Moteefe Weekly Live Stream – CBO – Facebook ads for Print on Demand
Understanding how to promote and scale your Print on Demand campaign with Facebook ads is one of the most common strategies to increase your POD sales. Campaign budget optimization can help you use your advertising budget in the most efficient way possible.
In this week’s live stream, Print on Demand experts Thomas Gentleman and Aidan Kessell give viewers valuable insight on CBO and how you can use it effectively. Check out the timestamps below for the important sections on CBO.
Check out the timestamps below to see what you need to know when it comes to creating a winning design:
- 01:56 – It’s a number’s game
- 03:00 – How do you know if you have a good design? Test.
- 04:30 – Success: the basic rules
- 07:05 – Your action plan
- 10:31 – How do you test?
- 14:57 – Don’t forget about conversion ads!
- 15:32 – Use your tests to build audiences
- 16:34 – Translate to scale
- 21:12 – Find the most successful variation
CBO – Facebook ads for Print on Demand: the key takeaways
Don’t have 30 minutes to spare? Here’s a summary of the main points:
What is Campaign budget optimisation (CBO)?
Campaign budget optimisation (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 continuously distributes in real time to ad sets with the best opportunities, throughout the course of your campaign.
How often should I edit CBO campaigns?
Give your ad sets enough time to test out the current variables you have set in place. If you do decide you want to edit the ads, do it sparingly. Let your ad run for at least 24 hours before testing out another variable (location, age, gender etc.)
Should I use a video or image in my ad?
Depends on your audience. The best way to figure out which one works best for you is by testing. Although POD expert Thomas focuses mainly on using still images, there is no harm in trying out video if your audience may be more receptive to video.
“My CPP is $10, what should I do?”
Depends on the selling price and base price of your product. Turn off any ad sets where you are losing money. If you are breaking even, leave them on for testing. And if you are profiting, scale aggressively. Focus less on the number itself and more on whether or not it’s bringing in money.
If you are still aiming to increase your POD knowledge, use our free resources to help you increase sales in your POD business:
A free 13-video Teachable course taught by POD expert Thomas Gentleman. The course takes you through creating original POD designs, advertising your product and using Facebook Ads.
Join our community Facebook group and connect with active sellers who are keen to share their experiences and knowledge on all things POD.
Moteefe’s YouTube channel features live streams every Thursday with POD experts Thomas Gentleman and Aidan Kessell.
A downloadable PDF containing common phrases in multiple languages for marketing purposes.
You can watch the full live stream on YouTube or read the transcription below. Want to be notified next time we go live? Don’t forget to tune in every Thursday for weekly live streams with Thomas and Aidan where they discuss all things Print on Demand!
CBO – Facebook ads for Print on Demand: full transcript
A: Good afternoon, everyone, and welcome to this week’s episode where we’re going to be talking about CBO’s.
T: Campaign Budget Optimization.
A: I know, you know, and yeah, go for it. What is it? Why would you do it? Who needs to do it? Who doesn’t need to do it? And that, as always, as I’m sure you would have guessed, I’m joined by Thomas.
What is Campaign budget optimisation (CBO)?
T: I’m good. Aidan, hope you’re feeling all right. Aidan’s a little under the weather this week, so, you know, it’s good of him to join us. Shows his commitment to campaign budget optimization as an ads strategy. So what is campaign budget optimization? I often get asked what it is is a way of setting a budget in Facebook ads manager for an entire campaign at one time. So the traditional way of doing things would have been or the old way of doing things is you can still do it like this, you have a campaign, and within that campaign, you would have a number of ad sets, as many ad sets as you like.
Pretty much you can have one or multiple. And within each ad set you can set a daily budget or indeed a lifetime budget. So, not many people set lifetime budgets, but you can set a budget, an ad set to run say for 30 days and tell it to spend X amount over those 30 days and it will allocate the budget, accordingly, over those over that period. Now, not all people do that, but still you can set the budget within the ad set. With campaign budget optimization the clue, as ever, is in the name. You set the campaign budget. So you have one campaign, multiple ad sets in that campaign. I believe you could still have one if you so desired. But on each ad set, you would not set the daily budget or the lifetime budget. You set that in the campaign, on the campaign.
So why would you do this? What happens if you set if you have a lot of ad sets and you’re setting the daily budget for each one of those ad sets, then? Facebook will spend all of that budget that you have allocated on each one of those ad sets every day, if you leave your bidding strategy, your bid strategy as lowest cost, that’s the default. That’s what most people use. And Facebook will just spend that money. So 10 ad sets at $100 a day each.
