Facebook Ads Ad Set Budget VS CBO Campaign Budget Optimization

Marketing and advertising can be complicated. What's most important? What should I focus on? Direct marketing? Email campaigns? Social media? Cold calling? With Marketing Atlas, you'll have a clear guide to get more leads, close more sales, and take your business to the next level. Welcome to Marketing Atlas. Marketing Atlas.

Marketing Atlas.

With your host, Hernan Vasquez.

Huzzah! I told you guys that I will be working on my intro. The next thing is to rappel down from the ceiling. I've been kind of trying to make that happen here in my office, but it's kind of hard. So I'll see if that works or, you know, do some somersault. We'll see. We'll see. So anything for you guys. What's up, everybody? Let's talk a little bit about campaign budget optimization versus ad set level budget. This is a question that I get a lot. What should I use? Should I go all in campaign budget optimization? Should I go— should I stay with asset level budget? What should I do? Okay, and that's a question that I'll try to answer for you guys today. Now, if you want to write advertising that compels people to click, to become leads, to become customers of your brand or your clients, and you want to go and take your advertising game to the next level, I want to invite you to join the waiting list for my brand new workshop, Perfect Ads. Okay, it's going to be awesome. We're going to be releasing it next week, so next Monday. So if you're interested in getting access to this with a really cool pre-launch early bird super heavy discount, go ahead and go to hernanvasquez.com/wait. hernanvasquez.com/wait and sign up for the waiting list. It's going to be awesome. And the good news about that is that when you join to the pre-launch, you will be able to get your questions answered. So we're going to be touching base on 3 main networks. Number 1, Facebook, of course. Number 2, YouTube, and the Google Display Network. So I'm going to share with you how to write great ads for Facebook, how to record great videos for Facebook and YouTube, and how to make great banners for the Google Display Network. So with that being said, let's talk a little bit about these 2 things, campaign budget optimization versus ad set level budget. This is a question that I get a lot, and honestly Facebook has been kind of letting us know that they will be taking ad set level budget away. And on some ad accounts it's a thing, the fact that you cannot create ads with ad set level budget anymore. Everything has to be at the campaign level. But I happened to just open a couple of brand new ad accounts to test new stuff, and they still let you create ad set level budget campaigns. So they were saying that they were taking it away last September, I think it was, then last December, then in March this year, and we still have it available. There's a couple of reasons why. I am a big proponent of ad set level budgets when you're starting out, when you're testing. When you're testing an offer, when you're testing audiences, when you're testing a bunch of stuff, there's always this possibility of you to create ad set level budget campaigns. I'm a big proponent of ad set level budget campaigns. But when you start scaling, when you have a proven offer, when you have a proven funnel, when you have proven audiences and you want to start scaling, then campaign budget optimization, it really does work well. So in which scenario do I use them? Well, ad set level budget, I use them when it comes to testing, okay? So when it comes to testing, testing new audiences, testing new offers, testing creatives, I always set up my budgets at the ad set level. The reason why is because it allows me better control on the ad spend. Let's say that I'm testing, I don't know, 40 different audiences for a new product or a new service or a new offer, right? If I'm testing 40 different audiences, then I want to have control on how my budget is being spent. So I do set up this at the ad set level budget. I do work with ad set level budget. Now once again, once I have big audiences, once I have a proven funnel and a proven budget, then I go ahead and start scaling with campaign budget optimization. The reality is that campaign budget optimization is much better or is much faster and it's less of a headache when it comes to scaling. The reason why is because you can spend a lot of money really, really quickly with campaign budget optimization, but again, your Funnel needs to be proven. Another thing that I use when it comes to ad set level budget, it's slow scaling. So you can do fast scaling here, or fast growth, I would say fast spend of a campaign when it comes to campaign budget optimization. But when I want to start ramping up things slowly, I go ahead and start using something called 3x3 or 4x5. I start testing all of these different structures at the ad set level budget. So this will be slow scaling. Okay, so in a scenario, a possible scenario, let's say that you're running your campaigns on, on account A, right? And you're running those campaigns on account A, and then you want— you understand that it works, and now you want to pump more budget into the auction. Then what you want to do is maybe start running from account B. You want to start running that, but you can actually start spending much faster with campaign budget optimization. Okay, and the reality is that this has more sustainability. The reason why it's so sustainable to run campaign budget optimization, it's because you can let Facebook do its thing. And the more you let Facebook do its thing, the better it goes for you in terms of sustainability of the campaigns. Maybe, you know, if you're trying to constrict too much the algorithm, if you're trying to do this and that and a lot of different things, then you will notice that your results might be constricted. Your results might go well for maybe a week and then they stop. With campaign budget optimization, what happens is that once you have a good funnel, a good offer, and you have a high budget, this will be more sustainable for you. Now, of course, one day it will perform well, one day it will perform bad. As long as it stays within the realm of the possibility when it comes to CPAs, then this campaign budget optimization will be much better. Now, this, of course, is more granular. So for instance, for everything that has to do with retargeting, I use ad set level budgets. So for instance, let's say that I have, I don't know, that you visit my book funnel, right? You go to perpetualprofits.net and visit that sales page, but you do not buy. So I can actually set up a budget or set up an ad set that specifically targets those people. Now if you go to the next page, you will see that there's an order form, right? And for people that visit that order form but they do not buy, then I can actually go ahead and set up specific specific budget to target those people. So I can be much granular. And I really like the ad set level budget side of things when it comes to retargeting. So retargeting, I would do this. Cold traffic, lookalike campaigns, big budgets, I would do campaign budget optimization. You will notice that campaign budget optimization doesn't work as well at lower budgets and when you're testing stuff out. But if you combine the two, that's the good news, you can still combine the two. And you can actually have a really good campaign. So when you're starting out, just stick to ad set level budget. When you're testing a new offer, a new funnel, new audiences, you do not know what's going to work, you have much more control here. So you can have, let's say, 20, 30, 50 different audiences running at $5 a day, and you will be testing and doing a slower scaling here. Now when it comes to big budgets, an offer that's already working, an offer that's already yielding results for you, then you can start using CBO.

