Facebook CBO and its Benefits
CBO, the Campaign Budget Optimization isn’t just a practice, indeed it’s an excellent advertising feature of Facebook by which you can set your budget effectively. Using this impressive feature, you can set a daily budget for your entire campaign and need not set it for each ad set.
CBO stands for campaign budget optimization. It is an algorithm-based method to determine the best strategy and for the distribution and setting the budget for an advertisement campaign on Facebook.
What Is Facebook CBO And How Does It Work?
CBO is a part of the change in Facebook’s set of rules. It allows those advertising their campaign to prescribe a budget, daily or for a lifetime. Facebook will control the distribution of the ad budget, which was previously controlled by the advertisers.
Through CBO, Facebook takes care of how your advertisements perform. After it has learned that, it shifts the budget onto the ad set with the most ROAS simultaneously. In the case that the lowest cost results run out for a set of ads, the system of CBO itself dedicates the ad budget to the ad set. This ad set is one that previously had the second-lowest-cost result.
Benefits of Facebook CBO:
Advertisers on Facebook will benefit from incorporating CBO in their ad campaigns in the following ways:
- Efficient distribution of budget
Facebook gives its word that the CBO system they have developed will enable efficient distribution of the ad budget. According to its claims, the algorithm will distribute the ad budget across the ad sets, which get conversions for the best price. Hence, it outperforms humans in terms of calculations for advertisement campaigns and budgets.
- Helps Focus on Advertising Areas Effectively
With CBO, Facebook intends to decrease and assist its advertising users in dealing with increasing customer load, which prevents them from focusing on advertising areas, which matter significantly more.
- Eradicates overlapping audiences
With CBO, Facebook intends to eradicate the issue of overlapping audiences. It will do this by researching the advertisement sets which attract the same audience. Hence, it will decrease the chances of similar audiences coming across the same ads from varying ad sets.
CBO Or Ad Set Budget: Which One Is the Better CBO Setup?
- Significant control with Ad Set level budget
In terms of putting the advertisement, offer, or the targeted audience to the test, the recommended choice to opt for is Ad Set level budget. The reason for its recommendation is that it is ideal for Facebook advertisers who are new to the platform. It enables them to possess more significant control over the advertisement spent. It also slows down the scaling of your brand.
- Make long-lasting ad campaigns with CBO.
However, if the discussion graduates towards scaling, CBO is the route to take when the brand gains a more substantial audience with a reserved budget. CBO is also not very complex at all. It means that Facebook can deal with the necessary things themselves. If Facebook keeps doing it, this will make your advertisement campaigns long-lasting.
Guide On Setting Spending Limits With Facebook CBO:
There are specific tips to remember that will help you, as an advertiser, be able to maintain your budget if you have individual spending requirements.
Choose your spending limits.
You can use the principle of setting maximum and minimum spending limits for each set of ads. Facebook recommends using ROAS controls; however, advertisers on the app are habitual of experimenting with spending limits. In this case, the advertisers have the leverage of being able to choose the spending limits on every set of ads they publish by opting for CBO.