In the fall of 2017, Facebook introduced its campaign budget optimization (CBO) feature. Currently, this feature can be turned on or off by advertisers. With CBO, advertisers can set one overall budget without dividing up the budget between ad sets. The best performing ad sets will be distributed more of the budget, and this feature is available for all campaign objectives.
Starting in September of 2019, Facebook will be requiring all campaigns, both existing and new, to use CBO. While this change most likely will have a minor impact on businesses, it does force the marketer to put their faith in Facebook’s ability to optimize for the best results.
Frequently Asked Questions
Will CBO be compatible with all features?
- A bid cap is an exact maximum amount that you are telling Facebook to spend in an auction. The system will not spend more than this amount. A Bid Cap is available with CBO for only 50% of Business Manager Users as of March and it will become available for all Business Manager Users in May.
- Minimum ROAS (Return on Ad Spend) is the total revenue a company receives for every ad dollar spent. This is a new metric being introduced to Business Manager. This is currently available to 50% of Business Manager Users with CBO and it should be available to 100% of users by end of March.
- When using the lowest cost bidding strategy, all ad sets must optimize for the same goal. Mixed optimization goals are allowed for bid caps and target cost bidding strategies.
- After a campaign goes live with lowest cost bidding, it’s not possible to change the optimization goal for the ad sets in the campaign.
- Any campaign using CBO can have a maximum of 70 ad sets.
How will Coegi prepare?
- If you are unsure of the value of CBO, explore this feature by creating a split test for your next campaign.
- If you are currently running long term campaigns with specific budgets at the ad-set level, you must consider what this change will mean for those campaigns.
- It would be a good idea to start making use of CBO with campaigns so you have time to play with it and eliminate unwanted surprises in the future.