On November 8th of 2017, Facebook launched Campaign Budget Optimization or CBO.

Since then, the introduction of Campaign Budget Optimization has allowed the Ads Manager to optimize their campaigns even further. Options of dividing the budgets between ads and ad sets. Earlier, this feature was not available to the Ads managers; the budget was only spent on ads.

For a regular digital advertiser and marketer, campaign budget optimization on Facebook is not easy, especially because larger firms that have a plethora of information and access to larger advertising budgets, know how to spend money on advertising for any particular audience.

Therefore, to makes things easier, Facebook has introduced CBO (Campaign Budget optimization) to help out small scale digital advertisers and marketers.

This new feature automatically redistributes the budget to the best performing audience.

The Beginning of Campaign Budget Optimization

Earlier, when the Facebook just introduced the Campaign Budget Optimization, the entire thing was optional, but in the fall of 2019, Facebook introduced new changes and made Campaign Budget Optimization as a default option for selected accounts. Earlier when Campaign Budget Optimization is entirely optional. Many advertisers ignored it, but due to the change, it has made a comeback.

Facebook is an excellent platform for advertising, firstly because of its very high popularity. It is the most popular social media platform on the internet, and it is miles ahead of other social media platforms. Facebook also has many built-in machine learning algorithms that help in maximizing the return on the money spent on ads by digital marketers and advertisers. The algorithms have many features which have the potential of being a powerful optimizer. An experiment by AdEspresso has tested these algorithms by optimizing different objectives like reach, conversions, clicks, and engagement. Ads manager can not only optimize for a specific goal, but they can also enhance the ad spend by giving preference to some best performing ads among an ad set.

Managing the budget and the audience reach is a very tough task for an Ads manager because a plethora of variables is involved in the process. But the built-in machine learning algorithm available on Facebook can efficiently work out all the variables involved in advertising. Therefore, the new feature lets the algorithm take charge and manage the budget of your entire ad sets according to the parameters. This means that instead of a person managing the budget and deciding on how much to spend on each target, we can tell the budget of the entire campaign to Facebook, and its built-in machine learning algorithm will manage the whole budget.

Structure of a Facebook Campaign

All the Facebook campaign consists of three main elements: ad, campaign, and ad set.


Similar to its non-market definition, the representation of an organized effort to achieve a goal is specifically referred to as the campaign. In the context of Facebook advertising and marketing, it is referred to as a collection of ad sets and ads which are used to achieve a particular goal like conversions, link clicks, and many more. Each ad campaign corresponds to a single advertising objective, like driving website traffic.

Ad Sets

Ad sets is a set of ads that share the same bidding, targeting, and schedule. This is where you need to manage the budget. You need to allocate funds for different ad sets to reach different sets of target audiences. The new changes where the campaign budget optimization is necessary; this is the step where changes can be seen practically.

Earlier, the ads manager has to allocate the resources by looking at various ad sets and deciding which one will be beneficial for their advertisement and which ad set have the audience that they are targeting. On the other hand, due to the recent changes, you only need to tell Facebook the total budget for the campaign, and the cost allocation for different ad sets will be decided by the built-in machine learning algorithms provided by Facebook.


According to Wikipedia, “Advertising is a marketing communication that employs an openly sponsored, non-personal message to promote or sell a product, service or idea.” These ads are the creative art shown to the targeted audience. Each ad set can feature multiple ads featuring different images, texts, links, or videos. You will still need to define creative targeting and bidding for each of your ads.

What Is CBO (Campaign Budget Optimization)?

Facebook has provided a clear-cut definition of its new feature, Campaign Budget Optimization:

Campaign budget optimization is a way of optimizing the distribution of a campaign budget across your campaign’s ad sets. This means Facebook automatically and continuously finds the best available opportunities for results across your ad sets and distributes your campaign budget in real-time to get those results.

As described above, instead of setting a budget and scheduling it for each of your ad sets and organize each set by audience segment like people who live near your store, you have to tell Facebook your total budget for the campaign and the algorithm provided by Facebook will manage the budget and maximize your returns.

Facebook has also compared the ad campaign with and without Campaign Budget Optimization. The comparison can be clearly seen in the image provided below:

campaign budget optimization comparison

The image above shows that the new feature has reduced human efforts and increased conversion rates.

The algorithm had allocated more money towards ad set 2 and, in return, got a considerable number of conversions. On the other hand, without Campaign Budget Optimization, the conversions are less because one may have invested equal sums of money in each ad set.

But how did Facebook’s algorithm set the budget’s distribution?

