how i scale to $100k+/m using tiktok bid ladders (2024 dropshipping)

Introduction

In this article, I will outline an effective scaling strategy specifically designed for TikTok ads. This strategy has been a game-changer for my e-commerce brand, allowing me to profitably spend over $ 100,000 while generating more than 5,400 purchases at a cost per acquisition (CPA) of around $ 20.

Requirements

Before diving into the scaling strategy, ensure you have:

At least one or two winning creatives.
Engaging ad copy that resonates with your target audience.

Setting Up Your Campaign

Create a New Campaign: Start by duplicating an existing campaign for reference. Navigate to the campaign level and click Create.
Choose Campaign Type: Select Website Conversions to optimize for sales. Rename the campaign (e.g., "Top of Funnel Bid Ladder September").
Ad Group Name: Create an ad group; I recommend naming it by targeting specifics, such as "Top Ads X Broad" and setting the location to the USA.
Optimization Event: Set the optimization event to Complete Payment and exclude other non-relevant events.
Targeting: Narrow your audience down to ages 18 to 44. Keep other settings as they are.
Optimization Goal: Select Conversion and set your target CPA. For this example, I start at $ 30.
Delivery Type: Choose Accelerated to maximize budget spending quickly.

Ad Set Setup

Use Smart Creative: Enable the Smart Creative option and upload your winning creatives. You can upload between one to three ads.
Ad Copy: Insert compelling ad copy (e.g., “This personalized pet face necklace from P Ring is adorable.") and link to your product page.
Publish Campaign: Click on the Publish All button to make your campaign live.

Implementing the Bid Ladder

The bid ladder is crucial to testing various CPA ranges to find the optimal bid. After publishing your initial creative:

Duplicate Ad Set: Copy your ad set multiple times (around 10 times recommended).
Editing Bids: Select all duplicated ad sets and edit their bids to create a ladder effect. Start from your initial bid (e.g., $ 30) and create a range of bids downwards (e.g., $ 29.98, $ 28.33, $ 27.75, etc.) until reaching a low of around $ 14.55.
Data Gathering: Allow these ads to run for approximately 48 hours. During this time, the TikTok algorithm will start spending budget and collecting data.

Analyzing Performance

After 48 hours, you will see which bids are spending effectively and generating conversions. The lower bids may not spend at all, while some mid-range bids (like $ 21) may yield excellent results.

Adjust Budgets: Ramp up the budgets on effective ads while pausing the underperforming ones.
Scale Profitably: By continuously analyzing performance and adjusting bids, you can scale efficiently to reach sustained profitability.

Conclusion

Using this bid ladder strategy has significantly contributed to my monthly revenue, allowing me to scale effectively and profitably on TikTok. If you found this article useful or have any questions, feel free to leave a comment!

Keywords

TikTok ads
Bid ladder
Cost per acquisition
E-commerce
Scaling strategy
Creatives
Ad copy
Audience targeting

FAQ

1. What is a bid ladder in TikTok ads?
A bid ladder is a strategy where you set multiple ad sets with different target cost-per-acquisition bids to identify which is the most efficient for generating conversions.

2. How long should I run my bid ladder ads?
It is advisable to run the ads for about 48 hours to gather sufficient data for performance analysis.

3. Can I use this strategy with different ad formats?
Yes, you can implement this strategy with various ad formats as long as you have winning creatives and ad copy.

4. What targeting options can I use with this strategy?
This strategy can be effectively used with broad targeting, lookalike audiences, interest stacks, and more.

5. How do I know which ads to scale?
Monitor the performance of the various bids after 48 hours; increase budgets on the ads generating the most conversions for the lowest CPA, and pause those underperforming.