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. (upbeat music) 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 gonna 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 ThruPlay 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 gonna 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 wanna combine warm
audiences and cold audiences. You don’t wanna 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 do you optimize and tune your Facebook ads.

4 Replies to “Campaign Budget Optimization From Facebook: How to Get It to Work for You”

  1. Not to sound like "conspiracy theory guy", but isn't there an inherent danger in having the platform that stands to benefit from larger ad spends to be placed in charge (by default) of how are advertisers budgets are allocated? I understand that it takes some burden off newbie advertisers, but I would prefer to manually set those variables

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