Hey, this is Hernan Vazquez, and I know that if you're running Facebook ads, it can get complicated. Facebook changes stuff every week, techniques are being updated, strategies are being updated, and some people are just not getting the results that they want. So what I wanted to do is to condense several years of experience and millions of dollars in advertising in one simple guidebook that you can get, that you can pull out whenever you're running your Facebook ads so that you can have a template that you can use.

So if you're interested in getting a copy, go to adsguide2020.com.

That is adsguide2020.com. Download your copy.

Hope you enjoy it. Let's say that you have 10 different ad sets and you can do a minimum ad spend on each ad set. So let's say that you wanna— that you want Facebook to spend a minimum of $10 a day on each ad set. That's great in theory. It doesn't work when you're trying to be granular, okay? So it doesn't work when you're trying to be granular. The reason why is because campaign budget optimizations, they work as a whole, okay? They maintain the equilibrium of the campaign as long as it's yielding results while you keep everything up and running. So in theory it sounds really cool, but in reality Facebook does what it wants with the budget, okay? It might spend $10, but it won't optimize accordingly. So when I want to control the action, I want to really be on top of my budget, I do ad set level budget. It's a great idea, but you know, Facebook, the way it works with Facebook ads is that they roll out something and then they collect a bunch of data and then they make it better. I really do hope that the minimum and maximum And even like how, what portion of my budget I want allocated to each ad set, right? Let's say that I'm running like $100 a day, then I want each ad set, let's say that I'm running $100 a day on a campaign budget optimization and 10 different ad sets, then I want each of them to spend 10% of my budget without fail. And that doesn't work, okay? If you test it out, it doesn't really work like that. It doesn't work as advertised. So that's why I'm still using it both. That's the good news is that you can use ad set level budget when you're starting out and campaign budget optimization when you're trying to scale, when you're trying to pump up on budget. Now here's the thing, on campaign budget optimization you also need larger budgets because you need to leave Facebook optimized. You're adding another layer of complexity to the whole thing in terms of you're letting Facebook understand who your audiences are. If you're running conversion campaigns, you have a pixel optimization, right? So Facebook knows who your audiences are. Maybe you're using dynamic ad sets. Facebook will mix and match the whole thing, and then you're letting Facebook to actually optimize the different ad sets, right? So what happens is that you're adding another layer of complexity. And when you have a big budget, maybe you can let it run for the next 7 days and it will get better. But a lot of advertisers, they might not be willing or maybe even have the means to actually spend an extra $500, $700, $1,000 a day just to let Facebook optimize. So that's why I'm saying these are for more mature campaigns in my experience, and these are for campaigns that are standing up. If you have, let's say, 1,000 purchasers or 2,000 purchasers, you can go to town with a campaign budget optimization. You can set up $1,000 a day, $2,000 a day, and target everyone in the US, and this will provide— this will yield good results. Facebook will go out there and find buyers at your desired CPA. First, you need to crawl before you walk and you need to walk before you fly, right? That's why I'm saying I'm usually testing with ad set level budget and then I use CBOs to scale because CBOs are easier to manage, honestly. You only need to manage one variable. On this case, if you have like 1,500 different ad sets, which I had at some point, and you need to manage all of this, it becomes cumbersome. With campaign budget optimization, everything should be easier, right? Again, we're going into campaign budget optimization more and more. Facebook, it's making it more viable. It's working 10 times better than when they launched it, but it's not there yet if you're trying to manage your budget, be granular with your targeting, and all of that. And also we need to understand that Facebook doesn't behave like Google, so it's a bunch of different things. All right? So I hope that this helps, guys. If you want to learn my approach to writing great ads, to cranking out copywriting that actually compels, without being a master copywriter, to actually crank out videos that make you look super cool, that are helpful with people, and that get people into your funnel, both for Facebook and YouTube, go ahead and sign up for the waiting list, hernanvasquez.com/wait. We're launching the Perfect Ads Workshop on Monday. It's going to be pretty cool. I really hope to see you guys there. Have an awesome Friday, everybody. I'll see you guys really, really soon.

Bye-bye.