Bidding methods are important for digital promoting campaigns to make sure you attain your targets. That is undoubtedly true of TikTok, the place folks more and more find out about new merchandise and types.
TikTok solely presents two bidding technique choices in the meanwhile: Value Cap and Most Supply. Though they appear related on the floor, every offers a novel option to get the largest bang on your promoting buck.
On this submit, we’ll talk about the 2 bidding methods out there on TikTok and show you how to decide which is the best choice for you.
The 2 TikTok advertisements bidding methods
In TikTok advertisements, your bidding technique tells the platform how you can place bids on your account within the advertisements public sale. (In the event you’re new to TikTok advertisements, learn this TikTok ads primer on how they work). The aim is to choose the bidding technique that matches your aim and finances.
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Technique #1: Value Cap
Value Cap bidding is a performance-based method to optimization. With Value Cap bidding, the aim is to manage the typical value per end result you obtain within the public sale.
The TikTok platform tries to hit a median value per end result based mostly in your campaign goals to make it work. That signifies that for every conversion, the fee per end result is perhaps larger or decrease than your goal, however the plan is to common out to your aim over time.
Value Cap bidding is an possibility for App Set up, Conversions, and Lead Technology marketing campaign aims.
TikTok says this technique is finest for goal-based campaigns and advertisers attempting to maintain prices round these targets constant, no matter market circumstances. That’s as a result of the platform will bid roughly relying on the probability of a conversion and received’t work to spend the finances each single day. If efficiency isn’t sturdy, it is going to underspend the every day finances for that day, and take a look at once more tomorrow when efficiency could also be higher.
Now, in terms of truly establishing your Value Cap, TikTok suggests setting the very best quantity you’re keen to pay for the conversion. Or for a return on advert spend (ROAS) goal, the bottom ROAS you’re keen to simply accept. Each of those give TikTok probably the most leniency when bidding for you within the public sale, as they’re the least restrictive ends of the spectrum.
It additionally means that your finances ought to be 50 instances your Value Cap bid. Whereas that is perhaps possible for some people and is probably going the place the platform performs finest, it could or is probably not affordable for many advertisers. In that case, attempt to set your daily budget at the very least 5 instances your Value Cap bid, however larger is best.
In the event you can’t hit the five-times mark, it’s not a dealbreaker. I’ve seen campaigns carry out effectively with a Value Cap on the identical stage because the every day finances, however it’s uncommon. In the event you’re in that state of affairs, you may wish to look at your account’s construction and see should you can condense audiences and budgets to higher align with TikTok’s instructed finances/Value Cap break up.
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Technique #2: Most Supply
Most Supply, in contrast to Value Cap, is a spend-based technique reasonably than performance-based. You’re not capable of enter a bid quantity. As an alternative, you present your finances and TikTok will work to drive as a lot of your target actions as attainable whereas spending your total finances.
Which means the platform is not going to pull again on days when your efficiency is much less environment friendly than others. Your prices might fluctuate fairly a bit, however your general spending will keep stage. The one wrinkle is that Most Supply is just out there for every day budgets and isn’t an possibility should you’re utilizing a lifetime finances.
You should utilize this bidding technique with each marketing campaign goal within the TikTok platform. Simply go away the Value Cap, Bid Cap, Goal CPA area within the Bidding & Optimization part empty, and also you’ll default to Most Supply for that advert set.
Like Value Cap, TikTok recommends setting your finances to realize 50 conversions per day. Once more, that is seemingly not attainable for many individuals, so do your finest with it.
In the event you’re seeing good outcomes with Most Supply and wish to scale, be sure to achieve this in a strategic method. Whereas different platforms like Meta ads recommend not more than a 20% finances change on any given day, TikTok says it may well deal with as much as a 50% bid change with out seeing efficiency disruptions. It then suggests you wait till you obtain one other 50 conversions and at the very least someday earlier than altering the finances once more.
I’d persist with the 20% rule that Meta suggests right here as effectively (and see how your Facebook and TikTok ads work collectively). 50% is a fairly big improve, and relying on how aggressive your business is, you may even see fairly fluctuant CPAs with a bigger change.
Make one of the best of your TikTok advertisements bidding methods
I’m a fan of TikTok solely having two bidding methods on the platform. It simplifies issues and makes it a lot simpler for advertisers to digest and perceive.
Are you engaged on ROAS or CPA targets? Value Cap is your only option. Are you seeing good outcomes and wish to get probably the most scale out of your campaigns? Let’s hit Most Supply and see how excessive we will go. Hopefully, this demystifies the TikTok Adverts bidding methods sufficient so that you can really feel assured in your marketing campaign settings.
