Facebook Campaign Budget Optimization

Facebook is a huge social media platform. It has the highest online presence in the world, today. With its growing popularity, several brands and marketers have started gaining opportunities to reach out to new target audience.

Keeping this in mind, Digital Marketing experts create Face-book Ads like Lead Ads, Video Ads, Carousel Ads, Boost Ads, etc to measure how much interest they can generate and if they can promote client websites  by sending potential customers to different landing pages or blog posts in a cost-effective way.

But sometimes it becomes difficult for marketers to understand which FB Ad will work the best to bring success to their business.

Therefore, Facebook Campaign Budget Optimisation (CBO) has become quite a divisive topic for several Digital Marketing Companies in the recent few years.

And the rationale behind CBO is absolutely clear – to promise improved ad performance and deliver killer results at lowest cost and with very little effort.

Today Campaign Budget Optimisation may be optional, where we can test and toggle our campaign budget. But, as per Facebook  this  is, “An easier way to maximize campaign results”.

So, how does Campaign Budget Optimization work?  

Facebook defines Campaign Budget Optimization very clearly in their knowledge base.

“Campaign budget optimization is a way of optimizing the distribution of a campaign budget across your campaign’s ad sets. This means Facebook automatically and continuously finds the best available opportunities for results across your ad sets and distributes your campaign budget in real time to get those results.”

This explains that, instead of setting our budget on the adset level and checking the amount spent on each segment, we can tell Facebook the amount we want to spend for an entire campaign and allow it to do the rest.

Here’s a visual difference in reference to Facebook’s comparison :

The CBO Background

Brands and marketers, these days carve a specific amount against their ad sets – mostly based on their historical performance, audience size or estimated scalability. However, where budgets live at both the campaign and ad set level. The campaign level determines the overall amount or spent limit. And the ad set levels split the budget between the target audiences. And once the budget is set, the campaign starts optimizing between the ad sets.

What’s Changing the Marketers?

The CBO Tool is designed in a way that it segregates the target audience and automatically shifts budget to the top-performing ad sets. Performance of the ad sets depends mostly upon the objective of the campaign and Facebooks’s method of optimization. After which Facebook’s machine learning will decide which ad set is performing most efficiently.

To make it simpler, this update will help marketers to continuously distribute the budget as per the audience and  to keep checking real-time top performing ad sets, determining the best daily optimizations.

What is the Impact of the Performance?

‘The Breakdown Effect” is a recent article, which explains, why in spite of being ‘efficient” will this functionality, it could not perform well and became more expensive during the early days of the campaign, when compared to the Instagram Stories.

This explains why the ad campaign should be maximized to drive more results, at more efficient cost.  And therefore, with this functionality of Facebook, the results should be viewed at the overall campaign level, understanding performance between the ad sets. In this case, Facebook, will avoid expensive outcomes, until lower cost is achieved.