Being the most visited internet website with over a billion active users, TikTok is now the number one choice for people from all walks of life to market their businesses. Not only does the platform provide advertisers with positive ROI, but it also helps them foster authentic connection with the audience worldwide.
However, only a few businesses stand out among a million users and manage to drive massive sales through ad placements. So, what's the solution to help rank your company in those few?
Craft an immaculate digital marketing strategy with leading TikTok Ads KPIs and measure your campaign's progress over time. This approach will help you optimize your ads strategically to appeal to the masses. To take the burden off your shoulders, we have assembled the top TikTok Ads KPIs for tracking your ads' performance on the platform. Let's get straight into them!
The Financial Times reveals that advertising on TikTok costs less than all other social media platforms. For now, the platform charges between $0.50 to $1 per ad click to advertisers. Owing to the rapid growth of this short video platform, the competition for ad space is tight. But the good news is their formula program offers custom ad programs to suit all business types.
Meeting your objectives on TikTok requires more than just a simple ad investment. It needs constant evaluation of trending KPIs to gauge your ad results.
Ads KPIs or key performance indicators are quantitative statistics or figures to measure the progress of your ads against specific targets or milestones. These metrics are beneficial for more than one reason. They help you put things in place for the effective optimisation of your digital marketing strategies. But how exactly?
As mentioned in the digital global reports by Kepios, marketers have the potential to reach over a billion users with TikTok ad campaigns. But wait! Investing in ads alone isn't enough to raise your brand value. You need to keep up with a set of TikTok Ads KPIs to get the best and ultimate outcome.
Read below to learn more about TikTok advertising metrics and how they affect digital marketing campaigns.
Profit is the only fundamental goal of promoting your business and investing in ads. You can keep track of these return or loss values through ROAS. It helps you estimate whether your ads are performing well on TikTok or require optimization for improved results. To maximize the output for this KPI, allocate a suitable budget with a return percentage you want to earn.
As a rule of thumb, a higher ROAS indicates a higher success rate for your ad campaigns. Use the following formula to calculate the return percentage received on your ads after a specific time limit:
The amount of money you made from ads / The amount of money you spent on ads
According to the TikTok business blog, tracking viewer demographics should be the top-most priority of businesses. This metric allows advertisers to target customers based on age, gender, location, or language. You can use the TikTok Ads Manager to set these preferences and reach the right circle of audience for cultivating authentic connections or boosting customer loyalty.
Cost per click refers to the amount of money you are charged when each unique user clicks on one of your ad links. It's one of the most useful TikTok Ads KPIs for business owners to measure the effectiveness of ad campaigns. You can keep up with the average cost of your ads and allot a reasonable marketing budget to meet your business needs in the best way possible.
The average CPC for TikTok is around $1. However, you can calculate the exact value by using the formula:
Total ad spend / Total number of clicks
The click-through rate defines the number of users who see your ads and click on them. One of the business case studies conducted by TikTok suggests that a CTR of 1.2% can lead to a significant conversion rate over time. In contrast, lower CTR values indicate that your marketing campaigns need an update to garner better results.
Hence, it's one of the finest TikTok Ads KPIs to gauge your marketing strategy. You can calculate CTR by the following formula:
The number of clicks received on your ad / Total number of impressions (how many times people viewed the ad)
The amount of times the viewers see your ad refers to the total number of impressions. If the same person sees your ad more than once, your social media account will count that as multiple impressions. This metric is beneficial in analyzing your audiences' interest rates in your marketed content, ultimately helping businesses optimize their future marketing strategies.
You can calculate the total number of impressions by the following formula:
The number of times the ad has been plated / The number of times the campaign was active
In TikTok ads analytics, conversion rate or cost per conversion is the number of users who complete the desired action after clicking on your ad. For Instance, fill out the survey on the website or place an order to purchase your product. The average conversion rate for TikTok ads often reaches 1.1% but varies depending on how well the ad resonates with your audience.
The higher the CVR, the more your ad will display to a broader audience. Here's how you can calculate this metric:
The number of people who take the desired action / The number of people who watch your ad
Cost per view indicates the amount paid by the advertiser for each view on TikTok advertisement. It's one of the most effective TikTok ad KPIs for optimizing your digital marketing strategy. For example, you can measure the performance of your TikTok ads and compare it against the amount of money you are investing. This approach will help you for several reasons.
You will better identify the gaps and allocate a suitable budget to achieve the target, allowing you to adjust your marketing campaigns within the available resources. You can use the following formula for calculating the CPC value:
The total amount you paid for each view / Total number of views
Cost per mile is the total cost for the advertisers on a display of ads to a thousand people. According to recent statistics, TikTok's CPM ranges from $10 to $30 for every 1000 impressions on the ad. It's an excellent way to analyze whether showing your ads to the masses delivers a substantial outcome, such as increased conversion or user engagement rates for businesses.
Below is the general formula for calculating the TikTok CPM:
The total cost of the campaign / The total number of impression
TikTok reach refers to the number of unique viewers who click and watch your ad. It differs from the number of impressions, which indicates the number of times your ad appears on the profiles of your target audience, whether clicked or not. This TikTok ad benchmark lets you evaluate the effectiveness of your ads based on the organic reach and engagement on your profile.
Various AI calculators are now available to help you estimate your Ad reach for planning an informed digital marketing strategy.
TikTok ads KPIs are the only way to measure your ROI and adjust your marketing campaigns to attain the desired outcomes. However, keeping up with the overwhelming statistics and figures across multiple social media platforms isn't as easy as it sounds. It demands effort to gather and process the necessary information to create strategies that align best with your business needs.
But worry not! Catchr identifies your business needs and provides multiple integrations across apps to unleash valuable insights for the perfect monitoring of data.
With Catcher's TikTok Ads integration, you can connect to Google Data Studio, Google Sheets and other authentic sources to access live reporting on your ads. Here's how it goes. You connect your data with the tool, select the account you're working with, and get seamless, easy-to-read digital marketing reports covering all your TikTok ad metrics.
Moreover, the app alerts you on negative trends so you can adjust your marketing campaigns to avert negative ROI. It helps you and your teammates make decisions based on metrics, not beliefs. So, shake a leg and book your demo right now with Catchr to make the most of your TikTok Ads!