CBO vs ABO? Facebook Campaign Budget Optimization or Ad Set Budget Optimization?
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- เผยแพร่เมื่อ 21 ส.ค. 2024
- Which is best? Campaign Budget Optimization? Or Ad Set Budget Optimization?
The CBO vs ABO debate is a constant in the Facebook Advertising world.
I get asked whether Campaign Budget Optimization or Ad Set Budget Optimization delivers the best results all the time.
The truth is that you need to use the budget optimization strategy that best suits your Facebook advertising sales funnel.
In this video I explain the pros and cons of CBO...
The advantages and disadvantages of ABO...
And when you should use each budget optimization option.
#campaignbudgetoptimization #cbo #adsetbudgetoptimization
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Thanks for watching guys! Let me know what you think in the comments :)
If i have only 1 ad set... And 3 ads What should i use cbo or abo???
@@biswajitdas8661 Both will have the same impact if you have only one ad set
Spot on :)
when cbo is turned on, ado is also working?
sorry but you should speak slow i had to turn on captions to uderstand what you are saying
Ben, Are you professor X , Because just today I was thinking to dig deep in this debate of CBO and ABO and you came up with this.
Haha - perfect timing :)
Thanks so much Ben - fantastic as always!
Just wondering, if you are utilizing broad targeting and then a LAL adset, would you still recommend CBO, although the dramatic differences in audience size will inherently skew the budget towards the larger audience?
Hi Johnnie, thank you very much.
We often use broad targeting in one of our ad sets in a CBO. Facebook doesn't automatically put more budget into larger audiences - they put more budget into the audiences they feel are most likely to deliver the best results. Often that is the largest audience (because larger audiences usually perform better) but that's not always the case.
the long wait is now over... teach us master !
Haha - thanks for the vote of confidence :)
Ben, this is what I was looking for. Thank you soooo much🤗 I was going yesterday through different youtube videos saying to myself "I wish I found something from Ben"... Is there any chance you could do a video on setting rules for CBO scaling? Thank you for this channel, you are the best!👍👍👍❤
Glad to hear it - good timing.
I do indeed, I think you'll find this very helpful for scaling: th-cam.com/video/f-Rzow-qhh4/w-d-xo.html
And this one: th-cam.com/video/BMLYwRHQIX0/w-d-xo.html
@@BenHeath Thank you Ben, I'll also make sure to join your Insiders. Thank's a lot👍
I am enjoying not only you content but they way how you explain it like a smart lecturer. Good job sir 💯
Glad to hear that
Awesome Knowledge 🔥🔥
Hi Ben, thank you for the video... Always a great content :). I use to set different campaigns for cold and warm audiences. Never thought about gettinh these two audiences together in a CBO afraid the budget would be totally directed to the largest audiences...
I think I will test and see how it goes... Thank u once again
Thanks a lot.
That does happen sometimes temporarily but it's not something to worry about. Facebook will only do so consistently if that is likely to deliver the best results.
You are a Fb ads legend! 🎊🎊 Does CBO work with lower budget like 25$ a day and 3 adsets suppose?
Thanks a lot :)
Yes it does.
Great content, it blowed my mind. Thanks!
Such valuable content as always! Thank you, Ben :)
My pleasure!
Thanks Ben. We were actually just thinking about this yesterday so it's funny you made a video on the same day lol.
Awesome - perfect timing :)
I liked that you said that testing shouldn't use ABO. Well, it make more sense for me that for testing, you need the test different adset with the same amount and avoid facebook to burn all the budget into one adset only. I think know is that because my campaign good enough structured or too grouped and thats why i had to use ABO over CBO to get fair result. Thanks :-)
Still hard to split test when you live in a very low CPC country (aka Indonesia) and want to target AU or US. Using CBO for engagement will always need to split the campaign per country
Happy to help :)
Ben, thanks for the great constant content!
Super useful,
Quick question, in CBO would you recommend stack interest targeting at the Ad sets?
Thanks a lot Amir.
No I much prefer 1 interest per ad set. This video on campaign structure will provide more info: th-cam.com/video/TBSuxR_Qa90/w-d-xo.html
@@BenHeath Gotcha!
Thank you soooo much
Happy to help :)
Very good. informative
Great Content thanks for sharing Ben
Glad you enjoyed it!
