Campaign Budget Optimization From Facebook: How to Get It to Work for You

Facebook campaign budget optimization is here and a lot of people are wondering what does this mean for their ads? Stay tuned and I’m gonna break down exactly what it is and why Facebook is a smart system that will optimize your ads for you if you set up everything properly. Facebook’s campaign budget optimization does the work for you if you’ve set up your ad sets and targeting appropriately. What happens is that Facebook’s notice that people are struggling so much in figuring out how they need to set budgets at the ad set level that they’ve said, you know, we’re gonna combine everything in a campaign and optimize for you and reallocate those budgets.

Let’s talk about where that’s going to hurt you and where that’s going to benefit you.

Stick around to the end and I’m going to share with you my personal recommendations on how you should set up CBO so that Facebook’s able to do optimization for you. How many ad sets, how big are the audiences, what kind of content, when it should be another campaign or another ad set? What is campaign budget optimization? It’s Facebook taking the individual budgets you have across different ad-sets and bucketing them into a single campaign level budget. How do you set up Facebook CBO?

If you’re watching this in February, 2020 or later, it’s automatically there for you. If you’re watching this before February, then you just check the option inside the campaign level settings to enable CBO. CBO is required and mandatory, so my suggestion is just go ahead and roll those changes now. Why is campaign budget optimization so important to us? It’s Facebook doing the work for us.

You can see here in this particular campaign; we have eight ad-sets. At the ad level group, you’re able to set a budget for a particular target.

Based on the size of the audience we may choose a budget that we think is appropriate. A remarketing audience might be a little bit smaller. A lookalike audience or a nationwide audience might be a little bit bigger.

Now, if I add up all the audiences across all of the ad-sets, that’s potential audience I could reach if I had my budgeting set properly at each of the different ad-sets. Now, Facebook knows that people don’t know how to set budgets, so some audience might be smaller, and you might set that at 10 bucks a day, an audience might be bigger you might set that at 50 bucks a day, but how do you know what’s the right budget? It’s not just the size of the audience, it’s what’s profitable.

So what happens is that when you set your particular goal, it could be a manual bid where you say $10 a lead or 3 cents per Thru Play video, whatever it is that you are setting automatic or manual, Facebook is going to try to seek the most number of conversions for that particular conversion type that you’re selecting or objective that you’re selecting across the different ad-sets. Some of the misconceptions about Facebook CBO is that Facebook is taking away control from us because a lot of the people who’ve done Facebook ads for a long time, they like being able to touch every little detail.

But this is actually hurting you, Facebook has more data than we do. If you give it the right objective that you’re optimizing for, it’ll do a better job than you can manually. Now if you have your campaign set up properly, meaning you have your audience targeting and you have your content associated together in ad-sets as part of each campaign, campaign budget optimization is going to help you.

Facebook did this because you may have one ad-set that’s doing really well, but it’s being budget limited. You may have another ad-set where it’s actually overspending because you put too much budget against it and maybe the performance in this smaller one, usually a remarketing audience is going to do better, it is being drowned out by money being wasted in another ad set.

So, Facebook said, why don’t we just basically do away with the concept of the ad-set of the budgeting level and say, let’s treat it as an entire budget and let’s allocate the funds to be able to maximize whatever your chosen objective is independent of the ad-set level budget. Facebook is so smart as a system that they wanna be able to do that heavy lifting for you, but if you don’t have your campaign set up properly, campaign budget optimization is going to hurt. People get into trouble with Facebook CBO because they have too many ad sets and too many audiences that are too diverse inside a single campaign. All too often we see beginners where they set up 20 different campaigns, each campaign has 10 different ad sets and they think that somehow they’re testing more, actually what they’re doing is they’re polluting their system.

Simpler campaigns do better because if you are not getting at least 50 observations per ad-set per week, the learning objective of Facebook is not able to kick into gear.

Every time you touch your ads, you’re resetting that learning phase. So the more data you can give Facebook at the campaign level and at the ad set level, the more Facebook can do the work for you. So when you have a lot of ad sets and the audience sizes are different, when you shift to campaign budget optimization, what may initially happen is that those big ad sets end up getting most of the budget and then you hear people complaining saying, oh, I shifted to campaign budget optimization and now my conversions went down. Because what will happen is that it will rob from the smaller audiences. So the right thing to do is make sure that when you are setting up your campaigns, you have fewer ad sets.

The ad sets that you have in a particular campaign are about the same size, about the same audience quality, or are the same stage in the funnel. That way when Facebook is able to allocate between different ad sets, it’s able to do it without hurting the power of a remarketing audience, which is small and does really well compared with the cold audience. So mixing cold and warm audiences together inside one campaign is going to hurt you. My rule of thumb is three campaigns, one at each level in the funnel of awareness, consideration, and conversion. And each of those targets inside each of those campaigns should be similar, meaning the same level of depth inside your funnel.

You don’t winna combine warm audiences and cold audiences. You don’t winna combine small audiences and large audiences.

Anyone inside an ad-set should be relatively similar, and the content that you have should be relatively similar. It allows for the fine-tuning of CBO to occur. CBO is about lightweight rebalancing of budget, not about lots and lots of separate ad tactics.

Those should be separate campaigns, not ad-sets inside a single campaign.

Now that you’ve learned about Facebook campaign budget optimization and all the different changes Facebook’s making all the time, in our next video, let’s talk about how you optimize and tune your Facebook ads.

AI Powered Puppet Profits
https://warriorplus.com/o2/a/tgmfmbr/0

https://app.ebsitemate.com/plrpdf/Live%20a%20Life%20of%20Contentment.pdf

[wpdatatable id=1 table_view=regular]