What Is Facebook Campaign Budget Optimisation?

Campaign Budget Optimisation (CBO) was first released by Facebook in November 2017 before being properly rolled out almost exactly a year later. Now, it has been announced that selected accounts will be automatically converted to CBO from September this year.

“Campaign Budget Optimisation is a way of optimising the distribution of a campaign budget across your campaign’s ad sets.”

Facebook

What this means is that the algorithm will work to find the most cost effective way of distributing your budget in real time.

How are Facebook campaigns structured?

There are three key elements:

  • Campaign – This is the top level, where your ads and ad sets live. It’s where you decide what goal your ads are working towards (link clicks, conversions, video views etc).
  • Ad sets – This is where you create the targeting, scheduling, bidding and is the old/traditional way of setting your budget.
  • Ads – Here’s where you get creative. Input your photos, videos and copy.

What does Campaign Budget Optimisation mean?

Image from Adespresso

As we can see from the image above, instead of setting budgets for each individual audience, you set it at campaign level.

This means that if you have, for example, three buyer personas or target markets to hit with a campaign, you would set one budget for the campaign. 

Over time, as Facebook sees which ad sets are generating the best cost per result, it will split the budget accordingly. In theory, this should improve the return on ad spend.

As well as getting more value from campaigns, the platform claims it brings in other benefits, such as:

  • Spend less time managing campaigns
  • Simplified campaign management
  • De-duplicate overlapping audiences
  • Avoid restarting the learning phase (when moving budgets between ad sets)

How to prepare for the Campaign Budget Optimisation switch

From September, accounts will start being converted and existing campaigns – alongside new ones – will be switched over.

The best way to prepare is to start testing CBO as soon as possible. For current campaigns, you can switch them over now and see how they perform compared to your existing advertising.

When evaluating, you need to look at overall results rather than individual ad sets. This is known as The Breakdown Effect – you can read about it here.