Fantastic value Ben !
Thanks a lot
Hi Ben, thank you for giving back to the advertising community the way you do. I have structured my campaign as you recommend - CBO with 3 ad sets (one interest targeting, one lookalike and one retargeting) initially but am now down to just the lookalike and retargeting as the interest wasn’t performing. 80-90% of my budget is being spent on the retargeting audience. I know that is the top performer but should I be concerned about my ability to scale and gain new customers if most of the budget is being spent on retargeting?
Hey Madison,
When you have LAA its far far better than interests and targeted audiences, as you are having your audience and traffic on your site, go and find your new customers.
As, Pixels work with fresh data usually 2 weeks, when you're having fresh and more data so you'll have more optimized audience as LAA.
Good Luck Madison, Grab your existing ones & catch your new ones
🌟
Awesome explaination
Would you say testing with a broad audience via an ABO is worth it then I can take the best performing ad set and use those in a CBO? That way I have multiple broad ad sets that are performing well that I can collect into a campaign to the get ‘the best of the best’ or should I just jump straight to a CBO
I am a realtor in northern NJ, I would like to launch a new campaign for seller's and want to several ad sets, never did CBO. Will try this time
Best of luck with t :)
What is the conclusion of this debate :-) ABO or CBO which one is normally good and preferable?
Like all things Facebook ads - it depends. Hence the video :)
Hi Ben, great video. I'd hoped for your take on CBO and IOS 14.5 - I would imagine worse performance with CBO now that Facebook can't effectively track those who have opted out of tracking.
Hi Nikolai, thanks a lot.
CBO isn't going to be more affected than any other element of Facebook due to iOS 14.5. CBO is going to be optimized based on relative performance between ad sets. While the total number of conversions may not be as accurate as we like - we can still see which ad sets produce better results.
Thanks Ben! One question, if we are to add a new adset to the campaign after running it with 3 old ad sets for a week, is it reasonable to turn off CBO for a period of time for such new addition? I have observed under CBO, Facebook is pouring most of the budget into the best performing old adset and it might drastically decrease the possibility for the new adset being distributed a fair amount of budget and properly tested.
Im torn between the two. It seems like I can scale better with ABO when split testing interests, especially in my Hyros account. But CBO possibly could be doing work for me in the background.
That's interesting - you can always test both. If you do so over a reasonable period, you may well get your answer.
Great Content.
Thanks a lot :)
Thanks Ben. Quick question for you. I don't like using CBO by itself because Facebook always dumps all of the budget into one ad set very early in the campaign before there is hardly any data. I don't feel like that makes for a valid or objective test. What I tend to do to dampen this issue is put a daily minimum spend on each ad set so FB has to at least spend something on these ad sets and I can see some data validating CBO's preferences. I've noticed a similar issue with ad set optimization, but that usually doesn't concern me as much as it does at the CBO level. Have you found this to be an issue, and what would you recommend?
I have the same question, let's see what Ben answers
Hi Chris, we do often see that, however the more you spend the less likely that is. I prefer to give the campaign more time when I do. Yes Facebook may spend the first 3 or 4 days spending nearly everything in one ad set but after a while, the budget is more likely to get spread around. I prefer not to force spend splits because I don't want to disrupt the delivery and optimization process.
what about when the audiences are different in each ad Set, I'm testing interests against, look alike, but the interest has a lot bigger audiences and Facebook seems to be allocating more money to these.
Hi Ben! Love your videos, new subscriber.
Does changing from ABO to CBO cause my campaign to re-enter the learning phase? Not sure if that's a significant edit, facebook website was unclear.
I think very possible to see that
I've tried doing several ads for my clients with daily budget and they NEVER spend my target amount daily. I've given up trying to fight with the ad strategy to spend the full budget daily. It's too much additional work monthly
Another great one Ben. So with CBO, within a single campaign, would you recommend just running only 1 type of adset campaign (traffic, conversions, retargeting, etc.?), or should there be a separate CBO campaign for each of these strategies? I'm asking since you mentioned that CBO divide the budget among the different Adset. I'm assuming that it will do so based on the ad set campaign type as well. Thanks in advance!
