Alex Fedotoff – The Ultimate CBO Blueprint
Salepage : Alex Fedotoff – The Ultimate CBO Blueprint
CBO Campaigns – How to Get the Most Out of Them
NOTE: For the time being, I recommend using a regular adset budget configuration (as of June 2019).
However, CBOs can be lucrative as well. In this post I explain how to utilize it.
CBO (Campaign Budget Optimization) is the latest approach for Facebook to improve your campaigns, as most of you are already aware. Its main concept is to give a daily budget at the campaign level and then let Facebook machine learning distribute the revenue within it in the most efficient way possible.
However, the reason why everyone is so excited about CBO right now is not because of its high efficacy. In fact, Facebook has already said that it will be required for all of your campaigns beginning in September 2019.
Still not convinced? Let’s just say we know a wonderful way to work with CBO that will increase your ROAS by 5x or more. We will address it later.
BUT first, what exactly is CBO?
As stated in another well-done Facebook one-sheeter regarding CBO, the key benefits are:
– Budgeting automation – you won’t have to go through each ad set, putting it up on a low budget and testing different interests. Facebook will do that for you by automatically selecting the highest performing ad set and increasing the stakes.
– Non-overlapping audiences – Facebook informs us that ad sets with comparable audiences will be taken into account in their algorithm, reducing the frequency of delivering the same ad to the same person with CBO.
– Learning phrase is not redone – As certain ad sets perform better, they will be allocated a higher share of the budget without having to restart the learning phrase.
AND LASTLY, as we shall see, CBO is an excellent tool for effectively scaling your sales, owing to its semi-automation and capacity to do so at the campaign level.
So, how can you build up and expand your CBO campaigns effectively?
Scale your lookalikes solely for purchases.
– Run 1 to 10% conversion rates on your Pixel buy lookalike audiences (take US, CA, UK, and AU as lookalike audience locations).
If you’re not aware what lookalike audiences are or how to use them, you should read this wonderful Facebook post about it.
Otherwise, you may begin from there: take your Facebook Pixel data, pick the suggested configuration, and generate the ten separate lookalike audiences.
– Take note of the size of your audience. It should ideally be approximately 5 million individuals or more for one lookalike. If the numbers are low, you can combine numerous lookalike audiences into one.
– Choose at least three, and no more than eight, lookalikes that performed best for you as the winners and eliminate the remaining ad sets. CBO will make the necessary changes to your budget.
– Duplicate the CBO with your winners into the new campaign and progressively ramp it up till you hit your sales goal.
You may start with a budget of $150 and work your way up to $1000 or even more.
Test and scale buy lookalikes, start checkout, and add to cart visitors.
– Once again, you generate 10-15 ad sets with 1-10% lookalike audiences, but this time for not only purchases but also for initiate checkout and added to cart events.
At this time, it’s recommended to set aside at least $300 for your CBO campaign.
– Take the 5 winners out of the tested lookalikes and reproduce them into the new CBO with a 2x budget.
– Again, continuing scaling them as long as your income is larger.
Add interests to reach a larger audience.
– If you have interests that have previously worked effectively for you, use them for your CBOs.
This will offer the Facebook algorithms greater room for optimization.
– You can also utilize Facebook recommendations and Audience Insights to generate extra ad sets for testing within your CBO.
BONUS for the most devoted readers: CBO advice
Some CBO setups perform far better than others in our experience. What exactly are they?
– 7 days after clicking/1 day after optimizing watching;
– 4 to 5 creatives per ad set on average for Facebook to provide opportunity for optimization;
– If CBO does not function properly at first, it will not work in 9 out of 10 cases. As a result, you must eliminate problematic ad sets quickly (for example, the $15 ad expenditure + ROAS1.7 limit);
– The minimal budget for CBO to function properly is $150. You should ideally scale it up to $500-$750.
– Monitor the metrics (quality, engagement, conversion) on a regular basis to ensure that they are not producing negative outcomes, as weak metrics typically lead to poor performing CBOs.
So these are the tactics that we employ and have shown to be effective.
Didn’t you attempt anything similar before? So, what keeps you here? Go ahead and benefit from your CBO campaigns.
Did you, or didn’t you? What else would you recommend? We appreciate your input and lively debates.
Let’s collaborate to share our ideas and increase our sales!
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