CBO vs ABO is one hot debate amongst Facebook advertisers. They often do not know which is a better strategy to adopt.
Anyways, in this article, I will explain in detail what CBO and ABO mean in Facebook advertising and consider the key difference between the two.
Also, I’ll further help you make a good decision as to which to adopt in your Facebook advertising campaign.
- What Does CBO mean in Facebook Advertising?
- Advantages of CBO
- Disadvantages of CBO
- When Should You Use CBO?
- What does ABO mean in Facebook Advertising?
- How To Turn On AdSet Budget Optimization (ABO) On Facebook.
- When Should You Use ABO?
- CBO vs ABO: What’s the difference?
- Is CBO Better That ABO?
- Final Thought
What Does CBO mean in Facebook Advertising?
CBO means Campaign Budget Optimization in Facebook advertising.
(However, Facebook has since renamed this feature to Advantage Campaign Budget. In the course of this article, I’ll continue to use CBO to avoid confusion.)
In the Ads manager, when creating a Campaign, you’ll always see the option to turn this feature on or off.
What does Campaign Budget Optimization do? It helps to manage your ad budget wisely. When the CBO option is turned on, Facebook ensures that your budget is well-optimized across all Adsets in your campaign.
Furthermore, Facebook, through its Artificial Intelligence, would allocate more budget to a winning asset and give less priority to the Ads not converting well.
Advantages of CBO
- It saves you money
- Less manual effort is involved – Facebook’s AI takes care of managing ads budget
- It is likely to convert more
Disadvantages of CBO
- You’re not in total control of your budget
[Learn The Difference Between Link Clicks and Landing Page Views On Facebook Ads Manager.]
When Should You Use CBO?
If you are all about getting results fast while spending is minimized, it is best to go with Campaign Budget Optimization.
Also, if you do not have the time to manually set or change each Adset budget, stick with CBO.
What does ABO mean in Facebook Advertising?
In Facebook advertising, ABO means Adset Budget Optimization. This model is quite different from the CBO.
ABO simply is managing your ad budget for each asset without using Facebook’s AI.
The ABO technique is 100% manual and fixed regardless of the performance of each ad.
Let’s assume you have 4 Adsets in Campaigns 1 to 4 with a $10 daily budget for each of them. If Adset Budget Optimization (ABO) is adopted, Facebook would use up $10 on each adset regardless of their performance.
Advantages of ABO
- You are in total control of your budget
- It’s easy to monitor each Adset performance
- The model is best for testing
Disadvantages of ABO
- Monitoring Adsets requires time and manual effort.
How To Turn On AdSet Budget Optimization (ABO) On Facebook.
In truth, there is no specific place in your Facebook Ads manager account where you will see “Adset Budget optimization”.
However, if you do not turn on the Campaign
Read Also: Various Facebook Ads Type
When Should You Use ABO?
The best time to use Adset Budget Optimization is when your Facebook Ad account is new or you’ve just set up a new Pixel.
It may be a good idea to use ABO in this case so as to provide your new Pixel or Ad account with enough data to work with.
For Facebook’s AI to work best for a successful Ad campaign, it needs a lot of data or information.
When you set the budget at the Adset level, you are invariably populating your Pixel with data.
Also, when you want to test two different variables (e.g two different audiences) with the same amount of budget, ABO is a better option to use. CBO would never use the same budget for the two AdSets.
CBO vs ABO: What’s the difference?
See below some of the major differences between CBO and ABO.
- CBO manages your budget with Artificial Intelligence while ABO offers you the opportunity to manage it manually for each Adset.
- Most advertisers use ABO to test new audiences or other variables. CBO is not specifically designed for testing.
- CBO prioritizes performing Adsets over less-performing ones. ABO does not prioritize Adsets regardless of performance.
Is CBO Better That ABO?
Well, from a general perspective CBO is better than ABO because it’ll intelligently help you allocate your ads budget to ads that are performing best without you lifting a finger.
But of course, both features are useful and have their advantages and disadvantages.
I am sure that the CBO vs ABO confusion is cleared now.
Start making good use of these two features in your Facebook ads.