In this podcast I’ll go over a very important update to Facebook’s Ad platform: Campaign Budget Optimization. This is a game changer.
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Hey guys! This is Jules and I’m Manuel’s Creative Director. In this podcast, Manuel talks about using the Campaign Budget Optimization option and why this particular feature is so important when it comes to creating a SUCCESSFUL advertising campaign on Facebook. Enjoy!
FACEBOOK’S NEWEST UPDATE: CAMPAIGN BUDGET OPTIMIZATION
All right. Welcome to the Facebook Marketing Ninja Podcast. I’m excited to be here again with you guys. I know it has been a while. I don’t know if you guys have been consuming the content consistently and you have run our podcast. You know that I have a lot of podcasts already. Maybe some of them you have already heard a couple of times. I think it has already been a couple of years since I started the podcast and it’s been at least 70 episodes now. I want to thank you. I feel humbled by the fact that you’re here taking the time out of your day to listen to this podcast wherever you might be. Whether that’s driving, in the house, or anywhere else, it’s something that I don’t take for granted. I’m going to make sure that your time is well invested here with me because I know that your time is valuable. But I know that I can also help you a ton.
This podcast today is going to help you a lot if you are into doing Facebook advertising already. If you’re not doing Facebook advertising, you might have to go to other podcasts that are going to help you get started or you might have to go to the mini-courses that are going to help you get going with Facebook advertising. If you go to manuelsuarez.com/minicourses, you’re going to have some basics on getting started. This podcast today is meant for people that are already running Facebook advertising. I am assuming that a lot of you here listening to me or watching this video on Facebook live, because I happen to be also on Facebook live, are also doing Facebook advertising. So then, this podcast is going to help you get a ton more results because this update that Facebook rolled out recently is a massive one.
Now, I have a program that some of you guys might have already heard about, some of you guys already are probably subscribed to it called the Facebook Masters Program. This program, I already covered the subject of this thing that we’re going to talk about today which is “Campaign Budget Optimization”. Let me tell you why this is super important. Campaign Budget Optimization is a tool, it’s a particular option right now that is not selected by default that would allow you to help Facebook and have Facebook help you. It’s like that typical help me help you. That’s the same thing that’s happening with Campaign Budget Optimization.
REMEMBER… I want you guys to keep this in mind:
FACEBOOK WANTS YOU TO HAVE RESULTS, THEY WANT YOU TO BE SUCCESSFUL.
Because if you do not get results, then, as simple as that…
THEY DON’T GET MORE MONEY, RIGHT? It’s quite obvious.
Only a madman, only a crazy human being will just pour money into Facebook, never get anything back and keep on pouring money into Facebook. That’s not how they grow. Now, if you’ve been following along my content, if you’ve been following along the stock market, you know that Facebook is not only growing, they’re growing by leaps and bounds more than any other company out there at a very fast pace and it’s incredible. Maybe you can talk about Apple. Right now, Facebook is growing faster than even Amazon at the pace that they’re going through right now, still rolling on their revenue sources currently. There’s a lot of opportunity in their platform and they’re just getting started. If you didn’t know this, there are about 300 million registered corporations on the planet and only 5% or 6% of them have invested in Facebook advertising. So, this world is just basically beginning. It’s not something that “We’re late in the game”. It’s not “Late in the chain”. It’s not something that “It’s too crowded”. It’s just getting started.
