Facebook Ads Ad Set Budget vs CBO Campaign Budget Optimization

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SUMMARY

Which one is better: Ad set level budget or Campaign budget optimization?

Let’s talk about how to use each of them and in which case.

Ad Set Level Budget vs CBO.

#1 – Testing

If you're testing an offer or audiences, I recommend ads set level budget campaigns.

The reason why is because if you’re just starting out, it’ll allow you better control on the ad spent and your business’ scaling will be slower.

Now, I recommend using it when retargeting as well, because you can set retargeting levels for each step of your funnel, because you can set up a specific budget to target each of those people.

#2 – Scaling

Once you have big audiences, a proven funnel and a proven budget,you can start scaling with campaign budget optimization

Campaign budget optimization is much better and complexless when it comes to scaling your business. 

This is because you can spend a lot of money…. But remember, your funnel needs to be proven first.

It’s more sustainable to run a campaign budget optimization, because you can let Facebook do its thing and the more you let Facebook do its thing, the better sustainability your campaigns will get. 

I hope this distinction is useful for you and your Facebook campaigns, remember that if you’re starting out your business and you’re testing your ads, I recommend using ads level budget campaigns. 

And once you’ve a proven funnel, and a larger budget go and try campaign budget optimization to scale your business faster.

FULL TRANSCRIPT

I'll tell you guys that I will be working on my, my intro. The next thing is to repel down from the ceiling. I've been kind of trying to make that happen here in my office. But it's kind of hard. So I'll see if that works or you know, do some somersault. We'll see. We'll see. So anything for you guys. What's up everybody? Let's talk a little bit about campaign budget optimization versus as a little budget.

This is a question that I get a lot. We want you to use. Should I go all in on campaign budget optimization? Should I go? Should I say we have a level budget, or should I do, okay, and that's a question that I'll try to answer for you guys today. Now, if you want to write advertising that compels people to click to become leads to become customers of your brand or your clients and you want to go and take your advertising into to the next level, I want to invite you to join the waiting list for my brand new workshop. Perfect. That's okay. It's going to be awesome. We're going to be releasing it next week. So next Monday. 

So if you're interested in getting access to this with a really cool pre launch, early bird, super heavy discount, go ahead and go to Hernan Vazquez comm slash weight Hernan Vazquez comm slash weight and sign up for the waiting list is going to be awesome. And the good news about that is that when you join to the pre launch, you will be able to get your questions answered. So we're going to be touching base on three main networks number one, Facebook, of course, number two, YouTube and the Google Display Network. So I'm going to share with you how to write great ads for facebook, how to record great videos for Facebook and YouTube and how to make great banners for the Google Display Network. 

So with that being said, let's talk a little bit about these two things campaign budget optimization versus adds a level budget. This is a question that I get Get a lot and honestly, Facebook has been kind of, you know, it's been kind of letting us know that they will be taken out a little budget away. And on some ad accounts, it's it's a thing, the fact that you cannot create ads without a level budget anymore. Everything has to be at the campaign at the campaign level. 

But I happened to just open a brand, a couple of brand new ad accounts to test new stuff. And they still let you create ads a level budget campaigns. So there were saying that, you know, they were taking it away last September, I think it was the last December then or March this year, and we still have it available. 

There's a couple of reasons why. I am a big proponent of ads level budgets when you're starting out when you're testing, okay, so when you're testing an offer, when you're testing audiences, when you're testing a bunch of stuff, there's always this possibility of you to create ads deliver budget campaigns, so I'm a big proponent of asset level budget campaigns. But when you start scanning when you have a proven out Or when you have a proven funnel when you have proven bonuses, and you want to start scaling, then campaign budget optimization. 

It really does work well. So in which scenario do I use them? Well as syllable budget, I use them when it comes to testing. Okay. So when it comes to testing, testing new audiences to see new offers test testing creatives, I always set up my budgets at the ad set level. The reason why is because it allows me better control on the ad spent, let's say that I'm testing I don't know 40 different audiences for a new product or new service or a new offer, right? If I'm testing 40 different audiences, then I want to have control on how the how my budget is being spent. 

So I do set up this at the ad set level budget, I do work without level budget. Now once again, once I have big audiences once I have bigger approval funnel and approval budget, then I go ahead and start scaling with campaign budget optimization. The reality is that campaign budget optimization is much better, or is much faster and it's less of a headache. When it comes to scaling. The reason why is because you can spend a lot of money really, really quickly with campaign budget optimization. But again, your your funnel needs to be proven. Another thing that I use when it comes to ads a level budget, it's slow scaling. 

So you can do fast scaling here or fast growth, I would say, fast spend, have a campaign when it comes to campaign budget optimization. But when I want to start ramping up things slowly, I go ahead and start using something called three by three or four by five, I start testing all of these different structures at the ad set level budget, so this will be slow scaling. Okay. So in this scenario, a possible scenario. 

Let's say that you're running your campaign shown on account a right and you're running those campaigns on account a and then you, you understand that it works and now you want to pump more budget into the auction, then what you want to do is maybe start running from account V, you want to start running that, but you can actually start spending much faster with campaign budget optimization. Okay?

And the reality is that this has more sustainability, the reason why it's so sustainable to run campaign budget optimization, it's because you can let Facebook do its thing. And the more you let Facebook do its thing, the better it goes for you in terms of sustainability of the campaigns, maybe, you know, if you're trying to construct too much the algorithm if you're trying to do this and that and a lot of different things, then you will notice that your results might be constricted, your resource might go well for maybe a week and then they start with campaign budget optimization, what happens is that once you have a good funnel, a good offer, and you have a high budget, this will be more sustainable for you. 

