How to Use Facebook Campaign Budget Optimization

facebook campaign budget optimisation

Have you ever been setting up a Facebook ad and wondered if you should use campaign budget optimization?

Previously, budgets for Facebook campaigns were always set at the ad set level. But a while back Facebook introduced a feature that they call campaign budget optimization. This is where budgets are set at the campaign level.

Tip: Facebook campaigns are always divided into three levels: campaign, ad set, and ad. Here’s an article on setting up Facebook ads the right way that goes into correctly setting up the Facebook ad levels in more detail.

Setting up budgets at the campaign level can work very well in certain situations. In our agency, we use a campaign level budget for many of our clients.

In this guide, I’ll go through how Facebook campaign budget optimization works as well as WHY you might want to use this type of budget.

Facebook Campaign Budget Optimization Vs. Ad Set Budgets

I’ve set up an example campaign to walk you through a bit of this. You’ll see in all the campaigns in my ads manager the budget appears to be zero.

No campaign level budget on these Facebook campaigns.

That’s because I don’t have any of these set up for campaign budget optimization (CBO) right now.

The Old Way: Ad Set Level Budgets in Facebook

However, if you click into the campaign at the ad set level you WILL see a budget there.

Budget at Facebook ad level.

There is a £20 per day budget in each ad set. What that means is that I’ll be spending £20 per day for each ad set in this campaign – for a total of £40 per day.

Typically the way this is set up is that you have one set of targeting per ad set and you are trying to see which audience works best for this particular offer.

The New Way: Campaign Level Optimization in Facebook

When you optimize for the campaign level, what you are doing is telling Facebook to use their algorithm to optimize between the ad sets.

For example, if ad set 2 is really outperforming ad set 1 and delivering conversions for half the cost of ad set 1, then Facebook will automatically start allocating more and more budget to ad set 2.

It does this completely on autopilot when you are using campaign budget optimization. This will often bring down your overall cost per acquisition and improve the overall performance of your campaign.

Campaign budget optimization is useful if:

  1. You have multiple targeting options that you want to sort through to see which one performs the best.
  2. You have the budget to keep your entire campaign spend up and running while Facebook figures it out.
  3. You don’t want to be in your ad account all the time, making manual adjustments.

We use it a lot in both our own campaigns and in clients’ campaigns.

Here’s a chart that shows you the difference between ad set budgets and campaign budget optimization.

Ad Set BudgetCampaign Budget Optimization
Manual Ad Set MonitoringFacebook Monitors and Allocates
Budget to Better Performing Ad Set
Reduce Spend When Turning
Off Ad Sets
Spend Stays the Same As
Facebook Moves Budget Between Ad Sets
Set at Ad Set LevelSet at Campaign Level

Setting Up Campaign Budget Optimization

You can set up a campaign for campaign budget optimization from the beginning or you can change a campaign from ad set budgets to campaign budget optimization.

To select CBO, click into the campaign level and then click on edit.

Setting up campaign budget optimization in Facebook

Pro Tip: If you switch from ad set level to campaign level optimization, it will restart the “learning phase” for your Facebook Campaign. This means that you need to give your campaign a new 3 to 4 days to optimize.

Once you are in the campaign level, you click the switch for budget optimization to “on.”

Turn campaign budget optimization on.

If you currently have ad set budgets turned on, then the campaign budget optimization will automatically total those amounts as your budget for the campaign.

If you are starting a new campaign you will need to pick the budget.

Then click the green publish button and you have set up campaign budget otpimization.

Usually, on bid strategy you will select lowest cost. But you can also select lowest cost with a bid cap. A bid cap is simply the maximum you are willing to spend on a specific action. You can see more on Facebook bid caps here.

What I recommend for most people is that they simply select lowest cost. This works the best for most businesses.

Get More Training! I’ve put together a webinar that goes over my 3 Killer Facebook Ad Strategies. You’ll learn:

1. The 3 Facebook ad strategies that I’ve used to repeatedly generate more than a million dollars in revenue.

2. How to customize Your Facebook Ad approach for YOUR specific products and services.

3. How Facebook & Instagram have changed (and why old approaches DON’T work anymore).

Click here to register for the next webinar – It’s FREE.

Which Type of Facebook Ad Budget Should You Choose?

I get asked this question a lot. And it really depends on a couple of factors.

Are you actively managing your ad account daily? If you are, then ad set budgets can work well.

Do you have a lot of targets? If you have 6 or 8 or 10 targeting options that you are testing out, then campaign budget optimization may be a better bet. It allows Facebook to quickly sort through the options in order to get you the best results.

Campaign budget optimization is the option we use 90%+ of the time.

CBO Training Video

In this video I go over what campaign budget optimization is, how to use it, and when you should use it.

The Bottom Line on Facebook Campaign Budget Optimization

There are very few downsides to trying out Facebook CBO. If you have multiple ad sets in a campaign because you are using different targeting options, then you might want to try letting Facebook sort it out by turning on the campaign budget optimization feature.

I usually recommend that folks give it a try for a week or so and see if they like it better. For many people it gives good results.

About The Author

Ben Heath

Ben Heath is a Facebook advertising expert, writer and the Founder of Lead Guru. Alongside creating content for our online community, he works closely with our clients to develop and implement Facebook advertising strategies that deliver industry leading ROIs.

2 Comments

  • Avatar

    Mihail

    Reply Reply May 16, 2020

    Hey man I’ve found your extremely usefull blog content while conducting my research on – how to scale a CBO campaigns and I wonder if you have any guidelines for scaling besides the standard scaling with increasing the budget with 25%, 50% and so on. For example should I duplicate the succesfull ad sets and if I duplicate should it be into a new campaign or in the already existing one.

    • Avatar

      Ben Heath

      Reply Reply May 18, 2020

      Hi Mihail, thanks for the kind words and that’s a great question. The answer is no. The best way to scale budgets in to do so in relatively small increments every 5-7 days. If you duplicate your ad sets first, they have to start again with the learning phase and that negatively impacts your results.

Leave A Response

* Denotes Required Field