The Automatic Budget Optimization feature will eliminate the manual work of increasing or decreasing the budget automatically based on the campaign performance. It can help us in spending the budgets in the efficient campaigns and simultaneously reduce in the inefficient ones.
ABO should be used for the account irrespective of spending. The following are some of the best practices of ABO:
Budget change basis
We need to decide on the basis of how many days the budget needs to be scaled up/down. If it should be on the basis of last 1/3/7 days. In case the budget is more than 10L a month, it's recommended to set the ABO up at everyday level, because within 1 day, the campaigns will have enough budgets and learning, upon which we can decide to increase/decrease the budgets. In case, the account spending is between 3 lakhs to 10 lakhs a month, choose to set up ABO at a Bi/Tri weekly frequency because then only campaigns will have enough learning to update the budgets. Similarly, it should be weekly for an account with spends below 3L.
We can apply these rules in all the campaign types - prospect, engage, and dynamic ones, separately.
In Prospect campaigns, we can set the ABO up on the basis of the last 1/3/7 days' ROAS of the brand - based on the brand's budget. After deciding the base period, you will have to select the frequency for the changes to be made - you can set it to once/twice/thrice a week, or every day also.
HOURLY ABO RULES
ABO is now available for prospecting campaigns on an hourly basis as well. Simply put, budgets can be raised or lowered hourly depending on how well the campaigns are doing today.
Additionally, we have the option to merely be informed of budget recommendations and not have the campaigns altered in any way. Also, we can exclude campaigns where we do not wish the hourly ABO rules be applied.
Below is the case study from a health and wellness brand- Ayurvedic Source where hourly ABO rules have helped improve both the scale and efficiency.
In engage campaign, the budget is increased or decreased based on the returns from the prospecting campaigns and the frequency in engage campaign. The condition is to increase the budget if ROAS is more than 1.2x of PROAS (ROAS of prospect campaigns) and Frequency is less than 3.5. (number of days to be considered can vary as per spends). One point to note here is, the ROAS from the engage campaigns should at least be 1.2 times the incoming ROAS from prospect campaigns. Similar to what we did in the prospect campaigns, we can choose on the basis of how many days your ROAS should be analyzed for the changes to be made and how many times you want it to happen within a week, once, twice, thrice, or everyday.
It is recommended to run ABO for engage campaigns on the basis of last 7 days.
For dynamic campaigns also, the conditions are set separately for different windows (1 day, 7 days, and 30 Days) based on the industry's best practices. Here also, the prospecting ROAS is taken into consideration while upscaling or descaling the budgets.
It is recommended to run ABO for dynamic campaigns on the basis of last 7 days.
After setting the rules up, just click on save, for taking them live.
You can update these rules at any time. For doing the same, just visit the Automations tab on the platform > Budget optimization > Facebook Budget Optimization > Click on Edit in the action section and update and save. Your updated rules will start working!