Starting in September, all ad campaigns on Facebook will start running with Campaign Budget Optimization (CBO). This upcoming change means that advertisers will only be able to set budgets on the campaign level, not on the level of individual ads. Is this change a way for Facebook to take control away from advertisers, or an opportunity for advertisers to benefit from Facebook’s advertising algorithms?
Change is Coming.
Currently, CBO is available as an option on Facebook advertising campaigns, but it is not automatically turned on. Advertisers who choose to turn the option on are prompted to set a lifetime or daily budget for the entire advertising campaign. As a result, Facebook decides how to optimally distribute the budget between the various ads in the campaign.
Starting in September 2019, CBO will no longer be optional for people who advertise on Facebook. Advertisers will be forced to give up their ability to micromanage how their budget gets divided between their ads. While this change might not seem positive, it could be beneficial to advertisers in the long run.
How Does CBO Work?
CBO uses data about how many ads are performing to change how advertising budgets are distributed between them dynamically. For example, let’s imagine an advertising campaign that has three ad sets. Without CBO, the advertiser might choose to spread one-third of the budget to each ad. When CBO is switched on, Facebook’s algorithms track the performance of advertisements and distribute a more significant percentage of the overall advertising budget to the ad set that has the best performance.
The result of this dynamic budget allocation is to increase the total number of conversions that an advertising campaign can generate. In time, this improvement in performance and return on investment should encourage advertisers to come around to the CBO model of budget management.
Is It Possible to Avoid CBO?
If you hate losing the ability to control how much of your budget goes toward each ad set, there is a way around CBO. You can create a separate campaign for every ad set, which means you can have control over exactly how much money you spend on each one. By doing this, this will allow you the opportunity to control your budget allocation in a similar way to the current system.
Should Advertisers Embrace Facebook CBO?
Not all advertisers are ready to accept a change to their advertising campaigns. However, it is a good idea to be open to the possibility of giving up control to Facebook’s algorithms. Facebook is extremely good at determining how much better some ad sets perform compared to others. Therefore it can improve your return on investment to embrace the shift to CBO.
Not sure how to adapt to CBO? Schedule your complimentary consultation today and find out what this means for your social media strategy. We can audit your social pages and help you advertise on Facebook with ease.