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Mandatory Campaign Budget Optimization: Pros, Cons & Tips

In recent years, Facebook has been shifting towards mandatory campaign budget optimization (CBO) to streamline the advertising process. This move has generated mixed reactions among advertisers, with some appreciating the automation and others concerned about losing control over their ad spend.

Mandatory Campaign Budget Optimization (CBO) is a feature offered by Facebook that allows advertisers to streamline their ad budget allocation across different campaigns and ad sets. With CBO, advertisers set a budget at the campaign level rather than the ad set level, and Facebook’s algorithm automatically distributes the budget to the best-performing ad sets within the campaign.

Mandatory Campaign Budget Optimization is a feature provided by Facebook that automatically allocates ad budgets at the campaign level, leveraging the platform’s algorithm to optimize delivery and maximize performance. By consolidating budgets and allowing Facebook’s algorithm to dynamically distribute funds to the most effective ad sets, advertisers can potentially improve ad performance and achieve their desired campaign outcomes more efficiently.

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Mandatory Campaign Budget Optimization

Facebook’s Shift to Campaign Budget Optimization

Facebook is making campaign budget optimization mandatory for advertisers, emphasizing automation and machine learning. This change will retire ad set-level optimization in favor of managing ad spending at the campaign level.

Reasons behind Facebook’s move towards automation

The primary reason for campaign budget optimization (CBO) becoming mandatory is that it streamlines the process of setting budgets across multiple ad sets within a single campaign. By automating this aspect, Facebook aims to help businesses achieve better results while reducing manual workload.

CBO also leverages advanced algorithms powered by artificial intelligence (AI) and machine learning technologies that can analyze performance data from your campaigns in real time and make adjustments accordingly to optimize your return on investment (ROI).

The Role of AI and Machine Learning in Advertising

Machine learning has been increasingly integrated into digital marketing platforms like Facebook Ads Manager due to its ability to learn patterns from large datasets without direct programming instructions. This enables these platforms to continuously improve their performance over time as they gather more data about user behavior.

AI-powered algorithms can efficiently distribute an advertiser’s overall campaign budget among various ad sets based on factors such as audience targeting parameters or bid strategies employed by each individual ad set. As a result, marketers using CBO can see improved outcomes with lower costs per action (CPA) and higher return on ad spend (ROAS).

By making CBO mandatory, Facebook is signaling its commitment to harnessing the power of AI and machine learning technologies for enhancing advertising performance. This transition to automation intends to give promoters a more proficient approach to overseeing their battles.

Pros of Campaign Budget Optimization (CBO)

Campaign Budget Optimization (CBO) offers many advantages for advertisers, such as efficient management of daily budgets at the campaign level. 

Simplified budget allocation process

With CBO, you no longer need to allocate individual budgets for each ad set within a campaign. Instead, you simply set an overall campaign budget, and Facebook’s algorithms will automatically distribute the funds among your ad sets based on their performance, saving time and effort while ensuring that your advertising dollars are spent wisely.

Enhanced performance through automatic adjustments

The main goal of Facebook’s CBO is to amplify results by allocating more resources toward high-performing ad sets.

The platform continually analyzes the performance of each ad set in real-time and adjusts its spending accordingly. As a result, underperforming ads receive less funding while successful ones get a larger share of the budget.

  • Better use of ad spend: By focusing on top-performing ads, CBO ensures that your money is invested where it generates the best returns.
  • Faster learning: Automatic optimization allows campaigns to quickly adapt and improve over time as new data becomes available.
  • Easier scaling: With optimized distribution across multiple ad sets, it’s simpler to scale your campaigns up or down based on performance.

Reduced manual workload for advertisers

With CBO, constant monitoring and manual adjustments for managing budgets at the ad set level are now automated – freeing up valuable time for you to focus on other aspects of your Facebook advertising strategy. The overall management process becomes more efficient with mandatory campaign budget optimization in place.

Cons of Mandatory Campaign Budget Optimization

While Campaign Budget Optimization (CBO) has its merits, there are potential drawbacks when you want more control over your ad spend distribution. 

Loss of Granular Control Over Individual Ad Sets

Before mandatory CBO, advertisers could manage their budgets at the ad set level, allowing for greater customization and control over their expenses on each objective.

 With Facebook’s shift towards campaign-level budgeting, this granular control is lost, which can be challenging for those who have been using it as a key part of their buying strategies.

  • Daily budgets: Facebook will automatically distribute the entire campaign budget across all ad sets within a single campaign.
  • Bid strategy: Under CBO, bid strategies are also managed at the campaign level rather than per ad set. This means you’ll need to create separate campaigns to maintain distinct buying strategies.

Challenges in Prioritizing High-Quality Leads from Specific Audiences

Mandatory CBO might lead marketers away from targeting high-quality leads since they no longer have direct control over allocating resources specifically toward them. 