The campaign "type" (target, conversion) you are referring to is the campaign objective and it can only be set at campaign level and not ad set level, isn't it? Which means, you cannot run two ads with different objectives under same campaign. So, the optimization decision is driven by either the target audience set or the ad creative type. The objective isn't in the picture.
Either that, or I completely misunderstood the question. :-)
Cheers.
Hey Ben! Great video as usual. I have a question, should we exclude 1 audience from another in CBO campaigns? You say something like we should not worry about the overlap if we use CBO. Thanks.
Thanks a lot.
Yes that's right - I wouldn't include exclusions most of the time.
Really great video Ben. Interestingly, under their 'Graduate' programme (a few months free coaching offered for no reason other than to get me to spend more I think), Facebook have been suggesting to me that I test CBO on/off where I have just one ad set in a campaign. Intuitively, you would expect this to make no difference, and indeed, I don't see much difference, but do you have a view?
Hi Chris, thanks a lot.
Yes I think with one ad set it shouldn't make a difference either way. I prefer to run multiple ad sets nearly all the time so the advantages become clear - but that's not the case with one ad set.
I have a question here if you don't mind me asking, Can I set a Campaign Budget Optimization at Campaign level and set Campaign Budget Optimization at Ad set level as well at the same time and if so how does it work?
Thank you for this Ben. For a new account that never ran ads before do you recommend to start with Ad set budget and then switch to CBO once we generated more data? Thanks
the best of the best👍
Thank you very much :)
Thanks Ben, Just wondering if it makes sense to lower budget spending on certain days or times. Typically, there is a budget for each day say $80. As an example, if a Direct to Sale product seems to sell more during and around the weekend , do you ever suggest decreasing budgets on a few of the weekdays. Or does this cause more trouble than it's worth.
Yes you can do that - often testing that out is a good thing to do. It can go one of two ways because the delivery interruption isn't ideal.
THANK YOU BEN! 😁
Welcome :)
Hi Ben, thank you for the amazing content. God bless you. Just a quick question, what if in one conversion campaign you have some purchase ad sets and some other lead ad sets. Is it advisable to still go for CBO ?
Thanks for watching! No you won't be able to use CBO with that set up.
Thank you Ben, I still need to confirm the most preferable, CBO or ADO?
Hi Athony, it depends on the circumstances which I cover in the video but we usually use CBO more than ABO.
CBO
Hey Ben! Great video as usual. I have a question, what are your takes on budget distribution by CBO due to audience size differences in the ad sets? Does it affect if the one ad set has an audience in millions and another ad set in few thousand?
Thank you so much!
Thanks Aditya - yes you will most often see more money spent on larger audiences but that is nearly always because it correlates with performance. CBO diverts more budget to better performing elements and larger audiences tend to perform better.
@@BenHeath Got it, but it shouldn't affect the small retargeting audiences right as you mentioned in the video?
No those will still get budget - they perform too well to not.
@@BenHeath Thanks Ben, that really helped. Yesterday I tried putting retargeting + Cold in just 1 CBO campaign and overnight it went from 2 ROAS to 11.7 🤩💪
I know it's too early to judge for the campaign but I think from now on I will get on to follow this strategy more often 😁
Thanks again!
@@adityazalke1349 How did it go? Your ROAS still high afterwards?
Ben split testing if his smma promo message works better before or after the video, let us know the conversion rate after 2-3 days ben!
It's always good to test! Will do :)
I can't figure out why, but as soon as I engaged CBO rather than ABO the CTR dropped, not increased.
hi , very good content thanks!
one question, can conversions of the 3 different ad sets be combined within the 1 campaign? Or does each ad set need to reach 50 conversion to exit learning phase?
Hi, great video! So if I have a small budget for 2 adsets, I shouldn't follow what most say and go with ABO to allocate equal amount of focus on every ad so they all have the same chance to perform, so then I can eliminate the worst ones?
Also another question I have is, if I test adsets for let's say 5 days then turn it off and duplicate it to scale, when I duplicate the adsets, do they keep all the data they collected in the past 5 days of testing?
Thanks a lot!!
Hi Ben, thanks for your video. I have a question.
