TikTok has become one of the hottest social media platforms in recent years, and it’s no secret that businesses are taking advantage of its massive user base to promote their products and services. However, with so much competition on the platform, it can be challenging to create an effective TikTok Ads strategy that generates a positive return on investment (ROI). So, the best decision you can make – is to test different strategies and ad creatives to reach the results you want to achieve.
In this blog post, I will share with you our testing method for creating a TikTok Ads campaign that generated $30,000 in just one month. By the way, if you, prefer video to text, you can watch the clip about this Shopify dropshipping case study on my YouTube channel via the link.
The Testing Phase
We launched a TikTok Ads campaign on January 20th, and it wasn’t profitable. However, we had a rule for the testing phase that when we saw at least one sale in the campaign, we gave it another shot the next day to see if it would give us better results. We found that TikTok can be surprising in terms of sales, especially on the second or even third day.
The structure of our ABO campaign: we used the ACO method with three ad sets, each with a $30 budget. In total, we had 15 different creatives with three videos and five texts, creating 15 different variations in each ad set. When we launched the campaign on the first day, the ads cost $44, and we generated $51, with an average ROAS of 1.15. While it wasn’t profitable, we got a sale, which was enough to give it another shot.
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On the second day, we decided to kill the ads that weren’t performing and keep the rest of the creatives for another day. Unfortunately, we didn’t get any sales on the second day. Still, we decided to leave it for one more day and kill anything that was spending money but wasn’t performing.
The Magic Begins
On January 22, we generated $50 in revenue and spent $75, so we decided to keep it for another day. On January 23, we spent $120 and made $260 because we let TikTok optimize. When we saw this level of performance, we duplicated the ad set with the winning interest and created a separate ABO campaign with the same interests, using the winning creatives only.
We created four different ad sets with different bid strategies: $10, $15, $25, and $30. This generated a 53% net margin and $140 profit for that particular day. On January 24th, we spent $162 and made $400, for a 60% net profit. We continued with this approach until the end of the month, generating $4,227 with $1,864 spent.
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Scaling the Campaign
Once we found the best-performing ads, we left only three ad sets for the main campaign and two for the bid campaign. We let them run for a few days without touching them, which led to consistent spending and positive results. We then duplicated the campaign and increased the budget every day from $30 to $50. If the campaign was working, we increased the budget even more; otherwise, we decreased it.
This approach helped us generate $28,900 from the end of January until February 24. Our success was achieved through brainstorming sessions to find the best product name, hooks, ad copies, and videos. To find the best options, we even used ChatGPT, which is a very helpful tool to generate the perfect script for our ad copies.
Creating a successful TikTok Ads campaign takes time and effort, but it's not impossible. By testing different ad sets, creatives, and bid strategies, you can find what works for your product and scale your campaign to generate positive ROI.
Learn more about our TikTok Ads Strategy from the video. Leave a comment under the video if you find this helpful, already test this TikTok Ads Strategy, or have any additional questions. I would like to answer all the questions.