CBO’s the name, consistency and performance is the game.
If you’re advertising on Facebook ads in 2020 then you MUST know about CBO – Campaign Budget Optimisation.
It’s Facebook latest product update aimed at creating simpler account structures and to provide you with less need to closely watch your ad account and more time to work on your marketing campaigns, creatives, funnels and offers.
Sounds great right?
Except not everyone’s able to make it work. And with 2020 being the year every ad account is switched from setting ad set level budgets to campaign level budgets, I put this short guide together to help navigate some of those dark waters ahead.
Here’s what I’m covering in this CBO guide:
- Feeding your CBO with high quality, pre-tested ads and audiences
- Size your CBO’s accordingly
- Separate out your Interests from your Lookalikes from your Broad audiences into separate CBO’s.
- CBO does work for ALL budgets – you just need to adapt your strategy to suit.
- Ensure your excludes are set up properly through your campaign funnels.
- Scale no more than 30% budget increases per day to play safe, or try manual bid or duplications to go faster (and know the risks of both).
- Never stop testing – ads die out before ad sets so keep testing for new ads, angles, creatives, etc. before you blame CBO for your pains.
Here’s the tasty detail behind how we’re winning with CBO in 2020!
1) You Need More Than Just A Product or Service for CBO
To succeed with Facebook ads in 2020 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 above 4.0
Stop thinking in terms of products and focus on experience.
Whether you’re running your own eCom store, selling info products, coaching or whatever.
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.
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 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 CORE-4. It’s essential for growth WITH profitability.
2) Investment in Testing is Investment In Success for 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.
And that’s also why I built the CBO Cookbook at such a low investment so that I could positively impact as many people as possible to plug the gap that Facebook left in their knowledge share of CBO.
3) Build A Proven Test, Optimise, Scale Framework For Success with CBO
Something as simple as excluding ENGAGED audiences from COLD audiences and SITE VISITORS from ENGAGED audiences can make all the difference.
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 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 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
- Test for virality of your best posts. I’d recommend putting small spends to your best page posts to see which catch on in terms of engagement using PPE – paid and organic engagement help your Page score
- Focus on high website conversion rate over high CTR. This counts for more to Facebook – CTR is more vanity than website CVR%
- Take Facebook’s Ad Relevance/Engagement Metrics seriously. FB now tells you, beyond what Relevance Score used to (a rating from 1-10), and now 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 fuel.
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 at all 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.
They’re my 5 key tips on making CBO work better – what would you add?
Already Running Facebook Ads? Want to Achieve Massive Results, Faster with CBO?
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?