TikTok advertising success relies on effective optimization. This article explores two key strategies: Ad Group Budget Optimization (ABO) and Campaign Budget Optimization (CBO).
Ad Group Budget Optimization (ABO)

ABO allows flexible budget management at the ad group level, ideal for targeting specific audience segments.
Key points:
- Allocate fixed budgets to individual ad groups
- Minimum daily budget per ad group: $20
- Useful for testing different audience segments
Example: In a $100 campaign:
- Group A (18-24 year-old male sports fans): $70
- Group B (25-34 year-old female travel enthusiasts): $30
Setting up ABO:
- Define target audiences for each ad group
- Create separate ad groups for different strategies
- Allocate budgets appropriately
Pro Tip: If an ad group underperforms, pause it and reallocate the budget to better-performing groups.
Campaign Budget Optimization (CBO)

CBO simplifies optimization by managing budgets at the campaign level, automatically distributing funds to the best-performing ad groups.
Key points:
- Allocate budget at the campaign level
- Create at least two ad groups per campaign
- Use different targeting, creatives, and placements
Setting up CBO:
- Choose advertising objective (e.g., video views, website traffic)
- Select bidding strategy (lowest cost or bid cap)
- Choose budget type (daily or lifetime)
- Enable CBO in campaign settings
Example: Create two ad groups targeting:
- Male gamers
- Female gamers
After running the campaign, if the female gamer group achieves more conversions at a lower cost, consider pausing the male gamer group and reallocating its budget.
Conclusion:
Both ABO and CBO offer unique advantages for TikTok ad optimization. ABO provides granular control and is excellent for testing, while CBO simplifies management and automatically optimizes budget allocation. Experiment with both strategies to find the best fit for your advertising goals and target audience on TikTok.