How daily budget optimization performs against lifetime budget optimization in Facebook ads
Focus on the Family
Focus on the Family is a global Christian ministry dedicated to helping families thrive. We provide help and resources for couples to build healthy marriages that reflect God's design, and for parents to raise their children according to morals and values grounded in biblical principles.
Research Question
Does daily budget optimization outperform lifetime budget optimization in getting more instant donors at a lower cost?
Design
Results
| Treatment Name | Conv. Rate | Relative Difference | Confidence | |
|---|---|---|---|---|
| C: | Lifetime budget optimization | 0.03% | ||
| T1: | Daily budget optimization | 0.02% | -23.2% | 81.3% |
This experiment has a required sample size of 458,401 in order to be valid. Unfortunately, the required sample size was not met and a level of confidence above 95% was not met so the experiment results are not valid.
Key Learnings
Although the cost to acquire an instant donor was slightly lower with daily budget optimization, we saw a 23% decrease in conversion rate using this feature. Though the experiment did not validate, we hypothesize that using lifetime budget optimization allows Facebook to spend more at certain times of the day/week that users are most active, rather than forcing it to spend the budget each day, will lead to greater scalability and an increase in donor conversion long-term.