Facebook recently announced that it will migrate all accounts to Campaign Budget Optimization beginning in September of this year.
This sweeping change means that advertisers will effectively lose control of ad spend at the ad-group level, relying on Facebook instead to direct spend in what it deems to be the most efficient use of spend across ad groups.
Here’s what advertisers need to know regarding the migration.
“This is a major change in the structure of Facebook ad campaigns. There hasn’t been one of this size in years. It will change the way advertisers optimize spend to their campaigns within the platform.”
-Katy Lucey, Director of Paid Social at Elite SEM
What Does It Mean For Advertisers?
Facebook introduced Campaign Budget Optimization over a year ago, which enables advertisers to set a single budget across multiple ad sets and then allow Facebook to direct the budget for those ad sets based on real-time performance metrics.
Historically, advertisers have always been able to set separate budgets for different ads within a Facebook campaign.
That all will change starting in September, however.
Facebook will begin “migrating” new and existing campaigns to a Campaign Budget Optimization default, meaning that advertisers will rely on Facebook to control ad spend at the ad group level.
The official announcement reads:
With campaign budget optimization, you’ll be able to set one central campaign budget for all of your ad sets, and we’ll automatically and continuously distribute that budget in real time to your top performing ad sets.
After September 2019, you can still control spending at the ad set level by using ad set spend limits. If you set a minimum spend limit, Facebook will aim to spend that amount. If you set a maximum spend limit, Facebook will not exceed that amount. To learn more, read about campaign budget optimization controls.
To understand how campaign budget optimization distributes your budget, pay attention to the total number of optimization events for your campaign and the average cost per optimization event at the campaign level, instead of each ad set.
“For some advertisers, campaign budget optimization will become the fixed default within Ads Manager beginning in September 2019,” explains Lucey.
“This means that ad set level budgeting will no longer be available. However, Facebook confirms the change will take place over the course of a few years.”
While losing the ability to direct spend at the ad group level may alarm some, it’s worth noting that many Paid Social practitioners have seen improved performance and efficiency with Campaign Budget Optimization since the feature was first released over a year ago.
How Can Advertisers Prepare For The Switch?
While the switch to Campaign Budget Optimization won’t begin until September this year, it’s always a good idea to familiarize yourself with the feature beforehand so that you can understand how the change will impact your existing and future campaigns.
“Confirm with Facebook reps on the timing of when the switch might occur and begin testing campaign budget optimization now to see how to further implement it across campaigns,” explains Lucey.
“The Elite paid social team is beginning to roll out extensive testing on campaign budget optimization to see what effects it will have on account performance and will share our official POV once we have completed our assessment.”
Want to learn more about Campaign Budget Optimization?