eCommerce Lifestyle

Campaign Budget Optimization


In this episode of the eCommerce Lifestyle podcast, Anton shares an update on Campaign Budget Optimization for Facebook. This episode is a follow up to “The Death of Facebook Ad Account Managers” podcast.

Links From This Episode:

  • By default, Facebook will show your ads to the people most likely to spend money on you (hyper-active buyers). This pool gets saturated quick.
  • So Facebook will widen the pool and show it to people less likely to buy.
  • Instead, stay in the hot zone. Have new creatives every 3-5 days with new ads, maybe some new angles.
  • If you want to learn more about this, I am doing a deep dive of this at our retreat in Prague in September. Send me an email at [email protected] to find out more information and how to come join.
  • We are finding even more buyers by separating men and women and country. We have about four ad sets per campaign, refresh creatives every 3-5 days and we have been crushing it. The broad technique only really works if you have conversion data.
  • Here are two past podcasts where we talk about Facebook CBO: "The Death of Facebook Ad Account Managers" and "Create This Facebook Campaign Today"
  • Transcripts

    Yo, what's up everybody? Anton Kraly here from, and welcome to another episode of the E-Commerce Lifestyle Podcast. So I'm recording a quick one today. As per usual, on my way into our office here in Austin, and this is because I wanted to do a follow-up to an episode I made, I think it was last week, it actually might have been two weeks ago, they're all blurring together. But it was about the death of Facebook ad account managers, and basically what I was talking about was the fact that campaign budget optimization is working so well right now, and I'll provide some updates on that in a few minutes.

    It's actually working better than it ever has before for us, and a lot of my other E-Com buddies that spend a lot of money and bring in a lot of sales as well, so I'll talk about that. But just the title alone, I know that kind of sounds like, I don't want to say mean, but if you were listening to this, and you are a Facebook ad account manager, or that's the way you make money, maybe you have a social media marketing agency. Or maybe you have someone running your Facebook ads, and you're thinking, "Well, am I still going to need this person? Can I replace them?"

    Let me tell you what I think, this is so bad to say, but what their use is now, and what you can transfer them into because if you're going to spend at scale, meaning if you're running successful campaigns and if you want to keep throwing fuel on the fire, meaning investing more money into your ads, the one drawback we found is that you need to have new creatives and new ads coming out pretty much every, I would say three to five days, because what happens is Facebook with campaign budget optimization, and by the way, if you have no idea what that is, I'll post a link below this episode. If you go to and click on episodes, I'll post a link going back so you can get more of an in depth explanation, but the problem is, again, good problem, but what Facebook will do is, by default, show your ads to the people that are most likely to spend money with you because they're optimizing. If you optimize for conversions, a conversion being an order, they're going to optimize for that. So what they'll do by default is show your ads to the people that are the hyper active buyers, right? Which is great. But what's going to happen is that pool of people is going to get saturated pretty quick, meaning they're going to see your offers.

    Again, if you're spending a lot of money, they're going to see them pretty much right away. Probably within, again, three to five days. Now, some of them will buy, which is awesome, some of them won't, but the ones of them that won't, if you just keep showing them the same thing over, and over, and over, chances are going to go down, and down, and down that they're going to buy, and then what Facebook is going to start to do, because they're still trying to do the best for you, they're still trying to optimize for money, but they're going to start showing your ads to more and more people.

    They're going to kind of widen that pool, that audience, that's seeing your creatives, and as they widen it, they're going to show it to people that are less and less likely to buy. Again, there will still be buyers, but the conversion rate will go down, and so will clicks, so will everything, so it'll just cost more to make money from it. So the key to making this continue to work is stay in what I would call the hot zone, where you constantly have new creatives.

    Again, this is only if you're spending money and everybody is seeing your stuff. But if you are, always have new creatives every three to five days, new ads, maybe new angles. We've realized you don't even really need new angles, you kind of just need new images, maybe a different headline, but keep changing it up so that the people, those hyper active buyers will keep seeing your thing and will keep coming into it through different images, or creatives, or words.

