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.
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.
Log in to your TikTok Ads Manager account by selecting “Log in with TikTok”.
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."
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 |
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:
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:
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:
Use Cost Cap to manage your website conversion costs, allowing TikTok to suggest a minimum bid.
In "Advanced Settings," use "Accelerated" delivery for faster results. Costs may vary, but overall results will align with your budget.
Unsure of which strategy to pick? Use A/B testing to compare different options and identify which works best for your brand.
Log in to your TikTok Ads Manager and select “Log in with TikTok.”
Create a new campaign or choose an existing one.
Click "Custom Mode."
Confirm switching from Simplified to Custom Mode.
In “Campaign” settings, switch on “Create Split Test.” Name your campaign and select "Daily Budget" as the recommended option.
Choose a “Variable” to test and a “Key Metric” to compare the two ad groups. Ensure your daily budget is sufficient for accurate results.
Set up your “Split test settings” under “Split test”.
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.
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.
Remember, marketing success is about finding balance—between creativity and strategy, vision and execution.
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