Should I follow Fb's Delivery Recommendations in Account Overview tab?. Fb is telling me to increase budget for learning limited ad sets and turn off some ad sets impacted by auction overlap
Thanks for watching :)
I would be very careful with that. I'm not a fan of increasing budget just to get out of learning limited. You only want to do that if you have campaigns that are already performing well. I have a whole video on getting out of learning limited coming out on Monday and I think you'll find that very helpful.
Thank you for the great video Ben!
Just wanted to know what connection does CBO and ABO have with the Daily and Lifetime Budget settings? Is there any connection between these 2 groups or are they completely separate from each other?
Hi Alle, they both govern budget but aren't interdependent. I would use Daily Budgets almost exclusively and CBO most of the time.
@@BenHeath Got it. Thank you for responding.
If I turn on CBO and set it to $50. Then that $50 gets spread across all the ad sets. Right? So, when I go to ad sets, will I not be able to set a budget per ad set? I would think if CBO is on, then Ad set budget would be greyed out and unusable. Yes? Stupid question I know, but just trying to make sense of this. Thanks.
Ben Heath thank you for this helpful video, yes i let Facebook control the budget allocation by activating CBO, but i didn't let it control the placement, typically i always use message objective did you agree with me ?, thanks
i have one adset with one ad that has been working really well. It's still working well but as the frequency is getting closer to 2 it's doing less well. My ad is amazing people love it. I want to send it to new people. My niche is big and i have no problems setting up another adset with a big audience. I was thinking new LLA same targeting and i excluded the current LLA that's running. The overlap is 25% is there an acceptable amount? I have tried CBO's before and i dont know Abo's always work alot better for me.
Hi, Ben great content as always.
I'm running a CBO and every time I add another adset to replace the non-performing adset into my campaign, I noticed my best adset was not performing and the worst thing is 90% of the budget goes to the newly added adset.
Does it affect the optimization of the currently active adset if you add another adset into the CBO campaign? Thanks Ben.
Thanks Junbert. Yes it can do - but that's what you want really. You want Facebook to test out the new ad set and see if it can outperform the others.
Dear Ben,
That means CBO is better than ABO, Right?
It's not as simple as that. For most advertisers yes, but not all the time. That's what I explain in the video.
Will FB also understand if we are running a retargeting audience ad set within a campaign? In other words does it just see it as another ad set, or does it know this is a retargeting audience, and spend accordingly to retarget visitors from all other ad sets.
If i use one ad set... Which is good abo or cbo
It shouldn't make a difference either way in that scenario. I'd probably go with CBO in case you want to add more ad sets later.
Thanks Ben :)
Thanks for watching :)
Does it F*up the optimization if you add new ads into an active CBO with static ad sets? So no changes to ad sets - only adding new ads to ad sets. Is there a benefit in comparison to ABO in this case? Just thinking consolidating campaigns into one "main CBO" because working with a limited daily budget with one client. So can the algorithm use the CBO's campaign-level learning to these new ads? Or does it restart everything as in ABO?
Seems like people would end up spending more money when CBO is turned off so Facebook probably increased their own revenue a few points by turning it default off. that small change could easily be tens or hundreds of millions of dollars more for them over a short time right?
I think you are probably right there.
Great tutorial as ever :-) I'm a newbie - does FB just ignore ABO settings if you have CBO switched on?
Thanks a lot.
A lot of the settings will still apply, but budget an cost caps, switch over to the campaign level.
@@BenHeath Thanks Ben.
Hi Ben, great video. Is it safe to switch a successful ABO campaign to CBO (and then add new adsets), or should I duplicate the campaign before switching to CBO?
Thanks Jacob.
If you've got a successful campaign I wouldn't make a big delivery setting change to it. If you want to test CBO, you'd be better off doing so with a new campaign.
@@BenHeath thanks Ben! Do I need to be concerned about bidding against myself if I test CBO in a new campaign while my ABO campaign is still running?
Due to CBO, I notice most of the budget is going thru 1 adset that is performing well
Barely giving any budget to other adsets.
So I should just kill the underperforming adsets and the 1 adset running?
