Advertising glossary

What is ABO (ad set budget optimisation)?

Definition

ABO means each ad set has its own fixed budget. It gives advertisers precise control over how much each test receives.

ABO explained

Many advertisers use ABO for creative testing so that every concept gets a fair share of spend, then move winners into CBO or Advantage+ campaigns to scale.

Example

Three ad sets each receive 50 dollars a day regardless of performance.

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Campaign budget optimisationCampaign budget optimisation sets the budget at campaign level and lets Meta distribute it across ad sets.Creative testingCreative testing is the structured process of launching ad variations to learn which concepts, formats and hooks perform best.Ad setAn ad set is the level of a Meta campaign where budget (with ABO), schedule, audience, placements and optimisation are defined.