Facebook Ads 2024: ABO or CBO (Explained!)

Summary

In this video, the speaker discusses the evolution of his approach to Facebook advertising, shifting from using the 'AO' (Automatic Placements) to 'CBO' (Campaign Budget Optimization) in 2024. He explains the challenges of finding winning ads that scale and the importance of not getting emotionally attached to creatives. The speaker advocates for CBO due to its ability to allocate budget effectively across ad sets, avoiding the pitfalls of low-hanging fruit and auction overlap, ultimately leading to better performance and scalability in ad campaigns.

Takeaways

• 🤔 The speaker initially hesitated to discuss the topic of using AO vs. CBO with Facebook ads in 2024 due to its complexity.
• 🛠 The speaker has personal experience with both AO (Ad Objective) and CBO (Campaign Budget Optimization), and has evolved his preference over time.
• 🔄 The speaker used to prefer AO for testing new creatives due to its ability to force budgets for each new ad set, but has since changed his stance.
• 📈 The speaker's shift in preference to CBO was influenced by finding 'winners' in AO that didn't perform as well when scaled up in a CBO campaign.
• 🍎 The realization that ads performing well on a small budget might not be the best performers on a larger budget led to a change in the speaker's approach to ad optimization.
• 📊 The speaker now defines a 'winning ad' as one that positively influences CPA (Cost Per Acquisition) and can handle the majority of the spend in an ad account.
• 🚫 The speaker advises against getting emotionally tied to creatives and emphasizes the importance of testing and eliminating underperforming ads.
• 🔄 The speaker explains that CBO allows for better optimization as it doesn't restrict the budget to a single ad set, unlike AO.
• 💡 The speaker trusts Facebook's algorithm to allocate spend to the best-performing ads within a CBO, which can lead to higher engagement and better CPA.
• ⏱ The speaker prefers CBO for its simplicity and efficiency, allowing ads to run with minimal oversight and replacing non-performers with new creatives.
• 📚 The speaker offers services for running Facebook ads, mentoring, and an advanced Facebook ads course for those interested in improving their ad strategies.

Q & A

What is the main topic of the video script?

The main topic of the video script is whether to use AO (Automatic Placements) or CBO (Campaign Budget Optimization) with Facebook ads in 2024.

What is the speaker's current preference for Facebook ad optimization?

The speaker currently prefers using CBO over AO.

Why did the speaker change his preference from AO to CBO?

The speaker changed his preference due to evolving as a marketer, realizing that CBO allows for better performance at scale and avoids the issues of low-hanging fruit and auction overlap.

What does the speaker mean by 'low-hanging fruit' in the context of Facebook ads?

In the context of Facebook ads, 'low-hanging fruit' refers to easy conversions that ads with small budgets can achieve, which may not be sustainable or scalable when moved to larger campaigns.

What is the speaker's definition of a 'winning ad'?

A 'winning ad' for the speaker is one that gets the majority of the spend in the ad account and either positively influences CPA (Cost Per Acquisition), allowing for more spend or stabilizing performance at that level.

Why does the speaker believe that CBO is better for testing new creatives?

The speaker believes CBO is better for testing new creatives because it allows Facebook to optimize the budget distribution across ad sets, ensuring that only the best performing ads get the majority of the spend.

What is the speaker's strategy for dealing with ads that are not getting any spend?

The speaker suggests adding a minimum budget if an ad is not getting any spend for a few days, but if it continues to perform poorly, it should be turned off to avoid further losses.

What is the role of engagement in the speaker's view of a successful Facebook ad?

Engagement plays a crucial role as the speaker believes that ads that take the majority of the spend are more engaging, receiving more likes, comments, and shares, which is a sign of better performance.

How does the speaker handle the emotional attachment to creatives in ad campaigns?

The speaker avoids getting emotionally tied to creatives, focusing instead on performance metrics and being willing to replace underperforming ads.

What are the potential downsides of using AO instead of CBO according to the speaker?

The potential downsides of using AO include finding only low-hanging fruit, creating inconsistencies in the ad account, and the risk of auction overlap where different ad sets compete against each other for the same budget.

What advice does the speaker give for scaling Facebook ad campaigns?

The speaker advises using CBO to allow for better scaling, as it optimizes the budget for the best results at scale without the need for constant monitoring and adjustment.