Eventbrite Boost Help
  • Eventbrite Boost Table of Contents đź‘‹
  • Open Eventbrite Boost 🚀
  • Facebook Overspend Bug Refund Instructions
  • Getting Started
    • Eventbrite Boost Overview
    • Getting Started with Facebook Ads on Eventbrite Boost
      • How to Create a Business Manager Account
      • How to Create a New Facebook Ad Account
      • How to Request Page Advertiser Access to a Brand
      • How to Set Up a Payment Method for Facebook & Instagram Ads
      • How to Link an Ad Account to Business Manager
      • How to Link an Instagram Account (Instagram Business Profile) to a Facebook Page
      • How to Switch an Instagram Account to an Instagram Business Profile
      • How to Track Results and Sales from Your Ads with Offline Events
      • A Guide To Setting Up Your Own Domain For Custom Conversions
      • How to Create & Manage a Facebook Pixel
        • How to Install Your Facebook Pixel on Eventbrite
      • How to Sync Your Ad Account to Eventbrite Boost
      • Event Boost Facebook & Instagram Ads Overview
  • Eventbrite Ads
    • Create an Eventbrite Ad
  • Facebook & Instagram Ads
    • Eventbrite's Facebook & Instagram Ads for Events
      • How to Promote Your Event on Facebook & Instagram with Eventbrite Boost
      • How To Promote Your Facebook Event With Eventbrite Boost
      • How To Improve Your Event Ad Campaign's Performance
      • How to Make a Multi-Event Ads Campaign
      • How To Improve Your Multi Event Ad Playbook Campaign
      • Multi-Event Ad FAQ
      • Sales Curve Overview
      • Interest Targeting Best Practices
      • Budget and Schedule Best Practices
      • Ad Creative Best Practices
    • Strategies for Specific Events
      • New Year's Events + Troubleshooting FAQ
      • Concerts
      • Food and Beverage Events
      • Comedy
      • Sports
      • Holiday Events (NYE / Halloween / etc.)
      • Endurance
      • Music Festivals
      • Business 2 Business Events
      • Conventions
  • Grow on Instagram
    • Eventbrite's Instagram Growth Playbook
      • How to Create the Instagram Growth Playbook Campaign
      • How to Reduce the Cost Per Follower in your Instagram Growth Campaign
      • How to Create Instagram Stories Ads
      • How to Track the Performance of Your Growth Campaigns
      • Instagram Growth FAQ
  • Troubleshooting
    • Facebook Advertising Troubleshooting
      • How to Appeal a Disapproved Facebook (or Instagram) Ad
      • How to Appeal a Disabled Facebook Ad Account
      • Overlapping Locations Can't Be Used
      • How Long Does It Take for My Ad Campaign to Go Live?
      • Payment Method Missing, Unsettled Account, or Spend Limit Reached
      • Connect to Business Manager to Create This Audience
      • How to Link an Instagram Account (Instagram Business Profile) to a Facebook Page
      • How to Request Facebook Page Advertiser Access to a Brand
      • How to Disable Google Chrome's Heavy Ads Preview Feature
    • Facebook Ad Account FAQs
    • Custom Domain Troubleshooting & FAQ
    • Business Manager Sync Troubleshooting
  • Add to Facebook
    • Facebook Event Overview
    • Add Your Event to FB
    • Facebook Event FAQs
  • Share on LinkedIn
    • Share on LinkedIn Overview
    • Share Your Event on LinkedIn
    • Share on LinkedIn FAQ
    • Scheduling FAQs
  • Send An Email Campaign
    • Email Campaigns Overview
    • How To Create An Email Campaign
    • Email Campaigns FAQ
  • Promo Codes
    • Multi-Event Promo Codes FAQ
  • Account Setup
    • Billing and Subscription FAQs
    • Pricing & Plans
      • How To Make Changes To Your Plan
    • Creating Your Account
      • Managing Integrations
      • Creating Your Team
      • Adding Profiles
  • Growth Tools
    • Smart Links
      • Smart Links For Tours (TourLinks)
        • How to Create a TourLink
      • Smart Links for Events (EventLinks)
        • How to Create an EventLink
      • Smart Links for Podcasts (PodLinks)
        • How to Create a Single Episode Podcast Page
        • How to Create a Multiple Episode Podcast Page
      • Smart Links for Fundraisers (GiveLinks)
        • How to Create a GiveLink
      • Smart Links for Social Media Bios (BigLinks)
        • How to Create a BigLink
      • Smart Links for Livestreams (StreamLinks)
        • How to Create a StreamLink
      • Custom Domains For Smart Links
    • Social Unlocks
      • How to Create a Social Unlock
    • Contests
      • Smart Link Troubleshooting & FAQs
      • How to Create a Contest
  • Other Growth Playbooks
    • Spotify Growth Playbook
      • How to Create the Spotify Growth Playbook Campaign
    • YouTube Growth Playbook
      • How to Create the YouTube Growth Playbook Campaign
  • Event Marketing Playbooks
    • How to Create Your Event Announce Playbook
    • How To Create the Automated Event RSVP Playbook
    • How to Create the GoFundMe Playbook
  • Google Ads
    • Google Ads Overview
    • Event Ticket Seller Certification Application
    • How to Install Your AdWords Pixel on Eventbrite
    • How to Setup a Google Campaign (Individual Events)
    • How to Audit the Performance on Your Google Campaign
  • Advertising and Promotion
    • Campaign Creation Troubleshooting & FAQs
    • Advertising Fundamentals
      • Why You Should Advertise
      • Why Advertising Is an Investment
      • How to Target Your Audience
      • What is Conversion Tracking?
      • What is A/B Testing?
      • What is Budget Optimization?
      • How Is Eventbrite Boost's Advertising Platform Different Than Facebook's?
      • How is Eventbrite Boost's Optimization different from Facebook's Campaign Optimization?
      • Viewing Budget Optimization Insights
      • Advertising Term Glossary
    • Creating Target Audiences
      • How to Save Audience Sets, Add a Set, and Edit Sets
      • How to Save Your Audience
      • How to Target Related Artists Using Spotify
      • Smart Audiences (Beta)
      • How to Target Facebook Interests
      • How to Target Past Eventbrite Purchasers
      • How to Reach all your Facebook + IG fans with One Audience
        • How to Target Facebook Page Engagers
        • How to Target People Who Have Interacted With Facebook Events
        • How to Target Facebook Page Likes
        • How to Target People Who Have Viewed Your Videos on Facebook and Instagram
      • How to Target People Who Have Visited Your Website or Web Pages with Your Facebook Pixel
      • How to Create Lookalike Audiences
      • How to Target Email Subscribers on Facebook
      • Advanced Targeting Walkthrough
    • How To Promote Your Event With Eventbrite Boost
Powered by GitBook
On this page
  • What is Budget Optimization?
  • In our previous videos, we outlined the advantages of conversion tracking and A/B testing, two techniques to help you achieve higher returns on your Facebook ad campaigns, especially if you have fixed budgets (most of us do!).
  • Eventbrite Boost’s Optimization Engine
  • Learning from Past Performance
  • Analyzing and Applying Each Data Point
  • Conclusion

