’s look at Royal Mile Silver, a jewellery retailer and Evolare Digital client. When we first started managing Royal Mile Silver’s Meta ads, their CPA was over £7 when we first took over their account – meaning it cost more than £7 in ad spend to generate each sale. Our initial goal was to bring that CPA down dramatically. Through a full-funnel, data-driven campaign (across Meta, Pinterest, and GoogleAds), we tested and refined the ads until we achieved a CPA as low as £1.61 per purchase – a 78% reduction in acquisition cost. In other words, where it used to cost £7+ to get a sale, it was now on average £1.61. This efficient CPA meant we could acquire customers at scale without breaking the bank.
After maintaining a consistently low CPA for several weeks (allowing the results to stabilise and the ad algorithm to gather plenty of purchase data), we decided it was time to shift focus. The next objective: increase the order value. We adjusted the campaign to optimise for value – effectively telling Meta, "find us purchasers who will spend more, even if it costs a bit more to reach them." The strategy paid off. Royal Mile Silver’s average order value (AOV) jumped by £20 once we made this switch. That means each customer was now spending £20 more on their purchase, on average, than before. This boost in AOV, combined with the low CPA foundation we’d established, led to a surge in revenue. In fact, during that quarter Royal Mile Silver saw a year-on-year revenue increase of over 429% and about a 9.8X return on ad spend – a phenomenal result driven by the double-whammy of low CPA and high order value.
This example illustrates the power of using CPA and order value targets in tandem: first focusing on efficiency, then on value. By first trimming the “fat” (excess acquisition costs) and then maximising the “meat” (revenue per customer), you create a highly optimised campaign.
Imagine what this approach could do for your brand. If you’re a growing DTC retailer in jewellery, fashion, accessories or any other niche, think about your current marketing: perhaps you’re getting sales, but are you getting them at a sustainable cost? And are those customers spending as much as they could be? By strategically lowering your CPA, you free up budget to acquire more customers. By then increasing your average order value, you boost the revenue from each of those customers. It’s a potent combination.
For example, you might currently be paying £10 to acquire a customer who spends £60 on your site. That’s not bad. But what if you could drop the acquisition cost to £5, and that customer ends up spending £80? Your cost went down and your revenue per sale went up – that’s the dream scenario for ROI. These tactics can help you reach that scenario. It’s not about choosing either efficiency or value; it’s about sequencing them: nail one, then leverage it to achieve the other.
Most importantly, this approach also builds a stronger customer base. Those high-value shoppers you bring in after switching to value targeting could become repeat buyers and brand advocates. Meanwhile, the efficiency you gain from low CPA means you can keep widening your customer funnel without overspending. For a growing brand, that means steadier, healthier growth.
Switching between CPA-focused and value-focused strategies isn’t always straightforward. It requires a deep understanding Meta’s tools, careful timing, and ongoing optimisation. The good news is, you don’t have to navigate it alone. Evolare Digital specialises in exactly these kinds of Meta advertising strategies – and we offer flexible ways to help your business benefit from them.
With Evolare’s support, you’ll have the confidence to implement a dynamic strategy that evolves with your brand’s growth stage – from scrappy CPA optimisation to revenue-scaling value optimisation – all while avoiding common pitfalls.
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