Facebook Campaign Budget Optimization (CBO): What is it, and How does it Work?
With an average of about 1.62 billion daily active users, Facebook presents incredible opportunities for business owners. It’s a great platform to advertise your business because you’re bound to reach your target audience here. Plus! Facebook offers so many different types of ads.
If you’re a business owner, you can run your ad campaign on Facebook to boost your brand awareness and generate leads. Although Facebook Ads are affordable, they still cost money.
So, it’s essential to maximize conversions with little to no loss when you’re spending your advertising budget. To achieve your advertisement campaign’s goals at the lowest cost possible, make sure to maximize budgets.
And what’s the best way to do this?
But first, what is Facebook CBO?
Facebook Campaign Budget Optimization (CBO) is a method of allocating budgets for your advertisement campaigns. Facebook Ads Business Manager offers this feature.
With CBO, an overall budget for advertisement or marketing campaigns is set, and Facebook’s algorithm distributes it across different ad sets. The budget is allocated unevenly based on the advertising campaign goals.
The best-performing ad sets are preferred since they’re most likely to drive results and get conversions at the lowest price. Hence, the algorithm allocates more budget to these ad sets.
How Does Facebook CBO Work?
When you set the budget at the campaign level, you’ll be better able to optimize how your budget is spent in real-time. Thus, Facebook CBO gives you a convenient way to achieve your goals and improve results.
With the help of the CBO Facebook feature, you can ensure that your advertising budget is spent in the best way possible. You’re less likely to face losses as your best-performing ad sets are given more budget. Facebook CBO literally saves your money from being wasted on ads and ad sets that will not generate leads.
This data-driven process is continuous and automated. The Facebook algorithm will learn from your ad campaign goals and distribute more money to the ads you want to run. You won’t have to do anything. However, you’ll have to make changes manually with ABO.
Setting up Facebook CBO
It’s pretty easy to set up your Facebook CBO. Here are the steps you need to follow:
- Firstly, visit Facebook Ads Manager to create a new ad campaign.
- Name your campaign and choose a campaign’s objective from the pop-up menu.
- At the bottom of the page, you’ll find “Budget Optimization.” Toggle it into the ‘on’ position.
- Next, set your daily or lifetime budget.
- Pick a Bid Strategy to select how you want your advertising budget to be spent.
- Click ‘Continue.’
- Finally, create your ad sets and ads. But don’t activate them until your ad campaign is ready.
How is Facebook CBO different from ABO?
Facebook CBO is a feature that has been introduced recently. But before that, business owners used Ad Set Budget Optimization (ABO) to allocate and manage their advertisement budgets.
In the case of ABO, you get the freedom to set an overall budget, and each ad set will receive an equal budget, regardless of the performance. You can set the daily or lifetime budget for each ad set individually. But ABO is not an automated process.
So, with ABO, you’ll have to track performance and make adjustments manually.
You might be wondering whether ABO is better than CBO or not?
That depends on your ad campaign and your goals. ABO and CBO are not comparable. For some advertisers, ABO might be a better option. While for others, CBO may help them to achieve their goals more effectively.
CBO is the best option if you’re not interested in the manual work or want your budgets to be allocated automatically. But if you want more control and flexibility, then ABO is the better option for you.
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