This video explores the best approach—using A/B testing (ABO) or Campaign Budget Optimization (CBO)—for Facebook ad campaigns in 2025. The speaker, Marin Istvanic, details the advantages and disadvantages of each method, considering factors like budget allocation, ad testing, and scaling campaigns. He also discusses the role of Advantage Shopping Plus in this context.
ABO (Ad Set Budget Optimization) is preferred for testing: Istvanic advocates for ABO in most testing scenarios because it allows for granular control over budget allocation to individual ad sets, enabling fairer comparisons and better performance tracking. This approach allows for scaling well-performing ads individually while cutting underperforming ones.
CBO (Campaign Budget Optimization) is suitable in specific situations: CBO might be appropriate when the overall budget is limited, forcing a more efficient distribution across multiple ad sets. Even then, Istvanic suggests setting minimum daily budgets for each ad set to retain some control and data collection. CBO is also considered if the client's hit rate (successful ads compared to total ads tested) is very low.
Advantage Shopping Plus is better for scaling, not testing: Istvanic finds Advantage Shopping Plus inefficient for ad creative testing. Its focus on engagement metrics can lead to disproportionate spending on a few ads, regardless of their overall performance. It's more suitable for scaling already successful ads with a cost cap.