The old way would just spend $100, $10 on each one all. The new way or with campaign budget optimization is you have a number. So let’s say 10 for argument’s sake, ad sets within one campaign, then you set the budget for the campaign. So let’s pretend we’re doing this for real. You on average, you want to set enough budget for each ad set that you could get a purchase on each ad set and still be just about break even so we’re talking somewhere between 13 and 15 dollars per ad set . So for argument’s sake, let’s say you’ve got 10 ad sets, you set your campaign budget for 150 dollars, and Facebook will now spend 150 dollars that day across those ad sets. However, it will not spend what it might, but it’s very unlikely it could do, but it probably will not spend all of that 15 dollars, 150 dollars equally across the ad sets. It will pick out the ads that it thinks will perform the best and it will allocate budget to those assets.So you’re very likely after your first day you will have some ads that have spent more than 15 dollars. Some ad sets that have spent around 15 dollars or maybe a bit less, and then a few ad sets that are spent very little or maybe even a couple that have spent almost nothing at all might be a penny or maybe just absolutely zero.
Now, this, if you were to just keep going and just leave it running, no matter what your results are, this would continue to happen over time and maybe on different days, Facebook would spend money on different ad sets at different times. So it will continue to try to optimize that ad spend across those ad sets. Ongoing, but spending all of the 150 dollars a day, every day where it’s picking what works, so that’s the biggest difference.
And the idea behind this is that you allow Facebook to allocate the budget to where it thinks it’s going to work. Also, there’s a question around optimization. Facebook does say that each ad set. So, if you’re doing the old school way of setting a budget for each ad that optimizes for whichever conversion event you’ve selected for your conversion ad Facebook says that each ad set needs to get 50 conversions per week to be able to start to optimize. Now, because I mainly run five and ten dollar ad sets, maybe some twenty dollar ones in there. This is the old school way. I don’t get 50 converted purchase conversions on each ad set for a week. So you could say that none of my ad sets have ever been optimized, according to Facebook. That’s why you see the learning phase and all of this stuff. Whereas with campaign budget optimization, because you’re spending more money across the campaign, Facebook looks to optimize it, considers all of the ad sets within that to be optimized, being optimized by that spend.
So you could get to a situation where Facebook says that they’re optimized, although I’ve never worried about that. But if you are worried about that, that’s one way of getting it done.
A: Would you do this with your ad sets? Would you do different interests or would you do different designs within the campaigns?
How and when should I scale?
T: Okay, so one campaign, one design, you should test your designs before even attempting to do campaign budget optimization. And I would say that you only want to do this for winning ads four, for winning designs that are already winning. So as with everything in Facebook, this is not going to take a design that is not selling and then make it start selling, not going to work. You will just spend 150 dollars and you will have 150 less dollars.
That’s exactly what will happen. And it isn’t anything to do with this information, anything other than the fact that people don’t really want to buy your design. And the other thing is that a design that’s made a couple of sales before is not a proven winner. Just because you might have picked up one sale here, one sale there, may be one profitable say, here or there, that does not make that design a winning design, that makes the design a design that has made a couple of sales.
So when I say a winning design, I mean a design that has sold for at least a period of, say, five to seven days consistently across four or five ad sets for five or ten dollars, where you’re mostly in profit and you’re getting a good cost per conversion, whatever you think that that would be. It is more than likely that when you start campaign budget optimization on the first day, you’d either be break even or a little bit down might be substantially down.
And it’s going to take some time to optimize to start to deliver to the people that you really want to start targeting. So with that in mind, it’s very important that you only spend money on things that you know are going to sell. Yeah. And with the audiences that you want to use, you want to try and use audiences that are of a similar size. So. If you are spending that kind of money, you really want to target audiences of at least 500,000.
And if you’re doing that, you probably really want to try and find audiences that are around a million and keep them all around that size. Otherwise, if you’ve got, say, three or four audiences in there that are only 100K or 50K, they’re going to be very small audiences. And then if you’ve got bigger audiences that are 22 million in the same campaign, then guess what? Facebook’s going to move everything over to that bigger audience and it’s just going to go like that.
And those other audiences are not really serving you very well.
A: Yeah, I suppose that potentially skews the day right, but when are you going to review the look of it? Look at it.