It optimizes the campaign budget on an opportunity by opportunity basis in real-time.

The Campaign Budget Optimization also provides some other benefits in addition to optimizing the budget of your campaign.

Common Facebook Ad Mistakes

Targeting Mistake

Targeting the right audience plays a pivotal role. Aiming for the wrong target audience, or one that is random at best affects the outcome. Regardless of quality, price, or offerings, a random audience would never fetch the desired results.

According to a study by AdEspresso, on analyzing the third quarter of Facebook statistics in 2016, they found that there can be up to a 1000% difference in the cost per click ad when targeted to the right audience. This is because, for different age groups, the cost-per-click is different. But with the new default feature of Campaign Budget Optimization introduced by Facebook, this mistake can be easily tackled because the algorithm optimizes the budget to maximize your returns. This means that the algorithm finds the right audience for your ad and manages the budget accordingly.

However, it is always better to conduct customer research before investing in online advertising to know the right customer for your product or service. There are three common ways to avoid targeting the wrong audience on Facebook:

Demographic customer research

If you want to learn how to be a good digital marketer, you need to know your customers, and you need to find out what are the demographics of your customer. You should know about their gender, age, location, education, lifestyle, purchase behavior, job seniority, and other useful information. You should use this demographic information to target the audience on Facebook.

Analyze Interest

Facebook provides a tool to analyze the interest of the audience. This tool provides information that the people have shared on Facebook and the information gathered from third-party partners. After learning the interests of your audience, you can easily target them, and it will be much easier for you to create a message based on the particular interests of your targeted audience.

Targeting Niche interests

In the last point, we talked about targeting all the broad interests of people, which will result in thousands of people. Narrow down your target audience to the ones that are of particular interest. You can have different layers of interest, and you can set the condition that the person should match with at least one of the layers to narrow down your targeted audience. Facebook has provided tools to fine-tune your target audience further.

Offer Match and Low Audience

Ad message is your opportunity to let the global audience know who you are and what your brand is all about. Some might have heard of your brand, but there is still a good chance that a person seeing your ad would have no idea of your brand’s existence and the benefits that they will get from your services.

The target audience is categorized into three different categories:

1. Volcano Lava traffic

These are the people who have already bought something from your organization or the people who are very close to becoming a customer like someone already in contact with your organization.

2. Lukewarm audience

These are the people who are aware of your brand and your services, but they are not sure whether to buy something or not.

3. Ice cubes

These are the group of people who have never visited your organization’s site and landing pages. For Facebook advertising, these groups of people are usually targeted along with a saved audience.

For each of these categories, one needs a dedicated and specific Facebook ad campaign to target audiences more effectively. You also need to create an appropriate ad message as per the categories of the targeted audience. If your ad directly asks customers to click here and buy, the ice cube category of the audience will think of it as spam, irrelevant, or even threatening. But such ads can work for people who have already bought from you before and know about your brand and services.

Therefore, different types of ads are needed for different categories of audiences. An excellent way to evaluate the match of your audience is to check the relevance score of your Facebook audience. The relevance score helps in understanding how the targeted audience, who are seeing your ads, are reacting to your advertisements. The higher your relevance score, the lower the cost per action.

Targeting a Broad Audience

Many Facebook ads have a target audience of over 20 million people in the United States, but targeting such a broad audience can be helpful only if you are a household brand; otherwise, you are just wasting your buck on a redundant audience. This is because your ad would not be relevant to such a broad range of audience members. Because of the low ad budget, there is a chance that your Facebook ad will not reach the audience with the highest buying potential. How can you tell whether your targeted audience is too broad? You can start by taking the cold hard numbers into account.

If you are targeting an audience of 1 million, you need to ask questions like are millions of people interested in buying your services or products. If your answer is no, you need to work on narrowing down your targeted audience. You can statistically check whether your audience is too broad or not by using Facebook’s projected ad reach. You can compare the expected reach of your Facebook ad and the total audience size on Facebook. After comparing, you can decide to narrow down your audience based on your budget. You can narrow down your audience using interests, demographics, and behaviors.

Not Leveraging Custom Audience

Creating a set of custom audiences and leveraging on it is the best way to maximize your returns in Facebook advertising. By creating a custom set of audience, you will be targeting a better audience, which is on the warmer side of the audience category (Volcano lava traffic and lukewarm audience). One Software as a Service company, known as Scoro, ran a Facebook campaign by using Facebook’s custom audience, and their campaign resulted in six times more conversion than the campaign without the custom audience and the same budget. Just knowing about the custom audience will not maximize your returns, you need to leverage on the custom audience.

