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TikTok Ads Metrics: How to Measure Ad Performance on TikTok  

TikTok ads metrics

If you’re launching an ad campaign on one of the most active platforms, TikTok, there is a list of key metrics that you should not miss out on to evaluate the success of the ad. 

In this article, we will present some of the important TikTok ads metrics that every marketer needs to know to keep track of ad performance. Keep reading to learn more about it. 

What are TikTok ads metrics? 

TikTok ad metrics are a quantitative approach to monitoring the performance of the ad and a vital marketing evaluation tool for assessing the efficiency of a campaign. 

tiktok metrics
Source: Internet

Why is it important to analyze TikTok ads metrics? 

Tracking ads performance

Once you launch a TikTok ad campaign, if you want to know how well the ad content is performing and how much viewers are engaging with your post, there is no better way than to evaluate TikTok metrics. 

Statistics can say it all so that you can determine whether to continue running this ad or adjust it to fit the user’s interest in the platform. Furthermore, one tip for brands is to test different kinds of ad posts to see which one has good metrics. 

Reduce marketing cost 

Marketing costs always raise concerns for every advertiser when starting an ad campaign. The point is how to use the marketing budget appropriately and effectively. Based on these metrics, they will know whether it’s worthy of ad spending or not.

For example, ROI or return on investment will show how much you earn from each dollar invested in running ads. As a result, you can have more strategies for managing the marketing budget and allocating it to different channels. 

Top 9 TikTok ads metrics

1. CVR

CVR stands for conversation rates. This is calculated by dividing the number of people who take the desired action by the total number of people who view your ad. 

In TikTok, conversion rates are counted when customers complete a cycle of the purchasing process. Specifically, they see the ad, swipe up on it, add it to the card and place an order for the product there on this platform. 

Here’s a formula to calculate CVR:

CVR = Number of Conversions / Number of Channel Visitors.

For instance, if your campaign reaches 10,000 users, only 400 users click your ad. The conversion rate in this situation is 1000/400 = 4%. 

Why does CVR matter in analyzing ad campaigns? 

This metric will help brands identify whether or not the ad content is enough engaging and authentic to persuade visitors to take specific actions. A high conversion rate is an indicator of a successful campaign showing what you offer is actually what customers need. So, let’s keep CVR high as much as possible in your ad campaign.

We suggest you some tips to improve CVR: clear CTA, compelling product design, relevant hashtags, enhancing page load time, and offering discounts. 

2. Impressions

It’s regarded as the number of times your ad is displayed in the viewers’ newsfeed, and each person can view the ad more than once. Analyzing impressions can help brands measure the effectiveness of their ad reach so that they know what sized audience your ad was shown to. The higher the impressions are, the more times your ad is seen. 

We have a list of recommendations to increase impressions for your ad campaign to make sure your ad content approaches the right viewers as much as possible. 

  • Include hashtags in your videos
  • Keep it short and sweet
  • Trending sound effects
  • Partner with relevant influencers
  • Post at the right time
  • Create high-quality videos,

However, each brand advertises different kinds of products and targets different customers’ tastes. So the best solution is to test different kinds of content and track the impressions of each one to see which has the best performance. 

3. Reach

The reach of a TikTok ad refers to how many viewers see your ad. It gives you an overview of the level of brand awareness. So if your campaign objective is raising brand awareness, there’s nothing better than focusing on increasing TikTok Reach. The higher your reach rates, the more TikTok users view your ads. That is indicative of a successful campaign. 

Here’s how you can calculate post reach percentage: 

(Reached Audience / Total Followers) X 100 = Post Reach Percentage.

For example, if you have 500 reach and 2000 followers, your reach rate is 25%. 

Boosting the reach for the campaign depends on the brand-ability to create TikTok ads that combine your business value with customers’ needs. So, this ad needs to be engaging and informed. You can scroll above to view some suggested tips in the Impression section to increase the reach of your ad. 

Reach and Impression are often used interchangeably but they’re actually different. Specifically, Reach is the total number of people who see the ad while Impression is the number of times your ad post is shown.

4. CTR

CTR stands for click-through rate. It’s a ratio comparing the number of clicks on your ad over the total times your ad has been viewed. Through this metric, marketers can measure how their ads perform based on the sum of people actually clicked on their ads. 

There are a number of factors affecting the performance of this metric as ad positioning, call-to-action text, images, and keywords. So, how to optimize CTR to get better results for your ads campaign marketing? All you have to do is improve each element affecting CTR. 