For example, retargeting audiences that have already shown interest in your product or service may be less of a priority under CBO since Facebook will automatically distribute the budget across all ad sets within a campaign.

Advertisers can be discouraged by the inability to concentrate on particular targets or aims within their strategies. For this, some marketers have decided to set up multiple campaigns with different goals and target people separately.

Mandatory Campaign Budget Optimization

The shift towards mandatory campaign budget optimization means that Facebook will now require advertisers to set budgets at the campaign level.

Adapting Your Account Structure

It’s crucial to reevaluate your account structure if you rely heavily on controlling budgets at the ad set level. Find out what changes need to be implemented for a smooth transition.

Reorganizing campaigns based on objectives or target audience segments

To adapt to Facebook’s campaign budget optimization, consider restructuring your current campaigns by grouping them according to specific objectives or target audience segments. 

This approach will allow you to allocate and manage your budget more effectively across different goals and demographics while still benefiting from Facebook’s automated optimizations.

  • Campaign Objective: Group ad sets with similar conversion goals (e.g., lead generation, sales) into one campaign for Facebook to optimize your entire campaign based on that shared objective.
  • Target Audience Segments: Combine ad sets targeting people with similar interests or behaviors in a single campaign. By doing so, you’ll enable Facebook’s algorithms to distribute your budget efficiently among these related audiences.

Read: Facebook marketing tips

Utilizing alternative methods like setting up multiple campaigns with different goals

If you find that managing budgets at the campaign level doesn’t provide enough control over individual ad sets within each group, consider creating separate campaigns for each goal or audience segment instead of combining them.

It could offer greater flexibility when allocating resources between various marketing initiatives.

  • Create new standalone campaigns dedicated solely to high-priority objectives such as targeting a specific retargeting audience or promoting an exclusive offer.
  • Establish different campaigns for each stage of your sales funnel, allowing you to allocate more budget towards nurturing leads and converting prospects into customers while still maintaining visibility on top-of-funnel efforts like brand awareness.
  • Set up separate campaigns for various geographic regions or languages if your business operates in multiple markets. This will enable you to tailor your ad spend based on regional performance data and better align with local market conditions.

Read: Facebook ad courses

Setting Ad Set Limits Within CBO

To maintain some degree of control under Campaign Budget Optimization (CBO), it’s essential to learn about placing spending limits on individual ad sets while still benefiting from automated optimizations provided by Facebook’s algorithms. 

Implementing Minimum and Maximum Spend Limits Per Ad Set

To make sure your campaign budget optimization doesn’t allocate too much or too little budget to specific ad sets, you can set minimum and maximum spend limits. These settings allow you to ensure that each ad set receives a certain amount of your overall campaign budget.

  • Minimum Spend Limit: By setting a minimum spend limit for an individual ad set, you’re telling Facebook not to allocate less than this specified amount when distributing the campaign budget across different ad sets. This helps guarantee that all target audiences receive at least some attention in terms of advertising efforts.
  • Maximum Spend Limit: Establishing a maximum spend limit prevents Facebook from allocating more than the specified amount towards any single ad set within the entire campaign. This ensures that no single audience segment consumes most or all of your allocated resources while leaving others neglected.

Balancing Between Strict Limitations vs Allowing Flexibility for Optimization

Finding the perfect balance between imposing strict spending limitations on individual ad sets and allowing Facebook’s algorithms to optimize your campaign can be challenging. 

On the one hand, there is a need to exercise oversight over expenditure; on the other, governing Facebook’s automation for improved results is also desirable.

To strike this balance, consider implementing these strategies:

  1. Analyze Past Performance: Review historical data from previous campaigns or current campaigns with similar objectives and use this information as a basis for setting minimum and maximum limits.
  2. Test Different Limit Ranges: Try various spending limit ranges across different ad sets within a single campaign. Monitor their impact on overall performance and adjust accordingly until you find an optimal range that delivers desired results without sacrificing too much control.
  3. Regular Review Campaigns: Keep track of how your CBO campaigns are performing over time by regularly reviewing key metrics such as return on ad spend (ROAS), cost per action (CPA), and click-through rate (CTR). Adjust limits based on observed trends or any changes in business goals or target audiences.

Setting Ad Set Limits Within CBO

It’s essential to learn about placing spending limits on individual ad sets while still benefiting from automated optimizations provided by Facebook algorithms.

Implementing Minimum and Maximum Spend Limits Per Ad Set

To counteract the loss of granular control that comes with mandatory CBO, you can set minimum and maximum spending limits for each ad set within your campaign. This way, you ensure that certain high-priority audiences or objectives receive adequate attention in terms of budget allocation. 

