Facebook Campaign Budget Optimization & How you Can Set Up

Social Media Marketing | February 6, 2020

Facebook Campaign Budget Optimisation & How you Can Set Up

Facebook Campaign Budget Optimization & How you Can Set Up


A couple of years ago, Facebook introduced us to Campaign Budget Optimisation (CBO) as a way to provide better results to advertisers at a lower cost. These results are achieved by distributing the allotted budget based on best-performing advertisement sets. CBO was at first a pick in highlight; however, Facebook, as of late declared it would end up being the default approach to fund campaigns. If you are feeling overwhelmed with all these changes, consider taking the help of Facebook advertising services.

Here's how you can make the most out of Facebook's Campaign Budget Optimisation

What Is Campaign Budget Optimisation?

Facebook's Budget Optimisation feature utilizes an algorithm to optimize your budget distribution across advertisement sets automatically, however it's undoubtedly not a 'set it and forget it' tool. The more you comprehend CBO's capabilities and limits, the better you'll have the option to work it to further your potential benefit.

In the graphic below, you can see how CBO works. Without CBO, the budget will be evenly distributed amongst the 3 ad sets, even to the ones that are underperforming. With CBO, the budget is allocated to the ad set that’s getting the most conversions to produce better results.


Here, you can learn how to make the most out of CBO

#1: Creating Facebook Ads Campaign With CBO

Open Facebook Ads Manager; in the main dashboard, click on Create to open one of the two creation windows. The window that opens will depend on your previously created campaigns. When you see the Guided Creation workflow open, switch to Quick Creation.

Name your campaign and select your campaign objective in the Quick Creation window. Toggle Campaign Budget Optimization on and set your campaign budget. Just like setting the budget at the Ad Set level, you can set daily or lifetime budget here

Next, name your ad set and ad to complete the rest of the campaign structure, and then click on Save Draft to create the draft campaign in your Ads Manager dashboard.

#2: Setting Up Your Facebook Ad Campaign Bid Strategy

Select your campaign bid strategy in the Campaign Budget Optimization section. This was previously set at the Ad Set level, but now Facebook has moved it to the Campaign level.
With the Conversions objective, you’ll have the following bid strategies:

1. Lowest cost
2. Cost cap
3. id cap
4. Target cost

Start with the Lowest Cost, which is Facebook’s automatic bid strategy. You can later scale the campaign and increase the budget by switching to Cost Cap or Bid Cap strategy with more aggressive manual bids.

#3: Completing Your Facebook Ad Setup

Move to the Ad Set Level by clicking the Ad Set button.
Complete your ad set setup like you would normally once you are at the Ad Set Level. Now choose the type of audience that will see your ads. There are 3 audience types, and accordingly, you can choose the type of audience based on your target. In Facebook ads, Saved audiences let you target specific interests, behaviors, income levels, locations, and other criteria, lookalike audience to target cold audience, video custom audiences for the warmer ones who have watched your video content, or website custom audience for the ones who have previously visited your website.

#4: Setting Your Facebook Ad Optimisation and Delivery

Now select which action you want to optimize for, based on your objective.

#5: Creating Your Facebook Ad

Finally, navigate to the Ad level of your campaign and create your ad. Choose your ad format, creative, copy, link, headline, and call to action depending on what you are selling and your target audience.

You can create another ad by duplicating it using the Duplicate button and changing variables such as the copy or creative.
Variations of the ad you create will depend on your campaign budget and the number of ad sets. Higher the campaign budget, more will be the ad sets and the ad variations that you can test.
Countering this, if you have a low campaign budget with many ad sets and ads, then optimization will take longer because there are more elements that need to be optimized, you can hire a social media expert for that.
Once your campaign is created, publish all changes.


Facebook Campaign Budget Optimization is a big change that will disrupt all advertisers. So, it is time to get ahead and test this feature before the full change is implemented. We at ValueHits offer the Social Media Optimization Packages that help you with your ad budgets and make the most out of it. If you would like to learn more about it, feel free to give us a call or visit our website for more information.

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Hardik Mody

Hardik Mody is a Senior Manager in Digital Marketing. He plans and coordinates the marketing activities of ValueHits, a full-service Digital Marketing Agency in Mumbai, India. With his experience and Expert knowledge in the field, he identifies potential customers and develops marketing campaigns. Also, he is efficient enough to meet the client’s requirements and well-organized in handling multiple tasks.