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New Facebook Ads CAMPAIGN Strategy | Updated for 2019

New Facebook Ads CAMPAIGN Strategy | Updated for 2019

– In this episode we’re
talking all about Facebook CBO or the Facebook advertising campaign budget optimization option, what it is and why you should
care, if you should even care and everything you need to know about it so you can make sure you’re
getting the absolute most from your advertising dollars. Let’s get to it. (upbeat music) Hey there, my name is Adam Erhart and you’re watching the
Modern Marketing Show where we help you get more
leads, customers and sales by making way better marketing. So if that’s something your into, make sure to subscribe to the channel and hit that notification bell. Alright so before we dive
into the nitty gritty details of what exactly CBO or campaign budget optimization really is, it’s first important to understand that this really isn’t
that much of a switch from what they’ve traditionally done with ad set optimization. So really all we’re doing
here is we’re kind of moving the budgeting aspect where
we used to set it per ad set and moving it to the campaign level. That’s kind of it. Now obviously the devil’s in the details and there are nuances here that you’re gonna wanna pay attention to so that you can make sure that you’re getting the most
from your advertising dollars, but the real high level
30,000 foot overview is really just essentially that. We’re now optimizing at the campaign level rather than the ad set level
as the name kind of implies, as the name definitely implies. Pretty much the name says
exactly what it’s doing. Now the argument from Facebook on why they’re making this switch is essentially to benefit the advertisers. Of course, right? You see by making the
switch they’re claiming that it’s gonna free up the advertisers to spend more time on the
things that really matter like design a new creative
and optimizing landing pages instead of kind of focusing their time on the granular budget
and optimization level. Now whether this plays out
or not is yet to be seen, but we are actually seeing
some pretty good results in the early stages of CBO which is why it’s worth
talking about here, probably worth testing
out in your campaigns. Now for those control freaks among us, it is a bit of a scary
thought to kind of give a little more power to Facebook and allow them to sort of spread out and optimize your budget
across different ad sets rather than you maintaining control, but in a lot of instances
this is actually a good choice which we’re gonna talk about in a minute and in some cases you’re gonna wanna maintain control all for yourself. So first off, how do you even use campaign budget optimization or CBO? Well it’s actually really simple. In fact all you really need to do is go to the campaign and choose on. And that’s it. Now when you turn it
on, what it’s gonna do is essentially take your campaign budget and the total budget you’ve
set for this campaign and start divvying it up
between your different ad sets that you’ve got nested
underneath your campaign. So for nice, easy numbers let’s say you’ve got
a daily budget of $30. Well if you’ve got three
ad sets in this campaign, it’s gonna essentially give
$10 to each different ad set, at least initially. But where things get
tricky is that Facebook is going to use its algorithm and it’s gonna take some best guesses and it’s gonna play all
these different factors in to try to figure out which ad set is going to perform best for you. And then it’s gonna start
to take some of the budget from the other ad sets and put it towards your highest performing ad sets. Now in theory this sounds amazing, right? You just give Facebook a ton of data and they’re gonna give you back the highest performing ad set possible. But like the old saying goes, if it’s too good to be
true, it probably is and where we run into
issues using this strategy is that there may be an ad
set that you wanna make sure gets say sufficient
number of basically views or a sufficient amount of
that budget allocated to it and you don’t really wanna let Facebook kind of carve things up
and make its own decisions before you’ve had a chance to weigh in. For example let’s say that
you’ve got an ad and an ad set that you just know crushes it across all kinds of different
audiences and placements. It doesn’t matter where you put it. This ad’s a winner. Well if you nest this in and under the campaign
budget optimization strategy, essentially Facebook’s gonna show it just as about as much as any new creative and it might start diverting
more budget and more traffic towards potentially a
lower performing ad set. You see the algorithm’s not foolproof and they’re going to be using
kind of this learning phase which is a whole other story
for a whole other video, but regardless they’re gonna be using these early stage
impressions to try to decide which is going to be your
best performing ad set so they can spend your budget accordingly. Sometimes they get this
right and you end up with an absolute home run of an ad set. But if they get this wrong, you risk potentially turning
off really good performing ads and that’s never good in the long run. After all these ads may
not get their fair chance to go out there and try to convert and try to win you more
leads, customers and sales. There’s another side of the coin here that we really have to talk about and this is gonna get a
little bit more advanced and a little bit more