For leveraging your custom audience, you can create a different campaign to collect leads. You can also remarket the visitors of landing pages; this is because the audience that visits your landing page is interested in one of your products or services. As a result, you can create a Facebook ad that is specific to the landing page.

Exclude Past Customers

Using Facebook Ads the right way, you can capture your first ten customers with ease. But forgetting to exclude your existing customers, may hinder your new ads.

While filtering the audience to target for your Facebook ad campaign, most of the time, you forget to exclude the people who are already your customers. There are three disadvantages of not excluding past customers from the current targeted audience:

  1. These ads are not relevant to the people who are already converted.
  2. These customers might get annoyed by seeing the ad after buying a product from your organization.
  3. Your Facebook ad campaign budget is being wasted on the people who are already converted, and there is no advantage of showing these ads to these people.

Forgetting to exclude already converted people can lead to audience decay and ad fatigue. Facebook ad fatigue means when the same people stumble upon an ad over and over again, their engagement with that particular ad will drop, which will lead to higher costs for the advertiser. This extra cost can be used to reach other target audiences if you can exclude the already converted audience.

Similarly, Facebook audience decay means that if you display your ad to the same people over and over again, it will result in a decrease in people’s interest in your advertisement and eventually in your brand. Exclude customers by creating a custom audience for people who have visited particular web pages regarding your products or services. You can also use the ‘Exclude’ feature available in your ad campaign to filter out past customers and the people who have already visited your landing pages.

Using the Right Ads

There are different types of ads available on Facebook like newsfeed ads, video ads, stories ads, leads ads, and many more. Newsfeed Ads are the most popular choice, but other options are also growing exponentially.

Different types of ads have different purposes, and some people prefer certain kinds of advertisements over others. Therefore, the type of ads, their use, and the type of audience you are targeting should be kept in mind. Some available ads on Facebook are:

Newsfeed Ad

These are the most popular choice for ad beginners. They are straightforward, effective, and easy to create.

Lead ads

These ads provide people a quick way to opt into different things like newsletters, eBooks, offers, and quotes. These types of ads have a high conversion rate among the mobile audience.

Right column ads

These are simple and basic ads that are present on the right side of the screen of the Desktop’s feed. This ads contains just headline, single image, and description.

Page-like ads

This is the type of advertisement where the goal is to get more likes and increase awareness of your brand’s Facebook page.

There are other types of ads, as well. You need to recognize which kind of advertisement is better for your Facebook ad campaign.

You should also consider what kind of ad does your audience like, to maximize your ROAS and your returns.


While creating a Facebook ad, you have the option of writing a custom copy for every part of your Facebook ads. This is a big responsibility because if even one single line of text goes wrong in the ad, it has the potential to destroy your entire ad campaign.

This is a mistake which, usually, rookies do. Much like writing quality blog articles, rookies do not allocate time for creating a high-quality copy of your Facebook ad. If you are facing issues with producing a good quality ad copy, you will need to learn it to improve your ad campaign.

Writing copy for a Facebook ad begins by defining and setting a goal. You need to stick to this goal throughout the process. Your goal for your ad campaign might be getting people to buy your product or services or increasing your brand awareness.

After knowing your goal, you need to ensure that every single line of your ad copy is supporting the primary objective of your ad campaign, and every line should nudge the targeted audience towards taking the right action. Facebook has recommended three best practices for copywriting; these practices are:

  1. First, you need to find the right tone for the voice to express your ad message to the targeted audience correctly.
  2. You need to remain consistent with the essential things only and always keep your goal in mind.
  3. You should write by realizing the customer’s perspective as well. This way, you can know what the customer understands and how to make this understanding better.

Including customer reviews also have a benefit for your ad campaign as this is the sign of trust between your customer and your organization. According to a study by Econsultancy, for the websites which have incorporated customer review, 63% of the total visitors on their website are likely to buy your products or services.

You should also keep in mind that while writing a Facebook ad copy, the language should be clear and descriptive so that the general audience would not have any trouble understanding it.

Too Much Text in Your Ads

In terms of Facebook ads, less is often more. The more visual actions and input options that your visitors have to process after seeing your Facebook ad, the lesser the chance of a conversion. You need to have fewer distractions in your ad, keep it simple, creative, and descriptive.

Sprout Social has analyzed the perfect lengths of Facebook posts, and they discovered that brief Facebook ads have a better chance of engagement and conversion. BlitzLocal also analyzed over 11,000 Facebook pages and posts and concluded that as the posts get shorter, the engagement and chance of conversion increased.

