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Facebook Daily Budget Vs Lifetime Budget

Published on: December 7 2022 by Paid Media Pros

Facebook Daily Budget Vs Lifetime Budget

Facebook Daily Budget Vs Lifetime Budget

there are two types of ways you can
control your budget with facebook ads
you can use daily or lifetime budgets
although either one is viable for pretty
much any campaign type they both do have
their own strengths and weaknesses and
there are some settings that are
different between the two so in this
video i want to give you an overview of
how to set up daily verse lifetime
budgets and then tok about some
scenarios where you might use one versus
the other
in facebook i've created a new
placeholder traffic campaign so we can
go through the different budget controls
that we have available the first option
is actually going to live at the
campaign level and it's going to be all
the way down here at the bottom and it's
campaign budget optimization both daily
and lifetime budgets are eligible to
work with campaign budget optimization
and if you want to know what cbo is and
how it works we have another video that
you can check out at the top of the
video screen right now but i'm not going
to go too far in depth on that today but
i will bounce back and forth and show
you the slight different setups if
you're going to use campaign budget
optimization or if you're going to use
ad set level budgets for right now i'm
going to use the more traditional
approach of the ad set level budget
rather than campaign budget optimization
and then we'll come back to this so for
now let's hop into the ad set and then
just a few blocks down here we'll jump
into the budget and schedule section for
the campaign the default for any ad set
any new build that you're going to do in
facebook is going to be a daily budget
and it's almost always going to be
twenty dollars that's what it looks like
at least on my end in my experience it's
always twenty dollars and the little
note below you'll see it says you'll
spend up to twenty five dollars on some
days and less on others you'll spend an
average of twenty dollars a day and no
more than a hundred and forty dollars
per calendar week so although you can
spend a little over twenty dollars a day
upwards to that twenty five dollar mark
in this example you still won't average
more than 20 a day and on a calendar
week you'll only spend 140. if you've
run a lot of campaigns on google ads
you'll realize how nice it is that
facebook doesn't give themselves nearly
as much variable as google does on any
given day google can spend up to twice
your daily budget and
on the average it'll balance out to your
daily budget but it takes a full 30 days
to get there facebook has a lot more
control and keeps you in line with your
daily budget on a weekly basis aside
from the spend variant one thing to know
about daily budgets is that facebook
will strive to spend your entire daily
budget every single day regardless of
what performance is if you give it a 20
a day budget facebook's goal is going to
be to spend that entire 20
every single day and it will try and get
to that level no matter what you're
doing in terms of conversions or in this
case the traffic campaign or any of the
engagement anything like that so daily
budgets can be great if you're trying to
keep a lot of control and make sure that
your spend is consistent but it doesn't
mean facebook is going to spend it in
such a way that is trying to get you the
best results we'll get more into that
later with a lifetime budget the only
other controls that you have for daily
budget are going to be the start and end
date daily budgets are a pretty good fit
for evergreen campaigns because the end
date is optional you don't need to set a
specific end date for your campaign it
can run indefinitely just the way that
you would have a number of search
campaigns or something like that running
but you can build the campaign ahead of
time and set a start date and then if
you do want to have an end date in here
all you have to do is check the box and
it'll allow you to put in a different
day and then specific time of that day
for you to have the end date for now
i'll keep it off and then there is the
show more options link down below but
when it opens up it'll be for ad
scheduling and you can see that it's
grayed out if i hover over anything and
try to be doing anything here it doesn't
let me do anything because ad scheduling
is not eligible with daily budgets on
facebook if you're going to run a daily
budget you don't get to schedule your
ads so you're only able to schedule with
lifetime budgets as the note says below
so to take a look at that and all the
different settings let's switch the ad
set level budget setting to lifetime now
you can see a few things have changed
first the lifetime budget increased
quite a bit from that 20 level facebook
ops you into a 350
minimum to start for some reason this is
also the default number and it says you
won't spend more than 350 during the
lifetime of your ad set you'll spend
more on days with more opportunities and
less on days with fewer opportunities
which basically means that facebook is
going to try and spend more on days
where it thinks it can get more return