nerdy so stick with me if this is completely new to you. You see the way that the
Facebook algorithm works is that it needs a sufficient
number of conversions or actions on your ad in
order to properly optimize it. This is why the old advice of having a number of different ad sets and putting tiny little
budgets in each of $5 or $10 really doesn’t fly in today’s market. You see with these tiny budgets you’re simply not giving
Facebook enough data for them to properly optimize across all the different data
points in their algorithm. Now how this affects
us when we’re using CBO is that we need to make
sure that we’re using a sufficiently high budget for that overall campaign structure for us to put a number of
different ad sets under it. So for example let’s say
we’re using $100 a day. Well that would probably
allow us to use maybe two or maybe three, maybe even
four different ad sets under it because they’re gonna get
around that $25 or $30 budget allocated to each at least initially. On the other hand if you’ve
got a much smaller budget of say $10 a day, maybe $15 a day, well you’re obviously
going to want to have probably just one ad set
under that initial campaign because otherwise you’re
gonna be spreading yourself far too thin and you’re
gonna be giving Facebook far too little data for
them to properly optimize. This is why when it
comes to smaller budgets, it doesn’t really matter
whether we’re using CBO or ad set budget because we’re still probably wanna gonna
have just one campaign, one ad set and maybe just one ad. After all we don’t have the budget to accurately spread it out
and get enough data back. Alright nerdy technical stuff over. Let’s get back to CBO and how
to use it most effectively. Now when it comes to properly setting up Facebook campaign budget optimization and essentially your
campaign structure overall, well there’s gonna be differences depending on what type
of advertiser you are, how you like to structure your campaigns. But using this new format you’re going to want to keep
things relatively structured and relatively organized
under that campaign. So for example let’s say you’re running a conversion campaign for
a lead magnet download. Well under that campaign you’re gonna have a number of different ad sets. The key here is you’re
gonna wanna make sure that your ad sets are at
least somewhat related in some way, shape or form, whether it’s various audiences
or various audience sizes or similar interests or maybe different degrees
of lookalike audiences. Whatever it is, it’s
gonna be important here to keep things relatively congruent. Now this wasn’t an issue before when we were using ad set optimization. After all we could have all
kinds of different ad sets and we could target different things and put them in different places, but because we’re optimizing
at the campaign level, it’s important to keep
all of these congruent because that way they’re
gonna get kind of a fair shake and a fair chance at really representing which one’s gonna be
best for your campaign. Another really important point here is on scaling up your CBO campaign and we kinda touched on this briefly when we were talking about
those smaller budgets, but what you’re gonna do
is as you go through CBO and you’ve got your different ad sets and you’ve got your different
ads nested under that, well eventually you’re
gonna find a winner, that ad that just has the
lowest cost per acquisition and it just dominates everything else. Well the key here is you’re
gonna wanna duplicate that ad and run a single CBO campaign
ad set/ad combination. Sounds confusing, but stick
with me for one second. Basically what you’re doing here is you’re taking that winning ad and you’re gonna run that
only in a new campaign so you’re gonna have a
campaign with one ad set and with one ad being that winning ad. And again what you’re doing here is you’re taking the
power back from Facebook and ensuring adequate distribution of your top performing ad. Alright so let’s wrap things
up here with some real takeaway and actionable items here. Should you use CBO in your business and my recommendation here is yes, you should absolutely test it, meaning you probably shouldn’t go through and start switching everything over to CBO from regular ad set optimization, especially if something
is already working. So let me make this really clear. If you’ve got an ad set that is already absolutely crushing it,
please do not touch it. Leave it alone. Let it keep doing good
things for your business. But that doesn’t mean you
shouldn’t duplicate it and test against it using CBO in order to see which one’s
gonna do better for you. Here’s the position that I’m taking and that we’re taking inside the agency. After looking at essentially dozens of new client
accounts every single week, we’ve pretty much seen it all and there’s no one size fits all answer that we can confidently
go out there and say yeah, you absolutely have to
use CBO or definitely not. In fact we’re seeing a pretty even split between campaigns that
are doing better using CBO and campaigns that are better doing kinda the old ad set monitoring. All that said, CBO is
the way of the future. This is going to be mandatorily enforced. Essentially everything’s
going to be switching over to it anyways so you might as well jump on that one as quick as
you can and start to figure out how you’re gonna optimize your campaigns to best take advantage of this new shift.

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