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Crack the Facebook CBO Algorithm in 2023

Published on: November 20 2023 by Course Review

Crack the Facebook CBO Algorithm in 2023

Table of Contents

  1. Introduction to CBO
  2. The Old Method of Budget Allocation
  3. Introducing Campaign Budget Optimization (CBO)
  4. How CBO Works
  5. Controlling Budget Allocation with CBO
  6. Mandatory CBO for Selected Accounts
  7. Solutions for Controlling Budget with CBO
  8. The Author's Preferred Method
  9. Conclusion
  10. FAQs

Introduction to CBO

In this article, we will dive deep into the world of campaign budget optimization (CBO) on Facebook. We will explore how CBO works, its benefits, and how it differs from the old method of budget allocation. We will also provide solutions for advertisers who still want control over their budget while using CBO. So, let's get started and discover the power of CBO in maximizing your campaign results.

The Old Method of Budget Allocation

Before introducing CBO, advertisers had to manually allocate budgets at the ad set level. They had control over the budget for each individual asset, allowing them to distribute their budget according to their targeting preferences. However, this method had limitations and sometimes resulted in suboptimal budget allocation.

Introducing Campaign Budget Optimization (CBO)

In November 2017, Facebook introduced Campaign Budget Optimization (CBO) as an optional feature for advertisers. CBO allows advertisers to optimize their campaign budgets by automatically distributing the budget across different ad sets, not just individual ads. Instead of assigning budgets to specific assets, advertisers allocate a budget for the entire campaign, and Facebook's algorithm distributes it in real-time to maximize results.

How CBO Works

Campaign budget optimization works by continuously analyzing and identifying the best opportunities for results across all ad sets in a campaign. Facebook's algorithm dynamically adjusts budget allocation based on performance indicators, such as conversions, engagement, and cost per result. For example, if the algorithm identifies that one ad set is performing better than others, it may allocate a larger portion of the budget to that particular ad set. This dynamic optimization ensures that the campaign budget is allocated effectively to achieve the desired results.

Controlling Budget Allocation with CBO

While CBO optimizes budget allocation automatically, advertisers still have some control over the process. They can set minimum and maximum budget limits for each ad set to ensure that budget allocation aligns with their priorities. For example, if an advertiser wants to allocate a minimum of $2 and a maximum of $10 per day for a specific ad set, Facebook will adjust the allocation within these limits.

Mandatory CBO for Selected Accounts

Starting from September 2019, Facebook made CBO mandatory for selected accounts. If your account falls under this category, you must use CBO for your campaigns. However, if you still want control over your budget for each ad set, there are workarounds available.

Solutions for Controlling Budget with CBO

If you are required to use CBO but prefer to have control over your budget per ad set, here are two solutions:

  1. Create multiple campaigns: Create separate campaigns for each ad set, assigning a budget for each campaign. Since each campaign will have only one ad set, all the budget will go to that specific ad set.

  2. Create one campaign with multiple ad sets: Allocate a total budget for the campaign and create multiple ad sets within it. Set spending limits for each ad set to ensure that the average daily budget allocation matches your desired amount.

The Author's Preferred Method

In the author's experience, testing multiple ad sets individually and then creating a separate CBO campaign with the best performing ad sets has yielded positive results. By creating separate campaigns for each ad set initially, the author gains full control over budget allocation and can eliminate underperforming ads. Then, the author takes the winning ad sets and places them in a CBO campaign with an increased budget, allowing them to compete against each other for optimal results.

Conclusion

Campaign budget optimization (CBO) is a powerful tool that allows advertisers to optimize their campaign budgets effectively. While it may take some adjustment for those accustomed to the old method of budget allocation, CBO provides automated optimization that can deliver superior campaign results. By understanding how CBO works and utilizing the available controls, advertisers can harness the full potential of this feature to maximize their advertising efforts on Facebook.

FAQs

Q: Is CBO mandatory for all Facebook advertisers? A: No, CBO is only mandatory for selected accounts since September 2019.

Q: Can I still have control over budget allocation with CBO? A: Yes, you can set minimum and maximum budget limits for each ad set within a CBO campaign to influence budget allocation.

Q: What is the author's preferred method for using CBO? A: The author recommends testing multiple ad sets individually, then creating a separate CBO campaign with the best performing ad sets to maximize results.

Q: How does CBO optimize budget allocation? A: Facebook's algorithm continuously analyzes performance indicators and dynamically adjusts budget allocation to maximize results across ad sets in real-time.

Q: What if I prefer the old method of budget allocation? A: If you still want control over budget allocation per ad set, you can create separate campaigns or set spending limits within a CBO campaign to achieve your desired budget allocation.

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