It’s about you figuring out how to utilize the platform and there’s the opportunity. Facebook continues to roll out improvements that are going to help you get more results. If you did not see the F8 Annual Convention that Facebook just had this week, they are doing some incredible developments on different platforms – WhatsApp, Instagram, Messenger, Facebook – massive updates. By now, by the time that you’re hearing this podcast, you already probably have an updated platform on Facebook. This platform has access to a tab of Facebook groups, new tabs for friends and family, the Messenger channel is getting massively upgraded. All of those things are better for us as brands and as businesses because Facebook is working on keeping the attention in. Instead of trying to just flood the market with businesses, they’re trying to flood the market with better user experience so people can stick on the platform. That’s a podcast for another day which is the incredible world of placements that Facebook owns now:
- Facebook Stories
- Instagram Stories
- Instagram TV
- Audience Network
FACEBOOK IS NOT JUST FACEBOOK
Facebook is not a cute blue icon anymore. Facebook is a monster company worth $600 billion, right? That’s what they are today. THE OPPORTUNITY IS JUST GETTING STARTED. Let me tell you one of the updates which is the purpose of today’s podcast that I am the most excited about right now. We have been testing it out. As you know, I don’t do more podcast because I’m so busy running my agency, running my digital program, and everything else that I do. I want to make sure that I can do more but overall, I want to make sure that you guys get the best possible information and start implementing.
The other day, I went to a seminar and I saw a few familiar faces. For me, it’s important that these familiar faces that have been on my seminars before start implementing stuff. I told them,
“Hey! If you’re not going to implement any of the things that I’m going to teach you today, what are you doing here? Don’t waste your time, don’t waste my time. Start implementing stuff because I’m telling you practical stuff. I’m not just trying to motivate you, I’m trying to give you practical information that you can implement and see some results right away. That’s the reality of what I’m doing.”
Let me tell you one practical recommendation. If you guys are already running Facebook advertising, this is a major one. It’s called Campaign Budget Optimization, short, CBO. What does it mean? It means that Facebook right now has rolled out the ability for you to think about your Business Manager. Again, if you’re not set up on Facebook, you have to go back to earlier training, you have to do my mini-courses. Think about your Business Manager or just pause this for a second, or open up a new window if you’re watching this on a computer or listening to it somewhere else and just open up a new window. It’s not going to work on a mobile device. It’s only going to work on a desktop.
HOW TO TAKE ADVANTAGE OF THE “CBO”?
If you go to business.facebook.com, you can go ahead to your ad account and create a new campaign. Before you do anything else on it, I want you to observe something that you might have not paid attention to before. I’ll explain to you what that is in a second. But, when you’re creating a campaign, you have to select whether you want to generate messages, traffic to your website, leads that you want to generate, names, email addresses, phone numbers. Do you want to do branding for your business? Do you want to generate video views? Do you want to get engagement on your Facebook posts, videos, or anything that you’re doing? Do you want to get more followers? What are you trying to accomplish? You have to select that as a first step.
Before you move on to continue to select your audience, you’re going to see an option at the bottom of that same step inside your Ad Manager that has a little checkbox that says Campaign Budget Optimization. What does that mean? If you check that box, if you select that box, make sure that it’s checked in because the default is it’s not selected, but you select that box and you check-in, you’re going to go ahead and go to the next step. At the Ad Set level… When I say Ad Set, we’re talking about audience – who do you want to get that message to? Did you guys see the report? There are 2.38 billion people active on the Facebook family of apps every single month. Think about that for a second.
There are 7.8 billion people on the planet.
ONLY ABOUT 3 BILLION OF THEM, WHICH IS ABOUT 3.2 BILLION PEOPLE HAVE ACCESS TO THE ONLINE WORLD.
That’s something that most people don’t understand. Most people don’t get that the internet is so new still that the majority of the world still doesn’t have access to it. For us, in the United States, or in the UK, in Canada, in Mexico, in places that have a lot more maybe economic evolution, the internet is a common thing for all of us.
WE CANNOT EVEN THINK ABOUT THE IDEA OF NOT HAVING ACCESS TO AN ONLINE COMMUNITY.
