How does TikTok bring a dynamic shift to audiences and their behavior globally?
Overview:
TikTok Ad Strategy, Why do you need it?
The stats and the proof!
Now,
TikTok ads are primarily sponsored videos that brands create to reach their audience. Running ads on the video-sharing app is an effective marketing strategy for your business, both audience and algorithm-wise. Therefore, TikTok ads help businesses to
- Increase brand awareness
- Build online communities
- Provide customer service
- Advertise your products or services to your customers
- Increase sales or app installs
Pros of having a TikTok Ad Strategy
- It can significantly impact your marketing campaign results and promise a good ROI.
- Also, considering TikTok's advertising potential having 1 Billion plus users that keep growing, a strategic approach will help your ad campaigns tap the right audience segment.
- If TikTok's user demographics overlap with your target audience, you can be sure your brand's marketing campaign will produce the correct results.
- Remember that each marketing campaign's ad strategy has to be unique, and you can do that through ad testing.
Cons of having a TikTok Ad Strategy
There’s none. Running a seamless ad and lacking strategy is a significant con in itself. How about checking out different TikTok ads so you can figure out the best one to work your ad strategy? Let’s hop on the ad guide.
5 types of TikTok Ads & their performance keynotes.
An effective ad strategy is all objectivity meets creativity; the successful one is about connecting to the target audience rightly. So yes, it is about something other than any video or motion graphic promising a good ROI. TikTok makes it easier for advertisers. There are several TikTok ads type to be used in campaign creation. Each of them serves the campaign objective with its unique purpose. Let’s hop on it.
Top View Ads
Courtesy: TikTok
- Speaking of effectiveness, brands that sell consumer packaged goods have seen a 67% increase in sales when using TopView compared to other types.
- 71% of users say TopView grabs their attention, ensuring lead access to user attention - showcase your brand on TikTok's most premium real estate.
- #1 TopView's rank in the engagement index. It is via auto-play and sounds up to 60 seconds of long-form video and full-screen.
- 67% higher sales effectiveness for the CPG industry than the whole of TikTok paid to advertise due to distraction-free viewing that grabs 100% of user attention.
In-feed Ads
Courtesy: TikTok
Make advertisements more enjoyable and instantly connect with the next generation of consumers. It’s time to hit your brand more personalized and effective. Express your brand story and enhance the individual interactive experience with TikTok In-feed Ads. You must have seen a sudden ad, just like other TikTok videos, comes up while scrolling through For You Page. Well, that’s called in-feed ads.
In-feed Ads articulate your brand’s story like a creator by embedding a video ad that plays within a user’s feed through an up to 60-second high-quality video.
- TikTok's in-feed ads are more memorable than TV ads by up to 23%.
- The globally leading beauty brand, Maybelline, opted for In-feed Ads to expand its target audience. The results are awe-inspiring over 48,000 likes, 2,907 comments, and 709 shares within 24 hours.
- It brings awareness campaign success by 80% and brand favorability increased by 47%.
- Ads are embraced like native content, unlike disruption. 83% of users say that ads on TikTok are enjoyable.
Branded Effects
Courtesy: TikTok
Don’t you love experiencing something created for yourself only? Let your target audience feel the same way with TikTok Brand Effects.
Be it just another idea, tool, or hashtag challenge, transforming users into ambassadors and empowering them to share the experience is an advertising magic potion in 2022.
Tailor-made sharable stickers, effects, filters, and much more are there to unleash the creative potential and increase the watch time – that too in an enjoyable way. Inclusivity is what the world celebrates now. It pulls users together worldwide with visual languages that can span time, culture, and place—this promises an exciting fanbase through high-quality content creation.
- Business owners can persuade TikTok influencers or the average users to use it while filming their video content.
- So these effects can be used along with UGC or integrated into a branded hashtag challenge.
- The high engagement resulted due to audience participation.
Branded Hashtag Challenge
Courtesy: TikTok
- Branded hashtag videos have an average engagement rate of 17.5%.
- Over 50% of this type of ad has more than $5 ROAS for the consumer packaged goods industry.