For example, you can change the call to action. Instead of using a general CTA as “Click here”, you can concentrate on the benefits that customers can take away from using your products or services by clicking this link. “Download free app” would be a better CTA to let viewers know that they don’t need to pay any fee for installing the app. 

On TikTok, we suggest a click-through rate is 1% or more. If this number is less than 1%, you might test various creatives or audience groups. 

5. CPC 

CPC is the cost per click, which measures how much money you pay for each click on your ads. This statistic is important to make sure that brands invest their marketing budget effectively and efficiently. 

So, why does the analysis of CPC matter? Measuring CPC metrics will enhance the paid marketing campaigns by comparing the cost of paid advertising campaigns to earnings. Moreover, it can bring more traffic to your website as the brand have to pay publishers to show your ads in a place where users are most likely to view them. 

What is a good cost-per-click rate? TikTok ads have an average CPC of around $1.00 based on bidding – not the most cost-effective campaign, but a reasonable one. 

6. CPV

CPV is the cost per view. It is estimated by dividing how much money is spent on an ad campaign by how many views watching your ad. For example, if a company’s total cost of the ad is $1,000 and the number of views is 30,000, then the CPV is 1,000/30,000= $0.3

One of the effective ways to optimize ad cost is to measure CPV in various social platforms so that you will know which channels drive the most views within the same marketing budget. 

7. CPA

CPA is short for cost per action or cost per acquisition and is considered a type of affiliate marketing. Specifically, it refers to the cost that a company will pay a certain commission for an ad that results in sales or a particular action being completed. For example: making a purchase, filling in the contact form, signing up for a trial, and viewing videos. 

With affiliate marketing, you only get a commission if someone makes a purchase. However, it could be easier with CPA when customers don’t need to buy anything, just take simple actions. 

8. ROI

Whenever you start a TikTok ad campaign, you should determine the effectiveness of spending marketing costs on running ads. Many marketers use ROI (return on investment) to evaluate profitability. ROI compares the amount of money you spend on a project with the amount of revenue you make from it.

There are two ways to calculate ROI:

ROI = (Net Profit / Cost of Investment) x 100

ROI = [(Present Value – Cost of Investment) / Cost of Investment] x 100

What is a good ROI? There is no exact number for a good ROI because it is based on the campaign objective, the distribution channel, and the types of your products and services. It’s important to note that: A good ROI indicates that you can make more than a dollar from every dollar you spend on ads. 

ROI is a simple, easy-to-calculate statistic for assessing the effectiveness of an ad campaign by showing how much profit the business earns. This data, allows you to adjust your marketing budget on ads and know where should you allocate for better results. 

9. CPM

It’s known as the cost per thousand impressions. It is a formula that determines the total amount spent on ads for every 1,000 impressions on a TikTok ad. 

The higher CPM means advertisers have invested a lot in your ads to be shown to TikTok users, but the lower CPM means they are using the marketing budget effectively and appropriately. 

How to track TikTok metrics in TikTok Ads Manager? 

Step 1: Click Reporting 

track tiktok metrics

Step 2: Choose to Create > Custom report 

custom report

Step 3: Click metrics and choose which one you want to show in the report 

tiktok metrics

So, with the help of TikTok Ads Manager, the system automatically calculates metrics from your ad campaign, and you don’t need to do it manually. 

Tips to optimize TikTok ads metrics 

TikTok ads manager offers a set of tools to support businesses in analyzing customers’ behavior in each campaign. Then, brands will have useful sources of data in order to produce ad contents that bring joy and value to TikTok users. Let’s discover them shown below: 

  • TikTok Pixel: it’s a powerful tool to track how customers behave for each ad post. You can visit here for further details. 
  • TikTok Instant Page: It helps customers’ journey smoother and easier by speedy loading time from the ad to the landing page, which encourages their next buying actions. Read here to learn how to make the most of this effective tool.
  • TikTok analysis: it’s is a privilege that TikTok offers for every business in the platform to track data to see how well your ad performs.

All of them are free for every business account, so why not set them up now for your own business? 

Start tracking TikTok ads metrics 

It’s not deniable that tracking metrics play an important part in any social media strategy. These statistics would be reliable and informative data to gain insights from users, then marketers can customize their own campaigns. 

We have listed the top 9 determining metrics that need to take into account in each ad campaign. However, depending on your marketing strategy, you can add more KPIs to optimize your campaign as much as possible. 

So if you have any concerns in running an ad campaign from the beginning, you can try the easy-to-use tool, Nest Ads which will support you through the process. 

Kriss

Meet our Author

Kriss

Author at NestScale

Kriss is a professional content writer, focusing on technology and e-commerce business. When she’s not working, you will find her interested in sports or traveling.

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