WiFi. What are you talking about when there’s no WiFi in a restaurant? What are you talking about when there’s no WiFi on this office? That is something that we take for granted every single day. Now, there’s a lot of poverty in the world, still. Places in Africa, they have a lot of poverty. Even Mexico by itself that has a big area of poverty that these people don’t generally have smartphone devices, or they don’t have WiFi signals, or they don’t have plans that they are subscribed to – none of that stuff. Think about how new this world is that only about 34% of the world’s population, a little bit less than that, has access to the online world. It’s just getting started. It’s at the beginning evolution of the process. Now, out of those 3 billion people, 2.4 of them are active on the Facebook family of apps. It’s pretty crazy! We’re talking about 8 out of 10 human beings on average have the access to Facebook, Instagram, Messenger, WhatsApp, every single day. It’s not a small thing. Do you know that through the Business Manager, you can press a couple of buttons and reach out to all of them? Yes, that’s right! Granted, it’s going to cost you money. Has there ever been a time in which advertising has been free? None really, right? Not really. There has to be some kind of barter, some kind of an exchange, it’s always been the case.
Advertising in social media requires some money. Reaching billions requires a lot of money. Reaching millions requires some money. But, the point is, the era is just beginning. And now, since you have a large number of people,
YOU’VE GOT TO KEEP IN MIND THAT MOST PEOPLE ARE NOT YOUR CUSTOMERS.
In the United States, there are 240 million people that are active on the Facebook family of apps. Out of those 240 million, most of them are never going to be interested in your product, services, brands, brick and mortars. None of that.
SO, YOU HAVE TO WORK AT FINDING WHO THEY ARE
… who is your customer that is going to be interested in what you have to say. It’s a process that takes time to figure out. That’s the reality. If you don’t figure it out, you’re going to end up losing all your money and you’re going to come back to me and tell me, “Manuel, I invested in Facebook advertising and Facebook didn’t work.”
It’s not that Facebook didn’t work. It’s that you didn’t work hard enough at figuring out who your audience is. Plain and simple. Now, this object, this checkbox that you have to select which is called Campaign Budget Optimization is going to be the default option in a few months. In September, it will be the default option. So, you don’t have to worry about that. In September, it’s going to be automatically… every time you select a new campaign and you build it from scratch, it’s going to be all Campaign Budget Optimization. But, in this world we live in today, we’re talking about four full months before this thing becomes the default option. In four months from today, you can build an empire if you keep on pushing hard and get yourself to the next level. Sure, it requires patience, it requires having the right technology, the right information. But, in four months, you can do a lot and that’s the reality. What you want to do is that in the meantime, right now, today, I need you to go and create campaigns selecting Campaign Budget Optimization.
If you have a campaign that is working right now, what I want you to do is go ahead and duplicate the entire campaign and check that box that says Campaign Budget Optimization. If you duplicate and select the option right there, let me tell you what’s going to happen and what’s so special about this. That’s the purpose of today’s podcast. This by itself is so powerful that merits an entire podcast just to talk about this particular thing right here, the Campaign Budget Optimization.
When you select that option, when you check that box, what happens is Facebook allows you now to create audiences inside that campaign for up to 70 audiences inside that same campaign and Facebook will find you the winning audiences and will optimize to spend more money in those winning audiences and that is the beauty of it. For example, if you have a campaign to generate traffic to your website, to visit your blog. WOW! Somebody’s making some loud noise over here. I’m sorry about that guys. We are in NaturalSlim and they have some serious motion over here … They make a lot of noise over here. These people are loud. That happens with Latin American people. I apologize for that. I’ll go back to it in a second. The point is that, in this campaign which is Messages, Lead Generation, Traffic Campaign, a Blog to generate people to visit your blog, if you have an Amazon brand and you want to send people to your Amazon brand directly which by the way right now happens to be really hot because Amazon has changed a lot of rules. I’m going to do a podcast about this in the future. But, social media is so big to generate traffic towards your businesses that what you do in order to find an audience faster even if it’s cold traffic or warm traffic. You do one campaign, let’s say for example cold traffic, meaning people that don’t know who your brand is yet. You go in there and you select Audience, Audience, Audience, Audience.
