Thread by @iamOlisaeloka

So Facebook is moving fully to CBO (campaign budget optimization) in September.

Now if you’re an advertiser, you must have known about the inevitable & must be prepared.

If you’re wondering, CBO brings a lot and I wanted to talk about the few tweaks that you can make with CBO.

WHAT IS IT?

Facebook CBO is basically moving budgeting from the ad level to the campaign level.

This allows Facebook to automatically allocate budget to high performing adsets.

Now with this new development, I believe automatic placements are the way to go henceforth.

From my data with CBO since it came out for testing, I figured Facebook is moving optimization to consider audience rather than budget first.

CBO will be compulsory for all advertisers from September and this is the more reason to understand CBO.

BUT HOW DOES THIS IMPACT US...

Well, the bidding system has changed to the campaign level. This is because Facebook wants to automate and make everything simpler.

Now this affects advertisers who has seen success with manual bidding on the adset level.

Facebook says that CBO will:

- Obtain more value for campaigns.
- Spend less time managing campaigns.
- Avoid restarting the learning phase.
- Spend across audiences.

Well you have to keep in mind that Facebook wants to make more money, so you have to navigate for success.

A FEW TIPS TO HAVE IN MIND....

- Force Facebook to test your adsets:

Now with CBO, the algorithm will make a very quick decision as to which adsets to spend more money on.

Facebook already has a lot of power, however this gives them more control.

To make the platform test all your adsets fairly.

Under “Budget & Schedule”, you’ll need to set a maximum spend limit per adset.

This is because the algorithm sometimes acts to fast, making irrational decisions about winning adsets.

NOTE: Keep audiences super broad.

- LLA and Custom Audiences:

Since Facebook is taking the audience focus approach for advertising.

Lookalike audiences and custom audiences are now more important than ever.

They have a higher conversion rate and you need to play more here.

- START WITH A HIGHER BUDGET:

Essentially you’re pushing your adsets to a singular campaign budget.

This brings about how much you should budget for each campaign.

Considering a multitude of factors Facebook advices $100 for a campaign and I recommend you leave it at that.

- OPTIMIZE FOR CONVERSION EVENTS ONLY:

Now a lot of advertisers start off with post engagement ads before moving on to website conversions.

With this new CBO, this strategy is just wasting money as far as I’m concerned.

Engagement ads are not that useful anymore.

These are big changes happening on the advertising space.

Go through the curve and have the algorithm at your finger tips.

See you at the top.