As we announced earlier, Facebook introduced Campaign Budget Optimization, allowing advertisers to optimize the distribution of a campaign’s budget across the ad sets of the campaign. On the Adphorus platform, we have been using this capability for a long time with Marvin, however, this new feature of Facebook helped us enhance Marvin’s capabilities.
Moving forward, we’re taking it to the next level with Ad Set Spend Limit, which is a new optional feature that’ll help optimize campaigns towards the advertiser’s goals. With this new feature of CBO, you’ll be able to set maximum and minimum Ad Set Spend Limit and you’ll be able to use them together.
What is Ad Set Spend Limit?
After the new changes, advertisers won’t be able to turn off CBO on BM, and you’ll be able to make the changes on the Adphorus platform until the end of Jan 2020. However, after Feb 2020, CBO will do all the changes to the ad set budgets with the help of Marvin on the Adphorus platform.
Basically, Ad Set Spend Limit helps you with controlling the ad set’s budget with setting a maximum, minimum or both while CBO is allocating the budget across all ad sets in the background. Even though Facebook doesn’t recommend using too much spending constraints on the campaign, there are cases that this feature comes in handy, such as;
Having specific budget requirements for an ad set.
Using the lowest cost bid strategy and not being sure about the value of reaching a given audience.
Trying to evenly distribute the reach of your ad sets in cases you don’t want CBO to optimize to only the winning ad sets.
As mentioned above, you can set a maximum, minimum or set both for the ad sets.
Maximum Ad Set Spend Limit
Adding a maximum spend limit gives CBO the highest amount that can be spent for your ad set. Once the ad set’s maximum limit is reached, even if there’s more overall campaign budget, the ad set(s) with the limit stops spending.
Minimum Ad Set Spend Limit
Using the minimum spend limit gives the lowest amount of how much that can be spent. Minimum spend limits are not guaranteed to be hit, but when you enter them they’re taken into account as desired spend limits.
Maximum and Minimum Ad Set Spend Limit
You can use both minimum and maximum spend limits in a campaign when you want to have full control over the spend of your ad sets. However, it’s best not to use them both in just one ad set, because using both can limit the budget distribution and may result in higher CPAs and lower ROAS or under-delivery.
Keep in Mind
The spending limit is an optional feature that can be found under the advanced settings.
While using the maximum spend limit, be careful when pausing or deleting ad sets, as the total maximum spend can end up being less than the amount of campaign budget available.
Don’t forget increasing your maximum spend limit if and when you increase your campaign budget so that the updated campaign budget can be spent.
The maximum spend limit should be at least $1 (USD) when using the daily budget, lowest cost or impressions as the metric by which you get charged.
Don’t forget to decrease the minimum spend limit when decreasing your campaign budget, if you don’t set the same or less than your campaign budget, the minimum spend limit won’t be met.
When using minimum and maximum spending limits at the same time:
Make sure that there’s at least 0.9% difference between them.
Make sure that there’s at least a difference of $1 between them.
How to enable Ad Set Spend Limit on the Adphorus platform?
1- Campaign Creation - Budget Page
2- Manage Bid & Budgets Modal
Ad Set Spend Limit with CBO + Marvin
Marvin, as your AI-powered marketing concierge, already has the ability to allocate the campaign budget amongst your ad sets. While CBO continuously allocates your campaign budget across ad sets, Marvin fine-tunes the performance at midnight every day by setting your campaigns’ ad set limits. When Marvin is activated for the campaign, it works in the background adjusting the spending limits for the ad sets.
Keep in mind that, when Marvin is activated for the campaign, you won’t be able to set spending limits for the ad sets manually since Marvin will be setting up those limits for you.