Double Your Facebook Ads Revenue with Campaign Budget Optimization
Written by Jason Lawson on February 26, 2021
What exactly is Campaign Budget Optimization, or CBO?
  • Lowest Cost
  • Cost Cap
  • ​Bid Cap
  • ​Highest Value
  • ​Minimum ROAS
  • Lowest Cost (Automated) - Lowest Cost will simply aim to get you the most results possible while still spending your entire budget.  This is the default option when setting up a campaign, and it's the option most widely used by advertisers alike.  If you're looking to give full control to Facebook's algorithm then opt for Lowest Cost.  This strategy provides excellent opportunity for scale, as inherently there are no delivery constraints since Facebook will ALWAYS spend your daily budget no matter what results your ads generate.
  • ​​Cost Cap (Manual) - The Cost Cap strategy will aim to keep your cost per action below as specific upper limit that you as an advertiser set, hence the manual component.  This means that you are prioritizing cost over delivery and reach, since Facebook will constrain your reach and not spend your full budget if it cannot generate a CPA at or below your cost cap.  This option is best suited for advertisers who cannot afford to have CPAs above a certain amount, regardless of market conditions.
  • ​Bid Cap (Manual) - The Bid Cap strategy is similar to Cost Cap in that it's manual in nature, but it's more of a proactive strategy than a reactive one.  While Cost Cap will bid over your cost threshold as long as your overall costs are below your cap, Bid Cap will aim to keep your actual bids below the mark you specify in your cap.  This is even more of a manual control than Cost Cap since you are placing constraints on the actual bid.  
Value-Based Strategies
  • Highest Value (Automated) - Like Lowest Cost, Highest Value is automated, giving full control to Facebook for your bidding.  The key distinction is your telling the algorithm to bid on value instead of cost, which means instead of aiming to generate the most results for your budget, it will maximize the value generated for your budget.  So if there are higher-cost opportunities to pursue in the auction, Facebook will go for it if it thinks those opportunities will generate the maximum conversion value for you.  As with Lowest Cost, Facebook will spend your entire budget with Highest Value.
  • ​​Minimum ROAS (Manual) - The Minimum ROAS strategy is similar to Cost Cap but based on value instead of cost.  In other words, you're setting a floor on value instead of a ceiling on cost, and hence why this is a manual bidding strategy.  So you might determine your ROAS floor to be 1.5, which will tell Facebook to ensure your average ROAS is at or above a 1.5 for that ad set.  This sounds great in theory since we'd all love to be able to set a high minimum for our ROAS and never waste ad spend, right?  Unfortunately it doesn't work as well as you might think, and often times this strategy will result in Facebook not spending hardly any of your budget unless your floor is fairly low.
About Upsyde Digital
Upsyde Digital is a full-service digital marketing agency that focuses mainly on Facebook and Instagram Ads. Our mission is to help entrepreneurs grow their businesses with robust advertising strategies, and we offer a variety of different product and service options to fit your needs.
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Written by Jason Lawson on April 2, 2021
Not sure which Facebook Ads bidding strategy is right for your business?  Look no further; this article breaks down exactly what each bidding strategy is, the benefits, as well and the use cases and results from split tests our agency has run as of late.
About Upsyde Digital
Upsyde Digital is a full-service digital marketing agency that focuses mainly on Facebook and Instagram Ads. Our mission is to help entrepreneurs grow their businesses with robust advertising strategies, and we offer a variety of different product and service options to fit your needs.
Sign up to receive free tips and strategies to elevate your advertising game!
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