Running ads on TikTok can seem complicated at first. But don't worry! With this simple guide, you'll learn the only 4 numbers that really matter when it comes to TikTok advertising success. We'll explain each one in simple terms so you can start improving your TikTok ad results right away. Let's dive in!
1. CPM (Cost Per Thousand Impressions)
This is the amount you pay each time your ad is shown 1000 times. For example, if your CPM is $5, it means you pay $5 every time your ad gets seen 1000 times.
- CPM indicates how much it costs to get your ad in front of people.
- A lower CPM is better since it costs you less to get views.
- Average CPM on TikTok is $6-12. Aim for under $10 when starting out.
Tip: Target interests and behaviors that are more niche to get a lower CPM. Broad targeting gives higher CPM.
2. CTR (Click-Through Rate)
This shows the percentage of people who saw your ad and tapped on it. For example, if you had 100 views and 5 people tapped, your CTR is 5%.
- Higher CTR means your ad is more appealing and relevant to the audience.
- Average TikTok CTR is 4-8%. Aim for over 5% or your ad may underperform.
Tip: Make your ad stand out with eye-catching visuals, clear messaging, and a strong call-to-action.
3. CPC (Cost Per Click)
This is how much you pay when someone clicks your ad. It's calculated by CPM x CTR.
For example:
CPM = $10
CTR = 5%
CPC = $10 x 0.05 = $0.50
Lower CPC means each click costs you less, saving you money.
Average TikTok CPC is $0.70-$1.50. Try to achieve under $1.00.
Tip: Improve CTR to lower CPC. More clicks for the same cost brings CPC down.
4. ROAS (Return on Ad Spend)
This important number shows the revenue you earn from ads compared to the cost. For example, if you spend $100 on ads and make $200 in sales, your ROAS is 2.0 ($200 revenue / $100 spend).
- ROAS above 1.0 means your ads make more than they cost 🎉.
- Good TikTok ROAS is 1.5-3.0x. Anything over 2.0x is excellent.
Tip: Analyze data to optimize for conversions and ROAS. Kill underperforming ads to improve overall ROAS.
So in summary, focus on:
- CPM - Lower is better
- CTR - Higher is better
- CPC - Lower is better
- ROAS - Higher is better
Optimize your ads to move these 4 key indicators in the right direction. And you'll be well on your way to TikTok ad success!
How Ecomax Can Help You Master TikTok Ads
Ecomax is an e-commerce specialist agency passionate about helping businesses maximize sales on TikTok and other top marketplaces.
With our in-house team of TikTok advertising experts, we take care of everything to help your brand profit big from TikTok.
Our TikTok Advertising Services
TikTok Store Setup: We handle your TikTok Shop application and get your catalog ready to sell.
Campaign Management: Our strategists build, optimize and scale campaigns designed to meet your KPIs.
Creative Optimization: We produce high-converting video ads tailored for your brand and target audience.
Performance Tracking: Get access to a live dashboard showing the key metrics and data insights.
Let our certified pros tailor and optimize your TikTok campaigns while you focus on running your business.
Get Your Free TikTok Ads Consultation
Book a free 30-minute consultation with our team. We’ll evaluate your business goals and current ads. Then make data-driven recommendations to increase your ROAS and lower your costs. Just click the link below to schedule a session with our TikTok experts today. Let’s take your TikTok advertising to the next level!