When choosing campaign budget optimization, your budget is spent most efficiently so that you get the best results, and the price for them matches your bidding strategy.
A campaign budget is a budget that you set at the campaign level. You can set a Facebook ad budget for each individual day of the campaign – daily budget, or for the entire duration of the campaign – entire duration budget. Facebook business campaign budget optimization is used for all campaign budgets.
Facebook CBO Strategy – Ad Building Blocks
To optimize the campaign budget you use your budget and bid strategy. For example, minimum cost-per-action (CPA) or maximum return on advertising costs allows automatically and constantly find the best opportunities for your ad groups. After that, the budget is distributed in real-time to obtain these results.
However the most suitable optimization for every Facebook campaign is the use of specially designed studio product photos that were created specially to increse the conversion rate and atract more customers in terms of each budget optimization campaign. Te better the visual ontent of Internet advertisin – the better results the entrepreneur will get. It is estimated that it is through eyes people get about 80 percent of the information. The same pattern works when it comes to advertising content. Professional product photography photos create the visual content that in tandem with proper text can cause nothing but conversion boom.
You can create ad building blocks with different start and end times because when using campaign budget optimization, the schedule of each active building block is taken into account. However, in this case, the budget may not be distributed evenly between ad blocks, as the optimizations go for the campaign as a whole. If you have 2 active ad blocks in your campaign then you can spend 90 percent of your budget on the first group if it allows getting the lowest CPA or maximum payback on advertising costs when compared to another block.
To prevent inefficient spending, you should not pause or resume the display of ad blocks manually. When using CBO Facebook ads, we keep and spend the budget on active ad blocks. Attempting to simulate a manual ad schedule may result in most of the budget being spent on only one ad block.
For example, if your campaign’s budget is allocated for 2 ad groups – one active and one planned to be shown in the future when the second group is paused, the system will focus on fully spending the budget on the active ad group. This helps to no longer focus on the second group. When you resume showing the planned ad group, the campaign budget may already be completely spent.
The Facebook CBO 2020 Ad Hierarchy
The first thing to understand before giving an advertisement is its purpose. On Facebook, this question sounds like “Choose a target” or “Choose an advertising campaign.” The goals can be completely different, for example, attract people to the website, show them promotional videos, increase engagement for any publication, track conversion rate and others. You can find more details about the goals and how to use them in the Facebook advertising account.
If you have already created an advertising campaign, but want to change the goal, you will have to create a new campaign. It is worth saying that at the same time in one advertising campaign you can create many ad groups. Ad groups exist to set more detailed targeting for your ads. They answer to the question “Who will see my ad?” There you can create different ad blocks for different countries, cities, districts. There you can also indicate gender, age, interests, preferences, ad languages of your target audience. You can adjust the interests you need depending on the product that you offer, you can add and exclude some of them. You can also choose exactly where users will see your ad. This can be the right or center column, a news feed, Instagram feed or stories, third-party websites with built-in Facebook widgets, or the Messenger app. After that, you need to choose a budget for your advertising campaign. The minimum budget is $1 per day in the equivalent of currency a customer uses.
What Is Facebook Campaign Budget Optimization?
Budget optimization is another automatic Facebook tool that allows advertisers to set a target result and budget at the campaign level. The system distributes the campaign budget between ad blocks according to their effectiveness.
The team of the American agency Hanapin Marketing tested the optimization on a fairly large budget. A few days after the start of testing, experts gathered useful tips on what to do and what not to do when working with automatic configuration. They shared their experience. Relating ad group targeting Hanapin Marketing experts recommended conducting remarketing to users who haven’t converted and stayed passive, remarketing regular and non-regular customers, two interest-targeted blocks, two blocks with similar audiences. The campaign with budget optimization enables already after two days of work to spend the daily budget and get a very high CPA.
Difference Between Conversion Optimization and Campaign Budget Optimization?
Facebook has built-in optimization to show ads to users who are most likely to convert. This optimization is represented by machine learning technology, and it works at the ad group level.
Budget optimization is different as it determines to which audience and which groups to allocate the most funds, and not to whom to show ads. Major changes in the budget may reset the training phase, but this will not happen with budget optimization.
Thus, in the case of budget optimization, the specialist does not have to distribute funds independently, he only tells Facebook what is his budget, and the system does the rest of the work.
How To Start Running & Preparing For CBO Facebook Ads
Creating Facebook Ads Campaigns With CBO
Campaign budget optimization is a new way to optimize your budget. When CBO is running, a budget is assigned to the ad campaign and then distributed among ad groups. Facebook in real-time analyzes which ads are currently effective and distributeы the budget in their favor. You will not be able to control the budget manually, but you can set limits to avoid budget overruns. In principle, CBO will simplify the work with advertising.
