How to Choose Between ABO and CBO

One of the most common questions advertisers face in Meta Ads is: Should I use ABO or CBO? The choice between Ad Set Budget Optimization (ABO) and Campaign Budget Optimization (CBO) can make or break your campaign results.

In 2025, both ABO and CBO have their advantages, but the right choice depends on your goals, testing stage, and budget size. Let’s simplify how to decide.

1. What is ABO?

In ABO, you assign budgets at the ad set level. This means you control exactly how much each audience gets.

Best for: Testing new audiences and creatives.
Example: ₹500 each for 3 audiences = ₹1,500 total.

2. What is CBO?

In CBO, you set one budget at the campaign level, and Meta’s AI distributes it among ad sets based on performance.

Best for: Scaling campaigns after testing.
Example: ₹1,500 total, AI decides which audience gets more spend.

3. When to Use ABO

During testing stage.
When you want control over budget distribution.
When each ad set is very different (e.g., men vs women, India vs US).
When you want guaranteed spend on smaller segments.

4. When to Use CBO

After you find winning audiences through ABO.
When you want Meta’s AI to auto-allocate budget.
When scaling to larger budgets.
When managing multiple ad sets becomes time-consuming.

5. ABO vs CBO Quick Comparison

Feature ABO CBO
Budget Control	Manual (you decide)	Automatic (Meta decides)
Best For	Testing audiences/creatives	Scaling proven winners
Learning Speed	Slower (each ad set learns alone)	Faster (AI learns across ad sets)
Flexibility	High control	High automation
Risk of Wasted Spend	Low (equal distribution)	Higher if AI picks wrong ad set

6. Pro Strategy

Step 1: Start with ABO → test 3–5 audiences with small budgets.
Step 2: Identify winners (best CTR, ROAS).
Step 3: Move winners into CBO → scale with AI optimization.

Common Mistakes to Avoid

Launching directly with CBO without testing.
Putting too many ad sets in one CBO campaign.
Constantly editing budgets, which resets learning.
Expecting instant results without patience.

Choosing between ABO and CBO isn’t about which one is “better” — it’s about timing. Use ABO for testing and CBO for scaling. Together, they create a system where you learn first and then grow profitably.

At AlmostZero, we help businesses design the perfect ABO + CBO strategy. From testing frameworks to scaling systems, our team ensures every rupee spent drives results.

So, the next time you launch ads, don’t pick one blindly. Test with ABO, scale with CBO, and let both work together.