CBO stands for Campaign Budget Optimization.
CBO was expected to be launched by September 2019; however, Facebook has delayed until February 2020.
Any more delays are unlikely.
Some accounts are benefitting from the CBO campaigns, but the option of creating regular adset level budget campaigns is still available on old ad accounts.
Here, we will discuss some of the essential tips that you would need to know, once Facebook officially launches CBO Campaigns in February 2020.
The option of setting minimum and maximum Ad spend limit per adset
A CBO campaign with multiple adsets allows for each adset having its own budget.
A CBO campaign does not distribute the budget evenly among all the adsets.
Facebook is in control over the budget each adset gets depending on its performance.
Better performance of adset guarantees more budget allocation causing better results.
Though, it does mean complete accuracy.
Sometimes, the budget allocated to an adset that is not performing well.
To counter this, Facebook provides the option of setting a minimum and maximum budget (or both).
This forces Facebook to spend a particular amount on an adset.
You can choose to assign a minimum budget only and give some levy to Facebook to allocate the rest of the amount.
For this, I have come up with a simple calculation:
(Total CBO budget/total number of adsets)/2
Assuming that you $100 for the CBO and a total of 10 adsets, the calculations will look something like this.
($100/10)/2= 10/2= $5
It means that you need to set a $5 minimum budget for each adset while leaving the maximum quantity blank.
Try the big audience
Big audiences are rarely successful.
However, with CBO, big audiences are doing better.
I preferred an audience size close to 1.5 million for testing.
My perfect audience is around 1,000,000.
However, my colleagues were benefiting from a broader audience, and I decided to give it a go.
My results are tremendous so far.
So, if you are someone like me who is wary of big audiences (I am talking 6 to 10 million at a time) then, CBO is where you can try it.
Not well optimized as of yet
A significant drawback of CBO is that it is not well optimized as of yet.
Hence, one of the major emotions attached to this development is an annoyance.
CBO is going to be permanent on Facebook in February of 2020.
The chances of CBO getting postponed or canceled are slight.
So, it is best to adapt to the changes.
I am preparing for the changes by running some campaigns on it.
However, there is still some work that Facebook needs to do to make it more stable.
There are instances where CBO decides to prioritize a campaign that is not doing so well.
It needs more work, but it is best to start work right away.
Stick to the basics.
So, when it becomes permanent, you are prepared.
A new method of scaling Facebook campaigns
The most efficient way of scaling methods is duplicating a good adset.
In this method, you can duplicate with a slight change to the targeting, daily budget, or other aspects of the adset.
With CBO, duplicating is not necessary.
In CBO, we set a budget for the whole campaign, and each adset will get its budget from the entire budget.
Here, if you duplicate the adset, you will not get the benefits of budget optimization.
Instead, you will have to duplicate the entire campaign while keeping only the good adsets running.
Or, you can create a new CBO campaign with good adsets duplicated while giving a boost to the budget.
It means that the old methods of scaling are out, and new ones are here to stay.
Adjustment of CBO campaigns to make them work almost like regular campaigns
If you like to be in control of the CBO campaign, then you can test the campaigns safely.
Perfect for people who are either afraid of the wrong allocation or had a bad experience before with CBO.
- Set minimum and maximum ad spend limit per adset:
When you set the minimum and maximum ad spend limit, you control the range.
You will get a warning but ignore it.
At the worst, you would not get any results, but you won’t be spending an outrageous amount for the zero results.
- One adset in a CBO campaign:
This is the best way available.
Only create one adset for one CBO campaign, and this adset will get the entire budget.
However, it means that you will have to create one CBO campaign for each adset.
It will result in zero chances of budget allocation to the bad adsets.
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The two options with CBO’s unsatisfactory update are to abandon or adapt.
We still have to figure it out, and by the time it releases, hopefully, it will have better optimization.
I hope that you find this useful.
Good luck and a Happy New Year!