How to Set Up and Optimize Your Facebook Ad Budget Effectively

Are you struggling to optimize your Facebook ads? Despite trying everything, the results are not very high, even though the spending is huge. You are not alone in facing this situation. Many advertisers are in the same boat as you, not knowing how to solve it. What is the reason? We think that you did not have a specific strategy during the setup and budget optimization process. We will give an example of how to optimize the budget so that you can better understand.

In the last month, a client, after being advised by us, invested 76,763 USD in Facebook e-commerce ads and generated 239,000 USD in revenue, achieving an impressive return on ad spend (ROAS) of 3.82 at a large scale. More remarkably, our client achieved this result with a cost per acquisition (CPA) of only 47 USD.

The metrics we have just provided sound “too good”, but the truth is these results don’t come from luck. They come from proper optimization, tracking the right metrics, and making decisions based on truly important data.

In this article, BHW will share detailed ways to set up and optimize ad accounts so you can improve and enhance their effectiveness.

Currently, BlackHatWorld manages over 2,000 ad accounts globally, helping more than 10,000 e-commerce businesses achieve breakthrough sales growth through Facebook Ads. These impressive numbers are a clear testament to the quality of service and professionalism that BHW Agency is committed to delivering.

If you are facing difficulties or need a strong, stable ad account to acquire customers and boost revenue, let BHW Agency become your reliable companion on that journey. Contact us now on Telegram: @bhw_agency

A guide on how to set up your Facebook ad budget.

We understand that reasonable budget allocation on Facebook not only helps optimize efficiency but also helps you actively seize golden business opportunities. Below, BHW will share detailed ways to set up an ad budget, from the campaign level to the ad set level, along with practical situations for you to easily apply.

With campaign budget optimization (CBO)

Step 1: When setting up a campaign-level budget, you just need to:

Step 2: Select edit in the campaign section.

Step 3: Scroll down to the bottom to find budget scheduling.

Step 4: Facebook will explain that you can increase your budget on days or at times with higher sales potential, such as during promotions, when traffic increases, or during peak seasons.

Step 5: Enable this feature by ticking the checkbox. Here, you will:

• Select a specific time (day, hour, down to the minute) to increase the budget. For example: starting at 9:45 am and ending the same day or the next.
• Choose a budget increase type:
  • Increase by a fixed amount per day (e.g., +5 USD/day).
  • Increase by a percentage (default 25%, but you can adjust).

The good thing is that Meta will always display the new average spend, which helps you avoid having to calculate it yourself. You can add a maximum of 50 budget increase periods.

Note:

• If you have chosen “by percentage,” the entire duration must be by percentage (do not mix with a fixed amount and vice versa).
• To remove a duration, just press remove and then publish again.

With Ad Set Level Budget

If the campaign doesn’t use Advantage campaign budget plus (the new name for CBO), you will need to adjust the budget directly for each ad set. How to do it:

Step 1: Go to the ad set you want to adjust.

Step 2: Find the budget and schedule section.

Step 3: Here, the budget scheduling feature will work similarly to the campaign level, but it will only apply to that specific group.

This is extremely useful when you want to increase the budget for a specific audience group, instead of the entire campaign. However, if you want to increase for all groups, you must schedule each group and don’t forget to calculate the total additional budget to avoid exceeding the plan.

When should we use Budget Scheduling?

This feature is especially useful in the following situations:

• High seasons: For example, retail chains want to boost advertising from after easter until early May.
• Short-term promotions: Black Friday, Cyber Monday, Boxing Day…
• Supporting other marketing channels: When a business runs email marketing, the CEO appears on a podcast, or releases a big announcement.
• Capitalizing on market opportunities: If your industry has breaking news or a competitor has a problem, you can quickly increase your budget to gain an advantage.

How to optimize your Facebook advertising budget effectively

When running ads on Facebook, the most important thing is not just to spend enough, but to spend smartly. We have tested hundreds of campaigns and have drawn out principles to help advertisers avoid wasting budget and maximize efficiency.

Limit budget splitting for multiple ad sets.

A common mistake many people make is splitting the budget for too many ad sets. It might sound safe, but in reality, it leaves each ad set with an insufficient budget to “escape” the learning phase. The best way is to follow this formula:

Daily budget for each ad set = CPA × 50 ÷ 7

• CPA (Cost Per Acquisition): The cost to acquire 1 customer.
• × 50: Facebook recommends 50 conversion events per week for the system to learn and optimize.
• ÷ 7: Since these 50 events need to be achieved in 1 week, divide by 7 to calculate the daily budget.

Note: This is the budget per day for each ad set, not for the entire campaign. If there are multiple ad sets, ensure each one has “enough power” for the system to operate optimally.

Bidding strategy and its impact on the budget.

One of our favorite methods is Cost Cap. This strategy is recommended by CTC for advertisers who want to strictly control their CPA. With Cost Cap, you set a target CPA. If Facebook cannot achieve that CPA, the system will not spend the budget for that ad set. Our tips:

• When starting, set the CPA about 15-20% higher than the desired CPA. For example, if the desired CPA is 55 USD → set it at about 66 USD (an increase of 20%).
• After 4–7 days, if the ad distribution is stable, you can gradually reduce the CPA to the target level.

You can also set a budget higher than needed to welcome days of increased demand. The strength of Cost Cap is that it only spends money when the purchase opportunity reaches the desired CPA.

Applying 3 golden principles when adjusting Cost Cap.

• Case 1: The budget is used up frequently → You should increase the daily budget.
• Case 2: The budget is used up, CPA is lower than the target → You should increase the cost cap.
• Case 3: The budget is used up, but CPA is higher than the target → You should decrease the cost cap.

If the budget is not used up, it means Facebook is evaluating that the ad has difficulty achieving the target CPA, and will automatically reduce spending to protect the effectiveness.

Don’t forget the goal of 50 conversions/week.

Whether you use Cost Cap or not, the principle of 50 conversion events/week is still extremely important. If not achieved, the cause is usually:

• The creative is not appealing enough
• The product offer is not strong enough

We always advise you to continuously test new ads. Once you find the “winner” among the ads you have tested, you can increase the budget and cost cap for it.

Use Highest Volume instead of Cost Cap

At CTC, we only remove Cost Cap in 2 cases:

• When running large promotional campaigns (sale period).
• When using creatives that have been proven to bring good results, based on historical data.

Setting up and optimizing your facebook ad budget not only helps you control spending but also ensures ads are allocated appropriately at the times that bring the highest efficiency. By applying the right budget strategy, advertisers can maximize profits, reach the right potential customers, and sustainably improve campaign performance.

Frequently asked questions

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