TikTok Ads CBO Campaign 2023 | TikTok Campaign Budget Optimization

TikTok Ads CBO Campaign 2023 | TikTok Campaign Budget Optimization | Lesson No 14

Introduction

Bismillah Rahman Rahim. Assalamualaikum, and welcome to this lesson where I will guide you on how to run a CBO (Campaign Budget Optimization) company on TikTok. Through this lesson, we'll explore what a CBO company is, how to run it, its benefits, and its disadvantages. Let's get started.

Getting Started

Firstly, navigate to the compensation section and click on the 'Create' button. Go through the rest of the setup according to your preferences and select the conversion option or any other option you want.

Setting Up the Campaign

Here you will name your campaign and choose the 'Campaign Budget Optimization' option, commonly known as CBO. To understand the budget allocation, we'll continue and move to the ad group setup.

Budget Allocation

Set a budget for the ad group, for instance, $ 3000. This budget will be for the entire campaign, including individual ad groups. Suppose you create 10 ad groups, it means each ad group will have a fixed budget of $ 30, totaling $ 300 for the campaign. However, this fixed allocation has its limits as not all ad groups may perform equally.

Benefits of CBO

In CBO, the entire $ 300 is allocated to the campaign, and the budget is automatically distributed based on performance rather than equally. For example, if 10 ad groups are running, and some perform better than others, CBO will allocate a higher budget to the better-performing ad groups and less to the underperforming ones. This ensures maximum performance with minimal loss.

Disadvantages of CBO

However, a downside to CBO is that it might reduce the budget for ad groups that initially perform poorly but could potentially perform well over time. If CBO reduces their budget prematurely, they may not get a chance to pick up performance, which can be a disadvantage.

Campaign Continuation and Budget Distribution

If you decide to run a CBO campaign, activate the Campaign Budget Optimization option and set an overall budget. For instance, $ 300 will be your entire budget. By doing so, you won’t see any budget setting options at the ad group level as the budget is now managed at the campaign level.

Lifetime Budget

You can also set a lifetime budget based on your campaign duration. For example, if you set it to run from the 12th to the 26th of the month, the budget will be allocated accordingly for that duration.

Conclusion

So, this was a brief introduction to CBO and how it functions in TikTok ad campaigns. It controls the budget efficiently to maximize performance and minimize losses, although it comes with its own set of advantages and disadvantages.

This concludes our lesson. See you in the next lesson. Allah Hafiz.

Keywords

TikTok Ads
Campaign Budget Optimization (CBO)
TikTok Campaigns
Ad Group Budget
Performance-Based Allocation
Lifetime Budget

FAQ

What is Campaign Budget Optimization (CBO)?

CBO, or Campaign Budget Optimization, is a method where the campaign's total budget is distributed automatically based on the performance of individual ad groups rather than being allocated evenly.

How does CBO benefit TikTok ad campaigns?

CBO benefits TikTok ad campaigns by ensuring better-performing ad groups receive more budget allocation, thereby maximizing the overall campaign performance with minimal losses.

What are the disadvantages of using CBO?

The main disadvantage of CBO is that it may prematurely reduce the budget for ad groups that initially perform poorly. These groups might not have enough budget to improve their performance over time.

What is the difference between daily and lifetime budget in CBO?

A daily budget allocates funds on a day-to-day basis, whereas a lifetime budget allocates the total funds over the entire campaign duration, from the start to the end date you set.

How does the performance-based budget allocation work in CBO?

In CBO, the system automatically allocates more budget to ad groups that are performing well and reduces the budget for those that are underperforming, thus optimizing the overall campaign performance.

Can I change my budget settings after the campaign has started?

Yes, you can adjust your budget settings, but it's important to monitor the performance of your ad groups regularly to ensure optimal budget allocation.