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Tiktok Ads Course 2024 | Full Step by Step Guide for Beginners | Session 4

Introduction

Salaam and Introduction

Welcome everyone, and thank you for joining us this Sunday. I'm thrilled that you took the time out of your weekend to attend this session. Today, we’re focusing on a practical understanding of important concepts, something we began touching on in yesterday's class.

Concept Clarity and Feedback

I'm very pleased with the positive feedback we've received. Many of you have expressed that the concepts are becoming clearer, especially with respect to the new science of AI and how TikTok ads operate. Recently, I attended a high-end boot camp with a senior trainer from the UK who specialized in TikTok ads. This training provided invaluable insights into why some videos gain more views than others and the technicalities that affect performance. As promised, I am here to share 100% of what I’ve learned, ensuring I leave nothing out.

Session Objectives

Today's session aims to delve into some basic but critical terminology that is essential for running successful TikTok ads. We'll cover important metrics such as CPA (Cost Per Acquisition), CTR (Click-Through Rate), impressions, and video views, among others.

Moreover, I understand that absorbing all this information can be overwhelming, so I will try to keep the session concise, ideally wrapping up in about an hour.

Practical Demonstration

I have taken a screenshot of my own account to give you a practical demonstration.

Summary of Key Metrics

  1. Total Cost: This is the amount spent on the campaign so far.
  2. Impressions: Number of times your video appeared on users' screens.
  3. Clicks: Number of clicks to the product URL from your ad.
  4. Product Page Views: Number of times users landed on your product page.
  5. Checkout Initiated: Number of times users added your product to their cart.
  6. Purchases: Number of completed purchases.
  7. Gross Revenue: Total sales revenue generated from the campaign.
  8. Return on Ad Spend (ROAS): Measures the revenue earned for every dollar spent on the campaign.
  9. Average Order Value (AOV): The average amount spent per order.

Deep Dive into Metrics

Let's break down these metrics further using a practical example from my account.

Total Cost

This is self-explanatory. For instance, if the total cost is £3,886, this is the amount spent so far.

Impressions

The impression data reflects how many times your ad was shown on users' screens.

Clicks to Destination

This metric shows how many users clicked on the link provided in the ad. Higher clicks often indicate a more engaging video.

Product Page Views

This tells us how many users ended up viewing the product page.

Checkout Initiated

This step is crucial as it shows the number of users who added the product to their cart.

Purchases and Gross Revenue

Ultimately, this is what matters most—how many users completed the purchase and how much revenue was generated.

Cost Per Acquisition (CPA)

Different campaigns yield different CPA metrics. Optimizing this is key for a successful ad campaign.

Optimization Insights

From my experience, it is vital to give TikTok’s AI enough data to optimize effectively. For instance, in testing phases, the CPA may start high (e.g., £5-6) but can reduce significantly over time with optimized campaigns reaching CPA as low as £2.62.

Follow-Up and Practical Tips

We will wind up today's class with some actionable takeaways for running TikTok ads.

Keyword

  • TikTok Ads Course
  • CPA (Cost Per Acquisition)
  • CTR (Click-Through Rate)
  • Impressions
  • Video Views
  • Checkout Initiated
  • Gross Revenue
  • Return on Ad Spend (ROAS)
  • Average Order Value (AOV)
  • Optimization

FAQ

Q: What are impressions? A: Impressions reflect the number of times your video appeared on users' screens.

Q: What is CPA? A: Cost Per Acquisition, it indicates how much you spend to acquire a customer through the ad.

Q: What is a good ROAS? A: ROAS measures the revenue earned for every dollar spent on the campaign. A higher ROAS is better, with industry averages often around 2.87.

Q: What does checkout initiated mean? A: This tracks the number of users who added the product to their cart but have not yet completed the purchase.

Q: How can I optimize my TikTok ads? A: Optimization comes with time and data. Monitor metrics like impressions, clicks, and CPA to make necessary adjustments to your ad strategy.

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