for your ad spend no matter what your
objective is and it's going to spend
less on days where it doesn't see as
many opportunities obviously everything
that goes into those calculations is a
bit of a mystery from the advertiser
perspective but there are signals that
facebook uses to decide which days have
more or less opportunity and with a
lifetime budget you'll notike that your
spend fluctuates on any given day based
on those opportunity levels down below
in the add schedule section we still
have the start date it's still set at
the same time but now there's an end
date and facebook usually sets this out
30 to 31 days something like that in the
future for you by default but you can
set this end date to be whatever you
want but you do have to have an end date
in place because it is a lifetime budget
so facebook needs to know what the
lifetime is how many days how many hours
your campaign is going to run so that it
can allocate your budget evenly or at
least pace so that it ends the budget at
the same 350 dollar mark that you set in
your budget parameters now this doesn't
mean that lifetime budgets can't be used
for evergreen campaigns although daily
budgets with the fact that you give a
specific daily budget and facebook
stiks pretty close to it and there's no
end date might lend itself more
logically to an evergreen campaign
lifetime budgets still can be used in
evergreen campaign strategies and there
are a couple of different ways that you
can do it there are two different
schools of thought one is you can either
keep your existing campaign and simply
add more budget and extend the end date
when you get close to the end of the
campaign run so that facebook knows it
can scale up but needs to keep going and
it needs to keep spending beyond the day
and beyond the budget level that you had
originally set so you're basically just
constantly moving the goal posts if you
will on that same campaign the other
strategy is to let your starting
campaign so this campaign that we have
set up here let that end on november 1st
on its original day let it spend that
350 budget and then duplicate it into a
new campaign or a new ad set give it a
fresh lifetime budget a fresh ad
schedule where it doesn't overlap with
the old one and then you're essentially
running the exact same audience
targeting creatives until you make
changes that you were in the previous
campaign so it effectively is an
evergreen campaign because your
strategies have continued but you just
have a new line item in the facebook
account in my experience i haven't seen
one of those work necessarily better or
worse than the other i know some people
like to just extend the budget and the
dates for campaigns that are doing very
well that way they don't feel like they
have to reset facebook's learning with
an entire quote unquote new campaign or
new ad set and then on the flip side
folks who aren't seeing as strong a
performance probably do want to end up
duplicating the campaign or ad set into
a new group so it resets facebook's
learning but again those aren't
foolproof reasons those are probably
just a couple of best practikes of
whether you want to use lifetime budget
and extending for evergreen and if so
how you're going to go about it whether
it's extending the budget and the date
range or if you want to duplicate things
out and give it a fresh start lastly
lifetime budgets will let you run ad
scheduling so here you can see that this
box became available and you can check
the check box here and then we get all
of the different ad scheduling sections
available and we already have a video
that goes over ad scheduling so i'm not
going to go into detail in this video
but if you're interested you can check
out the link in the top of the video box
right now so let's go ahead and uncheck
this try to get rid of the error that we
see here and i mentioned that you can
run both daily and lifetime budgets on
campaign budget optimization as well so
i want to show you what the differences
look like there because they are just
slightly different so if we go back to
the campaign setup come all the way down
here we're going to toggle campaign
budget optimization on now you'll set
your budget level at the campaign level
so here i have the daily budget of 25
dollars in place and it still gives me
the note that says you'll spend up to
31.25 on some days and less on others
you'll spend an average of 25 bucks per
day and no more than 175 in a calendar
week overall this functions exactly the
same as the daily budgets do at the ad
set level but it'll just be split
between all of your different ad sets if
we come down to the show more options
link we will still see that the ad
scheduling is there but it is still
grayed out and you can only run it with
lifetime budgets it's pretty easy to
change over to a lifetime budget as i'm
sure you guessed so if you update that
it now shows that it's 700. i could
change that to whatever i wanted but the
disclaimer is the same it'll only spend
up to 700 during the lifetime of the
campaign but some days we'll have more
some days we'll have less the only real
difference at setting a lifetime budget
at the campaign level as opposed to the
ad set level is that when it comes to ad
