The Facebook Budget Optimization Tool is a helpful tool for allocation of budget to reach the most effective Facebook Audiences. It uses an algorithm to optimize your budget distribution across ad sets in Facebook. To know how this tool can further help you, how it works and during which instances you can use it, read on.
- Determine Initial Budget Allocations Based on Audience Size
Facebook has stopped showing the estimated size of a custom audience with the Cambridge Analytica scandal, with this it has been more difficult to estimate your budget between ad sets. This is where the Budget Optimization Tool is handy – just set a campaign budget and Facebook does the allocation based on optimal performance.
- Enable Budget Optimization Across Ad Sets
To use the Budget Optimization Tool, simply go to the Ad Creation Tool in Facebook Ads Manager and flip the toggle for Budget Optimization to on. Afterwards, you can pick your campaign budget and bid strategy. A guideline then for a campaign budget is to estimate how much budget you would originally allocate each ad set under the campaign and add those to come up with the total campaign budget.
- Build Out Your Facebook Ad Sets
With budget optimization toggled to on, some settings are enabled for each ad set. You can set a spending limit on each ad set, this can ensure that all of the ad sets will receive a part of the overall campaign budget. However take note that if the spending limits are too rigid, the Budget Optimization tool may not work properly. With this it is a good practice is not to set spending limits to allow the tool to work with its algorithm, and update the spend limits later.
- Test Multiple Creatives with Budget Optimization
A rule of thumb is to constantly test several creatives at the ad level. When you run multiple ads you may notice that Facebook delivers one ad more the others after several hours. This is because Facebook ad algorithms automatically determine which ad is performing best and serve that ad more often.
In conclusion, the budget optimization tool allows marketers to the achieve results at the lowest costs. Facebook has developed the algorithm sophisticated enough that it automatically sets a higher percentage of the budget to the bids that are performing the best.
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