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My Low Budget TikTok Ads Dropshipping Guide (Easy)

Introduction

Today, I'll be sharing my $ 100K per month TikTok ad strategy. This is the same method I've used to scale all my dropshipping stores. It's a low-budget, beginner-friendly method, so make sure you follow along each step of the way and try it out for yourself.

If you watched my last video, you would know we were selling this original turbo grip product. In that video, we launched a $ 1,000 CBO on TikTok ads, bringing back in $ 25,100 in revenue. After all of the expenses on the store, we walked away with about $ 800 in net profit. Today, we are going back to square one, and I'll share the exact testing strategy we used to build that campaign.

Setting Up Your Campaign

Step 1: Login and Setup

  1. Log into your Shopify account and navigate to the TikTok app.
  2. Connect your ad account and install the pixel.
  3. Go to ads.tiktok.com and click on "Create".

Step 2: Create Your Campaign

  1. Choose Custom Mode over Simplified Mode.
  2. Select Website Conversions.
  3. Name your campaign, e.g., "Hand Grippers Test CBO".
  4. Toggle on Campaign Budget Optimization (CBO) and set the budget to $ 50 USD per day.
  5. Hit "Continue".

Ad Group Settings

  1. Pixel: Select the pixel on your store.
  2. Optimization Event: Complete Payment.
  3. Placements: Only run ads on TikTok.
  4. Enable comments for increased engagement.
  5. Turn on Automated Creative Optimization (ACO).
  6. Target USA or USA + Canada for broader reach.

Note: For gender targeting, select all genders even for gender-specific products since females often purchase for their male counterparts. Always target ages 18+.

Language: Leave as "All" since you are targeting the USA.

Uploading Ads and Texts

  1. Setup identity with a profile picture and logo.
  2. Upload five videos.
  3. Write five different text lines.
  4. Set the website URL and Call To Action (CTA) as "Shop Now".
  5. Confirm link previews.

Duplicating Ad Groups

  1. Create and copy the current ad group four times, making a total of five.
  2. Schedule all ad groups to start at midnight the next day.
  3. Click "Next" and verify settings and uploads.
  4. Submit and finalize the campaign settings.

Why Multiple Ad Groups and CBO

Having five duplicates targets different buyer segments. Even though they are the same, each ad group reaches a different audience pocket on TikTok.

CBO Benefits:

  • Allocates budget among ad groups for maximum sales.
  • Focuses spending on the ad groups showing the best performance.

Analyzing and Scaling

  1. Enable custom columns to analyze data.
  2. Add metrics such as:
    • Complete Payment Total
    • Complete Payment Cost
    • Complete Payment Total Value
    • Complete Payment ROAS

Key Metrics to Know:

  • Break Even Point: Selling Price - Cost of Goods
  • Break Even ROAS: Selling Price / Break Even Point

Example Calculation:

  • Selling Price + Shipping: $ 24.90
  • Cost of Goods: $ 7.50
  • Break Even Point: $ 17.40
  • Break Even ROAS: 1.43

Anything above 1.43 ROAS is profitable.

Analyzing Results: Look for metrics showing break-even ROAS and above to determine profitable ad groups. Scale up on the successful ones and down or stop non-performing ones.

Conclusion

With these steps, it's easy to launch, analyze, and scale your TikTok ads effectively. For more insights and strategies, join our Discord, the Ecom Mafia, a leading TikTok dropshipping server.

Keywords

  • TikTok Ads Strategy
  • Dropshipping
  • Campaign Budget Optimization (CBO)
  • Automated Creative Optimization (ACO)
  • Break Even Point
  • ROAS
  • Ad Group Settings

FAQ

1. What is the benefit of enabling Campaign Budget Optimization (CBO)? CBO dynamically allocates your budget among ad groups based on performance, maximizing your overall sales.

2. Why should I enable Automated Creative Optimization (ACO)? ACO allows multiple creatives and texts to be tested within an ad group, optimizing them for better performance.

3. How do I determine if my ad is profitable? Calculate your Break Even ROAS. If your actual ROAS is above this number, your ad is profitable.

4. Why target all genders even for gender-specific products? Females often purchase products for males and vice versa. Targeting all genders widens your audience and potential sales.

5. How frequently should I analyze and adjust my campaign? Regular monitoring is crucial. Analyze daily to make necessary adjustments based on performance data.

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