What Is The Best Budget Structure To Use In Facebook Ads?

In this video, we're gonna talk about budgets inside of Facebook ads. We're gonna talk about what are the best budgets to use, what's the best way to structure your spending, when you should structure things different ways, and maybe even some examples. So let's just get right into it. So when it comes to spending your money on Facebook, there are a couple of different ways to do it, and it's not necessarily as clear-cut as saying you wanna spend $20 a day and then it spends $20 a day. It's all dependent on how you structure your campaigns, how you structure the actual ad set as a whole, and that really determines what you're gonna spend. So let's just break down first off the different ways that you could spend money on your Facebook ads. And a lot of these will transfer over to something like YouTube or TikTok, but I'm primarily focusing on Facebook here. So let's just get right into it. Now, first ones first, when you're actually setting up a campaign, you're already approached with an option to determine how you wanna spend your budget. This used to be called CBO, campaign budget optimization, or now they've changed it to Advantage campaign budget. All this means, and let me just do a quick breakdown. If you look over here on the left-hand side, Facebook ads and a lot of other ad platforms break down their structure into 3 levels, the campaign where you determine the buying type, the campaign objective, The ad set, that's where you usually determine things like budget and audience. And then the ad, which is where you actually determine the ad, like the content itself. So let's first start here with the Advantage campaign budget. This is a CBO. Now for a normal ad, the spend will be decided at the ad set level. And let's say you have 5 ad sets. Well, one ad set could be spending $10 a day and another ad set could be spending $20 a day. And so on and so forth. You individually determine the spend at the ad set level. In this case, if you decide to turn this on, you'll see this little thing come up and then it gives you an option to then choose at the campaign level how you wanna distribute the budget across all of the ad sets. And all that means, and you can see in this one, we actually don't have one, but that's exactly what it'll do. You can see in this case here, With this one, we've got ad sets and each ad set is set to a specific budget. Whereas if it were set up this way with the Advantage campaign budget, if you had 2 ad sets, you would spend $100 and it would split it between the 2 ad sets. However, it wouldn't split it equally. There are some tricks in place where you can have it split it equally, but the purpose of this is to basically leave the spending and how the spending is divided in between the ad sets up to Facebook, which is great for optimization and scaling. I wouldn't necessarily recommend launching with the Advantage campaign budget turned on. It's definitely something when you wanna scale your campaigns, and I'll show you some accounts that have that as an example as well. So that's one option. The next option, as per usual, is just to set the budget here at the ad set level. This will then, at the ad set level, will determine how much you spend. Like it shows here, some days you'll maybe spend more than $20 and some days you'll spend less, but across a calendar week you will spend no more than $140 on your ad sets, right? So it does distribute it equally. You can, you know exactly how much you're gonna spend. It doesn't change right now with both the Advantage campaign budget. So the CBO campaign budget optimization or this one, and setting the budget at the ad set level, you actually have another option here and it's called a lifetime budget. Daily budget means you're gonna spend $20 per day until you decide to turn it off. Lifetime budget, you need to set a start and an end date. And from there it actually determines over the lifetime of that campaign from June, in this case, June 14th to July 14th, how much do you wanna spend overall? And you can really determine what you'd like to do here. And when you do this, it usually will give you an outline of how much you'll approximately be spending every single day, but not all the time. So if you set this right here, and I think it should give some details as well, it's not giving as many details as I'd want, but it'll usually give you an estimate of approximately how much you'll spend every day. Lifetime budget is also a really, really useful trick when you're deciding to scale campaigns. As well as when you have like a time-sensitive thing, like a workshop or a webinar or something like that. Both of them can be very useful. Let's talk about, and I wanna show you the structure of when I like to use the different kinds of spending in different scenarios. So I'm gonna put this in our funnel diagnostic cheat sheet. If you want access to the sheet, just check out the description below the video. There's a ton of different ways that you can get access to this thing. There's lots of other stuff in here, not just this, But this is where I'm kind of gonna break everything out, the spending structure across the board. And let me just zoom in here so it's easier to read. So when do we want to use the ad set level at a daily cost price point? When do we want to use that? I would recommend using this on all initial tests. So all tests should use this. I'd maybe even use this when you're scaling things as well. I think it's a totally fine way. You have full control. And that's really how I like to think about it is you have the absolute most level of control of how much you're gonna spend exactly to the dollar. Easy enough. I would always use it when you're testing. Now ad set level at the lifetime, this is when I would use this for anything that's time sensitive and ideally something that is proven. But you could also use it on tests. So I'd say ideally you use it on something that's proven. You could find some benefit with using it on your tests. And here's what I mean. So for anything time sensitive, let's say you have a workshop that's next week at 6:00 PM. I think it's great to have all your different tests that you're doing for that workshop and just set the end date to the