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When to Use ABO and CBO?

DimNiko - CBO vs. ABO

As many of you heard that CBO will not be mandatory anymore and ABO, adset budget optimisation, will still be available to use.

So which one to use?
The easy answer is both!

We at the agency have been using mainly CBO in the past months, as it has worked better on the majority of the accounts we manage.

However each ad account is different, some gets better CPM’s, some work better with Lifetime budget, CBO or ABO.

The best practice is to test and retest these setups on your account to see which brings the best possible results.

CBO works the best for us when it has data and room to optimise.

Data that the AI can gen from the pixel, from the ads, from the ad account and room means more budget per campaign.
We have had several discussions on how the CBO works and why it is important to not over-optimize as the algo will find the conversions on the lowest possible cost.

So when do we use ABO?
ABO, adset budget optimization is when you select how much budget each adset spends within a campaign.

This way you have way more control over the media buying, you are in charge of which adset /audience spends more or less.

I think ABO can give you higher chances of success when you spend less than $500 / day as you don’t have the luxury of giving a campaign 2-4 days without closing adsets, or setting campaign budgets over 50 x the CPA.

In some cases with ABO you are able to tell earlier whether that campaign will perform or not.

Testing with ABO can be as well easier as you don’t need to worry about the algo trying to pick the best audience and spend the budget there.

It will be forced to spend equally and try out all the ad variations you selected.

For certain accounts, ABO is more suitable for retargeting campaigns as it gives more control over the spending of each audience group.

Example when you have audiences such as ATC1day and PV15-30days

The second audience is probably 20x bigger than the first so a CBO set up would try to push the offer there.

The other situation when I would start with ABO is on a new ad account when there is not so much data on the pixel.
The AI cannot help you without having some history on the ad account and on the pixel.

With ABO you can guide the AI and once you collect enough data you can give more control to the AI by using CBO.

Moving forward knowing that ABO is going to be available I am sure we at the agency will use it more often.

I’d recommend for you as well to experiment with both set up and see which delivers you the best results.

Some ABO campaigns might help you find winning creatives and drop your CPA’s, but you might find that with CBO it is easier to scale which cocombinedogether will help you grow your business.

And don’t forget just because 6 months ago something didn’t work it doesn’t mean it won’t now.

Probably that’s the biggest takeaway I can give after managing several ad accounts over the years!

Advertising is a dynamic environment, which isn’t just changing based on technical updates from the platform, but as well based on user behavior changes and the number of advertisers, their spend and their methods as well.

If you’re spending over $500 a day and want to scale your brand

Book a call below:
https://dimniko.com/msp-apply

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