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Uncover the Flaws of CBO Testing!

Published on: November 17 2023 by Nick Theriot

Uncover the Flaws of CBO Testing!

Table of Contents

  1. Introduction
  2. The Importance of Testing New Ads
    • 2.1 Understanding CBO
    • 2.2 Controversy Surrounding CBO
  3. The Dedicated Testing Campaign
    • 3.1 Structure of the Testing Campaign
    • 3.2 Control over Daily Budget
  4. The Role of TripleWell
  5. The Drawbacks of CBO for Testing
    • 5.1 Lack of Control
    • 5.2 Unpredictable Performance
  6. The Benefits of the Dedicated Testing Campaign
    • 6.1 Limited Potential Impact on Performance
    • 6.2 Confidence in Main Performing Ads
    • 6.3 Larger Volume of Tests
  7. Finding the Right Advertising Strategy
    • 7.1 Test Different Strategies
    • 7.2 Focus on Marketing Principles
  8. Conclusion

Testing New Ads: Why I Don't Use CBO

Introduction

Welcome back! In this video, we're going to discuss a controversial topic in the world of Facebook advertising: the use of Campaign Budget Optimization (CBO) for testing new ads. There are differing opinions on this approach, with some marketers swearing by it and others preferring alternative methods. Today, I want to share with you why I personally choose not to use CBO for testing, and instead opt for a dedicated testing campaign. So, let's dive in!

The Importance of Testing New Ads

When it comes to running successful Facebook ad campaigns, one of the key factors is testing. Testing allows us to experiment with different creatives, headlines, and copy to determine what resonates best with our target audience. However, testing can be a complex process, especially when it comes to allocating budgets and managing performance. This is where CBO comes into play.

Understanding CBO

CBO, or Campaign Budget Optimization, is a feature offered by Facebook that allows advertisers to set a daily budget for a campaign, and then let Facebook automatically distribute that budget across different ad sets. The idea behind CBO is that Facebook's algorithm will optimize the budget allocation to deliver the best results based on its machine learning capabilities. In theory, this sounds like a convenient and efficient way to test new ads.

Controversy Surrounding CBO

Despite its potential benefits, there is significant controversy surrounding the use of CBO for testing new ads. Many advertisers have experienced unpredictable performance and lack of control when using CBO. While some have achieved positive results, others have seen their budgets quickly depleted without generating the desired return on ad spend (ROAS). This unpredictability and lack of control can be frustrating for advertisers who want to manage their ad campaigns more effectively.

The Dedicated Testing Campaign

To overcome the challenges posed by CBO, I have developed a dedicated testing campaign approach. Instead of relying on the automatic budget allocation of CBO, I prefer to have full control over how my budget is distributed and to focus on individual ad sets within a dedicated testing campaign.

Structure of the Testing Campaign

In my testing campaign, I create one main campaign that serves as the foundation for all my testing activities. Inside this campaign, I have multiple ad sets, each representing a specific test or set of creatives. These ad sets are turned on and off selectively, depending on the performance of the ads they contain. By having separate ad sets, I can closely monitor the performance of each set of creatives and make more informed decisions about when to scale or stop spending.

Control over Daily Budget

One of the advantages of the dedicated testing campaign is the amount of control I have over the daily budget allocation. Unlike CBO, where Facebook decides how the budget is distributed, I can manually set the budget for each ad set in my testing campaign. This allows me to limit the potential impact of underperforming ads and ensures that my main performing ads are not interrupted.

The Role of TripleWell

To measure the performance of my ads, I use a tool called TripleWell. TripleWell provides detailed reporting and insights into ad performance, allowing me to make data-driven decisions. By relying on TripleWell data instead of Facebook's metrics, I can have a more accurate understanding of the profitability of my ads.

The Drawbacks of CBO for Testing

There are several drawbacks to using CBO for testing new ads that have led me to choose a different approach.

Lack of Control

One of the main issues with CBO is the lack of control over budget distribution. Facebook's algorithm prioritizes spending on ads that have the potential to generate the most volume, regardless of their ROAS. This means that less profitable ads may receive a significant portion of the budget, leading to inefficiencies and wasted spending.

