SOP 235: How to determine bid strategy for Tiktok Ads campaign
\nDetermine the right bidding and budget spending strategy for your Tiktok Ad campaigns.
\nLast Updated / Reviewed: 03/29/2024
\nExecution Time: 10 – 20 minutes
\n🚀 Goal: To determine the right bid strategy for the right TikTok ads campaign.
\n🤞 Ideal Outcome: To control your budget spending by A/B testing the delivery of your ads and the cost per result.
\n🤔 Why this is important: Bidding strategies on TikTok are a crucial strategic element to efficiently spend your money based on your selling products and your available capital. Bidding too low can mean your ads are not getting delivered and bidding too high can be a losing business model. When you have all the different campaigns prepared, the optimal bidding strategy will help you achieve your campaign objective goal with the maximum result while staying cost-effective.
\n🧐 Where this is done In TikTok Ads Manager.
\n🗓️ When this is done: Whenever you launch a TikTok ads campaign.
\n👨 Who does this: The business owner/manager or the person/agency digital marketer.
\n__⚠️Prerequisites or requirements: __You will need to have a TikTok Ads Manager account before creating any TikTok ads campaign and setting up your bid at the ad group level. If you do not have one, please refer to SOP 229 (web version): How to set up a TikTok Ads Manager account.
\nClick here to get the most up-to-date version of this SOP
\nYou may refer to the following SOPs to set up different campaigns in either simplified or custom mode.
\n[Optional] You can also use an existing campaign. However, this is only visible in the custom mode.
\n\n
Bidding Strategy
\nBest For
\nSupported Advertising Objective
\nSupported Bidding Method
\nWhat the Bid Represents
\nImpact on Cost per Results
\nBid Cap
\n(Common practice)
\nKeeping your average cost per result lower than your bid cap.
\nTraffic
\nReach
\nVideo Views
\nConversions- – when the optimization goal is set to click.
\nCost per Click (CPC)
\nCost per Mille (CPM)
\nCost per View (CPV)
\nThe maximum amount the system will spend to achieve a result.
\nThe average Cost per Result will be less than the bid amount.
\nCost Cap
\n(Common practice)
\nKeeping your average cost around or lower than your bid, regardless of your budget.
\nApp Installs – when the optimization goal is set to In-app Events
\nConversions – when the optimization goal is set to conversions
\nLead generation
\nOptimized Cost per Mille (oCPM)
\nThe average amount the system will spend to achieve a result.
\nCosts per Result may fluctuate from day to day, but the average will be around or lower than the bid amount.
\nLowest Cost
\nSpending your budget fully and getting the maximum possible results.
\nBest for beginners.
\nTraffic
\nReach
\nVideo Views
\nApp Installs – when the optimization goal is not set to In-app Event
\nConversions
\nLead generation
\nCatalog Sales.
\nCPC, CPM, CPV, oCPM
\nThere is no bid, instead, the system will try to generate as many results as possible given the ad group's budget.
\nCost per Result may fluctuate day to day based on the changes in the auction environment - but you will always obtain the most results at the lowest cost based on your budget.
\n\n
Recommended for: New businesses or consultants trying to establish their brand in TikTok.
\nObjective: To increase brand awareness when your targeted audience interacted with a TikTok video related to your published TikTok brand awareness campaign.
\nThe priority of this bidding strategy is to appear on the audience’s TikTok main page and for you page to increase the visibility of the brand.
\nBid strategy: Bid cap or lowest cap depending on the capital availability. For beginners, it is recommended to start with the lowest cap. Only use the bid cap once you are comfortable in spending for more reach.
\n__The best TikTok brand awareness case study: __Oxy Vietnam
\nIn bidding and optimization:
\nUnder custom mode only, go to “Ad group” > “Bidding & Optimization” once you have filled out the rest of the sections.
\nIt is recommended to set your frequency cap to “show ads no more than 3 times every 7 days”.
\nDepending on your capital availability, you may set your bid control here. There will be a bid control recommendation from TikTok based on their algorithm and your campaign objective. This is stated below the empty box e.g. 5.72 MYR. For beginners in TikTok, it is recommended to ignore this step and set it to 0.00.
\nSet your “Advanced settings” to “Accelerated” delivery type. With accelerated delivery, your budget will be spent based on getting as many results as possible in the shortest time frame. This may result in a higher or lower fluctuating cost for a single result compared to standard delivery, but the average cost still remains close to your bid.
