Facebook's Power5

cbo power5 Nov 22, 2020

Sometimes we half-joke that artificial intelligence (a real one) will leave us without a job.

While no one knows how long we can continue using this joke, in Facebook Ads, there are already a number of tools that make life much easier at the level of managing our advertising campaigns and making online advertising much more accessible to anyone interested.

Some of these tools are more recent than others, but it has not been until a few days ago that Facebook has decided to do little marketing and has named them as follows:

We have decided to take advantage of the fact that there are just 5 days left until Black Friday, dedicating each of these days to commenting on one of the tools referred to in Power5, starting with Campaign Budget Optimization, better known as CBO.

If you still don't know what CBO does, we explain it with an example. You have 10,000 euros and you want to have it deposited in the bank that offers you the highest interest. Bank "A" gives you 1%, bank "B" gives you 2% and bank "C" gives you 3%.

It seems like an obvious decision, right? Well, Facebook realized that it was a common practice to divide the available budget by the number of ad sets within the ad campaign and to distribute that budget equally regardless of whether there were ad sets that generated greater results than others.

Those of us who mastered Facebook were more careful and had to analyze and decide every day which ad sets we took investment away from to feed those who were performing best. With complex campaigns, this could take hours.

Thanks to CBO, that's partly over. Now you "give the 10,000 euros to Facebook" at the campaign level and they take care of investing where they will get the most return.

Why do we say "partly"? Because CBO, at the moment, has two big "buts":

  1. If within the same campaign an ad set has more audience than another set of ads, by inertia, CBO will give more money to the one with more audience. This leads us to have to control budgets or be careful with the size of audiences in our ad sets.
  2. If we put a new ad set into an active CBO campaign, it runs the risk that CBO won't give it a chance and invest in it. This again causes us to control budgets by setting spending limits and/or minimum spend per ad set.
    Taking this into account and being prepared for these cases, we can take advantage of the best the tool has to offer while dealing with the flaws.

If you want to save yourself money and the trouble of not having taken into account hundreds of details like these, remember that you can learn Facebook Ads with us. 



Join FREE FB & IG Ads Webinar by Patrick Wind!

Learn the exact Bid Strategies, Audiences & Ads that Patrick has applied to over 120+ Brands to generate over €10,000,000 with their Facebook & Instagram Ads.

Sign up now

50% Complete

Two Step

Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.