- More than 185k of user-generated content was created by 75k+ creators with above 180 million views.
- #MBStarChallenge campaign has increased Mercedes Benz's favorability by 18.2%, and brand preference went up by 15.7%.
Spark Ads
Courtesy: TikTok
Boost different types of videos to maximize their impact — your own, creator-made, or ones that mention your brand.
The last, but certainly not the least, type of ad I’ll discuss is the spark ad. Spark ads allow your brand to boost organic content from your account or other users.
TikTok research shows Spark Ads have a 24% higher completion rate and 142% higher engagement rate than standard In-Feed ads. It’s a straightforward collaborative approach where you can reach out to creators and get their permission to use the relevant content as a Spark Ad. Hence instead of posting it on your page, you boost or run spark ads directly from the creator’s page.
- Spark Ads have a 134% higher completion rate.
- 157% higher 6-second view-through rate than standard In-Feed Ads.
- Spark Ads' new profile landing page UI also delivers a 69% higher conversion rate and 37% lower CPA than ever before.
- Costa worked with Spark Ads in partnership with creators, resulting in a 159% follower increase and above millions of impressions on TikTok.
Step 1: Choose your objective
Courtesy: TikTok
Awareness
- Reach: Show your ad to the maximum number of people (in beta).
Consideration
- Traffic: Drive traffic to a specific URL.
- App Installs: Drive traffic to download your app.
- Video Views: Maximize video ad plays (in beta).
- Lead Generation: Use a pre-populated Instant Form to collect leads.
- Conversions: Drive specific actions on your site, like a purchase or subscription.
- Catalog Sales: Dynamic ads based on your product catalog (in beta and only available to those with a managed ad account in supported regions).
Step 2: Set campaign name and budget
Courtesy: TikTok
Step 3: Title your ad group and select placements
Courtesy: TikTok
Up to 999 ad groups can be made for each campaign. Each ad group name has a limit of up to 512 characters.
You can opt for different placements for each ad group with regional limitations, i.e., placement availability varies by location.
TikTok placement:
In-feed ads in the For You feed.
News Feed App placement: Ads within TikTok’s other apps, BuzzVideo, TopBuzz, NewsRepublic, and more.
Pangle placement: The TikTok audience network.
Also, the automatic placement allows TikTok to optimize ad delivery automatically.
Step 4: Select whether to use Automated Creative Optimization
You will only upload your creative once you get to creating personal ads. You can let TikTok automatically generate your media combinations, including videos, images, and ad text. The ad system will then only display the high-performing ones.
TikTok recommends that fresh advertisers turn on this setting.
Step 5: Target the right audience
Courtesy: TikTok
- Gender
- Age
- Location
- Language
- Interests
- Behaviors
- Device details
Step 6: Manage your ad group budget and timelines
Step 7: Devise your bidding strategy and optimization
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Bid Cap & Cost Cap.
Standard vs. Accelerated Delivery Type:
Step: 8 Create your ad(s)
Courtesy: TikTok
How much do TikTok ads cost?
Minimum budget
Campaign budget optimization
- Daily budget: $50
- Lifetime budget: $50
Ad budget optimization
- Daily budget: $50
- Lifetime budget: Calculated as daily budget multiplied by the number of days scheduled
In fact,
- Set your initial campaign level budget at No Limit and the daily ad group budget to at least 20x your target CPA, if opting for a Bid Cap or Cost Cap bidding strategy
- Start with a budget of at least $100 or 20x your target (CPA), whichever is higher, when working on For App Event Optimization.
- For Conversions campaigns using the Lowest Cost bid strategy, set an initial budget of at least $100 or 20x your target (CPA), whichever is higher.
To sum it up,
TikTok has become the favorite media for Gen Z and befriended businesses and brands by acquiring a significant chunk of power purchasers and independent decision-makers. TikTok advertising has proven itself substantial for all essential business segments. Be it a product-based business, service-based business, or brand positioning – TikTok advertising has served the purpose rightly for each segment.
Let me know what other advertising aspects you’re looking forward to. Stay tuned for my upcoming case studies for TikTok Ads that have thrived ROI of more than 50%.
