When you launch any asset with Facebook, the Ads Manager will prompt you to decide how you’d like to set your budget: as a daily amount, or as a lifetime amount that will be distributed throughout the lifetime of the campaign.
¶ Daily vs lifetime
Let’s dive into the analysis. To start, a daily budget gives you more control over daily spend, and higher consistency in your day-to-day performance. It can also give an equal chance to all ad sets to spend the budget and exit the learning phase. However, it's more strict, and has a ceiling that you cannot go over on any specific day.
A lifetime budget gives you more ability to scale your campaigns on good days. It also requires less management, and it's easy to see the total cost for a campaign. However, the results might fluctuate from day to day, and it introduces more risk to your budget: it can spend a large portion of your budget in a single day, and not leave much for the rest of the run.
The lifetime budget option is useful for brands with a strict per-campaign budget and for days with good results that can consume more of the budget and scale on that day compared to a regular daily budget, but most advertisers nowadays care about profitability much more: and are willing to scale their budgets to drive more profits and results.
¶ The best option
Both types have their upsides and downsides, but there is a clear choice for the vast majority of advertisers: daily budget with Madgicx budget optimization will give you the best of both methods, and the best performance.
Madgicx automation tactics will make your budget flexible and optimized over the length of your campaign: so there’s practically no use for the lifetime budget option. With Daily budget and Madgicx, you can get all the best qualities of both: no risk and the ability to scale your spending on successful days.
In conclusion, both methods have their benefits, but with Madgicx budget optimization tools, the daily budget becomes the best tool for most advertisers. It gives you higher control and an equal chance for all the ad sets in your campaign, and tactics like Surf let you scale your budget up or down according to your daily performance.
If you have more questions about designing your budget strategy and reaching your goals, shoot us a message in the support chat, and we’ll be happy to help you out.