Available bidding methods

Last updated: August 2024

Bidding methods are useful to fine tune your campaign to best fit your marketing goals. TikTok's auction ranks ads based on bid price and the relevance an ad might have to people. A strong bid can help you increase reach for your ads and maximize the volume of conversions you intend to drive on TikTok. Bidding is an option when you create your ad. During ad creation, you can choose a bidding method that fits your goals and marketing strategy.

Available bidding methods

TikTok Ads Manager provides four different bidding methods:

  • CPM (Cost per thousand impressions): Your bid is the price you are willing to pay for one thousand impressions.

  • oCPM (optimized Cost per thousand impressions): Your bid represents the price you are willing to pay to create one thousand impressions by selecting people who are likely to take an action you want, become a lead, or install an app. Note: oCPM is the default method for the coversions and app install advertising objectives.

  • CPV (Cost per view): Your bid represents the price you pay when a person views your ad for at least 6 seconds or by interacting with the video within the first 6 seconds. The option that comes first is applied.

  • CPC (Cost per click): Your bid is the price you are willing to pay per click. The system will deliver your ads to people who are most likely to click them at a cost that is as close as possible to your bid.


Bidding methods compared

Bidding method

Calculation

Billing event

Applicable advertising objective

CPM

Total cost or total impressions per 1,000

Charged by impression

Reach

oCPM

Total cost or total impressions per 1,000

Charged by impression

-Shop purchases

-Product sales

-Conversions

-App install

-Lead generation

-Community interaction, follows

CPV

Total cost or total focused views

Charged when a viewer views your ad for at least 6 seconds or by interacting with the video within the first 6 seconds. Whichever comes first is applied.

Video views

CPC

Total cost or total click

Charged by click

-Shop purchases

-Product sales

-Traffic

-Conversions

-App install

-Community interaction, profile visits

Learn about bidding best practices.