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$0 to $270,000 with Shopify & TikTok ads | Ecommerce business

Introduction

Scaling a Shopify store from $ 0 to $ 270,000 is no small feat, and doing it with TikTok Ads adds another layer of strategy and know-how. This article will walk you through our successful strategy discussed at the Frankford conference, touching on various advertising techniques, optimal creative testing, and account-specific configurations.

Know Your Margins

Before diving into any kind of advertising and spending a single dollar on ads, understanding your margins is crucial. It's imperative to know your breaking point for each product. This awareness helps in determining how much you can afford to spend on advertising without going into the red.

CBO vs. AO Performance

Different ad accounts perform well under different configurations. Some accounts thrive on Campaign Budget Optimization (CBO) while others perform better with Ad Set Optimization (AO).

Campaign Budget Optimization (CBO)

In CBO, you set a budget at the campaign level and Facebook or TikTok distributes that budget across ad sets to get the best results.

Ad Set Optimization (AO)

In AO, you set individual budgets for each ad set. This can be more manual but offers precise control over where your money flows.

Testing Creatives

Regardless of whether it’s CBO or AO, testing different creatives is essential. Here's how we approached it:

  1. Initial Testing:
    • Test several different creatives in one single ad group.
    • Monitor which creative best catches the algorithm’s attention.
  2. Scaling Successful Creatives:
    • Once you identify which creative performs best, use that as the cornerstone for your ads.
    • Scale with that specific video or creative to optimize your reach and engagement.

By testing various creatives and efficiently scaling the successful ones, we managed to optimize our ad spend and maximize our returns quickly. This approach allows for fast testing and enables making data-driven decisions on what to scale.

Keywords

  • Shopify
  • TikTok Ads
  • Campaign Budget Optimization (CBO)
  • Ad Set Optimization (AO)
  • Creative Testing
  • Margin Understanding
  • Algorithm Optimization

FAQ

What’s the first step before running ads?

Before running any kind of advertising, you need to know your margins and understand the breaking point on your product.

What is the difference between CBO and AO?

Campaign Budget Optimization (CBO) sets a budget at the campaign level, distributing it across ad sets, while Ad Set Optimization (AO) sets individual budgets for each ad set offering more control but requiring more manual management.

What's the approach to testing creatives?

Initially, test several different creatives in a single ad group. Identify which creative catches the algorithm's attention the best and then scale the successful one.

How do you scale a successful creative?

Once a winning creative is identified, use it as your primary ad and allocate more budget to it. This guarantees optimized reach and engagement.

Is it necessary to test on both Facebook and TikTok?

Yes, usually we are testing on both platforms to determine which creative catches the algorithm best on each platform, ensuring optimal performance across the board.

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