CBO( Campaign Budget Optimization) Facebook Ads You Should Know
In September 2019, Facebook will launch a new advertising feature called Campaign Budget Optimization, What do you know about CBO? What are we going to do with CBO? How does it relate to Facebook ads cost?
What are CBO Facebook ads?
Advertising budget optimization (CBO): used to optimize the budget of advertising series and allocate it among different advertising groups.
As we all know, Facebook has three steps for advertising: Campaign, Ads Set, and Ads.
Facebook advertising can become today’s flagship platform for social advertising, relying on the flexibility of its advertising budget and the advantages it most appeals to advertisers. Before CBO, advertisers could set budget targets over a period of time, even down to the exact amount they would set for each AD campaign each day.
After the implementation of CBO, CBO puts the total budget at the level of the campaign, and the Facebook system constantly analyzes the opportunities of the lowest cost at every moment and helps you obtain the most conversion at the lowest price. When the event with the lowest cost of one advertising group is exhausted, the system will automatically allocate the budget to another advertising group with lower cost events. Automatically find the lowest cost opportunities among different AD groups. Help you get the best results from your overall campaign.
What are the benefits of CBO Facebook ads?
First: implementing CBO means that Facebook will continuously automatically search for the best opportunities to achieve results among AD groups and allocate AD budgets in real-time. It’s like automatically finding the best AD in a group and giving it more opportunities to show up. Save time and get better results.
Second, CBO can help reduce the challenge of overlapping audiences, resulting in unspent budgets. This is a constant problem. CBO can alleviate this problem by placing budgets in AD campaigns, where one AD group has a highly overlapping audience and allocating the budget to another. Advertising teams should seek the lowest CPA opportunities within their respective advertising teams.
Third, CBO does not trigger the machine to relearn when each AD group allocates its budget. But every time you manually move your budget from one AD group to another, the machine learning phase starts all over again, taking longer to get the best results.
Fourth, the budget efficiently for all audiences.
What do we think of CBO?
Starting in September, all advertising accounts will be permanently switched to CBO. This means that the cbo will have an impact on all facebook sponsors, but will have to test how long it takes them to adapt and how many changes they need to make.
However, with CBO, the allocation of the advertising budget will become more intelligent, reducing the input of human resources and data analysis, which will be automatically completed by Facebook. The most important thing is to save the waste of advertising expenditure of advertisers and final customers. Therefore, we need to do the CBO test as soon as possible to get the best benefit.
I believe this is good progress. The implementation of CBO means great progress of Facebook ads and a great historical change of the whole advertising marketing.
In summary, the biggest changes CBO have made to Facebook ads are:
First, the budget will be set at the advertising level
Second, Facebook’s machine learning will take over the heavy lifting
CBO makes the allocation of advertising budgets more intelligent. In order to make better use of CBO, we can also use Facebook ads cost analysis tools to obtain average CPC, CPM, CTR and CPA. These data can provide us with a benchmark for CBO evaluation. The following is the average CPC, CPM and CPA data I got through ADCostly, which is very useful.
What tests do we need to do before CBO starts?
Take your winning ads that have been successful and break them into the AD series based on audience size, positioning, and channel stages.
Testing step 1: AB testing with a mature product and a defined audience. Reusing previously successful advertising elements and re-building the CBO test. Here, use bigspy to find the most successful Facebook ads. See how to find a successful facebook AD.
Test the second step: increase the budget, set a higher budget we can know better advertising effect, test results are more accurate.
Step 3: audience group: the audience group should not be too concentrated, the larger the better, too concentrated audience group, the test results are meaningless.
Step 4: test duration: each day the AD should run for the same amount of time as before, no need to try again.
Cbo testing should take at least a week to see a valid and accurate result. Keep in mind that after each adjustment, you should have machine learning adjust again.
That’s all about CBO, but remember: content, audience, and end product are the three pillars of any advertising campaign.
The role of CBO is to help us better control consumption, so as to prevent us from spending money on advertising.
For the best content, audiences, and products, check out bigspy!
BigSpy is a free ads spy tool that allows you to spy ads on Facebook, Twitter, and other social media platforms. BigSpy makes advertising more transparent.
