When you're running an ad campaign, one of the most important decisions you'll make is how you want to bid for your ads.

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Bidding for ads means telling the platform (in this case, TikTok) how much you're willing to pay for your ad to be shown to users. This can be a difficult decision, because it affects both how much your ad will cost and how often it will be shown. The cost of campaigns is determined by factors like click-through rates, conversions and impressions. 

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The more competitive your bid is, the better chance you have of being seen by your target audience, so it’s important to choose a suitable bidding option for your ads.

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For those involved in Dropshipping or E-commerce through TikTok, paying attention to bidding is especially key as it helps you reach more potential customers.

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How does your bidding method affect your campaigns?

When it comes to the effect of bids on campaigns, think of it like an auction: the more competitively you bid, the higher chance you have of winning that campaign and getting maximum reach.

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However, setting a high bid price doesn’t always guarantee success –it needs to be combined with attractive creatives and a good CTR/CVR (Click-through rate/Conversion rate) in order to be effective.

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Types of TikTok ads bidding

Cost per Mille/Thousand Impressions (CPM)

The Cost per Mille/Thousand Impressions (CPM) bidding type is the most common and simplest way to bid for ad space. You pay for every 1,000 views of your ad. This is a good option if you want to ensure that your ad is seen by as many people as possible.

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For example, if you're willing to pay $10 for every 1,000 views of your ad, and your ad is shown 1,000 times, then you'll be charged $10. If your ad is shown 5,000 times, then you'll be charged $50.

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Keep in mind that this bidding type doesn't guarantee that your ad will be seen by a certain number of people. It just ensures that you'll be charged per 1,000 views of your ad.

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Optimized Cost Per Mille/Thousand Impressions (oCPM)

When you're setting up your ads, you'll want to choose the "Optimized Cost Per Mille/Thousand Impressions" (oCPM) bidding type.

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This bidding type will ensure that your ad reaches as many people as possible, and that you're only charged when your ad is shown to someone who's likely to be interested in it.

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To set up oCPM, you'll need to choose the objective of your campaign. For example, if you're looking to increase brand awareness, you'll want to choose "Brand Awareness" as your campaign objective.

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Cost per Thousand Views (CPV)

This is the most common type of bidding on TikTok, and with CPV, you're essentially paying for your ad to be seen 1,000 times. The cost per view will depend on how popular your ad is, and how much competition there is for that ad space.

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For example, let's say you want to run an ad during the Super Bowl. The CPV for that ad space is going to be a lot higher than if you ran the same ad during the regular season, because there's more demand for ads during the Super Bowl.

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The same goes for ads on TikTok. If you're running an ad during a popular time or in a popular category, you can expect to pay more per view. But if you're running an ad in a less popular time or category, you'll pay less per view.

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Cost per Click (CPC)

You're probably familiar with CPC bidding from other platforms like Google Ads. With CPC bidding, you're charged based on the number of clicks your ad receives. So, if you have a CPC bid of $1.50 and someone clicks on your ad, you'll be charged $1.50.

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CPC bidding is a great option if you're looking to get your ad in front of as many people as possible, and you're not too worried about conversion rates. After all, you're only paying when someone actually clicks on your ad.

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