In this article, you’ll learn the difference between CBO and ABO campaigns, as well as when to use them in your business’s advertising.
Facebook’s CBO and ABO campaign often complicates beginners. If you are new to Facebook advertising, you might have created one campaign for each and every interest group.
There is nothing wrong with it, but you are not be utilizing Facebook’s powerful artificial intelligence (AI) for your advertisements.
Before we dive into it, make sure you’ve set up your Facebook pixel and conversion events for your website to utilize these strategies.
If you had, let’s dive into it right away…
What is Facebook’s CBO Strategy?
CBO stands for Campaign Budget Optimization. In a CBO campaign, Facebook will allocate the budget for your ad group according to its artificial intelligence (AI) and spent the budget on the highest potential for performance ad set.
Will the Facebook CBO campaign target the wrong ad set? Yes, that is possible, as you’ll notice that Facebook sometimes insist on spending more on ad set that is having a high cost per results (CPR).
In this case, if the CBO’s average CPL is higher than you could handle. Then it is suggested to either observe for a minimum of 3 days or to restart the campaign by duplicating it.
How to Create a CBO campaign?
Create a CBO campaign by switching on the ‘Campaign Budget Optimisation’ toggle, at the Campaign level.
Why would you use CBO?
The major reason for using a CBO campaign strategy is to scale your ads.
This is because the nature of CBO allows you to increase/ reduce your campaign budget freely without restarting Facebook’s learning phase; While the ABO campaign has an estimated 20% limitation of budget changes in order to avoid restarting the learning phase.
What is Facebook’s ABO Strategy?
ABO stands for Ad set Budget Optimization.
While CBO distributes your ad budget on ad set; ABO distributes your advertising budget on the ads level.
How to Create an ABO campaign?
Create an ABO campaign by putting your budget onto the ad set level.
Make sure that the ‘Campaign Budget Optimization toggle is turned off.
Why would you use ABO?
As mentioned, ABO allows you to set a specific amount that you want to spend on a specific ad group. This is suitable for testing and evaluating winning ads groups.
Other than that, ABO is used specifically for ad remarketing because you want Facebook to spent on the specific ad retargeting group.
Both CBO and ABO have their own advantages.
CBO is used mainly for ad scaling; While ABO is mainly used for testing audience groups.