ABO vs CBO for creative testing, which is better?
The speaker discusses CBO (Campaign Budget Optimization) challenges in creative testing, recommending a minimum allocation of $50 per day per ad to prevent budget spreading. They explain that budget must scale proportionally with new ad sets, and suggest moving to ABO (Ad Set Budget Optimization) if managing too many ads becomes problematic.
Summary
The speaker addresses a common issue with using CBO for creative testing campaigns. They establish a specific budgeting rule: allocate a minimum of $50 per day per individual ad within a CBO structure. Using an example, they illustrate that launching a new ad set with five ads would require a minimum daily spend of $250 ($50 × 5 ads). The critical principle emphasized is that the overall CBO campaign budget must be increased proportionally whenever new ad sets are added or existing ones are removed. When this proportional scaling doesn't occur, the budget becomes spread too thin across ads, negating the effectiveness of the creative testing strategy. The speaker shares their own experience, noting they transitioned from CBO to ABO (Ad Set Budget Optimization) to avoid these issues, though this required significantly higher overall ad spend. They diagnose the listener's problem as stemming from having too many ads per CBO campaign, and suggest that switching to ABO would eliminate the budget-spreading issue entirely.
Key Insights
- The speaker uses a rule of minimum $50 per day per ad in creative testing CBO campaigns to prevent budget dilution
- Campaign budget in CBO must be proportionally increased when adding new ad sets, otherwise money becomes spread too thin
- The speaker moved from CBO to ABO for creative testing because CBO with too many ads creates unavoidable budget-spreading issues
- The listener's specific problem is diagnosed as having way too many ads allocated within their CBO structure
- Switching to ABO eliminates the proportional budget scaling problem that occurs when managing multiple ad sets in CBO
Topics
Transcript
[0:00] I have the same problem with my creative testing CBO. Just so you know, you should have a rule for how much ad spend per ad that you're running should be allocated in a particular ad set within a CBO. Meaning, if I'm launching a new ad set in my creative testing CBO with five ads in it, I allocate a minimum of $50 per day per ad, which would be $250 per day in spend just for that one ad set. So, if you go with this strategy and you don't proportionally increase the campaign budget of your CBO every single time based off the net ad sets that you're adding less the ad sets that you're removing,…
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