Ideas & Innovation

Campaign Budget Optimization – Best Ways to Optimize Your Facebook Campaigns

Campaign Budget Optimization – Best Ways to Optimize Your Facebook Campaigns
Nov. 1,

Facebook has introduced a game-changing feature to its campaign structure – Campaign Budget Optimization (CBO). This feature will optimize the distribution of your campaign’s budget across the different ads within that specific campaign. Simply put, this feature will help you redistribute your funds to the best performing audience automatically.
Since the CBO feature is currently optional, there are several advertisers who have ignored it. However, Facebook recently announced in September that CBO will be a mandatory feature for selected accounts, putting this feature in the limelight.

Campaign Budget Optimization – Best Ways to Optimize Your Facebook Campaigns

What You Should Know

With the Campaign Budget Optimization tool, you will be able to set one central campaign budget for all your ads. Facebook will then distribute that budget to your top-performing ad sets automatically.

After September 2019, you can still manage your spending at a certain ad level by specifying that ad sets spend limits.

To better understand how CBO distributes your budget, pay close attention to the number of optimization events (results) for your campaign and the average cost per optimization event at the campaign level, instead of the ad set level.

How Does CBO Work?

The screenshot shown below is one that was taken by Facebook. It shows the comparison between the ad sets with and without the Campaign Optimization feature. Without CBO, the budget is distributed equally to all three ad sets, even to those that are underperforming. While using CBO, Facebook allocates the budget to the top-performing ad sets, resulting in a better outcome.

Campaign Budget Optimization – Best Ways to Optimize Your Facebook Campaigns

Now, we want to make it clear that this isn’t a split test where multiple ad sets are created to analyze the performance of different target audiences. Rather, Facebook uses CBO to distribute your budget according to the performance of one ad set compared to another.

There is no need to use CBO for a single ad set. It’s most beneficial when you are running a campaign with multiple ad sets.

After activating the CBO feature, you are given the option to set a minimum or maximum daily spend per ad set.

Campaign Budget Optimization – Best Ways to Optimize Your Facebook Campaigns

One important thing to remember is that campaigns using the budget optimization tool will not be qualified for ad scheduling or accelerated delivery.

How is the Campaign Budget Optimization Feature Helpful?

Setting a budget for your marketing and advertising can be quite difficult. And in most cases, we tend to focus on audience size before allocating a budget to any ad set. If multiple ad sets are running in a single campaign, it can become a guessing game in regard to how you should distribute the budget to each ad set.

CBO has simplified the campaign creation process. You simply set your budget at the campaign level and Facebook will distribute it among your ad sets. Overall, CBO can be very beneficial for marketers who have less experience and are struggling with budget allocation.

Best Practices for Campaign Budget Optimization

When using the campaign budget optimization tool, Facebook recommends the following practices:

  • Any campaign that is utilizing the CBO feature can have a maximum of 70 ad sets.
  • If you have a spend limit for any given ad set, you need to make it small or not use it at all. If you set a bigger budget, it can create a problem in the flexibility of Facebook’s delivery system to optimize your campaign budget.
  • Campaign Budget Optimization works best when all the ad sets in your campaign are spending the entire budget. So, be sure that all your ad sets are delivering well. If any of your ad sets are not delivering, Facebook will not distribute the budget to it and that will ultimately result in a negative outcome for that specific ad set.
  • Campaign Budget Optimization is recommended for advertisers who want to:
    • Set a budget at the campaign level and have flexibility in the budget being spent across the different ad sets.
    • Get the best possible outcomes from their campaign.
    • Save their time by reducing the amount of budget allocation being done manually at the time of the campaign setup.

How to Prepare Yourself for the CBO Switch

If you want to prepare yourself for the switch to Campaign Budget Optimization, follow these steps:

  • Start by using CBO – It’s time to start testing your existing campaigns or create a new one with the Campaign Budget Optimization feature.
  • Analyze the results – Run several campaigns with some of them using CBO, then monitor the performance of the campaigns utilizing CBO. If the CBO enabled campaigns are disappointing, try to find out why and adjust the setup accordingly.

You’re all set now! Setting a campaign budget for your target audience has never been an easy task, but with CBO, it doesn’t have to be difficult ever again! While Facebook continuously works on the Campaign Budget Optimization feature, there is still an opportunity for you to learn and grow with it.

If you’re still facing problems or have additional questions, send us a message on Facebook or call us at .

About Author

Prashant Yadu

Prashant Yadu

SEO/SMO Analyst

Prashant Yadu is a Social Media Analyst at Cibirix, and he’s now been part of our team for over five years. His particular area of focus for us revolves around Facebook advertising. With the help of his analytical skills and creative ideas, Prashant has helped to generate some remarkable results for our marketing clients. Before diving deeper into social media marketing, Prashant’s work focused on search engine optimization, where he handled both On-Page & Off-Page SEO for business clients. When he’s not hard at work, Prashant enjoys watching movies, listening to music, and hanging out with friends/family.

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