In this article. we’ll learn what Facebook’s Campaign Budget Optimization (CBO) is, how it works and how to best utilize it for your online business.
We all know that there are many different types of Facebook Ads. From image to video to carousel, Facebook provides a lot of different ways for you to advertise your products and services. One common trait across all these ads is that they cost:💰💰💰
We’ve spoken about Why Facebook Ads Are So Expensive (And What You Can Do About It) already, providing you with many tips and tricks on how to get the best bang for your buck on the website.
Today we’ll focus solely on Facebook CBO to see what benefits it can have to your Facebook marketing campaigns.
Join the Optily newsletter!
Stay up-to-date on platform changes, digital marketing tactics, and industry news. We promise we won’t spam!
What is Facebook CBO?
Facebook Campaign Budget Optimization (CBO) is a method of controlling and optimizing advertising budgets in your Facebook campaigns.
Instead of having an individual budget for each ad set, you set a total overall budget on the campaign level. Once you set this then Facebook uses its AI to decide how much to spend on each audience for the best returns.
Below is a diagram from Facebook’s post introducing CBO, which shows the difference of an ad campaign with and without using CBO.
Businesses can also set bid caps and spend limits for each ad set in addition to setting a daily or lifetime campaign budget.
This software allows advertisers to maximize their budget and extract the greatest value from their campaigns. CBO operates in real-time to help lower cost per result and increase return on ad spend (ROAS).
Of course, you know that at Optily we’re big fans of increasing ROAS!
How do you set up Facebook CBO?
Thankfully, Facebook CBO is integrated into the Facebook Ads Manager, making the process of setting up a campaign optimization budget for your business simple.
Follow these easy steps to get set up:
➡️ Navigate to Facebook Ads Manager.
➡️ Click the blue Create New Campaign button.
➡️Set up a Facebook Ad Campaign as usual. If you need a refresher on how to do this check out our blog on Meta (Facebook) Ads Manager Made Simple.
➡️ Scroll down to the bottom of the page and toggle the Campaign Budget Optimization button to on.
➡️ You’ll then be prompted to specify whether your campaign budget has a daily spend limit or if it’s an overall lifetime budget, plus what bid strategy you’d like to employ.
That’s it–it’s that simple!
The Benefits of Facebook CBO
If you’re still thinking about whether or not Facebook CBO is right for your business, let’s take a look at the benefits it could provide you.
There are many benefits to using Facebook CBO, including:
➡️ Using CBO allows the Facebook algorithm the freedom to spend your total budget in an optimal way across all targets and bids.
➡️ Automation can allow your business to achieve better results than a manual allocation of budget, while also saving your time.
➡️ Facebook will provide analytics of real-time estimations relative to your bid, in terms of audience reach.
➡️ It’s very much a one-click solution to a highly optimized advertising solution at your fingertips
Requirements of Facebook CBO
There are also some requirements to use Facebook CBO:
➡️The minimum campaign budget is $1 or equivalent per ad set.
- The campaign budget must also be higher than the sum of minimum spend targets you might have set on the ad set level.
➡️A CBO campaign can contain a maximum of 200 ad sets.
Facebook CBO is a very useful tool to improve your digital ad campaigns on Facebook. Combined with intriguing visuals and captivating copy, Facebook CBO will help your ad campaign to grow.
If you want to see your ROAS really soar, check out Optily – A revolution in digital ad spend management. We can supercharge your eCommerce advertising across the entire online advertising world to achieve ROAS levels that you never thought were possible.
Thanks for reading and I look forward to seeing you next time!🚀