T: Well, they could spend any money on it. I mean, this is a tiny audience. You’re not going to get much out of it. You could maybe get away with running a five dollar ad set to that audience and just leaving it running. If it’s going to be profitable, it will show. But not not when you’re spending this kind of money.
Breaking down big audiences
T: You need slightly bigger audiences and they all need to be around the same size. If you’ve got a big audience like fishing, I like fishing.
So that audience is, I don’t know, say 20 million people. Let’s say it’s 20 million people. What you can do is you can divide that audience up by age and gender to try and break it down. So you’ve got similar size audiences. So you might find that. If you break it down by age 18 to 24, 25 to 34, 35 to 40 for forty five to fifty four, fifty four to sixty five and then sixty five years, and above all, the way up, you might find that you’re 35 to 45, 35 to 44 year is big like say that seven million, 10 million.
So that’s why. Well then you’d want to break that audience, you know, break that down maybe twice. So maybe you’d have 45 to 50 year olds to try and get them all around balanced so that they’re all about the same size. So you can play with the age ranges to get them all around the two million mark. You know, you got 18 to 37. If you want to try and balance them out, you might find that there are less women in that audience than there are men.
So you might have one broken down by age for men. Very, very, very tight gaps in them. For the women, you might have one audience, maybe only one that covers all of the women because they might and they might be less women in that they show the other way around. You might have a niece that’s more dominated by women. You’ll break those up more by age, but then you might only have maybe two age ranges for men or maybe only even one.
So do try and balance out the ages. It’s pretty easy to do. And Facebook in ads manager. You just you just you just cover up in that way. And then the other thing is the creatives, the ads themselves. So you have the campaign. You set the budget for the campaign, you have the ad sets multiplied ad sets within the campaign and then attached to each ad set, you have to have at least one ad, one advert for campaign budget optimization.
I recommend that you have at least two different creative’s. OK, three is better, but at least two. And that doesn’t just mean that you’ve got one that worked. We’ve got sales for that means you need to have at least gone through some kind of a test, an engagement ad. So they’ve got not to get the social proof. I don’t care about “likes” only as a test. It doesn’t. It doesn’t. It’s more about the product image, the image of the product and just having three variations of that.
And again, so now Facebook will pick some ad sets that it is going to spend money on. And then within their ads, it will pick some of the adverts that it will spend money on. So very likely. It will spend the majority on one ad set onto the ad, it will spend the majority on one ad. Some on another ride and then very little on the on the other per day, but that may well mix around over time and it’s quite interesting when you have so but then you do the same three ads for each one of the ads since you wouldn’t have different ads for each one of the ad sets, you just have the same three, the same exact three for each one of the ad sets within the campaign, some ad sets, but they say ad no, ad number one and number two and number three on one ad said Facebook might spend all of the money on ad number one.
On the next ad set it might spend the majority of the money on ad number three and nothing on number two, so it will mix it up within that as well. So there’s all sorts going on with the budget allocation and then everything else is kind of the same as normal you.
How often should I edit CBO campaigns?
T: With campaign budget optimization, you don’t want to mess with it, you don’t want to tickle the dragon’s tail. No, that’s that’s something from a nuclear experiment, but you don’t want to mess with it too much, so.
When you make an edit a campaign budget up to a campaign budget optimization campaign or the ad sets within the campaign or anything, whether you’re turning some off that aren’t performing or doing whatever you’re going to do, you want to do this one edit every 24 hours, if if possible, one edit only every 48 hours. And that means you, if you’re going to turn off two ad sets, you go in, you select the two that you’re going to turn off and then you publish the changes at the same time.
Do not go in there at nine o’clock in the morning, make one small change, turn one thing off, then 11 o’clock, go in and turn something else off, then duplicate one at 3:00 in the afternoon. This is a disaster because you’re not allowing Facebook to properly, properly start optimizing. It needs time to think. And basically, every time that you make any kind of an edit, it’s putting Facebook back to the beginning of the learning phase for the entire thing.It doesn’t know what to do next, so don’t mess with it.
Well, if you have to mess with it, then mess with it as seldom as possible is not very often one or two small edits is all you really want to do, even every other 48 hours. You just you need to let it run. Yes. You will have to turn some stuff off because it’s not working. But try to not. As I say, don’t don’t annoy the dragon.
