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How and Why You Should Use Facebook’s Campaign Budget Optimization

Brody Hall
By Brody Hall
Joel Taylor
Edited by Joel Taylor

Published April 29, 2022.

The letters 'CBO' joint in a logo form on a dark background

Facebook offers several ways for businesses to optimize their campaigns and reach their target audience. By understanding how Facebook works and what factors influence campaign performance, businesses can optimize their campaigns for the best possible outcomes.

To help you make the most out of Facebook’s CBO tool, we will explain what campaign budget optimization means and how to use it.

What Is Facebook CBO?

Campaign budget optimization is a tool that helps you determine how best to spend your campaign budget based on your objective. For example, if your goal is to increase website traffic, Facebook will automatically distribute your budget across different ad placements and optimization options.

You can also use Campaign Budget Optimization to set different budgets for different stages of your campaign. This allows you to allocate more money towards effective e-commerce ads while scaling back on those that are not meeting your expectations.

How to Develop a Good Facebook CBO Strategy

Determining how to distribute that budget and allocate those funds is essential to achieving your campaign objective. When setting your budget, it's important to consider your overall marketing goals and how Facebook can help you achieve them.

Once you've set your budget, it's important to create a distribution plan that will ensure your money is being spent in the most effective way possible. One method is to break down your budget by campaign objective. For example, if your goal is to increase brand awareness, you'll want to allocate more of your funds towards paid ads and less towards boosting posts. On the other hand, if your goal is to generate leads, you'll want to focus more on sponsored posts and less on ads.

Unsure if you're spending too much money on ads? Read 
our guide to a good ROAS for help.

How to Scale a Facebook Ad Campaign

Here's a step-by-step process on how to scale your Facebook ad campaign:

  1. Identify your goals What are you hoping to achieve with your ad campaign? Increased website traffic, more leads, or even boosting sales during the holiday season? Knowing your goals is essential for determining which metrics you should be tracking and optimizing.
  2. Determine your target audience Who are you trying to reach with your ads? You can do this by creating a customer profitability profile that includes information like age, gender, interests, and behaviors.
  3. Create your adverts This is where you put across the benefits of your product or service and try to persuade people to take action.
  4. Optimize your website Businesses should make sure that their website is optimized for lead generation and/or product sales. If potential customers click on the ad and end up on a page that isn't user-friendly or doesn't provide what they were looking for, they will probably leave and not come back.
  5. Use A/B testing Finally, on launch, businesses should continuously test their ads to see which ones are performing the best.

Another super potent platform that has seen an explosion in the success of its ad campaigns is TikTok. For more info, read our guide to TikTok ads for e-commerce merchants.