Shorter ads attract more audience engagement because people don’t have to spend too much time reading the post, and short posts can deliver critical messages to the audience more quickly.

Ad Placement

Ad placement also plays a crucial role in managing your budget for your Facebook ad campaign. Some ads which are placed on the newsfeed or the side can create a considerable difference in cost-per-click. According to a study conducted by the marketers at Scoro, it was discovered that the desktop ads have 534% higher cost-per-click than the ads that are placed on mobile. But in the study, it was also found that desktop ads have higher chances of conversion than ads placed anywhere else. Facebook’s ad placement consists of:

  • Instagram
  • Newsfeeds (mobile or desktops)
  • Instant Articles
  • The right-hand column of Facebook
  • Audience network
  • In-stream video

The main reasons that ad managers and advertisers commit a mistake in ad placement are because of placement and offer mismatch. For example, if you are a business organization and wants to provide a free trial of your service to the targeted audience than you might not want to post that ad on Instagram because most of the people do not want to deal with business while scrolling through photos of their friends and relatives. You can find out the best way of ad placement for maximum returns by testing out different ad placement for your organization and analyze the result.

You can also see the Facebook ad reports according to different ad placements in the Facebook ads manager. You can then choose which suits best according to your business and which has the least cost-per-click and maximum return on your investments. Facebook has also suggested various ad placements for different types of niches. Some of these are mentioned below:

  • Conversions – Audience Network and Facebook
  • App Installs – Audience Network and Instagrams
  • Brand Awareness – Instagram and Facebook
  • Video views – Audience Network, Instagram and Facebook
  • Traffic for app engagement and website clicks – Audience Network and Facebook
  • Product Catalog Sales – Audience Network and Facebook

Low Landing Pages and Facebook Advertisement Match

Sometimes, when you click on a Facebook advertisement showing a sale or a particular product, it redirects you to the company’s landing page.

This confuses a lot of people, and even they have clicked on the ad, the conversion rate will be shallow because people will leave the landing page if they didn’t find what they are looking for right away.

Unattended Facebook Ads

Facebook Ads are just like your pet; if you leave them unattended for a while, they can cause trouble.

In a study by AdEspresso, they made a good ad campaign and left it running for several months. In only 5 months, the cost-per-click of the ad has increased by 1050%. Therefore you need to conduct weekly checkups on your ads.

It will save a lot of money, and you can also gather relevant data that can be used later by seeing the weekly reports.

Final Thoughts

Other common mistakes need to be avoided for a better Facebook ad campaign and to maximize your returns. There are many ads available on Facebook that fails to draw customer’s attention. You need to make an advertisement that delivers a brilliant ad message, and it should be relevant to the audience. The image that you add and the headline of your ad should catch people’s attention. By investing a little more on a good ad, you can save many bucks on Facebook advertisement costs.

The image that you add in your advertisement should not contain too much text because Facebook itself prefers advertisement images with little or no text. There can be some exceptions, but generally, an image in an ad with little or no text is preferred by most of the people and Facebook itself. The headlines on your advertisements should be catchy to gather the attention of your targeted audience because it will be a waste of money if your targeted audience is not even looking at your advertisement after reading a boring headline.

A clear value offer should also be kept in mind. Value offer is like translating the message that you are trying to give in to the customer’s language. The value offer explains the customer or the targeted audience why they should buy the product or service. The advertisements should not be stuffed with too many texts.

On average, the page posts contain 157.7 characters, and mobile posts contain 104.9 characters, user posts contain 121.5 characters. And according to a study post that contains between 140 to 159 characters are 13.3% less engageable on average than shorter posts that contain 120 to 139 characters.

Other common things need to be kept in mind like you should avoid testing multiple interests in just one Facebook ad, and you should not run too many Facebook ads when you have a low budget for the Facebook ad campaign. This is because investing in a good ad and optimizing it will result in less human effort, fewer resources, and more return. Another crucial point to consider is that you need to focus less on earnings per lead, and you should focus more on cost per lead.

Digital marketing and advertisements can be tricky in the beginning, but as you get used to it, you will understand the fundamentals of Facebook ad campaigns. You will learn about the mistakes that you are making along the way, and you will use the experience to enhance your ad campaigns further. Mistakes will happen now and then because we are humans, but you should always follow best practices. If any error manifests, you should find a way to rectify it. You should stay connected with the new changes that are continually being added in the marketing and advertisements on Facebook.