Facebook launched Campaign Budget Optimization in 2018. It allows advertisers to ensure that they are spending their budgets in the most efficient way possible. Essentially, this feature gives Facebook the ability to more evenly distribute spending across ad sets. This year, Facebook announced this feature will be the new default in September 2019. Here’s how this will impact your Facebook advertising (if you’re not already using Campaign Budget Optimization).
According to Facebook, “distributing more of a budget to the highest performing ad sets allows advertisers to maximize the total value of their campaign. Budget optimization works in real time to determine the most effective use of a business’ ad dollars to help lower cost per result and increase return on ad spend.” What does it all mean? Simply, ad sets that meet their goals more regularly will receive more funds, improving the performance of your account.
– from Facebook’s Business Page
Whether you’re a veteran Facebook marketer or a total newbie, embracing automation is the new norm. Making Facebook do the work to ensure your budget is being optimized is absolutely a good thing, because it means you don’t have to spend as much time monitoring budgets and performance just to get a return on your spend.
Having budgets set at the campaign level will also help to shorten the timeline for learning about which audiences or assets drive results, which means that you can get to testing and increasing your returns even more quickly.
Most digital advertisers don’t want to just hand over control of a platform, even if automation typically results in stronger long-term results. Having budgets set at the campaign level doesn’t necessarily create any new issues (Google has been doing this for decades at this point), but it may exacerbate existing ones, such as lead gen ads running up cost only to generate “leads” that either don’t exist within your service area (or don’t exist at all).
Of course, if there are performance issues in your account already, you should be evaluating them now, not waiting until campaign-level budgets become the default to develop a plan of action. If you’re not sure where to start, check out our post detailing three ways to improve the performance of your Facebook Ads.
Campaign budget optimization isn’t coming into play until September, which gives you plenty of time to get a head start on using it now so you can get used to the changes.
Not sure you’re ready to tackle life after ad set budgets just yet? Contact Raka today and we’ll be happy to review the best approach to Facebook Advertising for your brand.