5 Key Facebook Ads Campaign Budget Optimisation (CBO) Strategies

CBO’s the name, consistency and performance is the game. But does it work?

If you’re advertising on Facebook ads already then you MUST know about CBO – Campaign Budget Optimisation right?

It’s one of Facebook’s products aimed at letting the machines and algorithms do more of the heavy lifting for us advertisers. It is aimed at creating simpler account structures and to provide us with less need to closely monitor ad account budgets and more time to work on your marketing campaigns, creatives, funnels and offers.

The main difference is in setting budgets at campaign level instead of ad sets.

Sounds great right?

Question is then, does it work?

Whether you’re in the CBO camp or ABO (ad set budget optimisation) frankly, it DOES NOT MATTER.

If all you’re worried about is whether you should use on or the other, you probably have a few other hurdles to pass with Facebook advertising.

Here’s what I’m covering in this short CBO guide:

  1. Why CBO won’t fix a bad product, offer or funnel
  2. The importance of testing
  3. CBO’s need a good funnel setup
  4. Setup your CBO campaigns with good quality data signals
  5. Teach the algorithm how to run your campaigns


1) You Need More Than Just A Product or Service for CBO

To succeed with Facebook ads this year you need more than just a product or service you think people want.

You need a great sales funnel, customer experience and lots of creative testing.

Facebook are doing what they can to ensure users have a great experience on THEIR platform. Which means you need to keep Facebook users happy if you want consistently good, profitable traffic.

You need to focus on measuring and improving:

  • Page Load Times
  • Website Engagement Rates
  • Funnel Conversion Rates
  • Reducing Refund Rates
  • Answering Queries Fast
  • Keeping Page Monthly Satisfaction Scores high

Whether you’re running your own eCom store, selling info products, coaching or offers you need more than just a great product or service.

Solve a problem, or create a new opportunity.

Facebook ads simply allows you to connect this all together.

Facebook ads plugs your offer to your audience. CBO is an enabler for a good advertising campaign. Nothing more.

We did this on this store recently to bring LOWER costs and HIGHER conversation rates resulting in higher profits and lower acquisition costs.

Because you give Facebook what it wants so they give you the best users at the cheapest cost.

At peak, we had CPMs hovering between $6-8 in competitive markets.

CBO works better when you have pre-tested your audiences, creatives, products and funnel. What I call the Advertising CORE-4 (AC-4 for short). It’s essential for growth WITH profitability.

2) Investment in Testing is Investment In Success With CBO

I loved watching The Matrix and seeing Keanu/Neo learn new fighting skills by plugging a training program into his brain and mastering it in seconds.

We can’t do this, yet (as I type).

But you can pay to accelerate your knowledge.

I remember the first high ticket coaching I paid for. $25K a few years back.

I wanted to bypass the learning stage for a key part of my business growths so I brought in a coach who’d support me directly and through his team.

It helped generate a sizeable return.

Find the thing you have the least knowledge of that can provide the highest leverage and find a way to outsource it.

Here’s another more recent example…

I  launched a new eCom store but  ‘outsourced’ the product side of it.

I’m a marketer, not a product guy. So I hired an ace product team to help research and direct us on product whilst me and my team focus on our zone of genius.

It costs more in the short-term but we’ll profit higher, faster.

If you don’t have money, you invest with your time, by learning and applying things yourself.

CBO allows you to set a single test budget and test more efficiently.

When you start with Facebook advertising you test audiences and ads to find the ones that work.

You must do this before seeing the true power of CBO campaigns..

3) Build A Proven Test, Optimise, Scale Funnel For Success with CBO

Something as simple as excluding buyers from your top of funnel campaigns makes a BIG difference to stability with CBO.

I use the COLD, WARM, HOT audience grouping to decide on my angles, budgets, exclusions, targeting and more.

COLD: new traffic, not engaged or visited your site

WARM: engaged (e.g. page fans, engaged with posts, video viewers, etc.) but not yet visited your site

HOT: visited site not purchased

Each grouping excludes the one below, so COLD excludes WARM which excludes HOT.

This keeps your own ads competition low and helps serve the right message at the right time.

I use INFINITY RETARGETING audiences in WARM and HOT, using Dynamic Content Optimisation (DCO) and Dynamic Product Ads (DPA) to keep the amount of creative changes here to a minimum with these smaller lower funnel audiences.

For example, if someone has watched a video to 75%, then every 7 days there are new people in this audience.

Firing up a DPA or DCO ad here does a great job of keeping ads fresh and with CBO, using multiple audiences, Facebook decides each day which audience is working best and where to put budget into.

We recently scaled top of funnel ads, despite a lower ROAS than our target, because we had this funnel structure in place, allowing us to measure the trickle down from COLD ROAS to WARM ROAS to HOT ROAS and seeing an overall ROAS with high profit, at scale.

So it’s not only helping your audience targeting, it’s also helping analysis and  decision making.

CBO allows you to build more stability using a structure like this.

4) Signal Facebook That You’re Ready For The Best User Traffic for CBO

Assuming you’ve followed steps 1-3, you’ve now given Facebook all the right signals. But we can do more:

  • Post regular updates on your PAGE – this gives Facebook the signal that you care about fans and drops CPM
  • Focus on high website conversion rate over high CTR. This counts for more to Facebook 
  • Take Facebook’s Ad Relevance/Engagement Metrics seriously. FB now tells you, beyond what Relevance Score used to (a rating from 1-10), to split your scores by your targeting, creative and site performance. Big clues here on where to focus and improve.

People that wonder why CBO  isn’t working for them underestimate the importance of feeding the Facebook engine good data.

These small but significant shifts will bring your CPM further down. Take them as seriously as I do. Low CPM and high conversion rates – a big secret to high ROAS.

Feed CBO healthy data to produce healthy results.

5) It’s Ok To Lose A Battle, To Win The War With CBO

Managing budgets on Facebook is a daily battle for many at any levels of spend. Knowing when to quit and when to fight is part of becoming an experienced media buyer.

When running a CBO campaign, whilst Facebook needs as much data/time/budget as soon as possible, to get your stability the reality is FB will make you lose money fast if you don’t control it.

Learn, by time of day and campaign, what good looks like and react early.

If you know by 12PM your cost per ATC (add to cart) should be $15 and it’s $35 –  pause it. Duplicate it, move on. If by 3pm ROAS should be 4.00 and it’s less than 1.00, kill it.

CBO will learn and adapt but it needs your help.

I prefer to leave CBO campaigns where possible… 3, 4 and 5 days at at time.

But if an ad spends too wildly don’t be afraid to shoot it down.

Already Running Facebook Ads? Want to Achieve Massive Results, Faster with CBO?

These are 5 key tips on making CBO work better. I have another 27 if you want to read more on exactly how to make CBO work.

I put together The Ultimate CBO Cookbook  as a way to give a MASSIVE advantage to those wanting exact step by step instructions.

You’ll learn how to build profitability, stabilise CBO, master testing and scaling, benefit from a recorded live Q&A with a bonus transcript, case studies, plus so much more.

“We’ve spent multiple million dollars over the last 12 months testing, learning and improving our CBO recipes for prospects from top of funnel (COLD) right through to WARM and red HOT, converting at low costs and high profits.”

Thousands of Facebook advertisers are already winning their daily ad battles with Facebook – will you be next?

The Ultimate CBO Cookbook >>

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