Scaling TikTok Ads in 2023

Trying to diversify Meta ads in 2023 with direct-to-consumer (DTC) ads?

Odds are you’ve likely tested (or started dipping your toe in the water) of TikTok ads, and it’s important to note that running and scaling TikTok ads is different than Meta ads - both in structure, bidding, creative, and time spent managing and updating ads.

The below information was first posted in the Foxwell Founders Membership — a community of 430+ ad buyers globally spending north of $3 million per month who share best practices, ask questions, and connect with each other on a daily basis.

Special thanks to Foxwell Founders Members Bill Vieux, Spencer Toft, Jeremiah Prummer, and Shubham Agarwal for their insightful input into this discussion.

How to scale TikTok ads in 2023

Step 1:

Determine your goal CPA, then what % of that goal CPA is the current CPA

If you don’t already have a goal CPA from Meta ads, this is a crucial step. Goal CPAs should be based on shop-wide cost of goods and services, needed MER for profitability, and some cushion for other expenses. Goal CPA is directly related to MER and platform-specific ROAS. Determine your sitewide AOV over a specific timeframe (maybe the last 90 days, 180 days, or 365 days, depending on amount of data/number of sales and whether the shop has had any big changes (i.e. collection or big product launches) in that timeframe. Use the AOV to find a goal CPA lower than that price of what you’d like to pay to acquire a new customer. Keep in mind that goal CPAs can be different for first-time customers vs. returning customers if the shop has a high rate of return customers.

Step 2:

If it's performing significantly under the target CPA, can scale as much as doubling the budget, THEN as it creeps closer to the goal, increase the budget less and less

We usually suggest waiting 24 hours MINIMUM to increase budget, and usually by 10-20% depending on performance in that window, but if performance is significantly above goal AND you’re in a time crunch (like a sale period) to scale, you can be more aggressive, BUT be sure to watch the account closer if you’re scaling much faster. Once your performance starts to level off, also level off your spend.

Step 3:

Monitor ad fatigue at the ad level and turn off creatives one by one as they fatigue

TikTok ad creatives fatigue MUCH faster than Meta ads. This is one of the biggest differences in the two ad platforms. Monitor ad fatigue by performance over time (we like using visual graphs through softwares like Motion), and if we’re seeing a steady decline in performance for more than 1-2 days, depending on spend and delivery — it could be time to refresh, restart, or try something totally different.

Step 4:

Keep in mind that TikTok also has really good long-tail impact. Often takes weeks if not months for customers to convert so if you're hitting CPA goals now long tail is probably going to crush

The TL;DR on this one? PATIENCE, YOUNG PADAWAN.

Need proof that TikTok has a good long-tail impact on driving purchases? Check out this data straight from KNO Commerce.

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