Don’t just let it just let it do its thing. Of course, if you’re not profitable, if you just got no sales after the first day, which you shouldn’t allow to happen, then you’ve got more problems than just editing the right. The campaign is, as with everything, a little bit hit and miss, I think, a bit more of a scaling strategy than anything. And it will allow you to take this and really scale it right up if you want to learn about how to scale aggressively.
So let’s say you start with your first ad spend of 150 dollars a day in campaign budget optimization. You can scale that up by 10 times. Well, with the method that I’ve got for you. But if you want that, you’re going to have to join the Moteefe group. The reason that I’m saying that you have to join the massive group is because I’ve written an article in there that is almost four thousand words long, and I’m sure that you don’t wish me to read that out to you.
Now, I know that Aidan is begging me to say, “no, no, Thomas, you’ve got to read it. I want to hear it. Everyone wants to hear it.” But I think probably for aid and sanity and my sanity and your sanity as well and expediency, it would be easy if you just go and join the Moteefe Global Group where Aidan, Anna and Flor, our customer success managers and myself and other members of staff are there to to support you on your pathway to success and read the article.
A: Not only that, if you like me and you learn better with pictures, Thomas has also kindly done diagrams, which makes it a lot simpler than how this whole structure works.
T: Even diagrams and the diagrams are not dire. They are just diagrams, as they say. Did you like that? I have more.
A: Keep them coming. Yeah, well, we’re wrapping up. Obviously, if you’re on YouTube, you can find a link to the Facebook group down on the description, and the Moteefe Facebook ads course is also there. And here we go, a couple of shout outs, a couple of comments Thomas.
T: Also, just before you do that, if you’re already in the Moteefe Global Group, then you’re ahead of the curve so you can find the post if you can’t find it in the feed, because I know there’s a lot of updates and just go to a little search bar and just type in campaign budget optimization or campaign budget and it should pop right up.
What happens if I change my target country?
A: Yeah. So firstly Hi Deepak, Deepak’s here. “Can I change…” one quick question for one of our lovely Facebook commenters. “Can I change the target country while the campaign is running?”
T: Well, I would say that, you know, don’t do that.
A: Don’t touch it.
T: So within the campaign budget optimization ad sets each ad sets, I would recommend having the same location targeting. Now, you don’t have to just target one country. You could target, for instance, all of Europe, all of the world, and then filter that down by language so you could run worldwide with the language English. And you can try that with campaign budget optimization. Do be careful if you’re advertising on any platform, make sure that you read the terms and conditions.
For example, I always say this. You cannot run any advert that mentions beer to Norway, which is something that people wouldn’t necessarily realize. There are some fairly obvious countries that you wouldn’t want to run that stuff to, but beer to Norway is not allowed. So do read the terms and conditions before you do anything to keep your account safe and your sanity intact. But you shouldn’t mess with the interest targeting when it’s running. If you want to target another, I think interest target the location targeting the age range within each set while it’s running.
If you want to do anything about that new campaign, new ad sets, new targeting, and if you never targeted that region before or that country before in that nation and start with an engagement ad, if you start with campaign budget optimization at one hundred and fifty dollars a day or whatever budget, you’re going to start with ten assets on a product that you’ve got no idea if anybody is interested in, then you will lose a lot of money. If you’ve got a lot of money to spend and you don’t mind being the one hundred and fifty dollars down most days because at some point you will find a massive winner and be able to scale it quite aggressively, then that’s up to you.
But I like my money to be in my bank account and not not Facebook so I try to be as conservative though as possible. If you want to push it a little bit or you know, it’s up to you, but slowly is the best way when it comes to this. Is no rush there money still in their bank account. You can come to yours later. It’s just resting in there. Until you run the ads as well, I look at it, but you just want to do it in the right way.
Should I use a video or image in my ad?
A: Yeah. Next up, we’ve got Palak said hello. A bit of a subjective thing. It does depend a lot on design, but I’m going to ask anyway, Should the conversion, it must be a video or image. What’s the best?
T: I only run… what you mean.
A: Should you do the ad as a video? Or a still image?
T: Oh, well, I never use video.
T: Just a still image is fine if you got a video and you think that’s going to work for you. OK, that can work. I’m not against the idea, but I normally use a still image. I don’t I don’t you know, this is mostly what we’re selling here is T-shirts. You either like the text on the t-shirt or you did not like the text on the t-shirt. We don’t need to explain to people with a little video on how to wear a t shirt, what the t-shirts are for.
