Tutorial | How To Set A Budget For Your TikTok Ads

Introduction

In today’s tutorial, we're going to explore how to optimize your marketing budget using TikTok Ads Manager. We'll learn how to control your spending while maximizing your return on investment.

Understanding Budgets and Bidding

A budget refers to the total amount of money you are willing to spend on running ads, while bidding helps you control the cost per result at the ad group level. When you apply a budget to an ad group, it encompasses the entire ad group as a whole rather than determining costs for individual ads. With TikTok, you can set budgets at both the campaign and ad group levels.

For e-commerce businesses featuring diverse products, you can create different ad groups for each product. This approach enables you to monitor and allocate budgets easily for each specific item. For example, if you are promoting a limited edition clothing line, you can set a budget at the campaign level to ensure your spending stays within the promotional limits you specify.

Types of Budgets

There are two main types of budgets you can set: lifetime budgets and daily budgets.

Lifetime Budgets: This is the maximum amount you are willing to spend on a campaign or ad group over a defined period. The budget is distributed throughout the entire period but the daily spending may vary.
Daily Budgets: This is the maximum amount you are willing to spend per day for a campaign or ad group. As with lifetime budgets, actual spending can be less than what is set, but it will never exceed the maximum.

Minimum Budget Requirements

To ensure continuous delivery of your ads:

The minimum budget for campaigns (both daily and total) must exceed $ 50.
The minimum daily budget for ad groups must exceed $ 20.
For lifetime budgets, the calculation is based on the minimum daily budget multiplied by the number of scheduled days.

Delivery Types

The way you choose to deliver your ads affects both their exposure and the spending of your budget. You can select between standard and accelerated delivery.

Standard Delivery: This method evenly spreads your budget across the ad delivery period, helping to distribute spending over time and avoiding unspent balances.
Accelerated Delivery: This option aims to get as many results as quickly as possible. If you expect higher engagement during specific hours, you can schedule your ads for those times and select accelerated delivery accordingly.

Budget Optimization Tips

To optimize your campaign budget effectively:

Keep your budget open and consider using a daily budget for flexibility at the ad group level.
When selecting the standard bid as your strategy, your initial budget should ideally be at least 20 times your targeted CPA.
Reference the daily average ad spend of previous ad groups within the same account to inform your budget setting.

Tips for Conversion Campaigns

When running conversion campaigns:

Set your optimization goal to conversion.
Avoid making targeting, bid, or budget changes until your ad group has passed the learning phase, which usually requires around 50 conversions.
Once you pass the learning phase, it's best to keep your budget within 30% of the previous amount and your bid within 20% of the prior amount, allowing your campaign enough time to adjust.
Allow at least two days between any changes to targeting, bids, or budgets.

Conclusion

By understanding how to set and control budgets in TikTok Ads Manager, you can maximize the effectiveness of your advertising spend. This comprehensive guide should empower you to start creating budgets that work for your campaigns. Stay tuned for more insightful tutorials, and happy TikToking!

Keywords

TikTok Ads Manager
Budgets
Bidding
Lifetime budgets
Daily budgets
Standard delivery
Accelerated delivery
Conversion campaigns
Ad group

FAQ

1. What is the difference between lifetime budgets and daily budgets?

Lifetime budgets refer to the total amount you're willing to spend over a defined period, while daily budgets set a spending maximum per day for your ad campaigns or ad groups.

2. What is the minimum budget required for TikTok ad campaigns?

The minimum budget for campaigns must exceed $ 50, while for ad groups, the daily budget must exceed $ 20.

3. How can I optimize my TikTok ad budget?

To optimize your budget, keep it open, use a daily budget, and reference previous ad spend for setting new budgets.

4. What should I do during the learning phase of my ad groups?

Avoid making changes to targeting, bids, or budgets until your ad has achieved around 50 conversions to ensure better performance.