Marketers just want to know that they are using their ad dollars most efficiently. Facebook’s Campaign budget optimization is designed to give marketers an easier way to manage their ad budgets. Ultimately, to ensure optimal results.
Getting Started with Campaign Budget Optimization
First, advertisers can set one central campaign budget to optimize across ad sets by distributing the budget to the top-performing ad sets in real-time. Campaign budget optimization is available for any campaign objective and is best suited for campaigns with multiple ad sets.
Activate your Campaign Budget Optimization. Then, Facebook can automatically move the budget to the most effective ad set in a campaign. This will then distribute budgets in real-time to increase efficiency. As a result, marketers can run multiple ads within a single ad set.
Marketers can set bid caps and spend limits for each ad set. In addition to setting a daily or lifetime campaign budget.
Distribute more of a budget to the highest performing ad sets. This will allow advertisers to maximize the total value of their campaign. Budget optimization works in real-time to determine the most effective use of a business’ ad dollars. This helps lower cost per result and increase return on ad spend.
Campaign budget optimization also saves advertisers time by eliminating the need to manually shift budgets between ad sets.
Campaign Budget Optimization Controls
Set a daily or lifetime campaign budget amount. In addition, you can also set spend limits for each ad set with desired, non-guaranteed minimums and guaranteed maximums.
Facebook doesn’t recommend using spend limits since they decrease the flexibility of the platform to optimize your campaign budget. But maybe you value results from certain ad sets more than others. In this case, Facebook recommends reflecting that through appropriate bid caps or target costs rather than spend limits. However, they may be useful if:
- You have specific budget requirements for an ad set.
- You’re using the lowest cost campaign bid strategy without a bid cap and don’t know how much you value reaching a given audience.
For example, say you have two ad sets each targeted to different markets. You are well-established in the first market and new to the second. But you’re not sure what reaching the new market is worth to you yet. So you’re using the lowest cost campaign bid strategy without a bid cap. You want to spend at least some money in the new market to start getting information on it. Also, you may want to set a minimum spend limit for the second ad set. Because campaign budget optimization doesn’t account for the long-term value you could gain from breaking into this new market. It could end up optimizing your budget in a way that leads to lots of efficient results. But also prevents you from doing the necessary exploratory spending in the new market.
Best Practices for Campaign Budget Optimization
Here are some of the best practices for using campaign budget optimization:
- Use ad set spend limits sparingly, or not at all, to optimize your campaign budget. Facebook’s delivery system is less flexible the more budget that is locked into specific ad sets.
- Any campaign using campaign budget optimization can have a maximum of 70 ad sets.
- Be sure to deliver all ad sets in your campaign. If an ad set isn’t delivering, it isn’t encountering any opportunities for results. This means that Facebook can’t distribute the budget to it. Campaign budget optimization works best when all ad sets in a campaign could spend a full budget. Also, when Facebook’s algorithm picks only the best results from each one. If any of your ad sets aren’t delivering, try increasing your bid caps or target costs, adjusting your targeting and creative, or switching to a more common optimization event.
- Facebook doesn’t recommend using campaign budget optimization when you have specific spend targets for each ad set. Especially, if you do not want any flexibility between them.
Big Changes to CBO 2019 and 2020
If you are using Facebook’s AdsManager, Campaign Budget Optimization will become mandatory for all new and existing ad campaigns as of September 2019. But if you aren’t using the feature yet, you need to start testing Campaign Budget Optimization now.
If instead, you are using an API tool like AdRules to manage campaign budget optimization, you have until September 2020 before it is mandatory. AdRules has many advantages:
- Campaign Budget Optimization will not be mandatory until Q3 in 2020.
- Test AdRules for free with a 60-day free trial, then 0.7% of ad spend.
- Directly upload creative to Facebook or Google App Campaigns (starting July 2019)
- Get an automatic Facebook best practices audit with integrated suggestions for user acquisition managers (July 2019).
- Access to Audience Builder Express.
- Build lookalike audiences from ad sets and campaigns. Build lookalike audiences greater than > 10%.
- Get App Affinity and App Genre suggestions for Interest Groups.
- Advanced Reporting.
- Use Ad Builder’s workflow automation to quickly build thousands of ads. Also, get access to AdBuilder Express.
- Automate repetitive actions with tasks and alerts.
- Use Performance Video Templates. See a demo here.
- Bulk Edit Videos.
Facebook offers Campaign Budget Optimization as a powerful tool. It simplifies account management and reduces daily tasks for social advertisers. Try the optimization feature to leverage app Campaign Budget Optimization for your Facebook ad campaigns. It is the time! As a result, this will streamline your operations and save budget efficiently before it becomes mandatory in September 2019.