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How to scale TikTok Ads and regain lost traffic ⎜ Reason Agency ⎜ EP 211

Introduction

In a world increasingly driven by digital engagement, brands are being pushed to explore innovative platforms to capture audience attention and drive sales. One platform that has risen in prominence is TikTok, which presents unique opportunities for brands looking to scale their advertising efforts and regain lost traffic. In this episode of Crossover Commerce, host Ryan Kramer speaks with Will Perry, CEO and CMO of Reason Agency, to discuss actionable strategies for leveraging TikTok Ads effectively.

Understanding TikTok's Advantage

The landscape of digital marketing has changed, especially with the impacts of Facebook's updates and data tracking issues due to iOS 14.5. Will emphasizes that TikTok offers brands a significant advantage because:

  1. Cost Efficiency: TikTok ads tend to have substantially lower cost per thousand impressions (CPMs) compared to Facebook. Brands are reporting costs as low as $ 3-$ 5 per CPM on TikTok versus $ 30-$ 50 on Facebook, enabling brands to reach their target audiences at a fraction of the cost.

  2. Lack of Competition: Many brands are still hesitant to jump onto TikTok, leading to a less saturated advertising space. This opens the door for brands to be more visible to their target audiences without facing stiff competition.

  3. Engagement Rates: TikTok users engage highly with content on the platform, spending significant amounts of time watching videos. Brands that create native and engaging content are more likely to capture user attention.

Mastering TikTok Advertising

To capitalize on these advantages and successfully manage TikTok advertising campaigns, Will recommends the following:

Creating Engaging Content

  • Quality video content is crucial. Will encourages brands to focus on producing videos that mimic user-generated content instead of traditional ads. Use engaging hooks in the first 3 to 5 seconds to capture attention immediately.

Utilizing the TikTok Creator Marketplace

  • Brands can collaborate with influencers by leveraging the TikTok Creator Marketplace. This allows businesses to source authentic content created by influencers who can connect with audiences effectively.

Testing and Scaling Your Ads

  • Brands should create multiple variations of their ads to ascertain what resonates most with their audience. According to Will, brands should aim for at least six to twelve videos to test different approaches, adjusting text overlays and hooks to evaluate effective combinations.

Broaden Your Target Audience

  • Run broad targeting campaigns without narrow audience restrictions to allow TikTok's algorithm to find the best user matches for your products. Initial tests can include demographics as broad as 18-65 without specific targeting constraints.

The Bigger Picture of Ad Spend

The overarching theme of the episode is to view ad spending through a lens of long-term growth rather than immediate returns. Brands may be tempted to dictate their spending based on daily sales metrics; however, successful brands focus on long-term customer lifetime value (LTV).

Conclusion

Scaling TikTok ads can serve as a valuable strategy to regain lost traffic and recover from past declines due to Facebook's evolving platform. By focusing on content that transcends traditional advertising, utilizing influencer power, and approaching testing strategically, brands can maximize their advertising efforts on TikTok. To help brands better understand how to make the most of TikTok ads, Will offers a custom blueprint through the website ttadsblueprint.com.

Keywords

TikTok Ads, Crossover Commerce, Reason Agency, Cost Efficiency, Engagement Rates, Creator Marketplace, Long-Term Growth, Advertising Strategy, Content Creation, Digital Marketing

FAQ

1. Why should brands consider TikTok for advertising?
Brands should explore TikTok due to its low CPMs, engagement rates, and the current lack of competition, making it an opportune time to leverage the platform.

2. How can brands create engaging TikTok ads?
Focusing on user-generated content and utilizing captivating hooks within the first few seconds of the video can create higher engagement with the audience.

3. What is the TikTok Creator Marketplace?
The TikTok Creator Marketplace is a platform where brands can collaborate with influencers to create content that resonates with audiences and drives engagement.

4. How many variations of ads should brands test?
Brands should ideally test six to twelve different video variations to determine which combinations resonate best with their target audience.

5. How can brands forecast their advertising ROI?
Brands need to analyze key metrics such as CPM, CPC, conversion rates, and average order value to create realistic expectations for advertising performance.

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