Facebook Campaign Budget Optimization

 

Facebook Campaign Budget Optimization

It has more than one year now that Facebook released “Campaign Budget Optimization”.

Although the feature is out there for a while now, it doesn’t seem that much popular among the marketers.

Why?

I don’t know. Some people tested and didn’t get outstanding results. Some people just rather keep managing their budgets at the ad set level, which gives more control over how their money is spent. And some people just don’t like changes.

Well, like you or not, Facebook announced that this feature will become a fixed default that can’t be turned off.

Beginning in September, ad accounts will no longer have the option to control the budget at the Ad Set level. You will only have the option to set a Daily (or Lifetime) Campaign Budget, that will be distributed in real time to the Ad Sets.

If you haven’t started using it, or even experimenting with CBO, no worries, my friend. I’m writing this article to help you to understand how it works and how you should use it.

What is it?

Conversion Budget Optimization is a feature that allows you to set the budget at the Campaign level, leaving it up to Facebook to distribute the budget across the Ad Sets.

Facebook claims that this will help to improve your average CPA by distributing in real time your budget to the top performing ad sets.

This means that Facebook automatically and continuously finds the best available opportunities for results on an opportunity-by-opportunity basis across your ad sets and distributes your campaign budget in real time to get you the best results possible.

It is available for all campaign objectives and for obvious reasons it’s best suited for for campaigns with multiple ad sets.

You can still set a Daily or Lifetime Budget and select your Bid Strategy almost the same way you would do at the Ad Set Level, having the option to select Lowest Cost, Bid Cap or Target Cost.

Just have in mind that all ad sets should be optimized for the same event, you won’t be able to have one Ad Set optimizing for Add To Cart and another one for Purchases in the same campaign.

And hopefully by the time it’s mandatory you should also be able to apply automatic rules to control budget in the Campaign Level, which is not possible right now.

How it works?

As you probably is used to, or was if you already made the shift, you set your budget at the Ad Set level.

Each Marketer has its own strategies regarding how to organize campaigns and ad sets, but basically in each campaign we have multiple ad sets, targeting different audiences, with different interests, demographics, placements and bid strategies.

Based on that, we decide how much we want to spend with each one of those audiences, we analyse the data daily and we make changes to the budget according to the data.

It really depends on the marketer and there is no RIGHT way of doing it. There are a few guidelines Facebook advise us on following, but even tho, sometimes we get better results when we go against Facebook best practices.

Do not misunderstand best practices and Facebook RULES, going against Facebook Rules will get your account blocked.

Bottom line is, you decide how much you want to spend with each audience!

So what changes now?

Well, you might want to organize your campaigns a little bit differently now, for a series of reasons.

I’ll talk about it later! Let’s first understand better how this CBO really works.

Right now, when you’re creating a new campaign, this option is OFF by default.

Well, you might want to organize your campaigns a little bit differently now, for a series of reasons.

I’ll talk about it later! Let’s first understand better how this CBO really works.

Right now, when you’re creating a new campaign, this option is OFF by default.

Beginning in September you will no longer have this option, this will be turned on by default and you won’t be able to control budget at the Ad Set level.

This is supposed to give businesses an easier way to manage ad budgets and ensure optimal results.

It’s a continuous effort of Facebook into improving it’s AI and losing business owners from the headache of learning all sorts of strategies to run their ads. The easier it is for business to invest and get results, more money Facebook gets.