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Bidding methods are important for digital promoting campaigns to make sure you attain your objectives. That is undoubtedly true of TikTok, the place folks more and more study new merchandise and types.
TikTok solely gives two bidding technique choices in the meanwhile: Price Cap and Most Supply. Though they appear comparable on the floor, every supplies a singular option to get the most important bang in your promoting buck.
On this publish, we’ll talk about the 2 bidding methods accessible on TikTok and enable you to decide which is the most suitable choice for you.
The 2 TikTok advertisements bidding methods
In TikTok advertisements, your bidding technique tells the platform tips on how to place bids in your account within the advertisements public sale. (In case 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 price range.
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Technique #1: Price Cap
Price Cap bidding is a performance-based method to optimization. With Price Cap bidding, the aim is to manage the common price per consequence you obtain within the public sale.
The TikTok platform tries to hit a mean price per consequence based mostly in your campaign goals to make it work. That implies that for every conversion, the fee per consequence is perhaps greater or decrease than your goal, however the plan is to common out to your aim over time.
Price Cap bidding is an possibility for App Set up, Conversions, and Lead Technology marketing campaign goals.
TikTok says this technique is greatest for goal-based campaigns and advertisers making an attempt to maintain prices round these objectives constant, no matter market circumstances. That’s as a result of the platform will bid roughly relying on the chance of a conversion and gained’t work to spend the price range each single day. If efficiency isn’t sturdy, it can underspend the each day price range for that day, and take a look at once more tomorrow when efficiency could also be higher.
Now, in the case of really establishing your Price Cap, TikTok suggests setting the very best quantity you’re prepared to pay for the conversion. Or for a return on advert spend (ROAS) goal, the bottom ROAS you’re prepared to just accept. Each of those give TikTok essentially 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 price range ought to be 50 occasions your Price Cap bid. Whereas that is perhaps possible for some of us and is probably going the place the platform performs greatest, it might or is probably not affordable for many advertisers. In that case, attempt to set your daily budget at the least 5 occasions your Price Cap bid, however greater is best.
In case you can’t hit the five-times mark, it’s not a dealbreaker. I’ve seen campaigns carry out effectively with a Price Cap on the similar stage because the each day price range, but it surely’s uncommon. In case you’re in that situation, you may wish to look at your account’s construction and see for those who can condense audiences and budgets to raised align with TikTok’s instructed price range/Price Cap cut up.
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Technique #2: Most Supply
Most Supply, not like Price Cap, is a spend-based technique quite than performance-based. You’re not capable of enter a bid quantity. As an alternative, you present your price range and TikTok will work to drive as lots of your target actions as doable whereas spending your whole price range.
Meaning the platform is not going to pull again on days when your efficiency is much less environment friendly than others. Your prices might range fairly a bit, however your total spending will keep stage. The one wrinkle is that Most Supply is just accessible for each day budgets and isn’t an possibility for those who’re utilizing a lifetime price range.
You need to use this bidding technique with each marketing campaign goal within the TikTok platform. Simply go away the Price Cap, Bid Cap, Goal CPA discipline within the Bidding & Optimization part empty, and also you’ll default to Most Supply for that advert set.
Like Price Cap, TikTok recommends setting your price range to attain 50 conversions per day. Once more, that is doubtless not attainable for many individuals, so do your greatest with it.
In case you’re seeing good outcomes with Most Supply and wish to scale, be sure to accomplish that in a strategic method. Whereas different platforms like Meta ads recommend not more than a 20% price range change on any given day, TikTok says it could 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 least sooner or later earlier than altering the price range once more.
I’d stick with the 20% rule that Meta suggests right here as effectively (and see how your Facebook and TikTok ads work collectively). 50% is a reasonably enormous enhance, and relying on how aggressive your trade is, you might 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? Price Cap is your best choice. Are you seeing good outcomes and wish to get essentially the most scale out of your campaigns? Let’s hit Most Supply and see how excessive we will go. Hopefully, this demystifies the TikTok Advertisements bidding methods sufficient so that you can really feel assured in your marketing campaign settings.
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