How to Use Facebook’s Campaign Budget Optimization to Your Advantage
March 4th, 2020 by
Who’s ready to spend their Facebook campaign budget more effectively?!
If you waited until the last hour to adopt Facebook’s new mandatory update, Campaign Budget Optimization, you may be slightly panicked. This could disrupt your internal processes and current campaign structure. However, you’ll be thanking Facebook for forcing this change once you adopt it.
What Is Campaign Budget Optimization?
Campaign Budget Optimization (CBO) is Facebook’s latest mandatory update that makes you set your campaign budget at the campaign level, without the option to set ad set level budgets. Ideally, Facebook’s algorithm will optimize your campaign for your chosen “result” by effectively spreading your budget across each ad set.
With CBO, you must accept that not all ad sets will spend the same, and that’s in your campaign’s best interest because the budget will spend on the best-performing ad sets.
Do’s & Don’ts for Setting Campaign Objectives
It’s important to use the correct campaign objective and ad set “Optimization for Ad Delivery” when setting up your campaign. Choose the proper result option that aligns with your client’s goals; this will affect who sees your ads and will help you achieve the desired outcome more effectively.
To get a better understanding of what this means, review the do’s and don’ts below explaining common errors that occur when choosing campaign objectives and optimizations for ad delivery.
Campaign Objective
DO: Choose the conversion objective if you want to see an increase in conversions at a lower cost.
DON’T: Choose a traffic objective to increase traffic to your website in hopes of also increasing conversions at a lower cost.
DO: Choose the brand awareness objective if serving many impressions at the lowest cost meets your client’s goals.
DON’T: Choose a conversion objective if your audience is not brand aware, since you will be paying a premium to reach users who are likely to convert online and not achieve your brand awareness goal effectively.
Optimization for Ad Delivery
DO: Select “Landing Page Views” if it’s important that the Facebook user loaded the landing page.
DON’T: Select “Link Clicks” if you’re looking for high-quality clicks from interested users.
DO: Select “Reach” if you set your campaign objective as reach so that Facebook optimizes to serve ads to the maximum amount of users within your frequency cap.
DON’T: Select “Impressions” if your goal is to make users brand aware by serving ads to users as many times as possible. Your campaign would be better off using the brand awareness objective instead.
Facebook always gives you the option for more control, but that doesn’t mean that there aren’t best practices that should be followed. Facebook’s algorithm will only optimize for the results you select when setting up your campaign.
Maintaining Budget Control With Ad Set Spend Limits
Sometimes you’ll need to maintain some control of spend at the ad set level. For this reason, Facebook allows ad set spend limits to be set as a minimum or maximum daily spend.
- Here are five examples of why you may want to use ad set spend limits:
- If you create a new ad set to test but it won’t spend, you can force a minimum daily spend until Facebook’s algorithm collects enough data about that ad set. This should only be set temporarily for 2-3 weeks.
- If you want to control budget based on targeting, such as locals vs. tourists, you can set daily minimums/maximums to align with your desired budget allocation. However, this should only be a temporary solution until you can separate these into their own campaigns.
- You may want to spend more on promoting a special or limited offer but only for a short period of time (less than 2-3 weeks).
- You may need to promote an urgent message that requires more spend for a short period of time.
- If one ad set is spending all of the budget on low-quality results, you should consider setting a daily maximum.
Disclaimer: Facebook notes, “Use ad set spend limits sparingly, or not at all: The more budget that’s locked into specific ad sets, the less flexibility our delivery system has to optimize your campaign budget.”
While there are valid reasons to control spend for a short period of time, ad set spend limits should not be a permanent solution if you want to maintain a healthy ad account. At the end of the day, marketers want to produce the most high-quality results at the lowest cost for their clients. It’s best to let Facebook’s algorithm spend the campaign’s budget in the most effective way for the results you chose to optimize for.
Take Action Now
As you can see, this mandatory update may require changes in your processes, but Campaign Budget Optimization benefits your Facebook ad account in the long run. If making this transition has been overwhelming, reach out to Search influence for specific recommendations and consulting services. Learn more about how we can also manage your ad account directly with an online advertising package.
Images
