A new tool is in the works that could help Facebook advertisers better use their ad spend and optimize campaign results.
Dubbed “Campaign Budget Optimization,” the tool will allow advertisers to set a single, overarching budget across all ad sets, and then prioritize those dollars on the sets with higher performance metrics in real time.
The tool is said to work with all campaign objectives currently offered on the platform.
Although still in testing (and not yet available to most Facebook advertisers), according to a recent Facebook update, it should be rolling out to American advertisers over the coming months, so stay tuned.
How Facebook Campaign Budget Optimization Will Work
Campaign Budget Optimization is designed for advertisers with multiple ad sets per campaign. Rather than set individual budgets for each individual set, the tool allows advertisers to specify one budget across the entire campaign.
Once that budget is set, Facebook takes over from there, distributing the funds to the best-performing, highest-potential ad sets.
Here’s how Facebook itself describes the process:
“We optimize your campaign budget in real time on an opportunity-by-opportunity basis. Our goal is to get you the most results possible, and for the cost of those results to align with your campaign bid strategy (the lowest cost results or results that collectively have an average cost as close to your target cost as possible).”
Now, using Facebook’s Campaign Budget Optimization tool doesn’t mean you’re giving up all control of your ads or campaigns.
You will still have management over budgets, which can be set on a daily basis or over the lifetime of the campaign, and you can add in bid caps and spending limits for each individual ad set.
You also have the option of adding in “desired, non-guaranteed minimums and/or guaranteed maximums” for your daily spend, if you want to get super detailed.
Facebook says it doesn’t recommend using these limits though, as it decreases flexibility and makes it harder for Facebook to optimize your efforts. Stick to capping your bids, when possible.
What Facebook Campaign Budget Optimization Means for You
In a nutshell, Facebook Campaign Budget Optimization means you can better use your limited ad dollars.
The tool will help pinpoint the highest performing ad sets, then dedicate the bulk of your ad spend toward those sets, thereby giving you a higher ROI and more results for your money.
In the end, the overall goals of the tool are to:
- Determine the absolute, most effective use of your finite ad dollars
- Help you lower the cost per result
- Increase your ROI
Campaign Budget Optimization also works in real time, meaning you won’t be putting dollars toward poor-performing ad sets for long.
You also don’t need to keep a close watch on your campaign or worry about how ad dollars are being spent; the tool will optimize live on your behalf, with no delays or waiting around for human input. It’s a better use of your human and financial resources over time.
Should You Use Facebook Budget Optimization?
Facebook’s Campaign Budget Optimization tool will certainly be effective for some advertisers, but it’s definitely not for everyone.
It’s best used if you:
- Have some flexibility in how your budget is spend across ad sets
- Are looking to get the most results by volume and ROI
- Want a simplified campaign that takes little hands-on management or monitoring
Facebook has said the tool isn’t ideal if you have specific spending targets in mind or can’t share budgets between ad sets. Campaign Budget Optimization also precludes you from using accelerated delivery and running scheduled ads, so if either of those are a priority, you will have to forgo using the tool for the time being.
If you do decide to use the tool, set-up is as simple as hitting the budget optimization toggle when setting up your campaign. Then add a daily or lifetime campaign budget, choose a bid strategy and hit go.
Though the tool isn’t available to all advertisers just yet, if and when it does roll out, it could be a game-changer for many advertisers – as long as it delivers as advertised.
It could also open the door to a swath of new advertisers who may have been hesitant to use the platform before, due to limited knowledge or a lack of time to manage and monitor their campaigns.
To learn more about Facebook’s Campaign Budget Optimization tool, email [email protected].