scheduling at the campaign level you'll
just check the box but you'll see here
that there's no grid that shows up below
it because you'll set the specific
schedule at the ad set level so once
you've checked the box you would then
need to go into your ad set scroll down
here we can still set the start and end
date and you'll need to set these at the
specific time for each of the ad sets
and then down here you'll see that you
cannot uncheck the run ads on a schedule
box here but you do have the grid so
that you can add and take away the
different days and hours for your ad
scheduling the way that you wanted to so
overall the functionality is pretty
similar across ad set level or campaign
level budgets for daily and lifetime
budget types before we close out this
video i want to hop into powerpoint and
just recap some of the main points we
toked about in the video and which are
going to be the right things for daily
verse lifetime budgets
i believe daily budgets are probably
still the most common type used on
facebook at least by advertisers who run
campaigns across multiple different
platforms they're very similar to the
way that google or microsoft search
campaign budgets would work on a daily
basis and they will always work to spend
the same amount every day which will be
your max budget regardless of
performance so this is a bit of a
double-edged sword it is much easier to
pace out your spend and know what to
expect in terms of a spend perspective
with daily budgets but you don't get the
added benefit of facebook helping you to
optimize for your performance metrics
from my experience these are best used
with evergreen campaigns because there's
no end date and you can be a little bit
more flexible with varying budgets over
time with lifetime budgets you need to
add budget to the total of the campaign
as opposed to just incremental daily
spend levels but with that said there
are some best practikes for adding or
taking away spend from facebook
campaigns we have another video about
scaling facebook ad campaigns that you
can check out right here if you're
interested in that the thing i do like
about daily budgets is that you as the
advertiser control when you want to get
more or less aggressive with your spend
might be a little bit more difficult
because it's not real time but you can
start to notike some trends and either
give or take away budget from your
different ad sets or campaigns based on
the performance that you're seeing
coming through with daily budgets
lifetime budgets on the other hand are
beneficial in that they let facebook
help you spend more or less on any given
day based on the performance
opportunities that it sees there that
you wouldn't have insights into so it is
really helpful that they can get more
aggressive on sundays less aggressive on
others but it also doesn't categorically
mean that facebook always bets correctly
some days i've seen them spend a lot
more budget that didn't yield the
results i wanted and other days spend
was low and it had great performance i
would have rather spent more on those
given days just like any other
advertising platform algorithm
facebook's is not foolproof but it can
help you lean into performance sometimes
when it has enough data to make those
decisions your lifetime budgets will
always require a start and end date and
it'll allow you to schedule your ads for
different days of the week and hours of
the day so this in my mind gives you the
most capabilities to schedule your ads
but you are restricted in so far as you
have to have an end date on the campaign
you cannot leave it open-ended in the
traditional evergreen style campaign but
that doesn't mean that lifetime budgets
can't be used for evergreen campaigns as
i mentioned you can do that and you just
need to determine which strategy you
want to use do you want to get to the
end of the lifetime budget and add more
spend and extend the end date on the
existing campaign which likely is best
suited for campaigns that are seeing
good performance or do you want to let
the time run out let the budget run out
on the existing campaign or ad set then
simply duplicate it give it a new end
date give it fresh budget and let
facebook kind of relearn from scratch if
you will with that new lifetime budget
in place either strategy is viable some
might work in some accounts better than
others it's not going to be a
categorical this is the one you should
do verse this is the one that somebody
else should do so test it out and see
what works best in your account and that
advice doesn't just go with using
lifetime budgets for evergreen campaigns
it also goes for deciding if you want to
use daily or lifetime budgets depending
on which one works best for you now you
know the different settings that you
have in place the different capabilities
that you have and how facebook can
either help or hurt you depending on the
different budgeting settings that you
have in place hopefully i've made these
a little bit clearer but as always if
you have any other questions or if
you've seen any other strategies work
out well we would love to hear about it
in the comments thanks for watching our
video if you thought it was useful give
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