TikTok is gaining popularity as a social media app. Many of you may have yet to use the app. This article will introduce the basics of TikTok and discuss detailed points to watch for when using the app for ads.

What is TikTok?

TikTok is an app that allows users to create and post short videos. With content in a variety of genres ranging from entertainment to culture, everyday life, and product reviews, TikTok attracts a large audience with a recommendation feed that never bores its users.

TikTok features Apps Connect Companies with Consumers

– TikTok in numbers

TikTok has turned into a huge video platform with over 1 billion users worldwide.¹ In the first half of 2021, TikTok was ranked No. 1 in terms of global downloads and has been downloaded over 3 billion times.²

*1 Source: https://newsroom.tiktok.com/en-us/1-billion-people-on-tiktok

*2 Source 1: https://sensortower.com/blog/app-revenue-and-downloads-1h-2021

*2 Source 2: https://sensortower.com/blog/tiktok-downloads-3-billion

– When people use TikTok

People often use Google or Yahoo! when they’re looking for something. What about TikTok? There are many scenarios, but most TikTok users open the app when they want to relax or lighten up their mood. In other words, these users are looking for fun and positivity.

*Source: https://tiktok-for-business.co.jp/archives/7869/

Comparing TikTok

– Comparing TikTok with other media

TikTok ads are attractive because they reach a wide range of age groups, including young people, and appear when users are in a relaxed state. This makes users relatively open to these video ads and is ideal for building friendly communication with them. TikTok users are highly sensitive to information and the user base includes many trend-setting innovators. At the same time, the area TikTok video takes up makes it ideal for communication via moving media.

– Products and services that pair well with TikTok

Since TikTok is centered on video advertisements, it tends to be suitable for cosmetics, where it’s important to convey the color and image of use, and fashion products, where the final design and image are important. Furthermore, many users are accustomed to using online services and have a high affinity for online and cashless payments, so ads for credit cards are also common.

– Case studies

By using TikTok’s brand effects, users can “try out” new cosmetics or even change their hair color virtually.

*Source: https://www.tiktok.com/tag/%E9%AB%AA%E8%89%B2%E3%83%81%E3%82%A7%E3%83%B3%E3%82%B8

(From TikTok #hairdye)

*Source: https://tiktok-for-business.co.jp/archives/9297/

(Official TikTok for Business: “New products by KOSÉ” “Visee Panorama Design Eye Palette” Experience the highlighted look of your eyes with TikTok! Experience the worldview of NiziU’s commercial song through effects!)

Points to watch for when delivering ads (creatives)

– Recommended material and images

Content with the same taste as organic content tend to be welcomed by users on TikTok. We recommend using music with a good tempo and videos that have a sense of rhythm. Aside from banners with dancing models, ads that switch between product images in time with the music are also effective.

*Source: https://www.tiktok.com/business/en/inspiration/maybelline-323

(Official TikTok for Business “Maybelline”)

– About safe zones

There are two points to consider when creating an ad. First, keep the text as short as possible while still including important wording. This increases visibility and expands the safe zones for the creatives. Next, keep important copy and wording within the safe zone. This is the area that is most likely to be viewed, and therefore important messages should be kept within that guaranteed zone.

Points to watch for when delivering programmatic ads (submission and delivery)

– Configuring budgets

Ad delivery may shrink if the budget is set too low. The recommended amount can be calculated using the following formula. Daily budget = Target CPA x 20. The recommended daily budget for a CV with a CPA of 1,000 yen is 1,000 yen x 20 = 20,000 yen. A budget of 600,000 yen or more is required for a 30-day month using the same CPA (1,000 yen x 20 x 30 days = 600,000 yen). 

– Components and optimization

TikTok ads consists of three tiers: campaigns, ad sets, and ads. The learning optimization works starting with ad sets. Initial learning requires 50 CVs per ad set.

– Optimization and billing formats based on goal

In TikTok, the type of billing is determined by the goal. For example, if your goal is to increase conversions on your website, you will be charged by oCPM.

*oCPM (Optimized Cost Per Mille) refers to a billing type dependent on the number of impressions.
*Source: https://ads.tiktok.com/help/article?aid=9686

– Auctions

From a system perspective, auctions convert the value of the ad into an index called eCPM (estimated CPM). The following is the formula for calculating eCPM.

– Two types of bidding

There are two types of bidding types: Bid cap and lowest cost. The benefits of the bid cap include the stabilization of CPA. However, if the CTR/CVR is low or declines, ad delivery may decrease, making it difficult to control the budget. Lowest cost prioritizes budget use and enables stable ad delivery. However, if CTR/CVR is low or declines, the CPA may increase.

Summary

When considering the use of TikTok ads, it’s important to first understand the characteristics of the medium and imagine the users who will be using TikTok. When delivering ads, it’s important to match the delivery settings with the delivery objectives to ensure more effective ad delivery. By being particular with the creatives, which are key, you may see stunning results. We hope you’ll consider using TikTok’s unique features to deliver ads to your audience.

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