Ad-set levels budgets are crushing it?

Hey there,

Just getting back in the weekly cadence.

Apologies for being MIA as was busy with the action heavy diwali week and also caught up with official paperwork to make the agency more solid.

In today’s newsletter I want to draw your attention to an experiment I ran in collaboration with a client.

A lot of gurus say that CBO is the best strategy to scale you Facebook ad campaigns.

There was a time when I actually believed it and consulted everyone to use CBO but due to some recent events, I have started putting to test all their theories instead of believing straight out of the gate.

I put the CBO campaigns to test against the exact same setup and the same budget with a ABO campaign.

Why did I decided to do this test if everything was going fine?

Well, everything was not going fine,

My campaigns were facing the following issues:

→ They were losing profitability as I continued to scale them.
→ We were getting less for every dollar spend on Facebook ads.
→ The CPA went up from $19 to $41 over a period of 60 days.

Over a long horizon the campaigns saw an spike in cost per result and a drop in the overall MER of the ad account.

The key thought behind doing this test was the fact that we wanted to compare the spending trends of…

Managing Spends Manually Vs Spends Managed by Facebook.

The setup of the campaigns looked like this:

Campaigns > Two Ad-sets > One creative in each adset

The same campaigns was duplicated & both were given a $200/day budget.

The only difference was,

Campaigns 1 > Budget set at the campaigns level > $200

Campaigns 2 > Ad-set 1 > $200; Ad-set 2 > $200

The Results:

ABO outperformed CBO.

Don’t me shocked,

In the CBO campaign meta spent on a one ad-set which had an ad creative that was great from an “engagement” prospective.

The other ad-set with creative 2 was working from a conversion stand point, but facebook did not spend much on it.

How can I say it was working,

because in the ABO campaign where both got equal spends the second ad-set crushed it with a very healthy CPA, MER and ROAS.

After this using CBO sounds like a dumb plan right?

Will is use CBO in the future?

Yes, I will!

I have this whole theory of dedicated campaigns for dedicated ad formats.

That is something I plan on testing with CBO.

Will share it exclusively here before anywhere else.

Watch out for it.

If you made it till here, appreciate your time.

Thank You,
Kaustubh

I help DTC brand run profitable facebook ads.

If you are a e-commerce brand that wants me to take over your Facebook ads management,

Book a one-on-one consultation with me