Budget optimization works in real time to determine the most efficient use of the company's advertising dollars in order to reduce the cost of the result and increase the profitability of advertising expenses..
Are you wondering how much you should spend on advertising on Facebook? One of the biggest questions I get is how to set a budget for advertising on Facebook.
Campaign budget optimization will allow advertisers to set a single comprehensive budget for all ad sets, and then prioritize in dollars for sets with higher real-time performance. This means that we automatically and continuously find the best active opportunities for results across your ad sets and distribute your campaign budget in real time to get these results.
On Facebook, CBO could still control its budget at the campaign level, which was turned off by default. Once activated, you can control the entire daily or lifetime budget of the campaign .
Campaign Budget Optimization
Campaign budget optimization is one of these new optimization methods. Before CBO, ad-level optimization was performed, which meant that you could place your ads in one ad unit and allow the Facebook algorithm to allow ads to compete. so if you want to test this feature, simply select the Budget Optimization radio button and enter your campaign budget.
Budget optimization works in real time to determine the most effective use of the company's advertising dollars in order to reduce the cost of the result and increase the profitability of advertising costs .
Budget optimization allows Facebook to spread its budget across ad sets to get the most effective advertising campaign. Here is a link to Facebook comparison below.
As we see in the diagram above, without optimizing the budget, we give the same $ 10 to all advertisements instead of allocating a larger budget to an ad set that suits us well.
When you enter the “Budget and Timetable” section in the ad set, the first parameter is the daily budget or the budget for the entire service life. The daily budget aims to reach the given values every day, while the lifelong budget allows to slightly increase the unevenness of expenses on schedule.
Any of them is suitable, but you can’t change your selection after launching a campaign. I usually choose a daily budget.
One of the advantages of choosing Lifetime Budget is that you can show your ads at certain hours of the day (for any time zone). Thus, if you know that your audience is only online in the evening, you can maximize your budget during this time.
This can be a good feature if you are absolutely sure that your audience is only watching at this time, but there is often a range. You can always use breakdown reports to find out what time people are converting or clicking on your ads.
I recommend using a daily budget of at least 10 euros per day. If you want, you can also set an end date for your campaign so that you don’t forget it and accidentally spend too much money. As for the other parameters that you see below in the screenshot (Optimization for displaying ads, etc.), Just leave them as they are.
How to set Campaign Budget Optimization
- At the campaign level, turn on the budget optimization toggle
- Choose if you want your campaign budget to be Daily or Lifetime
- Set a budget
- Choose a campaign bid strategy
For stable delivery, each ad requires a minimum of 50 conversions. There may also be random changes in the results, for example, weekends on weekdays.
The advertisers with whom we spoke, who see the best results with the CBO, give it at least 4-7 days before scaling.
Facebook Advertising Goals
To get started with advertising on Facebook, you first need to answer why you want to advertise on Facebook. There are three main Facebook advertising goals to consider:
Brand awareness: Do you want to increase branding for your business? This is especially important for new dealers or authorized dealers who are just new to Facebook.
Events and special offers: do you have a new car event? Or maybe some special product offers? Facebook works well if you have a time limit and you need to quickly show ads.
Product placement: do you have a new model you want to announce? Or do you want to remind your audience about the model they have already seen? You can place your car in front of the relevant audience using advanced Facebook targeting settings .
Facebook budget optimization is best used if you:
- Have some flexibility in how your budget is spent on ad sets.
- Want to get maximum results in terms of volume and ROI
- Want a simplified campaign that requires little practical management or monitoring
- Facebook said that this tool is not perfect if you mean specific spending goals or cannot split budgets between ad sets.
Setting up Facebook advertising budget at the testing stage is not too complicated. You will find which ads work best, and you can increase them and continue running.
Hope this helped you get started with advertising on Facebook! If you want more information about advertising on Facebook, click here!