Vocab for Marketers: What is ABO?

What is ABO?


ABO, short for Ad Set Budget Optimization, is a Meta feature allowing advertisers to allocate spend manually at the ad set level. Each ad set has its own budget, and Meta optimizes spending within each one based on the target audience and performance metrics.

How Marketers Use ABO

Campaigns in Meta Business Manager are structured into ad sets, which contain one or more ads targeting specific audiences. Marketers use ABO to strategically make adjustments and improvements at the ad set level, focusing on factors like audience targeting, budget allocation, scheduling, and bidding strategies. They tend to allocate more budget to ad sets that are performing well and generating positive results, while reducing spend on underperforming ad sets. 

By continuously monitoring and adjusting budgets based on performance data, marketers can maximize the return on investment (ROI) of their advertising campaigns and achieve their profitability goals more effectively.

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