Different bidding strategies for TikTok advertising: cost cap and maximum delivery

Currently, with the rapid rise of TikTok around the world, more and more advertisers are advertising on TikTok. How to effectively manage advertising budgets and optimize advertising effects is a challenge for every advertiser (optimizer).
This article will deeply analyze two common TikTok advertising bidding strategies: cost cap and maximum delivery, to help everyone better understand and apply these strategies.
- Definition of different bidding methods for TT
- Cost Cap: Also called manual bidding, advertisers set a maximum cost for each conversion (such as each click, each installation, each purchase, etc.) by themselves. The system will automatically adjust the advertising bid according to this cost cap to ensure that the cost of each conversion does not exceed the set cap. PS: In theory, the cost will not exceed the cost cap during the life cycle of the advertisement, but the cost will fluctuate, so there will be situations where the cost cap is exceeded. )
- Maximum Delivery: Also called automatic bidding. The ad group does not set a specific cost cap, but aims to maximize ad display and effect. The system will display your ads as much as possible to get more clicks or conversions.
- Features of different TT bids
- Cost Cap: By setting a cost cap, advertisers can ensure that ad spending is within a controllable range as much as possible, will not exceed expectations, and the volatility is relatively small compared to automatic bidding. However, the running volume is relatively unstable and is easily affected by market competition
- Maximum Delivery: Increase brand exposure or get more conversions by displaying ads as much as possible.
- Applicable scenarios of different TT bids
- Cost Cap: Need to strictly control costs, low budget, and low requirements for volume
- Maximum Delivery: High tolerance for costs, relatively large budgets, volume requirements, and the ability to spend the budget set by yourself, suitable for more automatic bidding.
- TT cost cap setting suggestions
- Set according to the benchmark level of the same industry and market, and ask TT direct customers for suggestions
- Set according to the average data of this product
- Test with step-by-step bidding to find the best bidding level
- Bidding level: shallow events (install) < deep events (aeo), early product < mid-term product < late product
- For ads with low costs but low volume, TT operations can promote SPB (SPB can increase the volume of manual bidding ads, putting ads between automatic bidding and manual bidding), but it seems that only key customers can participate.
PS: Personal experience, for reference only
The above is all about the upper limit of TikTok advertising costs and the maximum delivery volume. I hope everyone can choose the right bidding method to maximize advertising effectiveness.