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[EASY] My $8k/Day TikTok Ads Strategy In 2021 Q4! - Shopify Dropshipping

Introduction

Hey everyone, it's your boy Soldier back with another valuable video on TikTok ad strategies. Today, I'm excited to share one of the best ad strategies I've employed on TikTok, which has allowed me to achieve incredible results, including generating $ 8,800 in a single day. Before we dive in, don't forget to like this video, subscribe to the channel, and drop any questions you have in the comments below. Let’s get started!

Introduction to TikTok Ads

Running TikTok ads can be a game-changer for e-commerce businesses, but it can also be quite challenging. Many people face issues like account suspensions, ad rejections, or falling performance. After several trials, I've figured out how to navigate these challenges and maximize my daily spend efficiently.

This video will cover some insights into TikTok’s algorithm, effective strategies you won't typically hear elsewhere, and how to scale your ads effectively. I’ll give you a glimpse into my ad account, detailing my performance, ad spend, and return on ad spend (ROAS).

Breakdown of Sales and Costs

To give you real-time data, I want to highlight my ad spend for today. As of now, I’ve spent about $ 2,000 on ads, resulting in 355 orders that generated $ 8,800 in sales. Here’s a breakdown of costs:

  • Ad Spend: $ 2,000
  • Total Orders: 355
  • Average Cost of Goods: $ 10 per order
  • Total Cost of Goods Sold: $ 3,550
  • Miscellaneous Fees: Estimated $ 50
  • Processing Fees: Estimated $ 200

So, if you do the math:

  1. Total Sales: $ 8,800
  2. Total Costs: $ 3,800 (including COGS and fees)
  3. Estimated Profit: $ 5,000 - $ 3,000 profit per day based on $ 2,000 in ad spend.

This calculation shows you don’t have to achieve astronomical ROAS to succeed. At lower scales, you may see higher returns; however, consistency is key.

Understanding Average Order Value and Return on Spend

One crucial aspect of running advertisements is understanding your average order value (AOV) and ensuring your cost per action (CPA) aligns with your profitability. By knowing your AOV and COGS, it's easier to manage your ad spend effectively.

For instance, if your average order value is $ 25 and your cost of goods is $ 10, keeping your CPA at or below $ 15 means you break even, while keeping it lower means profit. Currently, I’m averaging a CPA of $ 4, but tracking can be complex due to third-party influences.

TikTok Advertising Framework

Let’s shift to how I set up my ad campaigns. To optimize your ad spend:

  1. Create a New Pixel: Use a brand new pixel daily. This method allows TikTok to gather data more effectively, optimizing your ad costs.

  2. Ad Campaign Setup:

    • Use a clear and relevant display name for your ads.
    • Avoid complex targeting and set your budget initially to double your AOV (e.g., for a $ 25 product, set at $ 50).
    • Schedule your ads to start at midnight for fresh placements.
    • Select "Lowest Cost" for bidding and choose the right placements.

  3. Scaling and Replicating Campaigns:

    • After setting up one campaign with various ad groups, duplicate them to explore multiple targeting options.
    • Increase budgets periodically throughout the day, especially around peak usage times (e.g., evening hours).

  4. Updating Creatives: Change your creatives each day slightly to keep them fresh in TikTok’s eyes, possibly by trimming clips or altering captions to ensure the algorithm treats them as new content.

Conclusion

I hope you find this article insightful and actionable for your TikTok ad strategies! Remember, ongoing experimentation and understanding your business metrics is vital for success in e-commerce. If you want to delve deeper into TikTok ads or need personalized consultation, feel free to reach out.

Be sure to subscribe for more valuable content and tips related to dropshipping and Shopify.

Keywords

  • TikTok Ads
  • E-commerce
  • Profit Margins
  • Average Order Value
  • Cost per Action
  • Ad Spend
  • Conversion Rate
  • Daily Budget

FAQ

1. How do I handle ad rejections on TikTok?

  • Ensure your ads comply with TikTok’s advertising policies and revise your creative accordingly.

2. What is a good average order value for TikTok ads?

  • Aim for an AOV that covers your COGS and ad expenses, typically around $ 25-50.

3. How often should I update my ad creatives?

  • It’s beneficial to refresh your ad creatives daily to keep them relevant and optimize interaction.

4. How does the TikTok pixel work for ad campaigns?

  • A new pixel gathers data to optimize reach and ad spend effectively, enhancing performance in the learning phase.

5. What is the importance of understanding CPA in ad campaigns?

  • Knowing your CPA helps manage your budget, ensuring you spend aligned with your profitability goals.

Feel free to leave any more questions in the comments section!

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