CBO vs ABO : which type of facebook ads campaign to choose?
Facebook Ads is one of the most interesting platforms for creating an advertising campaign. It now offers advertisers powerful tools to achieve their various advertising objectives, from obtaining leads to developing qualified traffic to your website. Discover the types of campaigns to choose between CBO and ABO and their specificities :
What is the CBO?
CBO definition
The term CBO stands for Campaign Budget Optimization. It stands for “Campaign Budget Optimization”. This option is available when you create your Facebook Ads campaigns.
If you activate this option when you want to advertise on Facebook, you will adopt a completely new budget strategy. Because CBO changes the allocation of your budget in your ad campaign. It does not, however, change your targeting.
CBO Facebook Ads : how does it work?
With the Facebook CBO, you will set a budget for all your Facebook Ads. You will not have to determine a budget for each of your ad sets. The purpose of this option is to distribute your budget dynamically. Your ad sets that perform well will then have more budget than the ad sets that perform less well.
With the CBO, you therefore allocate a global budget to your campaign. This budget is then distributed automatically by this optimisation tool. The performance of your ad sets will move the budget allocations between the different sets according to their performance in real time (impressions, click-through rate, etc).
Why choose the CBO option for your Facebook Ads campaigns?
Benefits of Facebook CBO
The Facebook CBO option has many advantages. First of all, you entrust the tool with the task of optimising the budget between your different ads. This saves you time, as you don’t have to do the optimisation yourself. The tool will allocate more budgets to the best performing ads, which should normally improve your conversions and therefore your results.
With CBO, you can also freely increase or decrease your campaign budget without re-starting the Facebook learning phase. The other advantage of the CBO campaign is that you don’t have to manually target your audience groups.
Disadvantages of Facebook CBO
When you activate this CBO option at the beginning of your campaign, you will no longer be able to define specific budgets for each set of ads. You lose control over your social media advertising campaigns. Depending on your needs and the objectives of the campaign, this option will not be suitable and should not be activated.
How to optimize your Ads campaigns with Facebook CBO?
By enabling the CBO option, you will set your budget at the level of your large Facebook ad campaign. The purpose of CBO is to make ads with an automatically allocated budget based on the performance of each paid ad set.
The Facebook Ads tool will therefore allocate a larger budget to the sets that perform well, reducing the budget for the sets that perform less well. The optimisation is therefore done by itself, thanks to the Facebook Ads algorithm. All you need to do is create ads with creative content and set an overall budget.
What is ABO?
ABO definition
ABO stands for Ad set Budget Optimization. While CBO distributes your ad budget across the ad set, the ABO option allows you to distribute your ad budget at the ad level itself.
ABO Facebook Ads : how does it work?
When you create an OBA campaign, you will place your budget at the level of each ad set. Obviously, make sure that the “Optimise Campaign Budget” option is turned off, or you will be running an OBC campaign.
For example, if you have 5 ads and a budget of £100, you could allocate £20 to each paid ad. This is the principle of an ABO advertising campaign. In the case of a CBO campaign, this €100 budget is allocated globally and will be distributed to each of the 5 ads according to their performance.
Why choose the ABO option for your Facebook Ads campaigns?
Benefits of Facebook ABO
As mentioned, the ABO option allows you to set a specific amount you want to spend on each specific ad group. This gives you the flexibility to test and evaluate the winning ad groups according to your own criteria.
Disadvantages of Facebook ABO
With Facebook ABO, you will have to monitor the progress of your web advertising campaign yourself, as well as the performance and conversions associated with each ad set. After analysing your KPIs, you will have to adjust the budgets yourself and risk, for example, having fewer conversions than with CBO activated.
How to optimize your Ads campaigns with Facebook ABO?
Choosing an ABO campaign is particularly useful in two cases: ad remarketing and audience group testing campaigns. In the first case, you will want Facebook to spend a certain amount of money on a specific retargeting group. In the second case, you are interested in the performance of each group within a budget, for statistics and a global market view.
But of course these are not the only cases where ABO is useful. You may also have different objectives for different ad groups, and you may wish to allocate a fixed budget to them or optimise it over the course of the campaign according to your own criteria.
CBO or ABO facebook, which to choose?
CBO or ABO depending on your campaign budget
The budget of your campaign should have little impact on your choice between CBO and ABO. Each option has its pros and cons with small or large budgets. It depends on your advertising objectives and your overall resources.
A small budget on an ABO campaign allows the advertiser to test audience groups and control your spending. A small budget on a CBO campaign allows you to optimise your earnings, just like with a larger budget.
CBO or ABO depending on the marketing strategy of your campaigns
As mentioned earlier, the choice between CBO and ABO depends on your advertising and marketing strategy. ABO is perfect for audience testing and retargeting campaigns. CBO will work perfectly for conversion campaigns on already well-defined groups. CBO has the advantage of automatically optimising several advertising campaigns to enable you to achieve a better return on investment, via better click-through rates and conversion rates per web ad.