A cap restricts how many conversions (leads, sales, installs) an offer will accept and pay for in a day or other period, protecting the advertiser from being overwhelmed by more volume than they can process or afford. Once a cap is hit, the offer typically stops accepting new conversions until it resets.
Media buyers running paid traffic against a capped offer need to actively monitor cap status, since continuing to spend on ads after an offer has capped out means paying for clicks or impressions that can no longer convert into a paid action, directly eroding campaign profitability.
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