\nOn your right, TikTok calculates your estimated result based on your bid strategy. For instance, with the settings above, you will achieve a probable outcome of <10,000 daily reach.
\nRecommended for: New and/or existing businesses or consultants trying to generate leads via the TikTok channel.
\nObjective: To increase lead generation with a TikTok lead generation campaign.
\nThe priority of this bidding strategy is to appear on the audience’s TikTok for you page and generate leads.
\nBid strategy: Cost cap or lowest cap depending on the capital availability. For beginners, it is recommended to start with the lowest cap. Only use the cost cap once you are comfortable with spending more for leads.
\n__The best TikTok lead generation case study: __Lancôme
\nIn bidding and optimization:
\nUnder custom mode only, go to “Ad group” > “Bidding & Optimization” once you have filled out the rest of the sections.
\nIf you have chosen cost cap as your bid strategy, place an amount per lead that you are willing to spend. With this strategy, the TikTok system will keep your average cost around or lower than your bid, regardless of your budget.
\nIf you are unsure and new to TikTok, it is recommended to set your bid strategy to the lowest cap.
\nUnder “Advanced settings”, you get to choose which ad delivery type you would like to set. This is only available for those who have chosen the cost cap and not the lowest cap. In this case, it is recommended to select “Accelerated”. With accelerated delivery, your budget will be spent based on getting as many results as possible in the shortest time frame. This may result in a higher or lower fluctuating cost for a single result compared to standard delivery, but the average cost still remains close to your bid.
\nOn your right, TikTok calculates your estimated result based on your bid strategy. However, if you have selected cost cap as your bid strategy, TikTok does not provide the estimated daily leads you may get. Only select the lowest cap, if you would like TikTok to estimate your daily leads.
\nRecommended for: New and/or existing businesses or consultants trying to generate sales via the TikTok channel.
\nObjective: To increase sales and website conversions with a TikTok sales conversion campaign.
\nThe priority of this bidding strategy is to appear on the audience’s TikTok for you page and generate sales through your website.
\nBid strategy: Cost cap or lowest cap depending on the capital availability. For beginners, it is recommended to start with the lowest cap. Only use a cost cap once you are comfortable with spending more for sales conversion.
\n__The best TikTok sales conversion case study: __PUMA
\nIn bidding and optimization:
\nUnder custom mode only, go to “Ad group” > “Bidding & Optimization” once you have filled out the rest of the sections.
\nIf you have chosen cost cap as your bid strategy, place an amount per website conversion that you are willing to spend. With this strategy, the TikTok system will suggest a minimum bid for your campaign. Click “Adopt”, if you agree.
\nIf you are unsure and new to TikTok, it is recommended to set your bid strategy to the lowest cap.
\nUnder “Advanced settings”, you get to choose which ad delivery type you would like to set. This is only available for those who have chosen the cost cap and not the lowest cap. In this case, it is recommended to select “Accelerated”. With accelerated delivery, your budget will be spent based on getting as many results as possible in the shortest time frame. This may result in a higher or lower fluctuating cost for a single result compared to standard delivery, but the average cost still remains close to your bid.
\nOn your right, TikTok calculates your estimated result based on your bid strategy. However, if you have selected cost cap as your bid strategy, TikTok does not provide the estimated daily impressions you may get. Only select the lowest cap, if you would like TikTok to estimate your daily impressions.
\nIf you’re unsure which bidding strategy to choose, you can always split test. Create two campaigns or ad groups with different bidding options and see which one will suit your brand best. TikTok does not recommend running against two separate ad groups or campaigns, as it will not yield conclusive results.
\n\n
Under “Campaign”, click “Settings”.
\nKey in your campaign name.
\nYou have the option to choose if you would like to conduct a split test. If you tick this option, you will have to provide a payment in advance in the later steps for you to proceed to submit your ad. If you do not want to conduct a split test, you can ignore this step.
\nYou have the option to set a campaign budget. It is recommended to select “Daily budget” in the drop-down menu.
\nBy now, you should be able to see the “4. Split test” tab on your left navigation menu. Make sure you have filled up other sections before you go to the split test.
\nClick “Setup” under “Split test”.
\nSelect a split test variable.
\nSelect a key metric.
\nKey in your daily budget. Ensure that it is in the right currency.
\nSet your preferred test schedule.
\nEnsure that the estimated testing power is sufficient.
\n