Apparently CBO only wants me to run 1 adset haha (small budget)
I have all my adsets in a CBO campaign but since my Facebook Pixel is bad at tracking all my data (most of my audience is on ios) so only 40% or less of my purchases ever get triggered in facebook ads. What metrics exactly does CBO algorithm use to determine distribution of budget? I often see a higher budget on adsets that aren't necessarily performing better (0 purchases triggered for the day vs 1 or 2 for another adset with lower adspend and also a lower CTR. Currently using a purchase optimization campaign too). Should I set some daily spend minimums for the other adsets getting less budget allocation? I have a 1% look alike with 1500 purchases in it and its getting low allocation.
CBO Campaign 5 adsets:
Interest targeting North America
Interest targeting Europe
Interest targeting Australia/New Zealand
Retargeting website visitors
1% look alike audience targeting all geographical regions above (source audience US 1500 purchasers)
Hello sir which is best way to place if we have less budget.. For e-commerce.
Thanks Ben!
One quick question..If i have two ad sets in a CBO campaign, the first one comprising of cold audience ( larger size) and the second one comprising of warm audience ( smaller in size as compared to the first ad set) , in which ad set would facebook allocate more buget for optimizing ? Thanks in advance!
Hi Sujit, that really depends on the relative performance and how much you are spending. If your warm audience gets advertised to within the first few days then Facebook will switch more budget to the cold audience. However, if your budget and warm audience size means you can advertise to it for weeks, then you'll see more spent on the warm audience most likely.
Quick question what if the size of the audiences is different Facebook is very likely that give more budget to larger audience how does CBO cope up with that?
Yes that does happen and that's fine. Facebook is optimizing for performance and larger audiences usually perform better.
Thanks Ben. Is adset need ad account data to get a better results? As I know Adset start learning phase at adset level. Why it need ad account data ?
Hi Emil, I'm not sure what you are asking here I'm afraid. To advertise on Facebook in the first place you need an ad account.
Hai ben, thank for your video. It's very help me to run my ads. I have one question, do I need to pay attention to the number of reach in making ad targeting. I only have 100-1,000 reach for the estimated daily result. Will it affect my total reach and impressions on the ongoing fb ad?
Thanks Feby. I wouldn't worry about the estimated total reach - those estimates don't really mean a lot.
However, your total potential reach, otherwise known as audience size is very important. Here's a video on audience size guidelines: th-cam.com/video/vYEYMDeroDg/w-d-xo.html
Hey Ben, great video as always. Quick question regarding FB tracking, specifically purchases. Have you found a solution to figure out which ads are getting purchases as mine is currently only recording about 60% of purchases so it's difficult to know which ads to turn off and which ads to scale. I also noticed that FB now automatically selects the detailed targeting expansion button which impacts the click through rate negatively. Why do you think FB are pre-selecting this? If you create a CBO with multiple ads, FB asks you to publish it and then go back into the ad settings an de-select it for each ad. Would be great to hear your thoughts on this! Thanks
Hi Stephen, unfortunately there is no fix for the lost iOS 14.5 data and it doesn't look like we're going to get that back any time soon. That means we need to work without it.
You have stated that you can't see which ads are producing the results because only about 60% of purchases are being recorded. I completely understand why you have said that but it's not actually the case. You can't see exactly how many conversions each ad is producing but you can see relative performance. Some ads will be performing better than others in your ad account and that is highly likely to correlate with the actual figures. Underreporting is likely to be very uniform across ads. So you can still pause underperformers and optimise as you usually would.
Facebook have detailed targeting expansion on by default because in general larger audiences produce better results. I do however think it's best to not have it on particularly at the beginning. Here's a video about that for more info: th-cam.com/video/NwxJ0idfcDU/w-d-xo.html
Also, If I am running a CBO campaign what should be budget be. For example, if I was going to have $20 for each ad set and run 3 ad sets = $60 should be CBO Campaign budget be $60?
That just completely depends on your circumstances. The right answer could be $10 per day it could be $10,000
Hi Ben, interesting video but I have a few questions.
I've tested your setup as I found it very interesting and it made a lot of sense.
However, the setup didn't produce great results - even after leaving for 7 days. Additionally, I
used proven audiences/creatives as well.
Personally, I may be wrong but your strategy seems to fail to take into consideration that ads don't always optimise the same every single time.
I know this from experience of duplicating a successful campaign and it not performing but then duplicating again and it does.
Currently the strategy that works best for me, is testing at ABO with 1 ad in each adset and then duplicating when I want to test different copy/headline etc.
