THE MEDIA ENCYCLOPEDIA
Campaign Budget Optimization
Campaign Budget Optimization (CBO) is the process of automatically managing the budget of a digital advertising campaign to achieve the best results.
What is Campaign Budget Optimization (CBO)?
Campaign Budget Optimization (CBO) is the process of automatically managing the budget of a digital advertising campaign to achieve the best results. Within one central campaign leveraging Campaign Budget Optimization (CBO), the budget that continuously distributes in real time the best opportunities throughout the course of your campaign.
How do you implement Campaign Budget Optimization (CBO)?
Campaign Budget Optimization (CBO) is typically implemented within the context of Facebook advertising campaign, with the budget of the overall campaign distributed programmatically throughout the ad sets within the campaign to deliver the best results. Within Facebook Ads Manager, advertisers can opt in to Campaign Budget Optimization (CBO) when setting up campaigns.
What is an example of Campaign Budget Optimization (CBO)?
Within the context of a Facebook Advertising campaign, Campaign Budget Optimization (CBO) manifests within the context of a live campaign with two or more ad sets (or groups of ads).
Below, in the example campaign, an advertiser selling shoes creates a single prospecting campaign to target potential customers in the United States.
START
Prospecting Campaign
Budget - $100/day
Interest - Shoes - US
Ad 1 - $25
Ad 2 - $25
Interest - Fashion - US
Ad 1 - $25
Ad 2 - $25
END
Prospecting Campaign
Budget - $100/day
Interest - Shoes - US
Ad 1 - $70
Ad 2 - $10
Interest - Fashion - US
Ad 1 - $10
Ad 2 - $10
The campaign has a daily budget of $100 and has two ad sets targeting one broad interest each: Shoes and Fashion.
Within each ad set there are two ads, each leveraging different Call To Action buttons to test performance.
A campaign that uses Campaign Budget Optimization (CBO) will start delivering ads and then use signals such as ad engagement and website pixel data such as Add to Cart and Conversions to give more priority or less priority to ads that are offering better performance.
While at the beginning of the campaign each ad will have the same chance of driving the most performance, Campaign Budget Optimization (CBO) will, over time, deliver the more successful ads more often than the less successful ads.
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