Facebook testing hot products + expansion

The difference between Facebook ABO and CBO
In advertising, the correct budget optimization strategy can maximize the advertising effect. Facebook provides two budget optimization tools: campaign budget optimization (CBO) and ad set budget optimization (ABO). Now, let’s see the difference between these two budget allocation methods:

ABO (ad set budget optimization): The full name of ABO is ADSET budget optimization, which means that advertisers can set budgets independently at the ad set level. Suppose 5 ad sets are created, each ad set can be independently allocated a budget of $20, and advertisers can manually adjust these budgets at any time as needed to optimize the overall advertising effect.

Facebook testing hot products + expansion

During the advertising process, advertisers can analyze data in real time. For those advertising groups with good performance, they can increase the budget to obtain more exposure opportunities and conversions. However, for those advertising groups with poor performance, they need to appropriately reduce the budget or choose to suspend the delivery to improve the overall advertising effect.
Although ABO can control the budget independently, it is more dependent on the experience and ability of the pitcher. Incorrectly adjusting the budget will not only fail to improve the advertising effect, but also bring negative optimization to the advertising.

CBO (Campaign Budget Optimization): The full name of CBO is Campaign budget optimization, which is now called “Advantage Campaign Budget”, but it is still generally called CBO in the industry.
It refers to setting a budget at the overall level of the advertising campaign, and then Facebook’s algorithm will automatically optimize the budget allocation to ensure that more budget is tilted to the most eye-catching advertising groups, which reduces the pressure of manual budget adjustment.

Take creating 5 ad groups as an example. If the total budget of the ad campaign is set to $100, the system will continuously monitor the performance of these ad groups and allocate the budget to the best performing ad groups in real time. In this way, some advertisers may only get $10, while those with good performance may even get $40, so as to maximize the advertising effect.
The following infographic intuitively shows how ABO and CBO allocate budgets in ad groups. After deciding which method to use, you can open an account for free on the WeMedia platform~

As for when to use CBO and ABO budget strategies?
This depends on the stage of your advertising. When the advertisement is initially tested, because the account data is less accumulated, using CBO directly may not be effective. Therefore, you can use ABO + a small budget to test the waters at the beginning, and then switch to CBO when you start to expand the volume, so that the advertising groups with good results can be allocated more budgets and improve the conversion rate.
Simply put: use ABO first in the testing phase, and then switch to CBO when expanding the volume.

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Advantages: ABO VS CBO
When discussing the optimization of advertising budgets and campaign budgets in Facebook ads, we need to clarify their respective advantages to help you make the most appropriate decisions based on your own advertising goals and management preferences.

Advantages of ABO: Detailed control: It allows you to perform very detailed budget management at the advertising group level, and you can fine-tune it according to the actual results. Convenient testing: With ABO, you can easily test multiple advertising groups independently to find out which audience and creative combination works best. Flexible response: ABO gives you the flexibility to pause or adjust individual ad groups without affecting the budget of the entire campaign.

Advantages of ABO: Detailed control: It allows you to perform very detailed budget management at the advertising group level, and you can fine-tune it according to the actual results. Convenient testing: With ABO, you can easily test multiple advertising groups independently to find out which audience and creative combination works best. Flexible response: ABO gives you the flexibility to pause or adjust individual ad groups without affecting the budget of the entire campaign.

Advantages of CBO: Efficient and time-saving: It can automatically allocate budgets and focus on optimizing ad groups with significant effects, helping you save valuable time. Scalable: CBO is more convenient when handling large campaigns because it relies on Facebook’s algorithm to allocate resources efficiently.
Ultimately, choosing ABO or CBO depends on your specific needs and advertising goals. ABO is suitable for users who want detailed testing and have more control and flexibility; while CBO is more suitable for users who pursue efficient management and expect to expand in large-scale activities.

Disadvantages: ABO vs CBO
When comparing ABO and CBO for Facebook ads, overseas advertisers need to carefully consider their respective limitations. ABO allows you to achieve more granular budget control at the ad group level, but this may also lead to reduced efficiency and increased manual operations.
Relatively speaking, CBO simplifies the process by automatically allocating budgets to different ad groups. However, if Facebook’s algorithm is inconsistent with your advertising goals, it may result in lower-than-expected spending, which may be a bit troublesome for advertisers who prefer manual management.

Specifically: ABO requires constant monitoring and adjustment, which increases the workload. CBO may not be precise enough in budget allocation, especially when targeting niche audiences. ABO may cause the budget to be too dispersed, which in turn affects the effectiveness of the overall marketing campaign. CBO’s reliance on algorithms may not be suitable for all advertising strategies.

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Step-by-step setup guide for CBO and ABO
After understanding the core differences and advantages and disadvantages between CBO and ABO, you may have an answer in your mind as to which method to choose. In the following content, I am going to share their step-by-step guides with you to help you configure your advertising budget more easily.

How to set up CBO for your Facebook ads?
First, log in to your Facebook Ads Manager account. Find and click the blue “Create a new campaign” button on the page. Next, give your campaign a name. Select the campaign goal you want to achieve from the drop-down menu

At the bottom of the campaign settings page, find and activate the Advantage campaign budget option. After that, you need to specify whether the budget should be allocated in the form of a daily spending limit or a cumulative lifetime budget.

After enabling the Advantage campaign budget, select the campaign bidding strategy that suits you, which will determine how your budget is allocated. After completing the above steps, you will enter the regular Facebook ad creation process, including setting standard information such as conversion location, campaign schedule, audience details, and asset placement.
Although the focus here is mainly on CBO settings, there is some overlap with the ABO setup steps. The main difference between the two is the budget allocation and bidding strategy selection. ABO will allow you to have more detailed budget control at the ad group level.

How to set up ABO for your Facebook ads?
First, in step 5 of the CBO setup process, turn off the Advantage campaign budget feature. In the created campaign, select the ad group for which you plan to set a budget.

Once you have selected your target ad group, scroll down to the “Budget and Schedule” section. Enter your budget amount here and select whether it is a “Daily Budget” or “Total Budget.” You can also set the start and end dates for your ad group to run.