Facebook Budget Optimization Tool-dsim

Marketers are always confused about the allocation of budget to reach the most effective Facebook audiences. All businesses want to know that they are using their ad dollars most resourcefully.

Facebook’s Budget Optimization tool uses an algorithm to automatically optimize your budget distribution across ad sets.


In this article, you’ll learn what Facebook Budget Optimization tool, features is and how it works.

What’s a Campaign Budget?

A campaign budget is a budget you set at the campaign level. The amount you set can apply to everyday campaign (daily budget) or Lifetime campaign (lifetime budget). All campaign budgets use campaign budget optimization.

Campaign Budget Optimization: Campaign Level


  • Click the slider button to start the feature and “optimize budget across ad sets.”


You’ll be able to set a daily or lifetime campaign budget when you select campaign budget optimization… 


What’s Campaign Budget Optimization?

Campaign budget optimization is a way of optimizing the distribution of a campaign budget across your campaign’s ad sets.  The advertisers can set one central campaign budget to optimize across ad sets by distributing budget to the top performing ad sets in real time.

It is available for any campaign objective and is best suited for campaigns with multiple ad sets. 


How it works?

With campaign budget optimization tool, advertisers allow Facebook to allocate their budget across ad sets to get the best results for their campaign.


In addition to setting a daily or lifetime campaign budget, companies can set bid caps and spend limits for each ad set.


The tool will help find the highest performing ad sets, then devote the bulk of your ad spend toward those sets, so giving you a higher ROI and more results for your money.

It also works in real time; so you won’t be putting dollars toward poor-performing ad sets for long.

Campaign budget optimization also saves advertisers time by removing the need to manually shift budgets between ad sets.

Main goals of the tool:

  • Determine the absolute, most effective use of your limited ad dollars
  • Help you lower the cost per result
  • Increase your ROI

According to Facebook, Campaign budget optimization is best under these conditions:

  • Set a campaign-level budget and have some flexibility in how that budget is spent across the ad sets in their campaign
  • Get the most results possible from their campaign
  • Simplify campaign set up and save time by reducing the number of budgets they have to manage manually

How to set up campaign budget optimization?

During campaign creation:
  1. Turn on the budget optimization toggle
  2. Choose if you want your campaign budget to be Daily or Lifetime
  3. Set a budget
  4. Choose a campaign bid strategy
  • If you select the lowest cost campaign bid strategy without a bid cap, all ad sets in your campaign must have the same optimization event
  • If you choose the lowest cost campaign bid strategy with a bid cap or the target cost campaign bid strategy, you can optimize for different results and set different bid caps or cost targets for each ad set


  • During ad set creation, you can set spend limits if desired.

Campaign Budget Optimization: Ad Set Level

Once you have your campaign budget and bid strategy set, you’re ready to build out your ad sets.

At the ad set level:

You choose your audience(s) and select your ad placements. Because you’ve elected to use budget optimization, you’ll notice some changes to the Budget & Schedule section.


  • Click “Add spend limits to this ad set”


  • Set either a minimum or a maximum spend amount based on the budget you set at the campaign level.


These limits can be used to make sure that all ad sets are receiving access to a portion of the budget if that’s important to your campaign.

DSIM Blog is created to help you to know all aspects of Digital Marketing ranging from basics of Digital Marketing to Advance Level Topics, Read our posts and feel free to reach our team for any queries.

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