Currently, TikTok Ads Manager provides 4 different bidding methods:
- Cost per Mille/Thousand Impressions (CPM)
This means your bid is the price you are willing to pay for one thousand impressions. The system will deliver your ads to get the most exposure and reach as many customers as possible within your budget.
- Calculation: (Total cost / Total impressions) * 1,000
- Billing Event: Charged by impression
- Applicable Advertising Object: Reach
- Optimized Cost per Mille/Thousand Impressions (CPM)
Note: oCPM is now the default bidding method for the Conversions and App Installs advertising objectives.
This means your bid represents the price you are willing to pay to create one thousand impressions, targeting users likely to complete a conversion event, become a lead, or install an app.
- Calculation: (Total cost / Total impressions) * 1,000
- Billing Event: Charged by impression
- Applicable Advertising Object: Conversions, App Install, Lead Generation.
- Cost per Thousand Views (CPV)
This means your bid is the price you are willing to pay for per one thousand 6-second or 2-second video views. The system will deliver your video to get as many views as possible within your budget.
- Calculation: Total cost / Total video views * 1000
- Billing Event: Charged by 2-second video views, 6-second video views, or video completion
- Applicable Advertising Object: Video ViewsNote: When setting your bid for cost per view in your ad group, make sure that you multiply your desired cost per view by 1000 and enter your total as the bid amount. For example, if I am willing to spend $.05 for a video view, I will enter $50 as my CPV bid ($.05 X 1000 = $50).
- Cost per Click (CPC)
This means your bid is the cost you are willing to pay per click. The system will deliver your ads to users who are most likely to click them at a cost that is as close to your bid as possible.
- Calculation: Total cost / Total click
- Billing Event: Charged by click
- Applicable Advertising Object: Traffic, App Installs, ConversionSome tips to keep in mind when you try to bid your ads
Bidding is as same as science. So, to offer the best chance to optimize your budget, we’ve come up with some key tips for you to keep in mind when selecting your bidding methods
Don't Constrain Yourself - There’s no perfect solution when it comes to reaching your target goals. Rather some solutions will help you to optimize your spending. For some brands, the cost per goal isn’t as a priority as engagement metrics. Likewise, other brands may pay closer attention to each dollar that’s spent and who is seeing their ads. But it’s important to remember that the more control you maintain over costs, the more constraints you place on our platform to find lower-cost opportunities for your desired outcomes.
Know your Target Audience - The more you know about who you’re targeting, the easier and more cost-effective it is for you to optimize your budget. The more data you have about an ad group, such as conversions or clicks, leads to better delivery predictions. For example, if you’re optimizing for website conversions, set up your ad groups so that they have a higher chance of capturing more conversions.
Set a High Budget-to-Bid Ratio – When bidding at the onset of a campaign, we recommend setting your daily budget to be many times larger than your bid. The chances of striking a rock bottom bid price for the highest quality customers are low – especially at scale. In reality, it takes time to find the ideal group of target users. You don’t want to restrict TikTok’s optimization model from finding high-quality customers at a reasonable bid price. If your bid price and budget are too low, you may get some conversions but could end up spending more money showing your ads to non-converting users. Your competitors could even be outcompeting you for the same ad inventory. Or, the pace of your ad campaign might be more sluggish than anticipated. Therefore, we recommend you to set as high of a budget-to-bid ratio as possible.
