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My NEW Scaling Strategy For TikTok Ads ($1,000/day)

My NEW Scaling Strategy For TikTok Ads ($ 1,000/day)

Introduction

In this updated dropshipping scaling guide, we'll explore how to scale your dropshipping store to generate $ 1,000+ per day using TikTok ads. We'll begin by discussing the product being sold, the store setup, and the ad creatives. If you're eager to dive straight into the ad setup, I have included a timestamp for you to skip ahead.

Product and Store Setup

Our product of choice is the "Protect Our Ocean" hoodie, marketed at $ 19.95, with an additional $ 17 for shipping at checkout. The store has a cohesive light blue theme to give it a branded look and feel. This strategy is effective for several reasons:

  1. Cause Marketing: A portion of the profits is donated to help keep our oceans clean, which is a strong selling point.
  2. Simple Design: The website features benefit icons, a high-quality GIF showcasing the product, and customer testimonials to help visualize the hoodie in real life.

Ad Creatives

We're running three distinct TikTok ads for this hoodie:

  • Middle Ad: This ad has proven to be the most effective, with 2 purchases for every $ 11 spent. It has a cost per purchase below our break-even point of $ 21, making it profitable.
  • Top Ad: Turned off due to a high cost per click.
  • Third Ad: Also turned off after nearing our break-even point without generating any sales.

The ad creatives were sourced from Minia during product research, featuring a helpful download button to save videos for testing.

Campaign Setup

Step 1: Create the Campaign

  1. Navigate to the "Create Campaign" section and select "Conversion," followed by "Website Conversions."
  2. Name your campaign appropriately (e.g., "Protect Our Oceans Bids") and ensure "Campaign Budget Optimization" is turned off.
  3. Click "Continue."

Step 2: Set Up the Ad Group

  1. Name your first ad group based on your break-even point (e.g., "Bid $ 21").
  2. Select your pixel and set the event to "Complete Payment."
  3. Choose manual placements and target only TikTok, disabling comments, downloading, and sharing.
  4. For location, select the USA, choose both genders, and set the age to 18+.
  5. Set a daily budget of $ 200 but don't worry—it will only spend a fraction of this.
  6. Schedule the ad to run from 8 a.m. to midnight the following day.
  7. Use a Target CPA equal to your break-even point ($ 21 in our case).

Step 3: Add Creatives

  1. Choose "Smart Creative Ads" if scaling.
  2. Upload your proven ad creatives and finalize the text and URLs.

Step 4: Duplicate Ad Groups

  1. Duplicate your ad group nine times to create 10 in total, with bid ranges from $ 17 to $ 26.
  2. Update the bids and names accordingly.

Performance Review

After letting the ads run for a full day, our store generated $ 1,838.04 in revenue with 53 orders. Here’s what we did:

  1. Turned Off Poor Performers: Ad groups with high cost-per-click or high cost-per-complete-payment were turned off.
  2. Kept Profitable Bids: Five ad groups with cost-per-purchase below our break-even point remained active.

Profit Breakdown

With $ 1,838 in revenue, after accounting for ad spend, order fulfillment, and transaction fees, we made a net profit of $ 546.198, resulting in a 29% profit margin.

Conclusion

Running effective TikTok ads involves testing and optimizing ad creatives, correctly setting up campaigns, and closely monitoring performance. If you want similar results, consider joining my one-on-one mentorship program where I’ll guide you step by step.

Keywords

  • TikTok Ads
  • Dropshipping
  • Scaling Strategy
  • Break-even Point
  • Ad Creatives
  • Conversion Campaign
  • Profit Margins

FAQ

Q1: What is the main product in this scaling strategy? A: The primary product is the "Protect Our Ocean" hoodie, which sells for $ 19.95 with an additional $ 17 for shipping.

Q2: Why is cause marketing used in this strategy? A: Cause marketing is utilized to appeal to customers’ altruistic values, with a portion of profits donated to environmental protection efforts.

Q3: How should I set my daily budget for TikTok ads? A: Set the daily budget to $ 200, but remember that TikTok will only spend a fraction of this amount based on your bids.

Q4: What criteria do you use to turn off unprofitable ads? A: Ads are turned off if they have a high cost per click or cost per complete payment that exceeds the break-even point.

Q5: How do I determine my break-even point? A: Subtract the total cost to ship one hoodie from the total checkout price, including product price and shipping fees. For this strategy, it was $ 21.

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