Since 2007, Facebook ads have become an essential advertising tool for businesses to grow brand awareness, drive website traffic, and more. While many advertisers have gotten comfortable with Facebook’s Ads Manager, the social media giant announced that a big change is on the horizon.
Advertisers have always had the freedom to set budgets for each ad set within a campaign. Next month, all new and existing campaigns will transition to the Campaign Budget Optimization Migration, meaning advertisers will no longer have control over the budget at the ad set level.
What is Campaign Budget Optimization?
The CBO Migration, going into effect September 2019, will optimize budgets at the campaign level and will allocate the budget to the best performing ad sets. Advertisers will be able to set minimum and maximum spend limits for their ad sets, but will have limited control beyond that. This system will automatically distribute the budget to the top-performing ads in each campaign. While CBO has always been available to users, most advertisers are unfamiliar with the feature, which will now be enforced at all times.
The goal of the CBO Migration is to deliver more cost-efficient results. Another reason for this mandatory change is to simplify optimization for advertisers. Since most advertisers don’t currently utilize this feature, it will spark a huge change in the process and planning of Facebook ads. It will also require advertisers to trust that Facebook will deliver profitable results, while having much more control over budget allocations.
Below is a diagram that showcases how CBO may affect, or even improve, your campaigns moving forward:
The Benefits of CBO
Many advertisers may feel apprehensive about giving Facebook more control, however, there are a variety of benefits of CBO. This system will save you time in optimizing your campaigns. Rather than spending time manually moving your budget to the best-performing ads, Facebook will automatically do it for you! In addition, CBO has been tested by major media outlets and has been proven to be more cost-efficient. According to Facebook, Buzzfeed has tested CBO for its content ads and achieved greater cost efficiencies and easier budget management. The ads also performed better, with more video ad views and clicks.
Take advantage of the time remaining to experiment and become more familiar with the CBO feature before it becomes enforced. Switch the feature on for your campaign and evaluate its performance while considering the factors that can be improved moving forward. Since Facebook’s features are always changing, remember that adaptability is key when working with this powerful social platform.
To learn more about social media ads or to start advertising on Facebook, contact us for more information!