Up until now, Tiktok Shop has been the most popular sales platform, directly competing with e-commerce marketplaces. With a large potential customer base and diverse selling formats, it offers convenience for buyers. To promote the brand and increase conversion rates, sellers on this platform should invest in advertising. In this article, Optimal Agency will guide you on how to effectively run Tiktok Shop ads while optimizing costs. Don’t miss out!
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Should you run TikTok Shop ads?
The TikTok Shop platform is making strong strides, attracting millions of sellers and a large number of buyers. The trend is shifting from reading product reviews to watching review videos due to their vividness and high authenticity. Users’ purchasing decisions are mainly based on emotions. Therefore, besides creating engaging content, businesses should also run TikTok Shop ads.
Reach more target customers
If you know how to run Tiktok Shop ads, your business can reach a large number of potential customers. Most TikTok users are young people aged 18 – 35, which is the main customer base for many direct-selling businesses. This young demographic highly values creativity and has a high demand for online shopping. With simple settings, you can advertise your TikTok Shop to increase visibility and expand your reach to many potential customers.
High conversion rate
The advertising format on Tiktok Shop was introduced when TikTok launched the TikTok Shop cart. Previously, when running ads on TikTok, you needed to create a new landing page for customers to click on before making a purchase decision. This process was very complicated and the rate of customers viewing without purchasing was high.
Now, you can quickly and easily run ads for your Tiktok Shop cart. When customers click on the ad to view, they will see the cart link and click on it to make a purchase. This not only increases the conversion rate but also helps sellers manage orders more easily along with revenue on the Tiktok platform.
Low competition, many seller support policies
Compared to other e-commerce platforms, Tiktok Shop is relatively new but has great potential. Especially, the target customer base expands from the TikTok channel with extremely attractive platform fees. Additionally, this emerging e-commerce platform also offers many seller support policies, from shipping fees to discount codes and commissions. This contributes to creating a competitive advantage for businesses when exploring and investing in this advertising and sales channel.
Variety of advertising formats
The Tiktok Shop platform provides sellers with various advertising formats to choose from, such as livestreams, videos, etc., suitable for different product categories. This allows businesses to reach target customers and promote products and services in unique ways, optimizing both effectiveness and costs.
What should you prepare before running Tiktok Shop ads?
Before getting into the guide on how to run Tiktok Shop ads, let’s explore the materials you need to prepare to launch the campaign:
Create a TikTok Shop
If you want to run Tiktok Shop ads, you need to register an account and create a store on this platform. To open a TikTok Shop account, visit the link: https://seller-vn.tiktok.com/account/register to sign up. After having an account, set up your Tiktok Shop with complete product information, promotions, and discounts to attract customers. Make sure the products you are selling and advertising comply with Tiktok’s policies.
TikTok Shop ad account
Besides creating a store, you need to register an ad account for the TikTok Shop channel. There are two main types of ad accounts: personal accounts and Agency ad accounts. To run ads effectively, experience all the ad features, avoid spending limits, and advertise products across countries, you should choose and rent a TikTok Agency account from reputable agencies.
Create engaging ad videos
When creating ad videos, don’t focus too much on promoting sales but combine entertainment elements and useful information to attract viewers. Choose engaging video topics that suit your target audience. Focus on impressing viewers within the first 3 seconds. To create interesting ad videos, add unique effects and trending background music. Most importantly, to increase conversion rates, include a call to action at the end of the video.
Top up coins in your account
TikTok Shop ads typically use coins, the currency on this platform. Make sure to top up a minimum of 30 coins each time. Visit the link: https://www.tiktok.com/coin, enter the number of coins to top up, and then fill in your Visa/Mastercard details to complete the payment.
Detailed guide on how to run Tiktok Shop ads
After preparing all the materials, proceed with running the ads as follows:
Access Tiktok Ads Manager, click on the Campaign tab, select Create, then choose Custom Mode. For each advertising format on Tiktok Shop, there will be different campaign setups.
TikTok Shop ads through LIVE (LIVE Shopping Ads)
In the campaign objective section, select Purchase at the store, then set up the ad information, including:
- Ad group name.
- Store settings (in the Ad Type section, select Shopping via LIVE).
- Placement.
- Targeting.
- Budget & Schedule.
- Bidding & Optimization.
Now, set up the ad details including ad name, ad format, and ad details. In the ad format section, you can choose one of two video ad formats: standard video and Live video. After completing the setup, click Submit and wait for Tiktok approval.
