July 31, 2020
What Bid Strategy is Best for My Facebook Campaigns?
Facebook released the Campaign Budget Optimization (CBO) in Q4 of 2018, a tool which allows Facebook to automatically allocate budgets across ad sets within a campaign. Previously, you would set budgets manually across their ad sets based on performance.This optimization is perhaps the longest-awaited change to come to Facebook over the last 2 years in terms of campaign structure.
Now, through CBO, Facebook is confident it can use algorithms to allocate spend much more efficiently than even the most diligent marketers. Facebook planned to do a mandatory rollout on September 1st, but is now pushing to early 2020 with a select number of accounts opted in this month.
Losing control of some existing levers in lieu of relying on automation can be scary. If you’re feeling anxious about the change, that’s okay. Keep reading to learn more about CBO and how it can actually help improve account performance while making your life a lot easier.
In June, we transitioned an ecommerce account from using traditional budget allocations to utilizing CBO across every campaign for one full month. Month over month, we saw a drastic improvement in both CPA and ROAS
With CBO, we were able to nearly cut our CPA in half while doubling ROAS. We’ve run this same test in other accounts and have also seen mostly positive results of varying levels – but the impact can differ based on the account. Run some tests now to figure out what’s the optimal CBO structure for you.
Not only are CBO campaigns outperforming their manual counterparts, but they’re also saving marketers a lot of time previously spent adjusting ad set budgets. Adjusting budgets is a timely task, especially if you’re working within a large account structure. Now that time can be focused on running audience tests, creative optimizations, or other key areas to improve performance. Simply put, less time spent on budgeting upkeep allows all of us at Metric Theory to do more impactful strategic work for our clients for bigger, longer-term results.
For many, dealing with budgets are when some of the most nerve-racking mistakes are made. It’s every marketer’s worst nightmare to misinput a budget resulting in over or underspend. By reducing the amount of manual budgets, the room for error decreases.
Rather than wait for Facebook’s mandatory move to CBO, start making the transition over to CBO now. Plan out how you want to restructure your account, and what makes the most sense to drive better results for your business. Let us know if you need any help along the way.