Setting Ad Campaign Bid Strategy
When working with ad groups of different sizes, it’s best to budget proportionally based on the size of your audience. This will help ensure that all ads have the same potential, and subsequently, you’ll see data about which audiences respond best to advertising. Difficulty can arise with user audiences: after the scandal with Cambridge Analytica, it is not possible to track the size of the audiences. To roughly determine the size, run an advertisement for such an audience and look at the conversion rate. The more ad groups your company has, the higher your budget should be. A good way to determine a budget for a company is to calculate how much money is needed for each ad group, and then indicate the total amount for the entire campaign.
Test creatives with CBO. In a day or two, one of the ads shows the best reach and results. This is because the Facebook algorithm determines the best ad and displays it more often than others. Usually the Design, Images, Text, Placement, Landing, Headline are tested.
Set Your Facebook Ad Optimization and Delivery
Facebook is constantly improving the optimization and bidding process to provide you with more transparency and control. When creating an ad, you can choose how to optimize the display of your ad and set a suitable bid. You can also choose what you want to pay for: for impressions or actions related to advertising. Efficiency depends on the bid settings and optimization of advertising.
Facebook CBO Best Practices
Set a Cohesive Strategy That Spans Campaigns
Each bid strategy is designed for a specific type of campaign and advertising. Choosing it, you need to consider the following factors:
- If the actions that users do on the website are important to you and you’re using conversion tracking, select Intelligent bidding.
- If you want to attract visitors to the website, a cost-per-click strategy is right for you.
- If you’re more interested in brand promotion, focus on increasing your impressions. The view-through-CPM strategy allows you to reach a wider audience. In addition, to increase the visibility of advertising, you can use the strategy “Target position on the search page” or “Target win percent.”
- If you want to increase the number of views of your video ads or the number of interactions with them, then a strategy based on a cost-per-view or cost-per-mille strategy will be the best solution for you.
- If you show video ads and need to increase brand or brand awareness, use a cost-per-view strategy.
Select the Right Facebook Ad Objective
The objective of “brand recognition” is a new way that allows advertisers to advertise about their company to people who are more likely to find it interesting. Optimization for brand awareness helps advertisers balance the level of attention to advertising and reach in order to find the right audience and achieve better ad recall. The brand recognition provides an average of 60 percent higher increase in ad recall compared to the engagement for the publication goal based on the results of the first tests.
After the start of your campaign, you will be able to track key metrics, including the estimated increase in ad recall and the approximate number of people who are more likely to remember your ad.
Start with a Proven Ad Campaign Bid Strategy
A bid strategy is an approach in the distribution of your bids that determines the expenditure of your budget for obtaining results in the direction of their volume or minimizing the cost of the result. Depending on the strategy you have chosen, with an automatic bid, the system regulates it in auctions and, accordingly, arranges the display of advertisements in a sequence correlating them with the Data Management Platform.
Facebook, in its guide to bid strategies, mentions that it’s important to control costs, but also focuses on the fact that the more you control them, the more restrictions the advertising platform receives. This may subsequently affect the scope of the results.
Verify That Your Pixel and SDK Event Tracking is Working
Facebook pixel is used for 3 functions:
- to create customized audiences;
- to optimize Facebook ad conversions;
- to track conversions on your website;
Pixel makes it possible to create an audience that takes certain actions or visits specific pages on your website.
Optimization for conversions – The pixel allows you to optimize your ads to get more conversions. For example, Facebook can use Pixel to show ads to those people who are more likely to visit your website and increse the conversion rate.
Conversion Tracking – The pixel allows customers to track the effectiveness of advertising by registering conversion events on their websites. For example, registrations or placing orders that have occurred as a result of advertising. Customers can view this information in reports.
Ensure You Have Enough Data for Conversion Event Optimization
To set up conversion tracking on your website, you’ll need the site where you will place the conversion tracking code. This code is otherwise called a tag. The ability to change the site code, since you will need to add a tracking tag to it.
If this is your first time setting up conversion tracking, you need to add a global tag and an event tag to your website code.
The global tag adds site visitors to the “All Visitors” remarketing lists category (if you have remarketing set up), and also creates cookies in your domain to store information about each visit to the site as a result of a click on the ad. A global tag needs to be added to all pages of the website, however, in each Google Ads account it’s enough to create only one such tag.
An event tag logs activities counted as conversions. Add it to the pages of the website where such actions are performed. Each event tag is associated with a specific conversion action, the global tag is associated with all conversion actions in the Google Ads account.
In order to learn how to use Facebook CBO, customers have to closely familiarize with all mechanisms of its work and effectively consider all budget allocation strategies taking into account the success of each ad.
To Evaluate Results customers can use data obtained from conversion analytics and respectively work on improvement of budget allocation strategies to increase the conversion rate.
In this Facebook CBO guide, we explained how Facebook campaign budget optimization helps to create better ad strategies and turn the attention of the target audience more effectively. That is why every using campaign budget optimization is a measure that should be made by every forward-thinking entrepreneur. Try it now and make your online advertisements even more effective.
