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How to Pick the Right Bid Strategy for Your TikTok Campaign

Chapter 9/10 of the Zen Digital Toolkit
Added by Zen
06 Oct 2024
TikTok
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Welcome to our Zen Digital Toolkit, a place where we break things down into simple, actionable steps that you can use in your daily marketing efforts.

In this series we'll guide you with practical roadmaps that will bring calm and clarity to your marketing journey. Whether you’re working on lead generation, digital campaigns, or setting up your ads, these tips will help you stay on track.

What is TikTok Bid Strategy and Why Is It Important?

A TikTok bid strategy determines how much you're willing to pay for each desired result, whether it’s impressions, clicks, or conversions. Choosing the right bid strategy is crucial because it directly impacts the effectiveness of your campaign, helping you balance cost efficiency with maximizing results. An optimized bid strategy allows TikTok’s algorithm to better allocate your budget, ensuring you reach your target audience while controlling costs. 

With the right approach, you can avoid overspending, improve campaign performance, and achieve specific objectives, like brand awareness, lead generation, or sales conversions, more efficiently.

Steps for Setting up the Right Bid Strategy for Your TikTok Campaign.
6 Easy Steps for Setting up your Bid Strategy. Let's get started!
Step 1: Setting Up the Environment
  1. Log in to your TikTok Ads Manager account by selecting “Log in with TikTok”. 

  2. Create a new campaign. The campaign’s advertising objective and ad group selections will determine which bid strategies are available.
    Optional: You can also select an existing campaign, but this is only visible in custom mode. 
  3. In the top right corner, click "Custom Mode". This mode provides more control over your campaign, allowing A/B testing and audience targeting.  
  4. Select "Use existing". 
  5. Choose the campaign by clicking on the box and selecting it. 
  6. Hit “Continue” to proceed. 
  7. Navigate to "Ad Group" > "Bidding & Optimization". Custom mode allows advanced users to A/B test different bidding strategies, whereas Simplified Mode is recommended for beginners. To learn more about testing bid strategies, see the section "[Custom Mode] A/B Test Your Bidding Strategies." 

     
Step 2: Overview of Bidding Strategies

Bidding Strategy

Best For

Supported Advertising Objective

Supported Bidding Method

What the Bid Represents

Impact on Cost per Results

Bid Cap

Keeping your average cost per result lower than your bid cap

Traffic, Reach, Video Views, Conversions (click optimization)

CPC, CPM, CPV

Maximum amount to achieve a result

Average cost per result will be less than the bid

Cost Cap

Maintaining an average cost around your bid, regardless of budget

App Installs (in-app events), Conversions, Lead Generation

oCPM

Average amount spent to achieve a result

Cost per result may fluctuate, but average stays around the bid

Lowest Cost

Spending the full budget to get the most results

Traffic, Reach, Video Views, App Installs (non-in-app events), Conversions, Lead Generation, Catalog Sales

CPC, CPM, CPV, oCPM

No specific bid, system maximizes results based on budget

Costs fluctuate based on auction environment

Step 3: TikTok Bid Strategy for Brand Awareness Campaigns

Recommended for: New businesses or consultants looking to establish their brand on TikTok.

Objective: Increase brand visibility by targeting users who interact with videos related to your campaign.

  • Bid strategy: Use Bid Cap or Lowest Cap depending on capital. Beginners are advised to start with the Lowest Cap and use Bid Cap once comfortable with higher spending.

In Bidding & Optimization:

  1. Under Custom Mode, navigate to "Ad Group" > "Bidding & Optimization."
  2. Set a frequency cap to show ads no more than 3 times every 7 days.
  3. For beginners, ignore TikTok's bid control suggestion and set it to 0.00 to allow the system more flexibility.
  4. In "Advanced Settings," select “Accelerated” for faster results. This may result in fluctuating costs but helps achieve quick outcomes.
Step 4: TikTok Bid Strategy for Lead Generation Campaigns

Recommended for: Businesses aiming to gather leads through TikTok.

Objective: Increase leads by appearing on users’ TikTok "For You" page.

  • Bid strategy: Start with the Lowest Cap for beginners. Switch to Cost Cap once you can invest more in lead generation.

In Bidding & Optimization:

  1. Use Cost Cap to control the amount you spend per lead. TikTok will keep the average cost around or below your bid.
  2. Select the "Accelerated" delivery type to get results quickly.
Step 5: TikTok Bid Strategy for Sales Conversion Campaigns

Recommended for: Businesses looking to increase sales and website conversions through TikTok.

Objective: Drive sales by generating website conversions through targeted ads.

  • Bid strategy: Start with Lowest Cap and move to Cost Cap for more precise spending control.

In Bidding & Optimization:

  1. Use Cost Cap to manage your website conversion costs, allowing TikTok to suggest a minimum bid. 

  2. In "Advanced Settings," use "Accelerated" delivery for faster results. Costs may vary, but overall results will align with your budget. 

Step 6: A/B Test Your Bidding Strategies

Unsure of which strategy to pick? Use A/B testing to compare different options and identify which works best for your brand.

  1. Log in to your TikTok Ads Manager and select “Log in with TikTok.” 

  2. Create a new campaign or choose an existing one. 

     

  3. Click "Custom Mode." 

  4. Confirm switching from Simplified to Custom Mode. 

  5. In “Campaign” settings, switch on “Create Split Test.” Name your campaign and select "Daily Budget" as the recommended option.

     

  6. Choose a “Variable” to test and a “Key Metric” to compare the two ad groups. Ensure your daily budget is sufficient for accurate results. 

  7. Set up your “Split test settings” under “Split test”. 

  8. Set the demographics, audience, interests, and targeting options for each ad group. Set the campaign to run for at least 7 days for enough data collection. 

  9. Once set up, click “Complete.” 

That’s it! With these strategies and steps, you’ll be able to determine the right bidding approach for your TikTok campaigns, maximizing your ad performance while managing your budget effectively.

Stay tuned for more articles in our Zen Digital Toolkit series, designed to bring clarity to your marketing journey.

Remember, marketing success is about finding balance—between creativity and strategy, vision and execution.

Conclusion

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