Because metrics for Product GMV Max include both paid and organic traffic, metrics like ROI and Cost per order might not give you the most accurate measure of how well your videos are performing in your campaign. Follow these best practices to understand and use key metrics to correctly measure video quality in your Product GMV Max campaign.
Focus on Gross Revenue: Gross Revenue shows the total amount of money your campaign is making, regardless where your traffic is coming from. Use videos and products with high Gross revenue as examples to improve others in your campaign.
Understand ROI and Cost per order: While ROI and Cost per order are helpful metrics to control your ad spend, you should consider these in context when evaluating your videos. These combine both organic and paid GMV, so they don't show ad effectiveness alone.
Consider the cause of higher ad spend: Videos that do well might have a higher Cost per order and a lower ROI due to higher ad costs, but boost your sales through a combination of paid and organic traffic. Don't remove products or videos from your campaign just because they have a higher ad spend, since they might generate more GMV overall for your shop.
Your Product GMV Max campaign contains 2 videos:
Video A is attributed to 100 Orders and $1000 in Gross revenue. Ads featuring this video cost a total of $200, with an ROI of $5 per dollar spent and a Cost per order of $2.
Video B is attributed to 200 Orders and $2000 in Gross revenue. Ads featuring this video cost a total of $500, with an ROI of $4 per dollar spent and a Cost per order of $2.50.
Video A might seem more efficient, but Video B makes more sales. Video B has a lower ROI because it has higher ad costs, which means it's doing well and being featured in more ads. If you stop using Video B to save money, you might lower your total sales.
Learn more about video play metrics in TikTok Ads Manager.