To implement these limits:

  • Navigate to the “Ad Sets” tab within your Facebook Ads Manager.
  • Select an existing ad set or create a new one.
  • Scroll down to the “Budget & Schedule” section.
  • Enter values for both “Minimum Daily Budget” and “Maximum Daily Budget,” based on your preferences and goals.
  • Save changes by clicking on ‘Publish’ or ‘Update.’

Note: Setting too strict limitations may hinder Facebook’s ability to optimize effectively. 

Read: Manage a banned page on Facebook

Balancing Between Strict Limitations vs Allowing Flexibility For Optimization

Finding the right balance between imposing strict budgetary constraints at the ad set level versus allowing sufficient room for optimization can be challenging. 

Here are some tips to help you strike that balance:

  • Monitor your campaign performance closely and make adjustments as needed.
  • Avoid setting overly restrictive limits, which may hinder the effectiveness of Facebook’s optimization algorithms.
  • Consider using a tiered approach, with more lenient limits for high-priority ad sets and tighter controls on lower-priority ones.
  • Experiment with different budget allocations to determine what works best for your specific objectives and target audience segments.

Incorporating these strategies will allow you to maintain control over individual ad set budgets while still reaping the benefits of automated optimizations provided by CBO. 

The Debate Over Control in Advertising Platforms

As Facebook and Google continue to increase automation within their advertising platforms, a debate has emerged regarding the balance between platform control and user input. 

Pros and Cons of Increased Platform Control

Increased platform control through features like campaign budget optimization (CBO) can provide several benefits for advertisers:

  • Simplified management: Automation reduces manual workload, allowing marketers to focus on other aspects of their business.
  • Better performance: AI-driven algorithms are designed to optimize ad spending efficiently, potentially improving campaign results.
  • Easier scaling: As businesses grow or budgets change, automated systems can adapt quickly without requiring constant adjustments from advertisers.

However, there are also potential setbacks linked with relinquishing control over individual ad sets or bidding strategies:

  • Limited customization: Advertisers may lose the ability to fine-tune specific elements of their campaigns that cater to unique audience segments or objectives.
  • Potential inefficiencies: In some cases, automated systems might not prioritize high-quality leads as effectively as an experienced marketer would.
  • Lack of transparency: With increased reliance on machine learning, advertisers may struggle to understand the rationale behind certain optimizations or results.
  • Loss of control: For experienced users, giving up granular control can be frustrating and lead to concerns about campaign effectiveness.

Finding a Middle Ground Between Automation and Advertiser Autonomy

Some marketers have suggested that advertising platforms should strike a balance between automation and user input. This could involve providing advanced options for experienced users while still offering automated solutions for those who prefer them. 

For example, Facebook could allow advertisers to choose between using CBO or managing budgets at the ad set level based on their preferences and expertise.

A potential solution is implementing features like ad set limits, which enable marketers to maintain some degree of control within an automated system. By setting minimum and maximum spend limits per ad set, advertisers can ensure their budget allocation aligns with their goals while still benefiting from Facebook’s optimization algorithms.

Facebook and advertisers themselves must adapt accordingly – ensuring they harness the power of automation without sacrificing essential elements of customization and strategic decision-making.

FAQs about Mandatory Campaign Budget Optimization

Yes, using campaign budget optimization (CBO) is generally beneficial as it simplifies the budget allocation process, enhances performance through automatic adjustments, and reduces the manual workload for advertisers. However, some drawbacks include loss of granular control over individual ad sets and challenges in prioritizing high-quality leads from specific audiences.

Campaign Budget Optimization (CBO) is a feature that automatically distributes your advertising budget across multiple ad sets within a single campaign. It uses machine learning algorithms to optimize spend based on real-time data and adjusts allocations to maximize results while minimizing costs.

No, Facebook has made CBO mandatory for all new campaigns since September 2023. You can no longer create campaigns without utilizing this feature. However, you can still implement minimum and maximum spend limits per ad set or utilize alternative methods like setting up multiple campaigns with different goals.

Budget optimization plays a crucial role in maximizing return on investment (ROI) by efficiently allocating resources toward high-performing ads. It helps improve overall advertising performance by identifying opportunities for cost-effective conversions while reducing time spent on manual adjustments and monitoring. Learn more about optimizing budgets.


In conclusion, Facebook’s shift towards Campaign Budget Optimization (CBO) is driven by the benefits of automation and machine learning in advertising. While CBO simplifies budget allocation and enhances performance through automatic adjustments, it also poses challenges such as the loss of granular control over individual ad sets and prioritizing high-quality leads from specific audiences.

To adapt to mandatory CBO, advertisers can reorganize campaigns based on objectives or target audience segments, set ad limits within CBO, or utilize alternative methods like setting up multiple campaigns with different goals. As the debate over platform control continues, finding a middle ground between automation and advertiser autonomy remains crucial for successful advertising strategies.

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