If you want to make a video, one video that you could make, if you’ve got something that’s already selling quite well and you’ve got a camera set up at home that would make it good. You know, most people have got an iPhone or some kind of a phone, your phone, my phone, whatever phone with a fairly decent camera on it. If you have some lights, then you can take some photos of that of the product, the real product, the real product can really make a difference and then turn that into a little video, but basically a square image with the design on, it zoomed in so that people can easily read it with text on the design in a font that’s very readable with a high contrast so to the product color.
So if you’ve got a black T-shirt, then white text would be the highest contrast. But there are some other text colors that will bounce. If you don’t want to be a little bit boring with white, understand why it’s a little bit boring and the reverse. Of course, a white product with black text works great.
So I’m not a big fan of video. Well, when I say I’m not a big fan of video, I know that people do get good success with video. I don’t use them myself. But as with everything in advertising, testing is important and I could be wrong. Videos might be the thing for 2021. So don’t dismiss it just because I’m not doing it. Always test. And that’s one of the beauties of Facebook advertising. You can make a little video and you can test that video with just a standard conversion at five dollars a day with the audience and see if you get any results. And if you do them, roll it out.
Does CBO campaigns work?
A: Yep, that’s it. And then a lot of the answers to the questions I get in my messenger inbox is, will this work? And the answer is test and find out. You know, it’s very hard for me to say what will work and what won’t work if I don’t run a test for myself, you know? So that’s the easiest and most accurate way to find out if something will work. And so I think that’s about it for this week.
T: We’re fully optimized for CBO.
So let me just wrap up campaign budget optimization. It’s a great way of scaling a product that’s already making sales. I don’t use it for testing, certainly not with 10 ad sets. There are strategies out there where you can use four or five ad sets. You can even set minimum and maximum budgets within each ad set within the campaign. That’s being said. That’s the CBO campaign. There are ways of using this for testing. I don’t recommend it myself.
I prefer to use it only for products that I know that are going to win with audiences and locations and regions where I think I’m going to make good sales. If you’ve got that, it can be super powerful. If you haven’t, then wait and hang on. Until you’ve got that, you can start a lot smaller. You could start just twenty dollars a day with three or four. So if you just want to play around with it to do your own research, join the group.
We’ve got a three thousand seven hundred word essay on campaign budget optimization with different strategies available in the Moteefe group. Also, there’s great resources online to test and learn and report back. See how you get on.
“My CPP is $10, what should I do?”
A: Yep. One last comment to wrap up on. Mina has asked, heraverage CP is ten dollars. Mina, if your customer purchase is ten dollars and you ask him how much he should share so the shares to be profitable, you should find a different design where the cost per purchase is much lower, right?
T: No, no, no, no, no, no, no. It’s terrible advice, Aidan I have to say…
A: Thomas, take it away.
T: Well the profit margin, $26.99 on a T-shirt sold in the United States is $18 as you well know. That’s eight dollars purchase per sale. So don’t tell people to turn their ads off a 10 dollars conversion when there’s $18 to be made. It depends what you’re selling it for, what you’re if if you’ve selected the right price, then that’s a fine cost per purchase and you should be scaling up aggressively.
T: If you haven’t selected the right price, then increase the price because the price doesn’t make the difference. People think they’re selling it more cheaply is going to… Cheaper… Is going to make all of the difference, it doesn’t. You could be selling at $5.99 and people still say it’s too expensive. Don’t worry about that. We put the price right up to $26.99 dollars for a T-shirt, $25.99, $24.99 if you like.
Why go below that. People will buy we say all the time in Europe, €21.99 in the U.K. £19.99, £20.99, £21.99. Why not? There’s buyers out there for that. Yeah. People say it’s too expensive. They won’t buy. Oh well when they leave the comment all of their friends will see that comment and think oh well I thought they had more money than that.
So yeah, this is, you know, as I say, $18 for a T-shirt selling at $26.99 in the United States. Ten dollars purchase, scale up aggressively. Anything on the break even you should be, you should be leaving on at least an anything better than break even you should duplicate the ad set and increase the budget.
A: So, guys, thank you very much, and we’ll be back next Thursday for another installment. We don’t know what the topic is, but, we’ll let you know, as soon as we know and on that, thank you very much and have a great weekend, guys!
T: Thank you. Thanks, everyone. Thanks Aidan.
A: Thanks. Bye bye!
P.S. Don’t forget to tune in every Thursday for weekly live streams with Thomas and Aidan where they discuss all things Print on Demand!