As a business owner, you want to get the most out of your advertising budget. With Facebook Ads, you have a variety of options when it comes to budget allocation. You can choose between Campaign Budget Optimization (CBO) (now called Advantage Campaign Budget) and Ad Set Budget Optimization (ABO).
In this blog post, we’ll take a closer look at CBO and ABO, explain the key differences between the two, and highlight the benefits of using Ad Set Budget Optimization.
Next, we’ll present the data on prospecting and retargeting ROAS for CBO and ABO.
Main Difference Between CBO and ABO
At the beginning let’s see the main difference between these two budget optimizations.
So, Advantage Campaign Budget (CBO) is a feature that allows Facebook’s algorithm to automatically allocate and optimize ad spend across multiple ad sets within a single campaign, based on performance.
This means that Facebook will adjust the budget allocation for each ad set within the campaign to maximize results, such as conversions or website traffic.
On the other hand, Ad Set Budget Optimization (ABO) is a way to allocate budget for individual ad sets, rather than across multiple ad sets within a single campaign.
With ABO, you set a specific budget for each ad set, and Facebook will distribute impressions and spend according to the budget you’ve set.
The key difference between CBO and ABO is the level of control you have over budget allocation.
With CBO, Facebook’s algorithm makes the decisions, while with ABO, you have more control over how much you spend on each ad set. This can be particularly beneficial for businesses that want to focus their advertising efforts on specific products or product categories.
Benefits of Ad Set Budget Optimization (ABO)
Ad Set Budget Optimization (ABO) offers several benefits for e-commerce businesses running marketing on Shopify.
First, with ABO you have more control over how much you spend on each ad set. This is especially important if you want to focus on your advertising efforts on specific products or product categories.
Secondly, ABO allows you to see the performance of each ad set in more detail. This can help you identify which products or categories are performing well, and which need more attention.
Secondly, ABO allows you to see the performance of each ad set in more detail. This can help you identify which products or categories are performing well, and which need more attention. So, with improved insights, you can make better decisions about how to optimize your campaigns going forward.
Also, with ABO, you can adjust the budget for each ad set as needed, giving you more flexibility to adjust your advertising strategy as needed.
And last, but the most important benefit of ABO in comparison with CBO is better results! The data suggests that Ad Set Budget Optimization can lead to better results, with an average ROAS of 94% for prospecting ads compared to 81% for CBO. This can help you get more out of your advertising budget and achieve your business goals.
Benefits of Advantage Campaign Budget Optimization (CBO)
However, Ad set Budget Optimization is not the best choice for every business. In the next part of a blog post, we’ll explain situations where CBO is the best option.
Let’s start with large campaigns. So, Advantage Campaign is designed to optimize budget allocation across multiple ad sets within a single campaign, making it a good choice for large campaigns with many ad sets.
Also, if you have limited time to manage your campaigns, Advantage Campaign Budget can save time by automating budget allocation and optimization.
If you don’t need detailed performance insights for each ad set, Advantage Campaign Budget may be a good choice, as it provides less detailed performance insights compared to Ad Set Budget Optimization.
Overall, Advantage Campaign Budget can be a good choice for businesses that have large campaigns, limited time, and don’t need detailed performance insights for each ad set.
However, if you need more control over budget allocation, better performance insights, and increased flexibility, Ad Set Budget Optimization may be the better choice.
Comparison of CBO and ABO: Pros and Cons
When deciding between CBO and ABO, it’s important to consider both the advantages and disadvantages of each method. Here’s a quick comparison of the pros and cons of CBO and ABO.
To conclude, from a ROAS perspective, Ad Set Budget Optimization (ABO) delivers better ROAS, with an average of 94% for prospecting ads compared to 81% for Advantage Campaign Budget, making the ABO better choice for e-commerce businesses looking to maximize their return on advertising spend.
Summing Up
When it comes to choosing the right budget allocation method for your e-commerce business on Shopify, it’s important to consider your business needs and priorities.
Ad Set Budget Optimization (ABO) offers increased control, improved performance insights, increased flexibility, and better results (94% ROAS for prospecting ads vs 81% for Advantage Campaign Budget Optimization), making it, on average, the better choice for businesses.
On the other hand, Advantage Campaign budget or Advantage Campaign Budget is a good choice for businesses that have large campaigns, limited time, and don’t need detailed performance insights for each ad set.