Unpredictable Performance

Another challenge with CBO is the unpredictable performance of ads. Facebook's algorithm focuses on user experience, which means that ads with high engagement or click-through rates may be prioritized over ads that are more likely to convert. This can lead to a situation where ads with lower ROAS continue to receive a large portion of the budget, despite their lack of profitability.

The Benefits of the Dedicated Testing Campaign

In contrast to the drawbacks of using CBO, the dedicated testing campaign offers several benefits that make it a more reliable and efficient approach to testing new ads.

Limited Potential Impact on Performance

By having a dedicated testing campaign, I can minimize the potential impact of underperforming ads on the overall performance of my ad account. Ads that are not generating a satisfactory ROAS can be turned off without affecting the performance of my main performing ads. This ensures that my budget is allocated efficiently and is more likely to generate positive results.

Confidence in Main Performing Ads

With a dedicated testing campaign, I have peace of mind knowing that the ads that have performed well in the past are not at risk of being interrupted by unproven ads. This stability allows me to confidently allocate a larger budget to my main performing ads, knowing that they have a higher chance of delivering the desired results.

Larger Volume of Tests

The dedicated testing campaign also allows me to conduct a larger volume of tests. By having control over the budget allocation, I can launch multiple tests simultaneously, each with a smaller budget. This approach increases the chances of finding winning creatives and targeting strategies while minimizing the risk of overspending on underperforming ads.

Finding the Right Advertising Strategy

As with any aspect of marketing, finding the right advertising strategy requires testing and experimentation. What works for one advertiser may not work for another. It is essential to test different strategies, evaluate the results, and adapt accordingly.

Test Different Strategies

I encourage you to experiment with different approaches to testing new ads. CBO may work well for some advertisers, while others may find better results with a dedicated testing campaign like the one I use. By testing different strategies, you can determine what works best for your business and adapt your approach accordingly.

Focus on Marketing Principles

While testing is crucial, it's also important to keep in mind the fundamental principles of marketing. Ensure that your ads are compelling, engaging, and aligned with your target audience's needs and desires. A successful ad campaign relies not only on the testing process but also on the quality of the creatives and the effectiveness of your messaging.

Conclusion

In conclusion, while CBO may offer convenience and automation, I have found that a dedicated testing campaign provides more control, predictability, and better overall results when testing new ads. By having control over budget allocation and focusing on individual ad sets, I can optimize my testing process and make more informed decisions about scaling or stopping ads. Remember to test different strategies and find the approach that works best for your business. Happy testing!

Highlights

  • Testing new ads is crucial for successful Facebook ad campaigns.
  • Campaign Budget Optimization (CBO) has generated controversy in the advertising community.
  • A dedicated testing campaign offers more control and predictability compared to CBO.
  • The dedicated testing campaign allows for greater control over budget allocation and the ability to focus on individual ad sets.
  • TripleWell provides detailed reporting and insights for data-driven decision-making.
  • The drawbacks of CBO include a lack of control over budget distribution and unpredictable performance.
  • The benefits of the dedicated testing campaign include limited impact on performance, confidence in main performing ads, and the ability to conduct a larger volume of tests.
  • Finding the right advertising strategy requires testing and experimentation.
  • It is important to focus on marketing principles alongside the testing process.
  • The dedicated testing campaign provides more control, predictability, and better overall results when testing new ads.

FAQ

Q: How does CBO work for testing new ads? A: CBO automatically distributes the budget across different ad sets based on Facebook's algorithm. This approach can lead to unpredictable performance and a lack of control over budget allocation.

Q: What is the role of TripleWell in ad performance measurement? A: TripleWell provides detailed reporting and insights into ad performance, allowing advertisers to make data-driven decisions and have a more accurate understanding of profitability.

Q: Why should I consider a dedicated testing campaign instead of using CBO? A: A dedicated testing campaign offers more control, predictability, and better overall results when testing new ads. It allows advertisers to have full control over budget allocation and focus on individual ad sets for better performance optimization.

Q: How can I find the right advertising strategy for my business? A: Finding the right advertising strategy requires testing and experimentation. It is recommended to test different approaches, evaluate the results, and adapt accordingly based on what works best for your business.

Q: What are the key principles to focus on when creating ad campaigns? A: Alongside the testing process, it is important to ensure that your ads are compelling, engaging, and aligned with the needs and desires of your target audience. The quality of creatives and the effectiveness of messaging play a significant role in the success of an ad campaign.

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