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David
(00:01):
Hey everyone, how you doing? And welcome back to this video now, CBO versus the ado, somebody, and that's been discussed quite a bit over the last couple of years, whether or not you should be using a campaign budget, optimized campaign structure, or ad set budget optimization. A lot of us are used to ad set budget optimization. That's the grandfathered version of how you would run ads on Facebook. It's something that's been done for years. And then all of a sudden, a couple of years ago, they introduced campaign budget optimization through everyone in a loop. I don't want to spend all my money on a singular campaign. I want to have it individualized by audience. Well, at first we all complained and then we started to realize the power of using a CBO in scaling. Now don't get me wrong. Abs work fantastically. Well, I'm showing you an account right now where you could see the difference between a CBO and have it set to lifetime or daily versus an ABO that set the lifetime or daily life.
David (00:56):
They won't, they both work very, very well, but when do you need to use campaign budget optimization? And let me show you an example in this account. So in this account, you know, anything that says using ad set budget, that's ABO anything that's preset with a budget here, CBO. Now, typically we like to use CBLs when we're testing and we'll test things such as, as you could see here, you know, we have five set audiences. These are our five best performing audiences in this account. And when we're doing testing, we would put one single image in one single piece of copy in the campaign. And then of course, if we wanted to test another variation, we would do the same thing and we'd have think, you know, the set of copy and imagery, and then the set audiences once again, and we would just rinse and repeat this process over and over again, right?
David (01:46):
Another set of image and copy, same, same exact audiences. So you can see like we're using the same five best performing audiences. And then what we'll use with the CBO is we'll preset it to a hundred dollars a day. And then it would have a different image and or piece of copy with each CBO. And what would be the purpose in doing that? What allows us to see which piece of individual copy and creative is performing? Sometimes you can just make it to where it's the campaigns, the same piece of copy, and all you're doing is changing the creative. So as an example, you can have three campaigns where each campaign has a different image, but they all have the same copy and he could do the reverse where it's all the same image in each campaign. It just has a different piece of copy.
David (02:25):
And by doing this, you're able to pinpoint specifically, not just which audiences perform well with that copy and image variation or video, but then you're able to take those best performing audiences, merge them together into their own campaigns, and then have our best performing ultimate ad set, which I will show you later. So as an example, imagine you run those same five audiences over and over. They're all campaign budget optimization. And we find that for some reason, targeting parents over and over for every copy and image variation, we've tried, has worked well down the road. You can create a CBO where you take those best performing ads, uh, the best copy and image variations. Let's just say there's three. You can take all three of those image, copy variations, put into one campaign, targeting that one audience at 500 a day instead of 100, because all three of those ads have worked.
David (03:16):
And now you have the ultimate ad set, which is essentially your best performing audience with your best performing ads set to a much higher budget for more optimal and also for higher probability of scale. And you do this rinse and repeat over and over and over. And that makes it awesome for CBO because it's taking care of your budget in a way that works for you. You could start out a lot faster and it'll crank out the deliverability a lot quicker too. And here's the thing that I love about CBS with lifetime. As you can see here, this campaign is run $6,300 out of the 9,000. We've set so far for the campaign CPAs at about 30 bucks. And what we're able to do is we've taken those same five best performing ads and we've spread out the best performing images and or copy variations into each and every single audience, and then set a high budget inside of that CBO.
David (04:12):
So I mean $9,000, this was over the course of a month. So it's about 300 bucks a day, right? And then at 300 bucks a day, we have our best ads, ads per audience, five best audiences, three best ads per audience show. I have it in there. It's actually four best performing ads per audiences shoving it in there. You have 20 ads total, and now you could see, we can put everything in one place set to a high budget and then naturally, well it's running. And of course, when we look at just for this month, so far $31 CPA, it's still running, not quite where we want it to be, but once again, this was a scalable campaign that's done incredibly well over and over. So you could do this with lifetime. You can do this with daily and it's preset to a budget that we can monitor at 300 a day.
David (04:56):
We set it to 30 days out. So 30 days out times 300, $9,000. It makes it easy for us to manage. And it spends about 300 bucks a day. When it finds you an ad that's working, it actually will spend more money on that individual audience and add a lot sooner than if you set it to daily, which is why I like using lifetime. So anyway, CBOs are fantastic. I love them. I love that they can keep track of my budgeting in a way that makes me happy, but also not to mention scalability is through the roof. I love being able to scale accounts very quickly with CBO ABO, you can do the same thing. You could set every single ad set to 300 bucks a day. You have 10 ad sets and boom you're at 3000 a day. But for some reason, my ability to manage the campaigns keep things within a level CPA that well, it makes my clients and myself happy.
David (05:43):
We tend to find that CBO has allowed us to do that. We scheduled them out over time so we can do two or three CBOs a day, spread them out. And then over the course of a week or two, we have an account spending three to $5,000 profitably using our best performing audiences, best performing copy, so on and so forth. So if you're looking to truly segment out your audiences in your ads, CBO is the way to go in my opinion. And then of course, if you want to apply more ad budget to individual audiences or individual ads, you can always go the ABO route and truly take it to the next level.
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