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What is Campaign Budget Optimization (CBO)?

CBO allocates budget across ad sets automatically. Learn when to use CBO, how to structure campaigns, and how catalogs affect it.
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Brief Definition

CBO sets budget at the campaign level and lets the platform allocate spend across ad sets based on performance.

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Understanding CBO

CBO can speed learning and reduce micromanagement by letting the system move budget to stronger ad sets. Structure matters because mixed goals in one campaign create noisy optimization. Keep objectives and targets consistent (e.g., prospecting only) so signals don’t conflict. Creative and product sets should align across ad sets to keep comparisons fair. Consolidation prevents fragmentation that starves learning.

Because CBO optimizes across ad sets, naming, exclusions, and budgets must be deliberate. Use clear naming to track which audience or product set each ad set represents. Exclude overlaps so ad sets aren’t competing for the same people. Avoid many tiny ad sets; fund fewer, stronger ones that can exit learning. Refresh creative regularly while keeping a control to measure progress.

Why CBO matters

CBO matters because it moves budget to stronger ad sets automatically, improving efficiency without constant manual tweaks. It stabilizes delivery by reducing overfitting in small ad sets. It also supports scale when testing multiple audiences and creatives.

  • Efficiency: Moves budget to stronger ad sets automatically.
  • Stability: Reduces overfitting in small ad sets.
  • Scale: Helpful when testing multiple audiences/creatives.

How CBO works

CBO works by setting budget at the campaign level and letting the platform shift spend among ad sets to hit the optimization goal. The system evaluates expected value and moves budget toward ad sets likely to perform. Catalog ad sets with better value density often attract more budget, especially under value‑based bidding. Mixed objectives in one campaign confuse the optimizer and reduce efficiency. Consolidated structures with clear goals learn faster and spend more predictably. Guardrails like minimums can shape distribution but use them sparingly.

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  • Secondary Keywords: CBO vs ABO, budget optimization, campaign-level budgets
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  • Meta Title: What is CBO? Campaign Budget Optimization Explained | Marpipe
  • Meta Description: CBO allocates budget across ad sets automatically. Learn when to use CBO, how to structure campaigns, and how catalogs affect it.
  • URL: marpipe.com/ad-glossary/campaign-budget-optimization-cbo

# What is Campaign Budget Optimization (CBO)?

CBO sets budget at the campaign level and lets the platform allocate spend across ad sets based on performance.

Understanding CBO

CBO can speed learning and reduce micromanagement by letting the system move budget to stronger ad sets. Structure matters because mixed goals in one campaign create noisy optimization. Keep objectives and targets consistent (e.g., prospecting only) so signals don’t conflict. Creative and product sets should align across ad sets to keep comparisons fair. Consolidation prevents fragmentation that starves learning.

Because CBO optimizes across ad sets, naming, exclusions, and budgets must be deliberate. Use clear naming to track which audience or product set each ad set represents. Exclude overlaps so ad sets aren’t competing for the same people. Avoid many tiny ad sets; fund fewer, stronger ones that can exit learning. Refresh creative regularly while keeping a control to measure progress.

Why CBO matters

CBO matters because it moves budget to stronger ad sets automatically, improving efficiency without constant manual tweaks. It stabilizes delivery by reducing overfitting in small ad sets. It also supports scale when testing multiple audiences and creatives.

  • Efficiency: Moves budget to stronger ad sets automatically.
  • Stability: Reduces overfitting in small ad sets.
  • Scale: Helpful when testing multiple audiences/creatives.

How CBO works

CBO works by setting budget at the campaign level and letting the platform shift spend among ad sets to hit the optimization goal. The system evaluates expected value and moves budget toward ad sets likely to perform. Catalog ad sets with better value density often attract more budget, especially under value‑based bidding. Mixed objectives in one campaign confuse the optimizer and reduce efficiency. Consolidated structures with clear goals learn faster and spend more predictably. Guardrails like minimums can shape distribution but use them sparingly.

Best practices

  1. Separate prospecting and retargeting into different campaigns.
  2. Keep a clear objective and similar goals across ad sets.
  3. Avoid too many tiny ad sets; consolidate where possible.
  4. Use product sets and templated creative to raise value signals.

Key Takeaways

  • CBO (campaign budget optimization) automatically distributes budget across ad sets based on performance.
  • It simplifies management and often improves efficiency by allocating more to winning ad sets.
  • Works best with multiple ad sets, sufficient budget, and completed learning phases.
  • Pair CBO with strong creative and feed quality to help the algorithm find efficient opportunities.
Related Terms
ROAS Goal Optimization
Learn how ROAS goal optimization works, how to set targets that reflect your margins, and how catalog ads and feed enrichment help you reach them.
Product Set
Product sets group SKUs for targeting and reporting. Learn how to build sets by category, margin, and lifecycle to improve performance.
Broad Audience
Broad audience targeting lets platforms find buyers without interests. Learn how to use it with strong creative and catalogs.
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FAQs
Should I use CBO (Campaign Budget Optimization) or ABO?
Choose CBO for simpler ops and scalable tests; use ABO (Ad Set Budget Optimization) when you need strict control per audience or placement.
Why is one ad set hogging all the spend in CBO (Campaign Budget Optimization)?
In CBO, one ad set dominates when it's outperforming on the chosen goal—improve underperformers or split to ABO for manual control.
How much budget do I need for CBO (Campaign Budget Optimization)?
CBO works best with enough budget for all ad sets to exit learning—typically $50-100/day minimum depending on platform and goals.
Can I set minimum spend per ad set in CBO (Campaign Budget Optimization)?
Yes—most platforms let you set minimum or maximum spend per ad set within CBO, but use sparingly as it limits the optimizer.
Does CBO (Campaign Budget Optimization) work for retargeting?
Yes—CBO works for retargeting when you have multiple retargeting ad sets; separate prospecting and retargeting into different campaigns for clean optimization.