Changing Facebook Ads Budgeting: What Does It Mean for Your Business

What Is Campaign Budget Optimisation?

The campaign budget optimisation function was first made available on Facebook in November 2017, and it was designed to be a straightforward and time-saving approach to achieving optimal results with Facebook Ads.

Advertisers on Facebook are now able to specify their budgets at the campaign level rather than the ad set level thanks to a new tool. This indicates that Facebook’s algorithm is used to allocate the whole budget for advertising expenditure to the ad sets that have the highest rate of success. Now, let’s try that in English… Facebook would like us to have faith in their ability to optimise advertisements based on what is and is not successful. Many thanks, FB

The campaign budget optimization feature will be made the default option for all Facebook advertising in February of 2020. The question that needs to be answered is what exactly all of this means for advertisers.

In order to acquire a better grasp on the implications of this transformation, let’s first examine the key distinctions between conventional budgeting and campaign budget optimization. Take a look at the following illustration by the best social media marketing agency in India:

Example 1:

You have allocated $600 for the campaign that you are conducting. You make the decision to run three distinct ad sets, each including a single advertisement. You make the decision to allot $200 for each ad set despite the fact that you do not know which advertisement will be more successful. At the end of your campaign, you have received a total of sixty enquiries as a consequence of your efforts.

Example 2:

You make the decision to continue running the same campaign with the same budget of $600, but this time you will apply the campaign budget optimization. Facebook is able to allot more of its advertising budget to ad packages that are producing greater results. At the end of the campaign, you have 68 queries as a result of the ads feeding out to the audience and the creative responding the best.

As can be seen, optimising the budget for the entire campaign resulted in eight more conversions than setting the budget for each individual ad set did. You can also notice that the advertisement set was provided with a larger budget in light of the fact that it performed so well.

Why Are They Changing It?

Because Facebook has made the decision to make Campaign Budget Optimisation the default budgeting option, advertisers are now able to obtain greater results while spending less money.

These adjustments look to be an excellent strategy to improve outcomes while while reducing the amount of management effort required for your advertisements. However, this needs advertisers to have faith in Facebook’s algorithm, which takes away some of the power they already have.

What Does This Mean For Advertisers?

We are only able to comment based on the information that we have currently obtained on CBO. At this moment (August 2019), the two most important items that are worth noticing are as follows:


At the moment, because the budget is determined on the level of the ad set, we are able to target a variety of age groups, countries, languages, and audiences. Top facebook ads agency in India when working with national clients that wish to distribute their advertisements throughout India, a separate campaign geared toward each demographic must be developed.


CBO makes testing considerably easier, however the ease of testing is dependent on the configuration of the advertising as well as the variable being evaluated.

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