If you haven’t seen me talk about this before on the Audiences on Facebook, there are three types of Audiences.
- There is what Facebook calls the Custom Audiences, meaning that is your data, emails, website visitors, and Messenger subscribers. Those are your audiences.
- There’s also Lookalike Audiences which grabs that data and it helps you find similar people to your audience. That’s what a Lookalike Audience is.
- Then, there’s something that Facebook calls Core Audience. The Core Audience is Facebook’s data – what people are interested in, content they like, pages they visit, friends and family that they’re interested in, engagement that they do – all the data, their birthdays, their anniversaries – that is Facebook’s Core Audience information.
So, you can grab one campaign and plug into it Core Audiences, Custom Audiences, Lookalike Audiences up to 70 of them. Then, do one ad, one single image, one single video, one single creative, one copywrite, and Facebook is going to spread the money. You’re going to have one campaign budget.
Let’s say $100 a day, $50 a day, $1000 a day and you select your budget at a campaign level and Facebook is going to quickly go through their system and help you find a winning audience and you don’t have to do anything, it’s all automatic. Facebook will now spend the majority of the money on the audience that is performing the best. Now, how ninja is that? It’s next level ninja because you don’t have to worry about it. All that you’ve got to do is putting some work at the beginning and create a campaign. Now, you’re going to go in there and add a bunch of different audiences and just create one ad all through the Business Manager and just lay back and let Facebook do its work, go ahead and create another campaign, and another campaign, and another campaign.
So, what I recommend is from now on, every single campaign that you create on the Facebook Business Manager,
MAKE SURE THAT YOU SELECT CAMPAIGN BUDGET OPTIMIZATION AS YOUR USUAL WAY OF OPERATING.
Starting in September, if you’re listening to this podcast on September 2019 or later which is going to happen because this podcast is going to be here forever, right? You put a piece of content out there and it stays there forever. So, if you’re listening to this podcast on September 2019 or later, this podcast doesn’t make a difference for you because in 2019, September, this is going to be a default option that is going to be automatic at the beginning of every single campaign. And now, at the ad set level, you do not control the budget. Meaning that at the audience level, you will not control the budget. The budget is going to be controlled at the Campaign level. So, if you want to spend $1000, it’s going to be selected at the Campaign level, you’re going to put in all the audiences that you want and Facebook is going to make all the process and is going to go through their work of finding you a winning audience overall.
COLD AND WARM AUDIENCES – WHAT TO DO?
A couple of important notes about this. If you are going after cold audiences, make sure that you have one campaign for cold audiences with all the cold audiences inside. If you’re going after warm audiences, make sure that you have one campaign for warm audiences with all the warm audiences inside. Don’t mix and match them because let’s say for example you want to generate sales with warm audiences but you also want some people into the top of the funnel in which you understand that these people are going to be more expensive because they are new.
IT IS EASIER AND CHEAPER TO GET SOMEBODY ELSE THAT HAS BOUGHT FROM YOU TO BUY AGAIN FROM YOU
than to get a new person to buy from you that don’t know who you are yet.
SEPARATE THE CAMPAIGNS
Cold audiences and warm audiences ALWAYS need to be SEPARATED because if they’re not separated, you’re going to have metrics that are all MIXED UP.
They should be separated because customer acquisition is a part of the social media game. If you don’t focus on being willing to invest money to acquire a customer, it becomes very difficult for you to have success as an advertiser on Facebook because now, you cannot see the long term return on investment of your Facebook advertising. But, a lot of people that I see fail as advertisers on Facebook. What happens is that they don’t realize that you need to have a back-end program, a plan to market to these people that are coming in. Maybe you invest a dollar and you get a dollar back on your e-commerce brand. But now, you have this person in your customer journey and now, you can sell them other stuff, upsell them, and get them through different funnels so you can get instead of $1, $5, $7, $10 down the line because these people now keep on buying from you.
