What is Facebook CBO and How To Use It?
Click here to learn about Facebook Campaign Budget Optimization (Facebook CBO) so you can allocate your advertising budget effectively!
Our topic today is Facebook CBO and how to use this tool.
It is a must-read document for any Facebook Ads business manager who wants to distribute and allocate their budget effectively and profitably!
What is Facebook CBO?

Provided by Facebook for Ads managers, Facebook’s Campaign Budget Optimization (CBO, for short) is a usual tool to optimize your money on the top-performing advertisement sets. As a rule of thumb: Spending an equal amount on every advertisement set will not maximize ROI.
You need to set up your campaign goals, your budget, and pieces of ads, and the Facebook CBO tool will automatically apply its algorithm to allocate more funds to good-working ads. This optimization process is continuous and ongoing.
How to use Facebook CBO?

The setup is straightforward in steps:
- Login to your Facebook Ads Business Manager account
- Navigate to the page Facebook Ads Manager
- Select the button Create New Campaign and add pieces of advertisements.
- Choose your desired objective and set up goals
- Near the bottom, turn on the toggle Campaign Budget Optimization
- Set up whether to limit an amount daily or optimize your overall lifetime budget
- Specify a bid strategy which refers to how you spend your budget
- Start looking at the CBO optimization of your ads and find insights to drive your business
How to make the most out of Facebook CBO?

While the tool is easy to configure, learning the best practices will help Facebook CBO to benefit you the most. Here we reveal the tips!
#1. Avoid using too many ad sets
Technically, Facebook warns that over 70 sets can slow down the algorithm and reduce the budget optimization – let alone having too many sets makes it harder to assess and narrow down ineffective ones.
Our professionals suggest three to five ad sets per campaign, each featuring around five ad pieces.
#2. Optimize large audiences
The larger your target audiences are, the easier Facebook CBO’s algorithm makes accurate distribution for your ads. This equals more metrics to get insights into your audience’s preferences and improve your next ad sets.
You can try grouping your audience of the same size and characteristics and start with three or four audience groups while setting up a CBO campaign.
#3. Hardly pause and unpause your sets
Facebook CBO works on active ads.
If you pause some sets, their data are not factored into the algorithmic process. Once you resume those sets, your budgets might already be allocated elsewhere.
It is recommended to keep your ads active for at least 72 hours to get the correct evaluation and allow a week before making changes.
#4. Test and scale with CBO
Data and analytics returned from Facebook CBO help you assess different aspects of your campaigns. When unsure about your advertising strategy, you can test it by changing the texts and titles in each ad and updating other creatives in each set.
Keep a small budget for testing and gradually scale it by 5-10% after determining the best-performing ad sets.
Wrapping up
Our sharing helps you plan to use Facebook CBO for your next campaigns. Feel free to leave comments or questions, if any!