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This TikTok Ads Dropshipping Strategy Is A Cheatcode

Introduction

Introduction

I've been scaling e-commerce brands since most of you were in diapers, taking brands from zero to 50 grand a month. With my two bare hands and the exact testing, scaling, and creative strategies I'm about to reveal, you will see how you can achieve similar results. So, let's sit down, focus, and learn how to properly function using these effective testing strategies.

The Importance of Testing Campaigns

Conversion Campaigns: To CBO or Not to CBO

When setting up testing campaigns, it doesn’t matter whether you use CBO (Campaign Budget Optimization) on or off; both can work. The goal of a testing campaign is to find an ad that works. Once you find that winning ad, you can scale it.

Structure for Testing

For me, I leave CBO turned off to give each creative a fair chance. Let’s use an example: If I’m selling a hula hoop for $ 50 and it costs me $ 25, then my break-even price is $ 25. I monitor my campaigns and ensure my ad group spends up to that break-even point. Pixels should be connected to get accurate data.

Initial Setup

  • Naming the Campaign: E.g., Hula hoop with a break-even price of $ 25.
  • Auto Placement: Turn off auto placement to avoid wasting money.
  • User Comments: Turn off to avoid negativity.
  • Targeting: Use auto-targeting and target broad locations like the US, Canada, Australia, and the UK.
  • Daily Budget: Start at $ 20 or $ 25 and schedule for the next day.
  • Day Parting: Leave this alone in the beginning.
  • Smart Creative Ads: Turn this on to test multiple creative assets efficiently.
  • Ad Frameworks: Different frameworks (e.g., How-to ads, Three Reasons Why ads) should be tested.

Analyzing and Optimizing Your Campaign

Important Metrics

  • Break-even CPA: Always monitor whether your cost per acquisition is below your break-even point.
  • Cost per Click (CPC) & CTR: CPC should ideally be below 70 cents, and CTR should be 1.25% or higher.

Conversion Rate and AOV

Conversion rates and average order value (AOV) directly impact your revenue per session. Aim for a revenue per session of $ 1.50 for a healthy website.

Improving Ads

Look at Hook Rate and Hold Rate

  • Hook Rate: Aim for 40-50% on TikTok.
  • Hold Rate: Aim for 10-15%. Adjust messaging and call-to-action (CTA) if required.

Testing Variations

Constantly test new angles, hooks, and CTAs to improve your ads. For example, if How-to ads work best, create more variations in that framework.

Scaling Your Campaigns

Vertical Scaling

Increase the budget of your winning ads every 2-3 days by 30-50%.

Surf Scaling

Double the budget every 2-3 hours on days when the campaign is performing well, and reset to the original budget at the end of the day.

Bid Cap Strategy

Test different bid caps to find the most profitable one. Start with increments of $ 1 (e.g., $ 20, $ 21, $ 22) and identify which works best.

Conclusion

This strategy combines testing, scaling through various methods, and continual ad optimization. If you need personal assistance, book a call using the link to work directly with me.

Keywords

  • Conversion Campaigns
  • CBO (Campaign Budget Optimization)
  • Break-even CPA
  • Cost per Click (CPC)
  • Click-Through Rate (CTR)
  • Hook Rate
  • Hold Rate
  • Vertical Scaling
  • Surf Scaling
  • Bid Cap Strategy

FAQ

Q: What is the main goal of a testing campaign?
A: The main goal is to find an ad that works and can be scaled.

Q: Should I use CBO for my testing campaigns?
A: Both CBO on and off can work, but I prefer to keep CBO off initially to give each ad creative a fair chance.

Q: What should my daily budget be when starting?
A: Start with a daily budget of $ 20 or $ 25.

Q: How do I calculate my break-even price?
A: Break-even price is the selling price minus the cost price of your product.

Q: How do I optimize my ads for better performance?
A: Look at hook rate, hold rate, and CTR. Adjust your hooks, messaging, and call-to-actions accordingly.

Q: What is vertical scaling?
A: Vertical scaling involves increasing the budget of your winning ads every 2-3 days by 30-50%.

Q: What is surf scaling?
A: Surf scaling means doubling the budget every 2-3 hours on days when the campaign performance is favorable.

Q: How do I set an appropriate bid cap?
A: Test different bid caps starting in increments (e.g., $ 20, $ 21) to find the most profitable cap.

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