#05 What Is CBO? | Understand The Facebook CBO Guide 2021 | Facebook Campaign Budget Optimization (CBO) 2021

What Is CBO? | Understand The Facebook CBO Guide 2021 | Facebook Campaign Budget Optimization (CBO) 2021 

Hi there. 0In this lecture, we are going to talk about CBO, which stands for campaign budget optimization. In order to understand the CBO. Let's take. 

Facebook decided to introduce this new feature. 

I look about how it works before Facebook decided to introduce this new feature. So in 2017 and before advertisers chose the objective off the campaign as the campaign level and they assigned the budget for each at set.

Let's say, you want to Send a Product.

You Create a Campaign with Conversions as Objective. 

Your target audience is located in three countries, USA, France and India. 

So You Create Three AdsSets.

• The first Target USA
• The second to Target France and
• The third to Target India.

and you need to assign a budget for each adset.

Let's assign $20 per day for the 1st one $15 per day for the 2nd one and $5 per day for the 3rd one In this configuration, you have the control on the budget spent for each adset.

Then you have the possibility to create three different ads for each adset. What will happen in this case is that Facebook will decide amount off money to spend on each ad.

For example, for the first at set, Facebook could decide to spend $15 on the first add $4 on the second ad and $1 on the 3rd 1 off course.

It's not a random decision that Facebook takes. Facebook assigns a budget for each ad in order to make maximum results. Some advertisers used this method in order to compare their ads and see which one is performing better. And it could work for you. 

But I personally had little success with this. So if I have three ads and I don't know which one is better, I prefer to create three exits and put only one ad in each one. This way I have the controls on the amount of money spent on each egg, and if I see an ad performing poorly, I kill it manually because sometimes Facebook could go extreme and allocate 95% off the budget on one.

So you should know that before 2019 you precise the budget only on the exact level. On the eight off November 2019 Facebook introduced the campaign budget optimization for the city Oh, which allows ads manager toe optimize a campaign even further by deciding how to divide the budget Between that sets, not just EDS.

Let's check the definition off CBO Given by Facebook Campaign Budget optimization is a way off optimizing the distribution off a campaign budget across your campaign ad sets. This means Facebook automatically and continuously find the best available opportunities for results across your ad sets and distributes your campaign budget in this time to get those results, this option was optional, so at the campaign level, you can choose to use the CBO or not.

This means that instead, off us dedicating the exit. But it and how much we want to stand for each target will simply tell Facebook how much budget we have for the entire campaign, as the algorithm will distributed as it sees fit.

So let's go back to our first example if you choose to run the campaign using CBO instead off telling Facebook to allocate $20 for us A $15 for friends and $5 for India, you with a stein, a budget off $14 for the whole campaign. And let's Facebook decide how he will distribute it in a way to maximize the conversion you asked for.

For example, Facebook could decide toe allocate $5 for US A $15 for friends and $20 for India. And he always keep adjusting in order to get maximum conversions.

For example, if he saw that Indian audience is saturated and the course off purchase is increasing, he decreases the budget off India and allocate more budget to friends and U.S.A. In addition, you have some Troy, for example.

You can tell Facebook the minimum and the maximum budget you want to stand on each audience.

For example, you can tell Facebook to spend a minimum $2 per day on the Indian audience and maximum $10 per day. Let's sum up before we continue. 

If you want to have food control on the budget for each at set, you have to use the classic method. But if you want Facebook to decide how much to stand on each at set, you should work with CBO.

A recent decision by Facebook to make it mandatory for selected accounts starting Sept 2021 has put campaign budget optimization in the spotlight. So, for some account, starting Sept 2021. The CBO is mandatory, and those accounts must choose CBO if you are one of them, and you still want to have control on your budget for each at set. Don't worry, I have two solutions. Let's suppose you want to create three EDT sets and allocate $10 per day for each one, and you must use CBO.

My first solution consists off creating three campaigns one I said for each campaign and put $10 as a budget for each campaign. Since each campaign has only one set, then all the budget goes through this.

My second Solutions consists off, creating one campaign with $30 per day budget and creating three exits inside. Off this campaign and for each set, you have to add spending limits, as I should do before and for each set, you have to add spending limits as I showed you before. You have to precise the minimum standing as nine daughters and the maximum standing as $12. This way, each set will get an average $10 per day, But so after understanding the CBOE and the difference with the classic method, I will share with you the medal I use myself in my business.

So let's say I am testing than that sets. I create 10 campaigns with 10 different exits, one except for each campaign. And I am locate the same budget for all of them. 

This way I have all the control. After testing for a couple off days, I choose the best. Performing adds. Let's say three ads performed good, so I keep them running and I kill the seven other EDS. I then create a new CBO campaign and I put those three at sets in this video and I increase the budget to let these three winning at sets compete against each other.

I know it was a very long lecture. Hope everything was clear. See you in the next one.

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Watch What Is CBO? | Understand The Facebook CBO Guide 2021 | Facebook Campaign Budget Optimization (CBO) 2021