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TikTok Ads Spending Strategy

TikTok is ideal for reaching younger, highly engaged audiences through creative video content. Here’s how to spend effectively:

Set Your TikTok Campaign Objective

Choose the right objective based on your goals:

  • Awareness: Reach the maximum number of users (e.g., Reach, Video Views).
  • Consideration: Drive traffic, engagement, app installs, or website visits.
  • Conversions: Get users to take specific actions (e.g., purchases, sign-ups).

Define Your Audience

TikTok offers detailed targeting options:

  • Demographics: Age, gender, location.
  • Interests & Behavior: Based on the types of content users engage with.
  • Custom Audiences: Retarget users who have interacted with your brand.
  • Lookalike Audiences: Reach people similar to your existing customers.

Example: If targeting Gen Z females interested in fashion, narrow your audience by gender, age (18-24), and interests (fashion, style).

Choose Your Ad Format

TikTok offers multiple ad formats. Your spend should align with your objectives:

  • In-Feed Ads: Appear as native videos in users’ feeds (less costly, good for brand awareness).
  • TopView Ads: First video a user sees when they open the app (high visibility, expensive).
  • Branded Hashtag Challenges: Encourage user-generated content around a specific hashtag (great for engagement, mid-to-high cost).
  • Branded Effects: AR filters and effects that users can apply to their own videos (engagement-focused).

Best Practice: For smaller budgets, start with In-Feed Ads, which offer high reach at a relatively low cost. For larger campaigns, invest in TopView Ads or Branded Hashtag Challenges.

Set Your Budget and Bidding Strategy

TikTok requires a minimum spend:

  • Daily Budget: Minimum $20 per day per ad group.
  • Lifetime Budget: Minimum $500 for the entire campaign duration.

Bidding Strategies:

  • Cost Per Click (CPC): Pay when someone clicks your ad (usually ranges between $0.10 – $1.50).
  • Cost Per Mille (CPM): Pay per 1,000 impressions (average $10 – $20 per CPM).
  • Cost Per Action (CPA): Pay for specific actions like app installs or purchases.

Example Budget:

  • For a 30-day campaign with a daily budget of $20, allocate $600 to test how well your ad performs.
  • Optimize for CPC to focus on driving traffic to your site or landing page.

Creative Optimization

TikTok is all about creative, engaging videos. Here are tips for using your budget wisely:

  • Create short, captivating videos (9-15 seconds).
  • Use native elements, such as trending music or TikTok filters.
  • Test different creatives to see what resonates with your audience.

 

Monitor and Adjust

Track your TikTok ads’ performance through key metrics:

  • CPC (Cost Per Click)
  • CPM (Cost Per Mille)
  • CTR (Click-Through Rate)
  • ROAS (Return on Ad Spend)

LinkedIn Ads Spending Strategy

LinkedIn is ideal for B2B businesses or companies looking to reach professionals, decision-makers, and high-income audiences. LinkedIn ads tend to be more expensive, but they offer excellent targeting options for business goals.

Choose Your LinkedIn Campaign Objective

Your campaign objective will guide your ad spend:

  • Awareness: Build brand awareness (e.g., Reach, Impressions).
  • Consideration: Drive website visits, engagement, video views, or lead generation.
  • Conversions: Encourage specific actions, like filling out forms, downloading content, or making purchases.

Define Your Audience

LinkedIn offers precise targeting based on professional criteria:

  • Demographics: Age, gender, and location.
  • Job Titles and Functions: Target based on job title, job function, or seniority.
  • Industry and Company Size: Ideal for B2B targeting.
  • Skills and Interests: Tailor ads to users with relevant professional skills or interests.
  • Matched Audiences: Retarget website visitors or upload customer email lists.
  • Lookalike Audiences: Target new users similar to your existing clients.

Example: If you’re promoting a B2B SaaS product, target decision-makers (e.g., CTOs, marketing managers) at mid-to-large companies in your niche.

Select Your Ad Format

LinkedIn offers several ad formats to suit your campaign goals:

  • Sponsored Content: Native ads in the LinkedIn feed (videos, images, or carousel ads).
  • Text Ads: Simple, cost-effective ads in the LinkedIn sidebar.
  • Sponsored InMail: Send personalized messages to users’ LinkedIn inbox (high engagement, but expensive).
  • Dynamic Ads: Personalized ads that adjust based on the user (great for building connections).

Best Practice:
For B2B lead generation, Sponsored Content and Sponsored InMail generally deliver the best results.

Set Your Budget and Bidding Strategy

LinkedIn is more expensive than most platforms, but the quality of leads is higher:

  • Cost Per Click (CPC): $3 – $10, depending on audience targeting.
  • Cost Per Impression (CPM): $6 – $12 per 1,000 impressions.
  • Cost Per Send (InMail): $0.80 – $1.00 per message sent.

Budget Recommendation:

  • Start with a daily budget of $30-$50 for a 30-day campaign to test the waters.
  • LinkedIn recommends a minimum daily budget of $10-$20 per campaign.
  • For lead generation, consider allocating $1,000 – $3,000 per month to get solid results.

Bidding Strategies

LinkedIn offers automatic and manual bidding:

  • Automated Bidding: LinkedIn optimizes your bids to get the most results within your budget.
  • Manual Bidding: You set the maximum amount you’re willing to pay per click or impression.

For beginners, start with Automated Bidding to let LinkedIn optimize your ad delivery.

Creative and Messaging

LinkedIn users are professionals, so your ad content should be professional, informative, and value-driven:

  • Use compelling headlines and concise messaging.
  • Showcase thought leadership or high-value offers, such as whitepapers, case studies, or free trials.
  • Use visual content (images, carousels, or videos) to catch attention.

Optimize and Scale

As with any platform, monitor your LinkedIn ad performance using key metrics:

  • CPC (Cost per Click)
  • CTR (Click-Through Rate)
  • CPA (Cost per Acquisition)
  • Lead Quality: Evaluate the quality of the leads generated through LinkedIn.
  • If a campaign is performing well, increase the budget. If not, refine your targeting, messaging, or creative.

Example Budget Allocation for TikTok and LinkedIn Ads

Let’s assume you have a $3,000 monthly budget:

  • TikTok: $1,200
    (In-Feed Ads focusing on video views and engagement; CPC bidding)
  • LinkedIn: $1,800
    (Sponsored Content and InMail focusing on lead generation; CPC and CPM bidding)
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