Video Shopping Ads
Select the campaign objective as Purchase at the store, then complete the information in the Ad Group Settings section. Choose the TikTok Shop store you want, then in the Ad Type section, select Shopping via video.
In the Identity section, select the business TikTok account. For placement, choose on TikTok. For targeting, aim at people aged 18 and older. Finally, set up the budget & schedule, bidding & optimization.
After setting up the ad group, set up the ad by choosing One or Multiple products in the Product section as desired. Choose the ad template as Tiktok Post on the business Tiktok account. After completing the ad setup, click submit and wait for Tiktok approval.
Catalog Listing Ads
In Tiktok Ads Manager, click on the Campaign tab, then select Create to create a new campaign. When choosing the campaign objective, select Product Sales. Next, set up the ad group, including:
- Select Catalog Listing Ads as the Ad Type.
- Choose an appropriate catalog to advertise.
- Select TikTok pixel and Complete payment in the Optimization Event section.
- Set up Targeting, Budget, and Schedule.
- In the Optimization Goal section, choose Conversion.
- Enter the cost limit.
Next, complete the Ad Settings by selecting the Identity displayed in the ad and entering the ad video details. Then click Submit and wait for Tiktok approval.
Experience running TikTok shop ads effectively and optimizing costs
When implementing Tiktok Shop ads to gain more orders, boost sales, and optimize costs, pay attention to the following:
Name your Tiktok channel appropriately
The TikTok account name is one of the most impressive factors for customers. Therefore, you should name the channel concisely and appropriately for the product category you are selling. Avoid using overly complicated names that make viewers feel unreliable and leave. The general formula for naming a TikTok shop includes the product category and brand name.
Focus on creating quality content
Videos with unique, engaging content will attract and retain customers longer, increasing interaction and conversion. Therefore, during content creation, carefully go through the steps from brainstorming, scripting, to filming. Moreover, you should frequently update trends to subtly incorporate them into videos, highlighting the product while attracting the target audience.
Run ads during peak hours
To achieve optimal ad effectiveness, choose suitable ad timing that helps attract interaction and maximize conversions. Each target audience will have different characteristics, behaviors, and TikTok usage times. You need to research your target audience to create appropriate ad content and run ads during peak hours to increase the chance of reaching your target customers and boosting interaction.
Plan the advertising budget and select display positions
You need to set a detailed budget for each Tiktok Shop ad campaign to maximize ad effectiveness with the most optimal budget. When you have a clear budget plan, it becomes easier to adjust the advertising plan. Additionally, you should choose appropriate display positions to reach your target audience and enhance ad effectiveness.
Collaborate with KOLs, KOCs, and Influencers
When running TikTok Shop ads, you can collaborate with influential people in the community to expand your reach and enhance brand credibility. Moreover, KOLs, KOCs, and Influencers have a certain following, allowing you not only to reach the target customers but also to increase conversion rates into orders.
Measure and adjust
During the ad run, regularly monitor, measure, and evaluate the campaign’s effectiveness by reviewing metrics: reach, interaction, click-through rate, conversion rate, etc. Based on the data in the ad result report, adjust the campaign to ensure the highest effectiveness and cost optimization.
TikTok Shop ads are an effective tool to help sellers increase sales and expand business operations. With the detailed guide on how to run Tiktok Shop ads above, you can successfully apply it to promote your brand, products, and services while reaching target customers at the lowest cost.
See more:
- Update the latest types of selling costs on the Tiktok Shop platform
- How to register a TikTok shop account quickly and simply
- What types of products are banned on TikTok Shop?
FAQ
The types of ads on Tiktok Shop that many businesses use include Spark Ads, Livestream Shopping Ads, Video Shopping Ads, etc. Among them, Spark Ads are ads that use natural content on TikTok, such as trending videos or KOC channels promoting the shop. Livestream Shopping Ads are ads for selling through TikTok livestreams. Video Shopping Ads allow users to purchase directly from the shop through newsfeed videos. Each ad type has its unique features and applicable scenarios.
There is no specific figure for how much TikTok Shop advertising costs because it fluctuates based on a number of factors: reach, ad engagement, and specific campaign goals. Furthermore, advertising costs will fluctuate depending on competitors and target audiences. Adjust your budget according to the type of ad and the reach you want to achieve with your Tiktok Shop advertising campaign.
