CBO vs ABO: Which is Better?

Meta offers two main strategies: Campaign Budget Optimisation (CBO) and Ad Set Budget Optimisation (ABO). Both can drive results, but which is best for your brand — and more importantly, which works best for luxury and premium marketing?

👉 At 303, our Luxury Performance Marketing services help brands navigate these choices and scale campaigns effectively.

What is ABO (Ad Set Budget Optimisation)?

ABO allows you to set a budget for each ad set within a campaign. This gives you greater control over exactly where your spend goes.

• Pros of ABO:
  • Full control of budget per audience.
  • Great for testing new audiences or creatives.
  • Helps identify clear winners in early-stage campaigns.
• Cons of ABO:
  • Can be inefficient if budgets are spread too thin.
  • Requires more manual management.

According to Meta Business Help Center, ABO is often recommended when advertisers want precise control over their spend.

What is CBO (Campaign Budget Optimisation)?

CBO allows you to set a single budget at the campaign level, and Meta automatically distributes spend across ad sets based on performance.

• Pros of CBO:
  • Automated distribution means less manual management.
  • Great for scaling campaigns efficiently.
  • Can maximise ROI when you already have proven audiences and creatives.
• Cons of CBO:
  • Less control over where money is spent.
  • Can over-prioritise stronger audiences, limiting learnings on smaller segments.

Meta describes CBO as a strategy designed to improve efficiency by automatically shifting budget to where it’s most effective.

CBO vs ABO: Which is Better?

The truth is, neither is universally “better” — it depends on your campaign stage and objectives.

• ABO works best for testing.
  If you’re experimenting with different audiences, ad creatives, or placements, ABO gives you clearer data. For luxury brands launching a new collection or campaign, this can be invaluable.
• CBO works best for scaling.
  Once you know what works, CBO helps maximise efficiency by automatically pushing spend toward high-performing ad sets. For luxury brands, this means reaching wider audiences without diluting exclusivity.

👉 Our performance marketing framework uses ABO for testing, then shifts to CBO for scaling.

FAQ: CBO vs ABO for Luxury Brands

Which budget strategy is best for luxury brands?
Luxury brands often benefit from starting with ABO to test audiences and creative angles. Once the winners are identified, switching to CBO ensures efficient scaling.

Can I use both CBO and ABO at the same time?
Yes. Many successful strategies combine them — ABO for testing, CBO for scaling.

Does CBO always improve performance?
Not always. If your creatives or audiences aren’t strong enough, CBO may simply allocate more budget to underperforming sets.

Final Thoughts

The choice between CBO and ABO in Facebook Ads depends on your goals and campaign stage. For luxury brands, a hybrid approach is often best: use ABO to test, then CBO to scale.

At 303, we help premium and luxury brands design and optimise Meta ad campaigns that balance creative excellence with performance marketing. Learn more about our approach through our Luxury Performance Marketing services.

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