How do Smart Budget Strategy Groups Interact with Facebook CBO?
Updated
In Ads Manager, you can apply Smart Budget on Facebook Campaigns or Ad Sets that have Campaign Budget Optimization enabled. Facebook will continue to optimize according to its algorithm, identifying the users who are most likely to convert and deliver ads to those users. Smart Budget uses the final conversion results from the advertiser's chosen point of conversion (including non-social measurement) to determine how to shift budgets.
Smart Budget distributes the funds allocated by CBO at the Campaign level across Campaigns/Ad Sets within the pool to optimize accordingly.
In this article, we will walk through the following:
To learn more about getting this capability enabled in your environment, please work with your Success Manager. |
Note For Campaigns with CBO enabled, you can choose to distribute your budget between the following ad entity levels:
Note that this is only applicable from the Ads Manager with Smart Budget being applied to at least two Campaigns. |
Benefits of Using Smart Budget with CBO
Use Cases | Description |
Greater Visibility | Using CBO in the native platform, advertisers are unable to determine what portion of the total Campaign budget each ad set is receiving. SBA improves visibility by prescribing budgets to individual ad sets and allowing the advertisers to better understand how budgets are distributed. |
Optimize Across Campaigns | While the CBO functionality distributes budget among ad sets based upon performance, it cannot be applied across multiple Campaigns. SBA allows advertisers to optimize for maximum performance across ad sets that make up multiple Campaigns. |
Custom Metrics | Using CBO, advertisers rely on standard channel optimization goals to optimize toward Campaigns. SBA allows advertisers to create custom calculations using Custom Metrics which they can optimize, ensuring Campaigns are achieving results for the right metrics. |
Third-Party Metrics | Using CBO, advertisers rely on standard channel optimization goals to optimize toward Campaigns. SBA allows advertisers to optimize toward 3rd Party Analytics like DCM, Google Analytics, Stats Import, and more, ensuring Campaigns are achieving results for the right metrics. |
Budget Distribution
Let's say, there are three CBO-enabled Campaigns (Campaign A, Campaign B, and Campaign C) with ad sets (A1, A2, B1, B2, and C1, C2), respectively. The allocated Daily Budget is as follows:
Campaign A - $400
Campaign B - $500
Campaign C - $600
Campaigns with CBO & SBA: Budget Distribution among Campaigns
Once you've applied Smart Budget to Campaign A, B, and C with budget distribution at the Campaign level, the budget will be distributed among Campaigns while the CBO algorithm optimizes for the Ad Sets (A1, A2, B1, B2, and C1, C2) based on their performance. This is how the Campaigns will look once the Smart Budget is allocated:
Campaign A | Campaign B | Campaign C |
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Campaigns with CBO & SBA: Budget Distribution among Ad Sets
Once you've applied Smart Budget to Campaign A, B, and C with budget distribution at the Ad Set level, the SBA algorithm will distribute the budgets among Ad Sets (A1, A2, B1, B2, and C1, C2) based on their performance. This is how the Campaigns will look once the Smart Budget is allocated:
Campaign A | Campaign B | Campaign C |
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Note Once the Smart Budget is applied, the Ad Set level budget is enforced by setting a minimum budget limit at the ad set level. |
Given below is a graphical representation of how CBO and Smart Budget work:
Day 1 Applying Smart Budget distributes campaign-level budgets equally among Campaigns or ad sets.
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Day 5 Smart Budget begins to make larger budget changes as the algorithm collects more data points on performance against the optimization goal.
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Day 10 Towards the end of the Campaign, Smart Budget will make the most significant budget changes as it has a large data set to learn from.
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