4 steps to improve your results using Facebook budget optimization7 min read


#1 Assess what could be your initial budget partition based on your audience size

When it comes to Facebook advertising, the only way you are going to determine what works best for your business is through testing. The same goes when trying to find out what your matching audience is. Only by implementing many diverse ad sets, with each targeting a different audience, that you will be able to collect essential information that will enable you to determine which audience is yielding the optimal result within your current marketing promotion.
When running ad bundles with diverse audience sizes, it is usually advised that you allocate your budget in proportion to each individual audience size. This way, you make sure that your budget has an equal prospect with each audience.
as you embark on the goal of building your ideal audience using Lookalike audiences or Facebook’s internal Detailed targeting options, you will be able to see your projected audience size in the right-hand side column.

In the case scenario represented below, you can see that the lookalike audience has well over 2 million people in it, contrasting with less than half a million people in the audience constructed using Facebook’s detailed targeting option. Allocating equal budget to each ad set gives greater opportunity to the smaller audience to attain a higher percentage of the audience than the lookalike audience.


Because the size of each audience is different, you cannot assign an equal budget percentage. Rather you should allocate the budget proportionally in order to maximize its effect and reach optimum marketing results. In this case, for example, you should allocate 80% and 20% of your total budget to the larger audience and the smaller audience respectively. This way you are giving each ad set the opportunity to reach its optimal marketing results.

Assigning Budget for Specific Audiences Which Have No Estimated Audience Size

The aftermath of the recent Cambridge Analytica scandal has led Facebook to make one noticeable change: Definitively dismissing the ability of the marketer to see the size of their specific audience. This would imply that when you re-advertise to specific audiences, you are doing so without any prior knowledge of the audience size, which can be cumbersome when your approach to determining the ideal budget significantly rely on audience’s size.

Generally speaking, re-advertising audiences yield cheaper and optimal quality results. Which is why advertisers prefer aiming at warm audiences constructed from customized lists. Unfortunately, the definitive change recently implemented by Facebook makes things more difficult.


Astute advertisers may try to guess the audience volume by implementing a marketing technique to that specific customized audience and examining the effect and occurrence rate to mathematically assess how many people are probably part of that audience. The closer the occurrence rate is to 2, the closer you are to reaching the greater number of the audience. Obviously, this is only a guessing game that will demand time and money to determine.

A substitute and simpler option for resolving this math puzzle are to use the recent Budget Optimization Tool.
Indeed in such a situation, Budget optimization is a potent tool grasp and use. Carrying out trials on a customized audience against another audience type, e.g. interest-based audience or lookalike audience, permits you to put in place the budget at the campaign level and allow Facebook to find the optimal way to assign the budget across the two ad bundles.

#2: Authorize Budget Optimization across Ad sets

Recently, Facebook started implementing their budget optimization tool. In order to utilize it, just access the ad creation tool from Facebook Ads Manager. At the campaign level, switch the budget optimization slider to on (as pictured below). This will unveil additional fields to fill in, campaign budget and offering strategy options included.

Pick your Campaign Budget and Bid Strategy

It is important that you decide whether a daily budget or an inexhaustible budget is most fitting when putting your campaign budget in place.

Usually, inexhaustible budgets perform well only if you fix a beginning and end dates for your advertisements. On the other hand, if you decide to go with a daily budget, it is good to know that Facebook has allocated a 25% margin per day to overspend, which will be made up over a given week. For example, if you allocated $100 as your daily budget, you may end up spending up to $125, but your weekly budget of $700 won’t change.


It doesn’t matter how many ad sets you are currently running, as the budget you set at the advertisement level will be applied across all of them. Logically then, the more ad sets you intend to implement, the bigger should this budget be. Insure that the budget is big enough to maintain all ad sets being run using it.

Insider Tip: The best way to determine what could be your total campaign budget is to first assess how much you would be willing to spend for each ad set and then sum all those individual amount up.

With the newly budget optimization tool implemented by Facebook, you can only use the lowest bid (previously known as the automatic bidding) strategy, with or without a offering cap. Because of that, do not use the budget optimization tool if you prefer implement the target-cost bidding strategy (previously known as manual bidding). Normally, the optimal way to make certain you obtain optimum results at minimal cost is to choose the lowest cost without a bid cap (as depicted above).

#3 Put In Place Your Facebook Ad Sets

After you are done setting up your advertisement campaign and bid strategy, You can now jump into putting in place your ad sets. At the ad set level, you can choose your audience(s) and select where you want to place your ad. Since you chose to utilize budget optimization, you will observe that there are some changes to the Budget & Schedule Section.

Once you have chosen budget optimization at the campaign level, the mentioned fields will be available to further design budget and delivery at the ad set level.

Dealing with the campaign level, you will be able to pick a daily budget or lifetime budget. In case you decide to go with a daily budget, you can choose between running it sustainably or rather set a beginning and end dates. If you decide to go for a lifetime budget, make sure you set a beginning and end dates here.

When it comes to budget optimization, you can fix expenditure limits on each individual ad set. Supplementing that part allows you to fix either a minimum and/or a maximum expenditure amount based on the total budget you allocated at the campaign level. In case this is necessary for you, setting up these limits makes sure that each and every ad set receives a portion of the budget.

In order to avoid budget optimization inefficiency, it is important that you set flexible expenditure limits. Generally, it is advised not to fix any expenditure limits up until you have collected enough information on each audience to make knowledgeable decisions. Recall that budget optimization was made in such a way that you get optimal results at minimal cost, and the settings by default allow the former tool to efficiently work.

#4 Experiment With Various Creatives With Budget Optimization

If your schedule and any other budget settings are all prepared at the ad set level, you can go ahead to the ad level to construct your copy and creative.

The best practice when it comes to Facebook ads is to always experiment with various creatives at the ad level. When you are implementing more than one ad in the same ad set, you could notice that after 1 to 2 days, one ad usually performs better (with best results and reach) than the others. The reason for this is simple. Facebook’s ad algorithms spontaneously determine which ad is efficiently performing and thus promote that ad more frequently.

Budget optimization permits alike type of automatic optimization to arise at the ad set level.


Allocating a budget the conventional way at the Ad Set level tells Facebook to spend that particular amount on each ad set. As such, this is an efficacious technique if you plan on spending the same amount on each ad set.

Nonetheless, if you are aiming at maximizing results while minimizing costs, then you will want to consider going for the budget optimization tool. Facebook will spontaneously and efficiently assign a higher percentage of the budget to ad sets optimally performing. This way you spend in the most productive way possible.

What are your thoughts? Would you consider using budget optimization for your advertisements? Please do let us know in the comments section down below.

About the author

Hossein Ganji

Hossein graduated from the University of Texas at Austin where he received his bachelors in Mathematics with minors in Chemistry and Biology. After he graduating he worked in the financial industry. In 2015 he left Merril Lynch to join a Financial Tech startup where in his free time he built his AI marketing tool. In 2017 he founded Major Keys Marketing and became a member of the World Trade Center.

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