Now, of course, one day you will perform well when they will perform bad so but within you know, as long as it stays within the realm of the possibility when it comes To CPAs, then this campaign budget optimization will be much better. Now this, of course, is more granular. So for instance, for everything that has to do with retargeting, I use ads level budgets. 

So for instance, let's say that I have, I don't know that you visit my book funnel, right? You go to perpetual profits.net and visit that sales page, but you do not buy. So I can actually set up a budget or set up an ad set that specifically targets those people. Now if you go to the next page, you will see that there's an order form right. And for people that visit that order form, but they didn't know by then I can actually go ahead and set up specific budget to target those people. 

So I can be much granular and I really like the ad set level budget side of things when it comes to retargeting so retargeting I would do this cold traffic, look alike campaigns, big budgets, I would do campaign budget optimization, you will notice that campaign budget optimization doesn't work as well as a lower budget and when you're testing stuff But if you combine the two, that's the good news, you can still combine the two. 

And you can actually have a really good campaign. So when you're starting out, just stick to ads, the level budget, when you're testing a new offer a new funnel, new audiences, you do not know what's going to work, you have much more control here. So you can have, let's say, 20 3050 different audiences running a $5 a day. And you will be testing and doing a slower scaling here. Now, when it comes to big budgets, an offer that's already working an offer that's already yielding results for you, then you can start using CBO campaign budget optimization. 

Let's say that you have 10 different ad sets and you can do a minimum ad spend on each budget on each ad set. So let's say that you want Facebook to spend a minimum of 10 bucks a day on each ad set. That's great in theory, it doesn't work when you're trying to be granular. Okay, so it doesn't work when you're trying to be granular. The reason why is because campaign budget optimization is where they work as a whole. Okay, and then maintain they maintain the equilibrium of the campaign as long as he's yielding results, while you keep everything up and running. 

So in theory, it sounds really cool. But in reality, Facebook does what it wants with the budget, okay? It might spend 10 bucks, but he won't, he won't optimize accordingly. So when I want to control the action, I want to really be on top of my budget. I do ads a level budget, it's a great idea. But you know, Facebook, the way the way works with Facebook ads is that they roll out something and then they collect a bunch of data and then they make it better. 

I really do hope that the minimum and maximum and even like, how, what portion of my budget I want allocate to each to each asset, right? Let's say that I'm running like 100 bucks a day. Then I want each ad set. Let's say that I'm running 100 bucks a day on a campaign budget optimization, and 10 different ad sets, then I want each of them to spend 10% of my budget without fail, and that doesn't work. Okay, if you test it out, it doesn't really work like that. It doesn't work as advertised. 

So that's why I'm still using both. That's The good news is that you can use ads to level budget when you're starting out. And campaign budget optimization, when you're trying to scale when you're trying to, you know, pump a lot more budget. Now, here's the thing on campaign budget optimization, you also need a larger budget, because you need to leave Facebook optimize, you're adding another layer of complexity to the whole thing. In terms of, you're letting Facebook understand who your audiences are, if you're running conversion campaigns, you have a pixel optimization, right? 

So Facebook knows who your audiences are, maybe you're using dynamic assets, Facebook will make some much of the whole thing and then you're learning Facebook to actually optimize the different assets, right? So what happens is that you're adding a lot, another layer of complexity. And when you have a big budget, maybe you can let it run for the next seven days, and it will get better. But a lot of advertisers that might not be willing, or you know, or maybe even have the means to actually spend an extra 500 700 1000 bucks a day, you know, just to let Facebook optimize. So that's what I'm saying. 

These are for more mature campaigns in my experience, and these are for campaigns. are stunning. Now, if you have, let's say 1000 purchasers or 2000 purchasers, you can go to town with a campaign budget optimization, you can set up thousand bucks a day, 2000 bucks a day, and target everyone in the US. And this will provide this will yield good results. Facebook will go out there and find buyers at your desire CPA. But first you need to crawl before you walk and you need to work before you fly. Right? That's what I'm saying. 

I'm usually testing with ads a level budget, and then I use CBO to scale because CBO sir, easier to manage. Honestly, you only need to manage one variable. On this case, if you have like 1500 different assets, which I had at some point, and you need to manage all of this, it becomes cumbersome with campaign budget optimization, everything to be easier, right? So again, we're going into campaign budget optimization more and more Facebook, it's making it more viable. 

It's working 10 times better than when they launch it. But it's not there yet, if you're trying to manage your budget, be granular with your targeting and all of that and also we need to understand that Facebook doesn't behave like Google. So it's a bunch of different things. All right. So I hope that this helps guys. 

If you want to learn my approach to writing great ads to cranking out copywriting that actually compels without being a master copywriter to actually crank out videos that make you look super cool or helpful with people and they get people into your funnel, both for Facebook and YouTube, go ahead and sign up for the waiting list. HernanVazquez.com/Wait, we're launching the perfect x Word Perfect ads workshop on Monday. It's going to be pretty cool. I really hope to see you guys there. Have an awesome Friday, everybody. You guys really soon. Bye bye.

About the Author Hernan Vazquez

Hernan Vazquez is a digital marketing trainer and consultant that built several 7 figure businesses from scratch. He specializes in helping business and students grow their online businesses through the use of Sales Funnels, Paid Advertising and Email Marketing.

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