Just so you know, the data has been researched. A person that has bought from you before is seven times easier to close than somebody that has not ever purchased from you. What is the game? The name of the game is…
CREATING A BIGGER CENTRAL FILE OF PEOPLE, GETTING MORE FISH INTO YOUR BUCKET.
It’s a very logical thing. If you have a fish, let’s say you’re a fisherman, and you go to a pond that has only 10 fish in it, your maximum potential is 10 fish. But, if you keep on putting on that customer bucket fish and fish and now you have 100 fish, guess what, now you have the potential of capturing up to 100 fish. It’s a very logical common sense thing if you grab more people into your funnel so you can sell more. Customer acquisition is a big part of it. You’ve got to have at the same time a campaign going on for customer acquisition which is top of the funnel, cold traffic to get them into your world and then you have to have your retargeting or “warm audiences” so you can keep up bringing into your world. This is something for us to talk about also in the future. I have talked about it in the past. But, retargeting people today is more powerful and more possible than ever because you have digital footprints that you can follow along the way. The people that view your videos on Facebook, you can retarget them; people that engage with your Instagram profile, you can retarget them; they send you a message, they visit your website, they purchase your product, you can retarget all these people. That’s the reality. It’s getting better, stronger, and more efficient than ever.
These guys are part of your retargeting audience that you are going to get into that campaign budget optimization to get people to continue buying from you. That’s the cool thing because maybe they bought from you and now you want to get them on Messenger. Maybe you got them on Messenger and now you want to sell them something. These are your warm audiences.
Whatever it is, whatever campaign that you select, whatever campaign that you’re going after – Lead Generation, Messages, Branding, Conversions, Dynamic Ads, Product Ads, Catalog Ads, whatever it is that you’re going after, select Campaign Budget Optimization. If you do so, you will win the social media game in the long run because you are utilizing Facebook’s algorithm and Facebook’s power to get more results at a lower cost.
How ninja is that? Imagine that. You don’t have to worry about that. You grab one campaign, you go in there and plugin 70 audiences. You don’t have to do 70, right? 70 is a lot but you can do up to 70 audiences. Let’s say that you do 5, 10, 20 and then you close your eyes and let Facebook do its work. If you do that, Facebook is going to help you find a winner along the way.
Does that make sense? Go ahead and give it a try and make sure that you set it up. Start seeing some results with it. Facebook rolled it out a while ago already, a few months ago, maybe you have seen that checkbox, maybe you have tested it out. If you have tested it out before and it wasn’t successful, maybe there is something that you need to adjust but also give it another chance because Facebook has been improving that particular strategy so they can get us more results. Trust me, if they’re doing this as a default option in September and it’s because it’s a big deal. I recommend that you pay attention because if you put this into action, trust me, down the line it will pay big dividends.
If you are not familiar with Facebook at all but you decided to stick with me and watched this entire podcast or listened to the entire podcast, I need you to make sure that you get some of the basics – manuelsuarez.com/minicourses will give you access to a series of free courses, training that are going to get you started in the Facebook advertising world. Once you go, then, you just keep on making yourself better along the way. Make sure that you follow me on social media. My Instagram is @mrmanuelsuarez. On Facebook, it’s @theninjamarketer. You can go to facebook.com/theninjamarketer. On YouTube, it’s Manuel Suarez. Follow me on social media and I will be able to provide a ton of value for you and I’ll help you get more results through your Facebook advertising with the use of my data. Trust me, I’ve got a lot of data that I’m accumulating every single day and I want to pass it on to you so you can also get more results.
All right. So, that’s it for this podcast and I’ll see you on the next one. Let me know if you have any questions. You can shoot me a message at m.me/theninjamarketer. Make sure that you put your question there. That’s my Messenger channel. We’ll get back to you and maybe you can give me some more ideas on content for the future and we can keep on going on this world of dominating this social media ads wave. All right. I’ll talk to you soon.