Facebook currently allows you to set your Ad budget at the Ad Set level. Soon you will be forced to set the budget at the Campaign level.
(Btw, if that sentence meant nothing to you, then I recommend taking a quick look at our simple guide to Facebook advertising. And then come back.)
An Ad Set is basically the level that deals with targeting audiences. Within each ad set you can have multiple ads with different text, imagery etc.
At the moment under one Campaign you could, for example, set a daily budget of £10 to target your existing followers, £10 for your website visitors and £10 for people who’ve never heard of you.
From September, Facebook will force advertisers to set the budget at the Campaign level. In this example, this means you’d set a daily spend of £30 and Facebook will decides how best to allocate it between those three groups. It’ll test to see which the most responsive group is and then allocate more spend to them.
How might this impact my business?
This is great for people who aren’t too confident with advertising as it automates some of the work. However, it’s taken control away from experts, ad agencies, and Social Brighton’s Callum.
It’s fairly well known that if you advertise to existing customers you are likely to get a better return. This would lead Facebook to allocate more of your budget to marketing to existing customers. Although this would work better in the short-term, it would sacrifice a longer-term growth by reducing your reach into new customer groups.
Facebook also doesn’t have a full view of how you are allocating spend on other advertising and marketing platforms, so may not be making the best decisions.
At the moment this feature is optional but will be made compulsory in September. It will also be applied retrospectively, so everything already set up will be transitioned across.
So, good thing or bad thing?
😄 Good news: Very few businesses are expert at Facebook Advertising. This move will lower the barrier to entry-level advertisers, making it easier for you to get involved.
☹️ Bad news: It doesn’t necessarily lead to the best results for you. We’ve already started discussions here at Social Brighton on how to take back budgeting control from Facebook. All will be revealed at our future Facebook and Instagram Advertising courses.