Campaign Budget Optimization, Pace and Delivery

Use this lesson to:

  • Summarize how Campaign Budget Optimization makes the most efficient use of your spend.
  • Recognize how we ensure that we spend your budget evenly over the schedule of your campaign.
  • Compare standard and accelerated delivery methods.

What is Campaign Budget Optimization?

All campaigns use Campaign Budget Optimization (CBO). It automatically and continuously makes the most efficient use of your budget spending so that you get the best overall results at a cost that aligns with your bid strategy.

When you create an ad set or ad, you have the option to set a daily budget or a lifetime budget. A daily budget directs what is spent each day your campaign runs, whereas a lifetime budget does so for the lifetime of the campaign.

To ensure your budget spend is optimized, your ad sets go through a learning phase where the delivery system explores the best way to deliver your ad set. Performance is less stable during this time, so your results aren’t necessarily indicative of future performance. It’s important to wait until your ad set is out of the learning phase before making edits. If you make edits significant, the ad sets will re-enter the learning phase.

How pacing works

Through pacing, we ensure that we spend your budget evenly over the schedule of your campaign. By default, we show your ads to people in your target audience evenly throughout the day across Facebook, Instagram and other communities. We do this so we can serve your ad to valuable people throughout your campaign lifetime rather than exhaust your budget within a few hours.

Sometimes, for certain reasons, advertisers do want to spend their budgets as quickly as possible, and we allow for this option, too. In this case, we’ll accelerate your ad delivery. By contrast, standard delivery spends your budget over a longer period.

Click on the circles below to understand how pacing works.

Standard delivery

Standard delivery is designed to spend your budget evenly over the duration of the campaign using a method called discount pacingWith this method, we essentially lower your bid to a level that will just spend your budget over the campaign duration so that you can capture more opportunities at more efficient costs.

Total budget to spend = $10
Advertiser value per click = $5
Total value: clicks x $5 = $35

Circled dots illustrate successful bids. Image does not represent actual results.

standard pacing chart

Accelerated delivery

Accelerated delivery spends budget as quickly as possible by entering every opportunity under your bid cap into the auction. This favors quick spend over maintaining your cost per result. With accelerated delivery, it is possible to exhaust your budget before your scheduled campaign ends. Advertisers with bigger budgets who want to reach people quickly or with time-sensitive campaigns should consider using accelerated delivery.

Notice in the graph below that the delivery takes place during the first part of the day, even if the cost is more expensive.

Total budget to spend = $10

Advertiser value per click = $5

Total value: clicks x $5 = $30

Circled dots illustrate successful bids. Image does not represent actual results.

As you can see, standard delivery leads to a more efficient spend of $10. However, there may be times when reaching people faster provides more value, balancing out the inefficiencies of accelerated delivery.

Knowledge check

Key takeaways

  • All campaigns use Campaign Budget Optimization to provide you the best overall results at a cost that aligns with your bid strategy.
  • Proper pacing ensures your budget is spent evenly through the schedule of your campaign.
  • You can opt for your campaign to have standard or accelerated delivery. Each has its own pros and cons.

Keep learning

Check out these resources to continue growing your skills.

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