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 and ensure optimal results.
First, advertisers can set one central campaign budget to optimize across ad sets by distributing 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.
When Campaign Budget Optimization is activated, Facebook can automatically move the budget to the most effective ad set in a campaign and distribute budgets in real-time to increase efficiency. This allows marketers to run multiple ads within a single ad set.
In addition to setting a daily or lifetime campaign budget, marketers can set bid caps and spend limits for each ad set.
By distributing more of a budget to the highest performing ad sets, advertisers can maximize the total value of their campaign. Budget optimization works in real-time to determine the most effective use of a business’ ad dollars to help 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.
In addition to setting a daily or lifetime campaign budget amount, 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. If you value results from certain ad sets more than others, Facebook recommends reflecting that through appropriate bid caps or target costs rather than spend limits. However, they may be useful if:
For example, say you have two ad sets. Each one is targeted to a different market. You’re 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.
Here are some of the best practices for using campaign budget optimization:
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 to it:
Campaign Budget Optimization is a powerful tool offered by Facebook. It simplifies account management and reduces daily tasks for social advertisers. If you aren’t already leveraging app Campaign Budget Optimization for your Facebook ad campaigns, it’s time to try the optimization feature. This will streamline your operations and save budget efficiently before it becomes mandatory in September 2019.