Smart Advertising DOCS

7.5.3 Campaign Budget Optimization

About Campaign Budget Optimization

Campaign Budget Optimization (CBO) is a feature that allows you to optimize your budget at the campaign level instead of the ad group. To create a campaign using Campaign Budget Optimization, set up your campaign within the following parameters:

  • Advertising Objective: Video View, Traffic, Catalog Sales, Lead Generation, Community Interaction, App Promotion, Website Conversions, and Reach
  • Bid Strategy: Maximum Delivery and Cost Cap
  • Budget Mode: Daily Budget and Lifetime Budget
  • Delivery Type: Standard
  • Split Test: Not supported

To enable Campaign Budget Optimization:

  1. Create a new campaign.
  2. Select a supported Advertising Objective.
  3. Turn on the Campaign Budget Optimization toggle.
  4. Select a Budget; all ad groups in this campaign will share this budget.
  5. Select the Bid Strategy when setting up the first ad group.
  6. Under Delivery Type, Standard is the only available option.
  7. Configure the rest of your ad group settings
    CBO setup

CBO budget

CBO bid strategy
and create your ads. All ad groups should share the same Optimization Goal.

Best practices for campaign budget optimization

Campaign budget

  • Set your actual target campaign budget.
  • Make sure your ad group budget covers at least 50× target CPA when running App Install.
  • Ensure your ad group budget covers at least 20× target CPA while running either AEO or Conversions.

Number of ad groups

  • Ensure at least 3–5 unique and active ad groups per campaign, and 2–3 unique creatives per group.

NOTE: CBO does not function when there is only 1 active ad group in the campaign.

Optimizations

  • Wait for at least one day and 50 conversions before making new adjustments.
  • When adjusting your budget, try to control each adjustment within 30% of the current daily budget.

NOTE: TikTok Ads Manager requires all ad groups within a CBO campaign to apply the same optimization goal.