following week at 6:00 PM. So you don't have to worry about coming into Ads Manager and turning it off. It'll just do it for you. It's a great way to do it. And Facebook really utilizes the budget to the full extent versus if you were to use the ad set level daily budget, it'd do well, but it's almost like a buildup. Whereas if you tell Facebook, hey, I'm intending to spend this much, they will get you the most opportunities for that spend. And it can be a really useful trick when you're doing things like workshops, webinars, so on and so forth. But ideally use it for proven things. Like I said, you could use it when you're testing stuff, But I'd try to stay away from it. Next one, campaign level daily. So your CBOs, your Advantage Budget Optimization, they change the name of it all the time. So it'll probably be changed next month. But at a daily level, when do you wanna use this? This is when I would, I would really use this when you're deciding to scale your proven winners. I think this is a great way that you can take all of your ad sets that are working at the daily spend level that have been proven to work. You take them all and you put them into one campaign at a phase 3 level, for example, something that is, I describe the phase 3 as just everything that's winning. So when I say that, it just means all my winning ad sets into one campaign and set it at a CBO level and set that budget. So Facebook will then pick and choose which ones to drive more of the spend to. And ideally you want this to be a higher budget as well. I've been, I've heard many things, I've been taught many things, I've experienced many differences. I will always get questions on, okay, well, how much should I set the campaign level of spend to? Well, Facebook optimizes for about around 50 conversions a week. So if you want leads, Facebook will perform the best for you when you get 50 of them a week. If you want sales, same thing, you got to try to get 50 a week for Facebook to really start to optimize. So a great way to figure this out is let's say you want to get 50 conversions a week. Multiply that by how much you want to pay for a conversion. Let's say it's $100, and then you'll divide that into 7, and that will give you your answer of how much you should be spending on a daily basis, just about. So for example, let's say I want to get 50 conversions a week at $100 per sale divided into 7. I should spend $714 per day. That's the like ideal budget if Everything were in a perfect world, that's how much you should spend daily to really get this campaign to work. However, I get it. We don't all have $1,000 nearly to spend every day on ads, especially when we're testing. That's why I really love to use this logic when you have proven winners and you build up to this point. So what you could do is start at $100 a day, and then you could start to slowly build up. Start at $50 a day, and if they start to win, the goal is to build that campaign up to this point. Point right here at least. And sometimes you can get it higher, but that's even a really good threshold that I've found is that once a campaign is getting 50 conversions a week or an ad set is getting 50 conversions a week, you wanna try to get another one that's doing that. You basically want as many ad sets and campaigns hitting the minimum of 50 conversions a week. I hope that makes sense for you guys watching. Next, campaign level lifetime, similar kind of process. I would definitely use it for scaling proven winners. However, I would use this for like the time-sensitive stuff again. So if it's like a workshop webinar, that's really where I would, would use this. Can't even spell. That's where kind of I would use this campaign level. Now, one thing that I mentioned that I want to lead this video off with is exactly how to influence the spending on a campaign level. So let's say for example, you're using this campaign level here and you wanna spend $1,000 a day and we'll go next. And let's say you had multiple ad sets. Well, what you can do is it actually gives you this option here, ad set spend limits. You can set a minimum or a maximum. So let's say you do have 5 ad sets and you're spending $1,000 a day. But you want to make sure that each ad set gets a fair shot at actually getting some sales or getting some spend. So you get data. This is a great spot. You can click this thing on, you can say, hey, you know, I want each of these to at least spend $100 a day. That's a great way to make sure that Facebook is being paired, or sorry, is being fair with everything that you're putting out there. So that's everything for this video. If you want access to this cheat sheet, so you can kind of see when and how to spend stuff, or set up your spending structure, check the description below the video. In a future video, what I'll probably do is talk about bidding because there are other options in here. Right here, campaign bid strategy. In this one, I just wanted to talk about budgets, how to set up your budgets, how to structure them, and when you should use what. Because I know for someone starting off and maybe even people that have been doing it for a long time, Maybe we've been in the routine of just using daily budgets all the time, and maybe it's good to test out lifetime. Like I know here in this example, for a lifetime budget, I said for anything time sensitive, but I've actually found that when something is working here on the daily level, I pull it into a lifetime budget and just tweak the budgets a little bit and set, keep everything the same, but it's just set up lifetime and it ends up crushing it. It just performs really, really well. There's all these small tests and tweaks you can do, and sometimes it's easy just to put everything in ad set daily, campaign level daily. It's good to try out these lifetime budgets and see how they work because you'd be surprised the changes in performance you could see. So if you enjoyed this video, drop a like, drop a comment if you have any questions, and I'll be sure to get back to them as soon as I can. And check the description if you want access to this cheat sheet. There are dozens of resources in here and little mini videos to tell you how to improve your ads. Um, that's all I got for you for this one. See you in the next video.