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TikTok has become one of the most popular social media platforms and is quickly evolving into a search engine for those who use it to discover relevant products. This makes it an attractive advertising channel for businesses who wish to target younger and engaged audiences. If you are still unsure of TikTok’s effectiveness in the advertising sphere, check out our TikTok ads metric where we breakdown five reasons why you should be optimising TikTok for your brand.
However, while running an ad on TikTok may seem promising, neglecting to consider how to measure your TikTok ad metrics can lead to underperformance and an overspend of budget. We’ve compiled the top seven TikTok ad metrics to keep a close eye on and provided some tips on how to stay ahead of the game, ensuring your ads campaign garners the desired coverage and helping you identify any blind spots.
Click through Rate (CTR)
Click through Rate (CTR) is a primary metric that indicates how effective your TikTok ad is in driving user engagement. It measures the percentage of viewers who clicked through to your ad campaign after seeing it. If you score a higher CTR, it generally signifies that your target audience resonated with your ad and took the desired action.
One way to improve your CTR is by creating attention-grabbing content, either by jumping on trends or setting new ones that resonate with your target audience. Always be sure to use a clear call-to-action (CTA) button or text to encourage your audience to take the desired action.
Lastly, conducting A/B testing to see what works best is an excellent way to capitalise on the ads that resonate the most with your target audience. For those unfamiliar with A/B testing, it involves releasing two identical campaigns with slightly different copy or images but the same overall messaging to assess the difference in performance.
Conversion Rate
The conversion rate is calculated based on how many users clicked on your ad and then followed through to complete a desired action, such as creating an account, filling out a form, or making a purchase, resulting in a 'conversion.' This ad metric measures the bottom-line impact of your ad campaign's success. To improve your conversion rate, it's important to ensure that your landing page is mobile-friendly and optimised for encouraging conversions.
Using clear messaging and persuasive copy on your landing page, as well as implementing retargeting campaigns to re-engage users who didn't initially convert, are other effective strategies for improving conversion rates.
Engagement Rate
Engagement rate is one of the most important Tiktok ad metrics which
you should be paying close attention to. This is because it gauges the level of interaction your TikTok ad receives from viewers and acts as a great source of data to adjust your TikTok ads accordingly. For example, having high engagement means that your ad impressions resonate well with your target audience, encouraging them to interact with your content.
There are several ways to improve the rate at which your audiences engage with your content. Firstly, it is important to define your target audience, from there you will be able to craft content that is relatable, entertaining or informative. Secondly, fostering conversions among your users can lead to higher engagement. This is an excellent time to encourage your viewers to share their thoughts in the comment section. Lastly, leveraging TikTok influencers can be a powerful strategy to attract your target audience.
Return on ad spend (ROAS)
Return on ad spend is an ad metric that calculates the financial performance of your TikTok ads campaigns. It considers both the expenses incurred to run your ad campaign on TikTok and the revenue generated as a result. To improve your ROAS, it is essential to establish campaign goals and track revenue generated directly from your TikTok ad campaigns.
Additionally, having a well-defined target audience and a clear call-to-action can yield better results compared to targeting a broad audience. Lastly, always be prepared to adjust the ad budget based on how well your TikTok ad is being received. While videos can go viral, it's important to understand that the competitive landscape of TikTok may cause your ad to go unnoticed.
Cost Per Action (CPA)
Cost per acquision is an advertising metric that calculates the total cost for each specific step or conversion by a viewer in direct response to your TikTok ad campaign. These actionable goals are predetermined by you and can include a range of desired outcomes, such as signing up for a newsletter, creating an account, filling out a form, or making a purchase. Having a low CPA is optimal and indicates that your campaign is running successfully and efficiently in line with your predetermined goals and budgets.
There are several ways to improve your CPA and you should consider the following strategies if your TikTok ad campaign is not performing to your expectations:
Optimising Ad Targeting:
Without a well-researched target audience, your CPA can skyrocket, resulting in financial losses. To mitigate this, refining your target audience allows you to connect with users who are more likely to take the desired call-to-action.
Quality Ad Creative:
The more compelling and engaging your TikTok ad campaign is, the higher the chance it will show up on your target audience feed and be rated as an engaging form of content by TikTok’s algorithm.
Landing Page Optimisation:
If people can’t click on your landing page, it takes too long to load or the link is broken, your audience will be deterred from taking the desired action on your website; deeming your efforts redundant. PageSpeed Insights offers a free analysis of your webpage and where needs improvements.
Ad Scheduling:
Try out different timings of your ad placements to increase ad impressions based on when your target audience is most likely going to be engaging with TikTok. For example, if your target audience includes students, consider posting content during non-school hours, such as mornings or evenings, and assess which timeframe yields higher conversion rates. There is no hard and fast rule and is all about testing to see what works best.
Cost Per Click (CPC)
Cost per click is the ad metric that accounts for the amount you pay every time someone clicks on your ads campaign. Typically, CPC is linked with performance-based advertising, where a particular call-to-action, like making a purchase, visiting your website, or submitting a form, is the objective. This metric is commonly used for text-based, display and video ads that feature a set call-to-action since it emphasises user engagement and conversions. Advertisers are obligated to remit payment only when the desired action is taken.
Cost Per Mile (CPM)
Cost per mile is the cost per 1,000 impressions of your TikTok ad. Meaning, that it is the metric that calculates the cost of reaching 1,000 viewers. If you are focusing on brand awareness which generally is optimised for wider reach, you want to ensure your CPM is efficiently optimised.
To manage your CPM, it is important to look at your ad's relevance scores and adjust your creatives accordingly if they are not landing well with your target audience and within your set budget. Playing around with your ad scheduling times also applies here as one strategy to implement for increased engagement.
Where to go from here
Monitoring and optimising TikTok ad Metrics are vital for the success of
your advertising campaigns on this dynamic platform. To make the most of your TikTok ads, consider partnering with a leading TikTok ad agency in Sydney that specialises in paid social services.
At Soup, we excel in managing TikTok ad campaigns, utilising data-driven strategies to improve key metrics. Our team is dedicated to optimising ad targeting, creating high-quality ad creatives, optimising landing pages and fine-tuning your metrics to maximise your campaigns conversions. Contact us today for a free digital audit and we can take your TikTok advertising to the next level and see the impact it can have on your brand’s success
FAQs about TikTok Ads Metrics
What is a typical CTR for TikTok Ads?
The typical CTR for TikTok ads vary on ad format, industry, ad creative and target audience. Because TikTok is a visually-oriented platform, it tends to outperform in CTR compared to other social media platforms.
How do you measure the success of TikTok ads?
Your TikTok ad success is measured by your campaign objectives, by having clear goals and utilising the relevant ad metrics mentioned above, you will be able to assess your ads campaign performance.