Facebook Campaign Budget Optimization (CBO)
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Alright, let’s get stuck right in. This is a relatively new thing rolled out by Facebook, where I’m going to go through basically the basics of it.
What is Facebook Campaign Budget Optimization or CBO
So firstly, what is CBO, essentially, that is allocating the budget that you want to spend at a campaign level. So typically, before CBO campaigns came out, you assigned your budget at an asset level. All right. So say you wanted to test three different targeting, you’d have three different assets, and each asset would have its own budget.
However, with CBO, your budget is at a campaign level. So bear in mind, if previously, you were spending about, you know, $30 a day on Facebook ads, you know, $10 for each ad set, you would set your CBO campaign budget to be $30. And then Facebook would allocate the budget accordingly in those three different ad sets.
Okay. So essentially, you toggle it on when you create a new campaign. And you set your daily budget, that campaign level there. So the difference is, obviously with CBO campaigns are that Facebook is deciding how much to allocate at an asset level. So with my example I use before, before Cabo, you’re saying I want $10 for each ad set, and Facebook will spend that money at per that budget for the ad set.
With CBO, you assign a budget of $30. And then it might then spend more money. So as per this screenshot, $18 versus $5 and $7 in the other ad sets. And it’s going to do so according to where your results are coming from, it’s going to spend more where you’re currently doing better.
So they say, Okay, so here is a screenshot for a CBO campaign that we’re testing. And as you can see certain ad sets have got more allocation of budget as two other ones and this is early days in this particular campaign. Generally, I find you need to be white, they say about a week, before you kind of really start seeing the results.
But this illustrates that certain ads, it’s a little bit greedy in terms of their taking of the budget compared to other. Alright, so why would you want to do CBO campaigns? There’s a few reasons but the main reason is that Facebook is going to optimize and spend more money where it is working best.
That’s kind of like the main reason Facebook have come out and said this is going to be mandatory in September. But then recently, they came out and said, No, they’re pushing it back to 2020. I wouldn’t be surprised if they push it back again, because it was a bit of a backlash in the community. But bear in mind that this is kind of where it’s heading.
Best Practices of Campaign Budget Optimization(CBO)
So a couple of things about best practice, you need to keep your prospecting audiences in the same campaign and you don’t mix your prospecting audiences with your retargeting audiences. So your cold traffic campaigns are in their own campaign and be at your top of funnel campaigns. And your bottom of funnel campaigns cannot be mixed with your top of funnel campaigns.
And that’s because you don’t want your retargeting campaigns because generally they do really well, to take the lion’s share of the budget, what’s going to happen is the frequency is going to just shoot up through the roof. Okay, so you want to keep your cold audiences in their own campaign with their own CBO budget.
And I personally at this point would run a retargeting campaign with the budget actually had an ad set level. So you really you can kind of control that frequency. I like to test the same creative, just so that we’re dealing with like with like, so we’re really just testing the audience targeting.
And like always, you have one interest per ad set, you will need to give the budget CBI budget ample budget to spend money. So say let’s say your target cost per lead is $10. And you’re taking four different ad sets, I would kind of give your CEO budget at least $40, maybe even $80, just to give it scope to spend money.
So you can kind of see it’s got leeway to see what’s working and what’s not working. And obviously, turn assets off if they are no longer working. Okay, so that’s a couple of things that the important things you got to know about it, if you’re winning targeting is not spending money.
And we’ve kind of had this, what you can do is you can force minimum and maximum budgets, and this is at the ad sit level. So say you’re, you know, one particular targeting is doing is doing quite well, you can force it to spend a minimum amount, as well as a maximum amount just so you can ensure it gets all the available a time that it’s needed. Okay,
Pros and Cons of Campaign Budget Optimization(CBO)
So what are some of the pros and cons of with CBO campaigns? The pros are that they are easier to manage, and that they’re easier to scale. So you’re not changing four different ad set budgets, you’re only changing the one campaign budget. But you do need a bigger budget. And I do find in my experience, the performance can be a little bit unpredictable.
Okay. There’s almost like on a per account basis, I find. So, you know, monitor them closely. These are new by Facebook, Facebook are saying that you do need to kind of let them run for about a week, which you know, is a long time when you’re spending a lot of money or you got to answer to clients.
So you know, that can that can be a bit tough to let something run for a week. So the performance can be a little bit unpredictable. So when should you not use CBO campaigns?
So for really short term campaigns, like for less than a week, or if your campaign has only got one target audience in there, okay. So that’s CBO campaigns for you. And yeah, good luck and let me know how you go.