Should You Increase the Budgets in ASC and CBO Facebook Ad Campaigns, and When

Introduction

Hello everyone, I'm Costos, and today we're diving into the topic of budget adjustments in Advantage Shopping Campaigns (ASC) and Campaign Budget Optimization (CBO) campaigns on Facebook. Recently, I've had some enlightening discussions in my Inner Circle, where the importance of transparency in the strategies we employ has been highlighted. One important realization has come to light: sometimes increasing the budget is indeed the right move, contrary to what I might have suggested in the past.

Let's explore the intricacies of budget management in ASC and CBO campaigns and determine the best times to make adjustments.

Understanding ASC Campaigns

In Advantage Shopping Campaigns, adjusting the budget is often simpler. These campaigns typically focus on a dominant ad that garners the majority of the budget. Unlike CBO campaigns, where budget distribution can be confusing, increasing the budget in ASC campaigns is manageable. While I don’t recommend making immediate budget increases haphazardly, there are certain scenarios where doing so can be beneficial, especially when all ads are performing well.

Budget Adjustments in CBO Campaigns

CBO campaigns present a different set of challenges. When you manage multiple ad sets, the budget needs to be distributed among them. This distribution can lead to instability if an imbalance occurs. For example, if you have one or two ad sets performing well and suddenly increase the budget, you risk losing that balance, leading to suboptimal performance.

However, if your CBO campaign is heavily reliant on a single ad set that pushes the majority of the budget, increasing your budget in this situation is generally safe. The key takeaway is that your approach to budget adjustments should be dictated by the performance and configuration of your campaign.

The Ratio and Cost Consideration

One aspect that cannot be overlooked is the ratio of cost per purchase and average order value (AOV). Different accounts operate under different conditions, influencing how effectively budget adjustments can achieve desirable results. For instance, if you have a cost per purchase of $ 100, increasing your budget by 20% might do more harm than good, pushing your cost per purchase higher. Instead, consider the specific metrics of your campaigns and increase the budget in a manner that makes sense for your goals.

Conclusion

In summary, it's entirely possible to increase your budgets effectively in both ASC and CBO campaigns, but the methodology varies. Each account presents unique circumstances, so relying on blanket rules—like the notorious 20% increase—can be misleading. The best way to approach this is with logic, metrics, and a solid understanding of your specific campaigns’ performances.

If you're interested in diving deeper into these strategies, I encourage you to check out my mentoring programs, where we can explore these topics in more depth and tailor a strategy that suits your needs.

Keywords

• Budget Adjustment
• Advantage Shopping Campaigns (ASC)
• Campaign Budget Optimization (CBO)
• Cost per Purchase
• Average Order Value (AOV)
• Ad Set Performance
• Facebook Ads Strategies

FAQ

1. When should I increase the budget in my ASC campaigns?
You can typically increase the budget in ASC campaigns when you have a dominant ad performing well. It's easier to adjust without negatively affecting the overall performance.

2. Why is increasing budget in CBO campaigns more complex?
CBO campaigns distribute budget across multiple ad sets, and increasing the budget can upset the balance if not approached carefully.

3. How does cost per purchase affect budget increases?
If your cost per purchase is high, increasing the budget could lead to even higher costs. It’s crucial to assess the specifics of your campaigns before deciding on a budget increase.

4. Is the 20% increase rule applicable for all campaigns?
Not necessarily. The 20% rule is a guideline suggested by Meta to avoid exiting the learning phase, but it may not be suitable for every account; instead, base your decision on performance metrics.

5. What should I consider before increasing my ad budget?
Reflect on your campaign performance metrics, the cost per purchase and AOV, and whether your current ads are performing well enough to justify a budget increase.