Was this helpful?

  1. Advertising and Promotion
  2. Advertising Fundamentals

What is Budget Optimization?

PreviousWhat is A/B Testing?NextHow Is Eventbrite Boost's Advertising Platform Different Than Facebook's?

Last updated 4 years ago

Was this helpful?

What is Budget Optimization?

In our previous videos, we outlined the advantages of conversion tracking and A/B testing, two techniques to help you achieve higher returns on your Facebook ad campaigns, especially if you have fixed budgets (most of us do!).

A quick review: Conversion tracking is a way to monitor the amount of money you spend on a Facebook ad campaign and the amount of money you make back.

In this campaign, we spent $294 advertising to the aggregate mailing list. With 28 orders at a cost of $10.31 per order, we made $3,400 worth in orders. Our website purchases reflect that: the return on ad spend is 11.7x. For every dollar that we spent on that particular audience, we got $11.72 back in gross ticket sales.

When you’re using A/B testing in your campaigns, you'll see that not all ad sets, or audiences, have an equal return on ad spend and customer acquisition costs. Some audiences are more profitable to advertise to than others.

Why is this important? If you have a limited budget to spend on Facebook ads, that budget needs to be spent on the ad sets or ad creatives that are driving ticket sales. In other words, that budget needs to go toward serving ads to the fans interested in your event.

Enter budget optimization.

Budget optimization is the process of advertisers setting a budget on an ad campaign that will be optimized to distribute across ad sets to favor the highest performers.

By distributing more of a budget to the highest-performing ad sets, advertisers can maximize the total value of their campaign. Budget optimization works in real time to determine the most effective use of a business’ ad dollars to help lower cost per result and increase return on ad spend.

The basic principle of budget optimization is smart allocation. You’ll spend less on audiences with high customer acquisition costs and more on audiences with low customer acquisition costs, all of which brings in more money.

What does this look like? In the A/B Testing video, we looked at a $100 budget that initially brought in $50 in revenue. By using multiple ad sets and creatives, and by dividing the budget equally between two ad sets, that same budget brought in $300.

Let’s bake budget optimization into that campaign. With a third-party tool like Eventbrite Boost, which uses an automated rule set to move budget from losing audiences to winning audiences, that same $100 dollars would make $450 back.

How did we spend that same $100, on the same audiences, with the same creative, but get $150 more in sales? Instead of evenly splitting that budget between ad set one (interest audience ads) and ad set two (mailing list and traffic audience), we spent $25 less on the first ad set and funneled an extra $25 to the second ad set, the better performing of the two. We made more sales and, because we spent more budget on a more profitable audience, we sold more tickets. And this is budget optimization in practice. It can be done manually or through automated methods (Eventbrite Boost has its own automated budget optimization algorithm).

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

Eventbrite Boost’s Optimization Engine

Eventbrite Boost’s Optimization Engine automatically analyzes the performance of past campaigns and signals of live campaigns using conversion tracking with A/B testing. The end result maximizes the performance of ad campaigns by learning from data and delivering more desired actions to the advertiser.

Learning from Past Performance

Past ad campaigns indicate the quality of each conversion events. The more you advertise, the more data the Optimization Engine can leverage to learn the optimal signals for your future ad campaigns.

The engine begins by analyzing the performance of all past campaigns. After filtering campaigns by objective and reviewing conversion data, the engine divides the summation of each conversion type by the advertiser’s desire action. This will result in a weight for each conversion event.

Analyzing and Applying Each Data Point

While the campaign is live, the engine multiplies each conversion event by its weight to get the conversion score. For each audience in the campaign, the summation of the conversion score is divided by the amount spent on the audience. This results in the total advertiser value per dollar spent on the audience. This information is used to calculate the remaining budget portion for each audience in the campaign.

By considering the length of your campaign, initial signals indicate the potential of your audiences to convert sales in the future. High quality signals determine spending ratios that are continuously updated and applied to the campaign’s budget.

Conclusion

By using Eventbrite Boost’s Optimization Engine, advertisers can take advantage of more data and automatically apply complex Facebook ad management strategies to their campaigns. With spend increasing every month on Facebook ads, this solution provides a more robust option for advertisers to protect against wasted spend.

Non A/B Testing (left) vs A/B Testing (right)
The difference between using and not using budget optimization.
A video on budget optimization and why it is important.