    So keep that in mind. Again, that's just one big takeaway that we've had over the past couple of weeks, being able to scale these things even more. So speaking of scaling these things even more, oh, and by the way, let me mention quickly before I do this that if you want to learn more about this, our Prague retreat, it's for my company, Drop Ship Lifestyle actually. It's in Prague in September.

    I know that's like seven months away at the time I'm recording this, but I'm already conceptualizing and outlining one of my presentations there where I'm going to do a deep dive into how we're doing this. Inside of our ad accounts, what it looks like, how much money they make, how much we spend, how we scale them. So if you want to see this step-by-step, I'm not adding it to the course or anything, but I will be talking about it live in Prague. So if you want to come out, hang out with me and 100 other people that are running these type of businesses, and again, learn this whole system plus a whole lot more, just send me an email. It's Anton, A-N-T-O-N at, and I'll let you know how you can get your ticket for Prague. It's seven months away, we have I think 50 tickets left, and next week, I'm going to basically try to sell all of them. So if you want to come, email [email protected]

    Okay. But back to what's different now than even when I spoke about this maybe two weeks ago on the podcast. So originally, we were running these conversion budget optimization campaigns, and we were running them to lookalikes of buyers, so we created lookalike audiences on Facebook. Now, what we're doing is basically separating it by men and women, and that's pretty much it. Men, and women, and country, and then letting Facebook do its thing, and they're finding even more buyers. So that's literally what targeting looks like in early 2019 on Facebook for best results. Leaving things totally broad, choosing men, choosing women, choosing a country, putting that all into conversion budget optimization campaigns. We like to have about four ad sets in a campaign, and then again, refreshing creatives every three to five days, and that's getting better results than when we were segmenting things down as much as possible. This is just absolutely crushing it right now.

    One thing I'll note about this technique, the broad technique, is it only works if you already have conversion data, and I hate this term, but if you're into Facebook advertising, you've probably heard people say 'season your pixel', that makes me cringe, but basically what that means is people need to interact with your Facebook pixel, and all that means is you need to have your pixel on your site and if someone buys, then that counts as activity towards your pixel. Now, Facebook knows, "Hey, someone that was 33 years old in Austin, Texas bought. Let's find more people like that." So this only works, again, if you have conversions coming into your website already that are being tracked by Facebook. That way, they can use that data to find the best men and women in whatever country you're targeting. So keep that in mind. It can be a brand new pixel.

    And I don't know why this just popped into my head, but speaking of terms that just make me cringe, another one, please don't use this if we ever do business, is 'dropping nuggets'. Ugh. I actually had a copywriter that I used to work with, and he kept trying to inject that term, dropping nuggets, golden nuggets, into our copy, and that's one of the reasons he's not with the company anymore. I can't stand that. I don't know why. It's a personal thing. But yeah, so back to how this is set up. Again, all you really need to do if you're spending at scale is have a CBO campaign with about four ad sets in it, ad sets being men, and women, and the countries that you're targeting. You can pretty much scale it ... Back in the day, it used to be like you can scale 10% of your ad spend per day, now I've went in there, and I've 3X-ed our budgets in a click, and results have changed a little bit, but you can pretty much do whatever you want with it.

    So again, yeah, keep your Facebook ad account manager, you don't have to get rid of them, but if they're not doing anything for optimization, the best use of their time right now is to be making new creatives, keeping them refreshed, keeping the hot buyers coming in, and not letting things go scale. So I hope you found that useful. As always, if you did, I would really appreciate it if you could hop on into iTunes and leave a review. We have I think, I don't know. I don't even know how many we have, but I'm looking to build up our reviews over there, so I would really appreciate that.

    And of course, if you want to see literally how we do this step-by-step in person, I've already decided this is going to be one of my talks out in Prague for our 2019 retreat, and if you want to come, just send me an email, Anton, A-N-T-O-N at, and I will let you know how you can get your ticket and join us out there. So I'm in the office, I'm going to get to work, [inaudible 00:09:00], and I'll talk to you all soon. See you.