Bidding Methods
Last updated, May 2024

Bidding is an important part of the overall ad creation process. There are various types of bidding methods available that depend on your overall strategy and objectives.


This article provides you a basic overview of each method giving you the knowledge you need to start running TikTok Ads. Currently, TikTok Ads Manager provides four different bidding methods:

  • Cost per Mille/Thousand Impressions (CPM)

  • ​Optimized Cost per Mille/Thousand Impressions (oCPM)

  • ​Cost per View (CPV)

  • ​Cost per Click (CPC)


CPM

This means your bid is the price you are willing to pay for one thousand impressions. The system will deliver your ads to get the most exposure and reach as many customers as possible within your budget.

  • ​Calculation: (Total cost / Total impressions) * 1,000

  • ​Billing Event: Charged by impression

  • ​Applicable Advertising Object: Reach


oCPM

Note: oCPM is now the default bidding method for the Conversions and App Installs advertising objectives.


This means your bid represents the price you are willing to pay to create one thousand impressions, targeting users who are likely to complete a conversion event, become a lead, or install an app.

  • Calculation: (Total cost / Total impressions) * 1,000

  • ​Billing Event: Charged by impression

  • ​Applicable Advertising Object: Shop Purchases, Product Sales, Conversions, App Install, Lead Generation, Community Interaction (Follows).


CPV

CPV bidding means that you pay 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).

  • Calculation: Total cost / Total focused views

  • Billing Event: 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).

  • ​Applicable Advertising Object: Video Views


CPC

This means your bid is the cost you are willing to pay per click. The system will deliver your ads to users who are most likely to click them at a cost that is as close to your bid as possible.

  • ​Calculation: Total cost / Total click

  • ​Billing Event: Charged by click

  • ​Applicable Advertising Object: Shop Purchases, Product Sales, Traffic, App Installs, Conversion, Community Interaction (Profile Visits).


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