Social Advertising Best Practices
Best Practices for TikTok Advertising Budgets
Your TikTok advertising budget represents the total funds allocated for running ads, serving as a powerful tool for managing expenses. While bidding is used for controlling the cost-per-result at the ad level, budgeting is used to control the overall costs for campaigns and ad groups.
Types of TikTok Advertising Budgets
Lifetime Budget
The lifetime budget represents the total amount you’re willing to invest in a campaign or ad group throughout the entire duration of the campaign.
It’s important to understand that when you set a lifetime budget at the ad group level, the ad delivery system will attempt to spread your budget evenly across the specified time frame. However, it cannot guarantee an exact even distribution on a day-to-day basis. If you need precise daily spending control, utilize the daily budget option.
Daily Budget
The daily budget sets the maximum spend on a campaign or ad group per day.
Lifetime and daily budgets define maximum spending limits for a campaign or ad group. The actual expenditure during the delivery period can be lower than the specified budget, but it will not exceed it.
When selecting “Daily Budget” for a campaign, you must select “Daily Budget” at the ad group level. If you select “Lifetime Budget” for a campaign, you can select either “Daily Budget” or “Lifetime Budget” at the ad group level.
Minimum Budget
To ensure continuous delivery of ads, TikTok requires a minimum budget amount.
For campaigns, the daily and total budgets must be at least $50.
For ad groups, the daily budget should be at least $20. If you set a lifetime budget, it will be calculated based on the minimum daily budget multiplied by the number of scheduled days.
TikTok Advertising Budget Best Practices
Getting Started
- For campaign budgets, TikTok recommends leaving the budget open.
- For ad group budgets, TikTok suggests using Daily Budget instead of Lifetime Budget.
- When using Bid Cap or Cost Cap as your bidding strategy, the initial budget should be at least 20 times the cost of the desired action on your app.
- When running an App Installs campaign and you want to improve it for specific actions within your app, use App Event Optimization (AEO). When using AEO, start with an initial budget of at least $100. The budget should be large enough to cover at least 20 times the cost of your desired action on your app.
- When running a Conversions campaign with Conversion set as the Optimization Goal and Lowest Cost as the Bid Strategy, your initial budget should be no less than $100 or at least 20 times the cost of the desired action on your app. You can also refer to the daily average ad spend of your past ad groups within the same account as a reference to determine the appropriate budget.
Optimizations
- When running a Conversion campaign with Conversion as the optimization goal, the recommendation is to avoid making any adjustments to targeting, bidding, or budget settings until the campaign has completed the learning phase. For ad groups that use oCPM (Optimized CPM) as the default bidding method for the Conversions and App Installs advertising objectives, reaching a minimum of 50 conversions is the most significant indicator of passing the learning phase.
- After passing the learning phase, we recommend that you keep your budget within50% of the previous budget.
- After passing the learning phase, we recommend that you keep your bid within 20% of the previous bid.
- In order to allow the campaign time to adjust, it is advised to wait a minimum of 2 days before making additional targeting, bidding, or budget changes.
- If you use the Lowest Cost bid strategy and either launch an ad group or modify the daily budget during the day, you may observe a spending adjustment on the remaining hours available for delivery.
