When Smart Bidding is applied on Facebook Campaign Budget Optimization (CBO) campaigns, or Pinterest or Twitter campaigns where the budget is at the campaign level (hidden CBO), Smart Bidding keeps the bids same for all Ad Sets in the campaign.

The alternative would be to have bids on the basis of the average cost per action (CPA) seen in each Ad Set.

But why is this not done? That is due to two primary reasons explained below.

Reason 1

Pacing is a key input in determining Smart Bidding's actions. Since in CBO campaigns, we don't have a budget at the Ad Set level, so there is no information on how the Ad Set is pacing. In this case, the pacing information is only at the campaign level.

Reason 2

When we keep bids at the same level, the CBO is playing the role of moving the spend to better-performing Ad Sets. If we were to have different bids, then it would be counterproductive.

Example:

• A CBO campaign has two Ad Sets A and B.

• CPA of A is $5 and B is $6.

• In this scenario, CBO will be acting to have A spend more budget than B. How much more will be determined by Facebook's estimate that A’s CPA doesn’t shoot up and cross B’s CPA.

• If Smart Bidding were to bid differently, then it will also be looking to get A to spend more since it has a better CPA than B.

• However, since CBO and Smart Bidding are unaware of each other’s actions, they will both push more spend via A independently.

• These independent actions together will end up pushing the spend via A more than what was ideal.

Hence to avoid this kind of situation, Sprinklr lets CBO focus on spend distribution and keep bids the same across all Ad Sets.