Advantage Campaign Budget Best Practices

Advantage Campaign Budget (formerly Campaign Budget Optimization or CBO) is an option when you create a Meta ads campaign. Should you turn it on?

Advantage Campaign Budget

In this post, we’ll explore:

  1. How Advantage Campaign Budget works
  2. Eligibility requirements
  3. How to set it up
  4. Ad set spend limits
  5. Best practices
  6. When you should use it

There’s lots to cover here. Let’s go…

How it Works

The standard campaign setup utilizes individual ad set budgets. Let’s assume that you have three ad sets…

  • Ad Set 1: $20
  • Ad Set 2: $20
  • Ad Set 3: $20

Each ad set has its own budget.

But when Advantage Campaign Budget is turned on, the budget is set within the campaign. If it’s turned on for the example above, your campaign budget might be $60. Meta can then distribute your budget optimally to get you the best results.

This simplifies the process of determining how much you should budget for each ad set. Instead of forcing the algorithm to spend $20 per ad set, Advantage Campaign Budget may distribute it on a particular day like this:

  • Ad Set 1: $30
  • Ad Set 2: $10
  • Ad Set 3: $20

If Ad Set 2 isn’t performing well, Meta can spend less on that ad set; if Ad Set 1 is outperforming the others, more budget can be moved to it. This is also a fluid process. The amount of budget dedicated to each ad set can change on a day-to-day basis.

Eligibility Requirements

In order to use Advantage Campaign Budget, the following will be true:

1. There are at least two ad sets within the campaign.

2. The same budget type will be utilized for all ad sets (daily or lifetime).

3. A common bid strategy will be utilized across all ad sets.

4. If using the Highest Volume bid strategy, the same optimization event (Performance Goal) will be utilized across all ad sets.

5. Standard delivery will automatically apply.

If you want to create ad sets that differ by budget type, bid strategy, performance goal, or delivery, you’ll need to utilize ad set budgets.

How to Set it Up

Once you turn on Advantage Campaign Budget, it will look like this…

Advantage Campaign Budget

You can set either a daily or lifetime budget. Just remember that this budget applies to all of the ad sets within the campaign. So, if you’d typically use three $20 ad set budgets, you’ll likely want to use a $60 budget here.

Advantage Campaign Budget

If you use a lifetime budget, you can run ads on a schedule (dayparting).

Advantage Campaign Budget

The schedule will be set within the ad set, so you can customize this by ad set.

Advantage Campaign Budget

The bid strategy that applies to all ad sets is determined within the campaign.

Advantage Campaign Budget

Depending on the objective, you will have the typical options available:

  • Highest Volume or Value (Value if this is your Performance Goal for a Sales campaign)
  • Cost Per Result Goal
  • ROAS Goal (if Value is your Performance Goal)
  • Bid Cap

None of these settings are unique to Advantage Campaign Budget. So if you wouldn’t normally use them when using ad set budgets, don’t worry about it.

Ad Set Spend Limits

Maybe you are required to spend a certain amount on an audience or you want to prevent Meta from pushing too much of the budget to one ad set. You can control this with ad set spend limit minimums and maximums.

After you turn Advantage Campaign Budget on, check the box for ad set spend limits within Budget & Schedule in the ad set. This is available regardless of whether you use daily or lifetime budgets.

Advantage Campaign Budget Ad Set Spend Limits

As you can see in the graphic above, Meta can’t guarantee that your minimum will be met, but it will attempt to spend it.

Advantage Campaign Budget

And the warning makes it clear that it is not recommended that you apply both a minimum and maximum ad set spend limit as it will restrict the algorithm.

There is a deeper philosophical discussion to be had regarding ad set spend limits that we’ll need to cover in another post. But overall, I don’t recommend using them. In fact, even Meta doesn’t recommend using them.

Advantage Campaign Budget

If you don’t trust Meta to optimally distribute your budget using Advantage Campaign Budget, just use ad set budgets. No judgment.

Best Practices

Meta has several recommendations to get the most out of Advantage Campaign Budget, but here are a few of the highlights…

1. Keep audience sizes similar between ad sets.

Oftentimes, advertisers will have multiple ad sets within a campaign for cold and warm audiences. This approach is not ideal for Advantage Campaign Budget. In all likelihood, most of the budget will be distributed to the larger audience. Larger audiences would be preferred here, and use similarly large audiences for each ad set.

2. Limit changes.

Whenever you add a new ad set to your campaign, there will be a two-hour re-adjustment period. Additionally, any significant changes to the campaign settings will restart the learning phase. Advantage Campaign Budget involves optimization across the entire campaign rather than ad sets performing independently, so changes make a bigger impact. If you’re going to make changes, make them in bulk and limit them.

3. Don’t pause underperforming ad sets.

This is typical practice when utilizing ad set budgets. But remember that the algorithm is constantly adjusting. There is no need to pause underperforming ad sets as Meta will simply spend less on it. Pausing will mess up the optimization.

4. Analyze results at the campaign level.

Get out of the habit of looking at your results at the ad set level. All that matters is how the campaign performs.

5. Trust it.

Overall, if you’re going to use Campaign Budget Optimization, you need to go all in. Trust it. Keep your hands off. Allow it to do its work and optimize without your interruptions or restrictions.

When Should You Use It?

You may be able to piece this together from everything in this post, but the ideal situation to use Advantage Campaign Budget is when…

1. You’re creating multiple ad sets for similarly sized audiences.

2. You have no need to customize the bid strategy, budget type, or performance goal by ad set.

3. You trust the optimization from Advantage Campaign Budget and will have a hands-off approach.

While you could technically use this with smaller and warmer audiences if those audiences are similar sizes, the ads algorithm tends to do best with more volume to work with. This is ideal for colder audience targeting when you have a common approach across ad sets.

Watch Video

I recorded a video about this, too. Check it out below…

Your Turn

What’s your experience been with Advantage Campaign Budget?

Let me know in the comments below!