How to Scale Your Facebook Ad Budget

How to Scale Your Facebook Ad Budget

Achieving success with Facebook advertising involves constantly adapting your strategies to the changes in the Facebook Ads’ manager and the ever-evolving Facebook algorithm. Understanding how different ads, targeting, and budget settings will affect your ad delivery is indispensable to running campaigns that deliver a good ROAS. 

The best way to get significant results lies in knowing when it’s time to scale your Facebook ad budget. Because, regardless of how much the algorithm changes, Facebook is mostly a pay-to-play platform. Indeed, over 60% of marketers believe it’s difficult to see value with Facebook unless you invest advertising dollars into the platform, according to a Databox survey.

So, how do you scale your ad budget? Let’s find out.

How to scale your Facebook ad budget 

When you start working with larger ad budgets, the real challenge lies in maintaining a healthy return on ad spend (ROAS) as you grow.

To effectively scale on Facebook, you need to understand the platform’s algorithm and how it reacts to the changes you make to your campaign budgets. To make the algorithm work to your advantage and effectively scale ad budget over time, you first need to fulfill a list of prerequisites. 

Prerequisites of scaling Facebook ad budget

  1. Have clear objectives and KPIs: Advertisers who don’t start with target KPIs find it hard to determine which campaigns are doing well and which ones aren’t. It thus becomes more challenging for them to make informed decisions. To avoid spending money on unprofitable ads, make sure you have clear campaign objectives before scaling your budget.  
  2. Understand Facebook’s algorithm: It is crucial to understand how the Facebook algorithm works before making any changes. That includes comprehending how your ad spend increases will affect the way your ads appear on various platforms. Take time to learn about the impact your ad budget can have on your ads’ profitability, and, most importantly, how to anticipate and avoid a decrease in your ROAS. 
  3. Get to know the Facebook ad delivery system: The overall principle Facebook uses to determine which ads to show its users is value. Facebook assigns a value to every ad, which determines how it will be shown to users on its various networks. The platform assigns value based on bidding X estimated action rate + user value. A key takeaway is that scaling your ad budget could make or break your campaign success. 

After you’ve developed an understanding of how your campaigns will react to an increase in ad budget, the best way to scale your ad budget is via vertical scaling, using automated rules, and moving your campaigns to campaign budget optimization. 

1. Vertical scaling

Vertical scaling is the most straightforward growth strategy. It involves increasing the budget on your existing campaigns and ad sets to reach more potential customers.

To ensure success with this technique, it’s crucial to increase your ad budget in small increments, rather than doubling or tripling it right away. Though a rapid increase may be tempting, it’s not the way to go. That’s because Facebook’s algorithm has a learning phase where it adjusts to the budget changes you make. During this stage, ad sets are less stable and usually have a higher cost per result. 

To ensure your ad sets exit the learning phase, you should avoid setting unrealistic budgets. If you set a very small or inflated budget, the delivery system has an inaccurate indicator of the people for whom the delivery system should optimize. Set a budget large enough to get at least 50 total optimization events and avoid frequent budget changes, which can cause an ad set to re-enter the learning phase.

As a rule of thumb, add the extra budget in 10% to 20% increments. Facebook considers this a relatively small change to your ad set, so the algorithm retains most of the data learned from the initial phases of running your campaign.

On the contrary, if you increase your budget too fast, you’ll destabilize your ad delivery, throwing off the algorithm and resulting in a decreased ROAS. 

2. Use automated rules to cut or increase ad budget

With Facebook’s automated rules, you can increase or decrease the budget or bid for your ad sets. When the rule meets your conditions, it adjusts your ad sets’ budget automatically.

Automated rules in ads manager

For example, you can set a rule to scale your bid by a target field, such as Cost per Mobile App Install. In this case, your bid will automatically adjust to your desired cost per mobile app installs. 

When using automated rules, one thing to remember is to set the maximum daily budget limit to your rules. Otherwise, you might forget about the rule and end up incurring unplanned expenses.

3. Move your campaigns to campaign budget optimization

Facebook’s campaign budget optimization (CBO) automatically manages your campaign budget across ad sets to get you the overall best results. With CBO, you set one central campaign budget. This budget then distributes in real-time to ad sets with the best opportunities throughout your campaign.

All you need to do is set your campaign budget and bid strategy; Facebook will then find the best opportunities for you based on those settings. With CBO, you manage the budget at the campaign level rather than the ad set level.

Facebook campaign budget optimization

Using CBO, Facebook takes care of ad budgets after the learning phase. It automatically shifts the budget to the ad set with the highest ROAS and makes this decision in real-time. When one ad set’s lowest cost results run out, the algorithm allocates the budget to the next ad set with the lowest cost results.

Though campaign budget optimization helps advertisers limit their manual work, you may feel skeptical about surrendering control of your budget. To ensure you get the best results with CBO, set “Lowest Cost” or “Target Cost” limits: 

Campaign budget optimization

Start scaling your Facebook ad budget using these three techniques to increase your return on ad spend and meet your campaign goals. 

Interested in finding out how your ad campaigns are doing? 

Get your complimentary conversion analysis 

At Postclick, we would like to offer you a complimentary analysis of your ad campaigns. We will review your campaigns to analyze your post-click health, compare your site against industry and competitive benchmarks, and identify the most effective opportunities to increase your ROAS. Request your analysis here.

Fahad Muhammad
by Fahad Muhammad

Fahad Muhammad is a Content Marketer at Postclick. He writes about post-click landing pages, advertising trends, and personalization. When he’s not busy writing, he can be found glued to an episode of Top Gear.

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