Am I going wrong somewhere, because I would love your strategy to work but it just hasn't for me?
Hi Curtis - rule number one with Facebook ads is that if it isn't broke don't fix it. So if you have a set up that is working well, you are probably best sticking with it.
Also, what I recommend is based on hundreds of ad account's worth of data. At any one time 5-10% of those ad accounts may see better results from a different set up because there are differences in every market, industry, etc. You may fall into that category here :)
Hey Ben quick question, do we have to constantly test between ABO and CBO because I did hear some ad accounts work better with either one.
And let’s say we do have to constantly test between those two, do we retest them on the same interests as they may produce different results? Thanks!
No you don't need to constantly test, but you may want to do so at the beginning if you are undecided. Although it depends what sales funnel you're using. Some like Direct To Offer will nearly always perform better with CBO.
@@BenHeath gotcha, I really appreciate your reply! 😊
Can I ask you; if I have a one ad set, I prefer to use CBO on or that is not correct for a one ad set?
It shouldn't make a difference either way with one ad set :)
If you only run one ad set in a campaign I suppose it doesn’t matter if you run CBO or ABO?
Yes that's true :)
What budget do you suggest for CBO testing?
I'd check this video out for that: th-cam.com/video/YwAE2M0jbkk/w-d-xo.html
Спойлер, АБО всегда лучше. СБО для тех кто уже нашел связки их нужно раз сегментировать. А связки ищутся новые бесконечно)
great job
i've a question , can i target the same lookalike audience in two adsets for two differnet products with different ads using cbo ?
Thanks Asser. I wouldn't set up your campaigns that way. I would target that lookalike once and have ads for both products in that ad set. If the products are very different, I would use separate campaigns.
@@BenHeath thaaaank u
Can i have in the full funnel stategy so many different ads including value, testimonials, direct to offer and so forth like in the omnipresence strategy?
Yes you can - for that you would not want to use CBO.
Ben. Everybody is moving to tiktok ads, do you work with tiktok as well?
Hi Jorge, I certainly don't think that is the case. The numbers in terms of advertiser volume don't support that.
But a lot of people are starting to advertise on TikTok and it's something we're looking into for sure.
If I've got an ABO campaign running, do I need to turn it off to test CBO against it? Concerned I'd be bidding against myself!
First rule of Facebook advertising - if something's working, don't change it. Perhaps use CBO with your next campaign.
@@BenHeath thanks Ben, appreciate that. Results are slipping a little, and only got 2 audiences, so thinking switching to CBO + adding extra LAL audience based on pixel purchases could help (finally have enough purchases!). What do you think? Just add extra audience in ABO?
I have a Campaign that I have been running using ABO. Can I just duplicate it and set up the Campaign as CBO? Also, are you saying that the campaign is then run using both CBO AND ABO ie I allocate $20 to CBO and then $20 On each Ad Set OR when I run CBO, it will allocate how much goes to the each ad set and the ad set level doesn't factor in anymore.
Yes you can :)
No I would not run duplicate versions simultaneously. I would choose one or the other and go with that.
Hi Ben! Nice video. I just have one question. I want to make a funnel in my Facebook Ads, so ad first I target my cold audience ( a lookalike audience) to get more brand awareness and clicks on the ad. Then I want to retarget to all my website visitors who did not purchase (warm audience). And then I want to retarget to all my website visitors who added to card but did not purchase (hot audience). I made multiple campaigns for this (cold, warm and hot audience campaign) with one ad set per campaign, is that also okay? Or is it better to make only one campaign, with these three different adsets? And if you use CBO on that, is it still clear for Facebook that it is a retargeting funnel, or is CBO not the right option in that case. Thanks so much, you are helping so much!
Hey I am going through same situation. How did it worked out for you ? Can I use my campaign with all those 3 audiences? ( cold ,warm& hot)
Hi Ben, is it okay to turn off the non performing adsets on a CBO campaign? will it affect your campaign optimization if you do that?
Yes it's fine to do that. I will only be beneficial over the long run.
@@BenHeath thanks, Ben!
Abo test cbo scall
I don't think that's right I'm afraid. I think you are better off going with the budget optimization strategy that best suits your sales funnel.