What Is Campaign Budget Optimisation?
Back in November 2017, Facebook introduced the campaign budget optimisation feature as a simple & efficient way of maximising results through Facebook Ads.
The feature allows Facebook advertisers to set budgets at campaign level as opposed to ad set level. This means that the overall ad spend budget is distributed to the highest performing ad sets using Facebook’s algorithm. Ok so now in English… Facebook wants us to trust them to optimise campaigns based on what is and isn’t working. Thanks, FB!
In February 2020, the campaign budget optimisation feature will become the default option for all Facebook advertising. The million-dollar question is what does this all mean for advertisers?
To understand what this change means, let us break down the differences between standard budgeting and campaign budget optimisation. Consider the following example:
Example 1: You are running a campaign with a budget of $600. You decide to run three different ad sets with one ad in each. As you are unsure of which ad will perform best, you decide to budget $200 per ad set. At the end of your campaign, you achieve results of 60 enquiries.
Example 2: You decide to run the same campaign with the same $600 budget, however this time you use the campaign budget optimisation. Facebook can allocate more budget to the ad sets that are performing better. At the end of the campaign, you achieve results of 68 enquiries due to the ads feeding out to the audience and creative responding best.
As you can see, optimising the campaign budget led to eight more conversions than setting the budget at the ad set level. You can also see that the ad set had more budget allocated to it due to its high performance.
Why Are They Changing It?
Facebook’s decision to make Campaign Budget Optimisation the default budgeting option means that advertisers achieve better results at lower costs.
These changes appear to be a great way to boost results while requiring less management of your ads. However, it removes some control from advertisers and requires faith in Facebook’s algorithm.
What Does This Mean For Advertisers?
We can only comment on what we’ve seen to date with CBO. The two main things worth noting at this stage (August 2019) are as follows:
AUDIENCE: Currently, with the budget set at ad set level, we’re able to target different audiences, countries, languages and age groups. For national clients wanting to run ads across Australia, a new campaign will need to be set up for each audience.
TESTING: CBO makes testing much easier, but this depends on how the ads are set up AND what is being tested.
As always, it’s best to check so if you have any questions, please let us know!
[contact-form-7 id=”1158″ title=”Contact Form”]