Facebook Campaign Budget Optimization: What You Need to Know

Posted at Jun 11, 2019 7:30:00 AM by Taylor De Luca | Share

If you utilize Facebook as part of your digital marketing strategy, you may already be familiar with the platform's Campaign Budget Optimization ads. Campaign Budget Optimization (CBO) automatically distributes your budget to the best performing ad set, not just the top performing ad. The social network rolled out these new ads back in 2018, but many advertisers have ignored the option. However, starting in September 2019, Facebook will make CBO the default setting for many accounts. Therefore, advertisers will no longer be able to control budgets on the ad-set level, as budgets will be set at the campaign level. To help you understand how this will impact your social media marketing, let’s take a closer look at CBO.


Campaign Budget Optimization | CBO | Facebook Ads | THAT Agency of Palm Beach County, Florida

How Campaign Budget Optimization Works

For many advertisers, the CBO default will be a positive change, as it will optimize spend based on the top-performing ads. As you can see in the chart below, with CBO enabled, Facebook is automatically taking the budget and redistributing it to the better-performing ad sets, which is the case in ad set 2. This automated process eliminates the need to manually shift your budgets between ad sets, therefore saving you precious time.


Campaign Budget Optimization | CBO | Facebook Ads | THAT Agency of Palm Beach County, Florida


However, CBO also takes the control away from the advertiser. For example, let’s say you have one ad set that drives traffic to your website, but another ad set provides more conversions. Wouldn’t you be willing to spend a bit more for that conversion? Unfortunately, campaign budget does not allow advertisers to dictate the ad-set spend, so a majority of your budget will go toward the lower-costing web click ad set.

How to Know if CBO is Mandatory For You

Facebook will be alerting all admins of the accounts that will automatically default to this feature. In which case, you can expect to receive a notice similar to this:


Campaign Budget Optimization | CBO | Facebook Ads | THAT Agency of Palm Beach County, Florida

Although Facebook has not specified which types of accounts will have the mandatory migration, let alone advised as to whether the migration is based on budget size, these parameters are expected to be announced between now and September.

Social media marketing is always changing; therefore, your marketing strategy should also be changing. If you don’t have the time or resources to create a successful social media ad campaign, THAT Agency can help … just give us a call at 561.832.6262!


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Tags: Social Media, Marketing Strategy

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