The 5 secrets of our TikTok Ads formula for E-commerce

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This is the TikTok formula almost all TikTok Ads agencies use to run TikTok Ads and get 2-5 ROAS (Return on Ad spend)

And becuase I am a generous saint, I will reveal it to you.

Keep in mind I am going to only cover the technical side, the creative side needs its own blogs.

I am going to assume you already know your weekly/Monthly budget, if not send me a DM on Twitter (TikTok Hat Wizard) with the word “My Budget” and I will explain it to you.

I will also assume you are using a Pixel and you want website conversions. If not, then read it regardless and see how this can apply to you.

Now here is a little summary:

  1. Three phases to running TikTok ads
  2. After the learning phase:
  3. In the optimizing phase
  4. Growth Phase
  5. More details on the structure
  6. Last Words

There are three phases to running TikTok ads:

Learning Phase => Target Optimizing => Growth

In the learning Phase, you want to let TikTok get data on each step of your funnel,

For example, for an Ecom store, it goes like this:

  • Add to cart
  • Initiate checkout
  • Payment

Once you reach at least 60 conversions for “add to cart,” lower the budget to 20% and start a new adset with the same ads, allocating 80% of the budget.

The second adset should target the next step in your funnel.

If your primary goal for TikTok ads is increasing sales, you need one campaign set to the lowest cost with one adset. The adset should contain 3-5 creative ads.

For budgets below $500 daily, stick with 3.

During the learning phase, use what I call “Interest groups” for targeting. Stack interests on top of each other, aiming for broadness.

Later, TikTok will suggest interests for you, do what TikTok says.

After the learning phase:

Test Interest Broad vs Complete Broad targeting.

Complete Broad means selecting only gender, location, and age as your targeting.

After achieving 60 weekly conversions on “payment,” you can delete the 20% budget adset for “initiate checkout.”

You’ve exited the learning phase, but there’s more to do.

In the optimizing phase:

Start testing targeting options: Interest Broad vs Complete Broad.

Each adset gets 50% of the budget.

If you have lookalike audiences, test them at the same time, with each adset getting 33% of the budget.

Each A/B test should run for 2-3 weeks; avoid making changes.

For a regular ad account, this should suffice.

Growth Phase

Once you reach the Growth Phase , your focus should be on two things:

  • Increasing the Budget.
  • Formulating a long-term TikTok strategy, where your goal is no longer only extra sales but rather TikTok becomes an element in your overall customer journey.

More details on the structure:

In the campaign view, select custom mode and “Choose conversions.” Give it a clear name; simplicity is key.

Adset view:

  • Name the adset.
  • Choose website conversions.
  • Use manual placement, selecting only TikTok.
  • For targeting, choose custom and set your adset targeting later.
  • Set your monthly TikTok budget or 20%/80% depending on the learning phase.
  • Then upload your ad creatives.

Last Words:

This all the beginner to intermediate stuff I can impart to you, once we get to more advanced stuff, it will become very custome and indivual. So I can not help you too much.

For questions, send me a DM on Twitter (TikTok Hat Wizard) with “My question:”. If you find this process a hassle and you want to sit on the beach and sip wine in the sun rather than doing it yourself => Go see our offer.

Peace out.

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