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Everything About Campaign Budget Optimization You Need To Know

Charlotte Genge
February 29, 2024
Last Updated On
campaign budget optimization blog header

In the world of digital advertising, mastering campaign budget optimization (CBO) has become essential for brands and marketing teams that strive for efficient and effective ad campaigns. CBO is a strategy that allows advertisers to allocate their budget dynamically across ad sets to achieve the best results. Let's delve into the essentials of CBO and how it can revolutionize your Meta and TikTok advertising efforts.

In this blog, we dive into: 

  • What campaign budget optimization is. 
  • How to use campaign budget optimization.
  • Campaign budget optimization benefits.

What Is Campaign Budget Optimization?

Campaign budget optimization (CBO) is a feature offered by platforms like Meta (Facebook and Instagram) and TikTok that automatically distributes your campaign budget across your ad sets to maximize the overall impact of your advertising campaign. It's a powerful tool designed to help advertisers achieve better results by allocating more budget to the highest-performing ad sets while scaling back on underperforming ones. In essence, CBO streamlines the budget allocation process, optimizing ad delivery to reach the most relevant audience segments and help social teams leverage their best, revenue-driving content.

How To Use Campaign Budget Optimization

The best time to use Instagram or Facebook campaign budget optimization depends on various factors like your campaign objectives, audience targeting and available budget. However, for most advertisers, CBO is recommended for campaigns with multiple ad sets targeting different audience demographics or with various placements.

Campaign Budget Optimization for Meta

On Meta, CBO seamlessly integrates into the Ads Manager interface. After enabling CBO for your campaign, Meta's algorithm will automatically distribute your budget across the ad sets within the campaign based on their performance and potential for achieving your desired outcomes.

To set up CBO for Meta, navigate to the Ads Manager and select the campaign you want to optimize. Within the campaign settings, you'll find the option to enable CBO. Once enabled, you can set your overall campaign budget and specify bidding strategies based on your objectives, whether optimizing for conversions, leads, link clicks, or impressions. It is important to note that CBO requires a minimum of two ad sets to function effectively.

Campaign Budget Optimization for TikTok

Although Dash Hudson’s paid metrics primarily focus on Meta performance, exploring campaign budget optimization on other popular platforms like TikTok can be beneficial. While the process may vary for TikTok ads, their platform also offers similar budget optimization features to enhance ad performance and ROI. 

To set up CBO for TikTok, follow these steps: 

  • Create a new campaign and select a supported Campaign Objective (Video View, Traffic, Catalog Sales, Lead Generation, Community Interaction, App Promotion, Website Conversions or Outreach).
  • Turn on the CBO toggle.
  • Choose between a Daily and Lifetime budget.
  • Select a Bid Strategy of either ‘Lowest Cost’ or ‘Bid Cap.’

Keep in mind, when configuring your ad groups later, they all need to share the same Optimization Goal.  

CBO Benefits

Campaign budget optimization (CBO) provides many advantages, reshaping how advertisers approach their digital strategies. By automating budget allocation and leveraging advanced algorithms, CBO maximizes Return on Investment (ROI) and streamlines the entire ad management process. Some of the key benefits of implementing CBO into your Meta campaigns are:

  • Maximizes ROI by allocating budget to the most effective ad sets.
  • Simplifies budget management and optimization process.
  • Improves ad performance by leveraging Facebook's advanced algorithmic capabilities.
  • Facilitates scalability and flexibility in campaign management.
  • Provides valuable insights into audience behavior and campaign effectiveness.
  • It helps leverage your most engaged content, from Facebook Reels to Instagram Reels, into impactful promotional content.

Measure Meta Ad Performance With Dash Hudson

Brands can leverage Dash Hudson's comprehensive Social Monitoring and Analytics feature to measure the performance of their paid Meta ads. From tracking engagement metrics to analyzing audience demographics, Dash Hudson provides actionable insights to optimize Meta ad campaigns and drive meaningful results. Beyond measurement, brands can also use Community to engage with comments and queries from their paid ads, so you can take advantage of every chance to escalate an issue or engage with your audience. With the Community feature, your team can also identify the sentiment of comments, giving you deeper insights into exactly how your audience perceives your paid efforts. 


Should I use campaign budget optimization?

Whether to use campaign budget optimization depends on your specific campaign goals, audience targeting strategy, and budget allocation preferences. We recommend that campaigns with multiple ad sets target diverse audiences or placements.

How do you turn off campaign budget optimization?

To turn off campaign budget optimization, simply navigate to the campaign settings in the Ads Manager, click to edit the campaign, locate the CBO option in the editor, and toggle it off. Remember, turning off CBO may require manual budget allocation across individual ad sets.

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