Before getting started: Gross Revenue Optimization for TikTok Shop aims to help you find high-quality shopping audiences to generate higher gross revenue.
Compared to Purchase optimization, Gross Revenue Optimization for TikTok Shop optimizes for higher Return on Ad Spend (ROAS) in addition to identifying people who are more likely to take a purchase action.
Prerequisites and availability
Gross Revenue Value-Based Optimization is available to all TikTok Shop advertisers.
Campaign and Ad Group Settings | Supported Options |
Advertising Objective | Product Sales with TikTok Shop |
Operating System | Android & iOS |
Optimization Event | Gross Revenue |
Placements | TikTok |
Bid Strategy | - Highest Gross Revenue - Minimum ROAS |
Note: To use Gross Revenue Optimization for TikTok Shop, you need to first enable Shop Ads.
For more information, learn how to set up Shop Ads in Seller Center and how to request TikTok Shop access from Business Center.
Set up Gross Revenue Optimization for TikTok Shop
Gross Revenue Optimization for TikTok Shop aims to help you maximize your ad gross revenue.
Create campaigns using Gross Revenue Optimization for TikTok Shop
Create a new campaign on TikTok Ads Manager.
Select Product Sales as the Advertising Objective with TikTok Shop product source.
Under Ads Type, choose either of the following:
Video Shopping Ads
Live Shopping Ads
Product Shopping Ads
For Age, choose 18+, e.g. 18-24, 25-34, 35-44, 45-54, 55+.
Under Bidding & Optimization, select Gross Revenue as the Optimization Goal.
Select the Highest Gross Revenue or Minimum ROAS as the Bid Strategy:
Highest Gross Revenue will aim to spend your entire budget by the end of the ad group's schedule, while maximizing the Return on Ad Spend (ROAS) you get from purchases made by TikTok users.
Minimum ROAS is suitable for advertisers who want to meet or exceed a specific ROAS and need more control over ROAS than the budget consumption rate.
Complete the rest of your ad group settings, upload your ads, and run your Gross Revenue Optimization Shop campaign.
How should I choose my bid strategy for Gross Revenue Optimization?
Bid Strategy | Scenario | Considerations | Market Availability |
|---|---|---|---|
Highest Gross Revenue | Want to spend your budget in full while focusing on getting higher Gross Revenue. | - When you use the Highest Gross Revenue, the system aims to fully spend your budget and bid for the highest possible gross revenue. | Shop Ads: Indonesia, Malaysia, Philippines, Singapore, Thailand, Vietnam, the United Kingdom, and the United States. |
Minimum ROAS | - Want to meet or exceed a specific ROAS. - Need more control over ROAS than Budget Consumption rate. | - If your Minimum ROAS bid is set too high, ad delivery will be limited, as well as your budget consumption rate. - We aim to stay above the Minimum ROAS you specify, but it's not guaranteed. - If you care more about sufficient budget consumption than always meeting or exceeding a specific ROAS target, Highest Gross Revenue is recommended. | Shop Ads: Indonesia, Malaysia, Philippines, Singapore, Thailand, Vietnam, the United Kingdom, and the United States. |
Best Practices for Gross Revenue Optimization for TikTok Shop
We recommend the following best practices:
Set an adequate budget
Set your daily budget at least 10 times the targeted CPA for Purchase.
For a lifetime budget, multiply your target Cost Per Action (CPA) for Purchase events times 10 and then multiply that by the number of days in your campaign.
If your target CPA for Purchase is too high, you can set the same budget as your Business As Usual (BAU) ad groups. However, a budget that is too low will limit the system's ability to explore the right audience for your ads.
Set a reasonable target audience
Do not set targeting that is too broad or too narrow.
Video Shopping Ads
Let your Gross Revenue Optimization campaigns run for at least 7 days.
In the first several days, the results may fluctuate. After 7 days you should have strong indicators about the performance of the Gross Revenue Optimization campaign.
Avoid any adjustment in the first 3 days
Editing your ad group settings during the campaign may impact your ad group's ability to pass the learning phase.
After 3 days, make one adjustment every 2 days, and modify your budget or bid by no more than 20% at a time. The more frequent or significant the change is, the more fluctuation will be expected.
If you pause the Gross Revenue optimization campaigns for over 24 hours, it may go back to the learning phase again if you restart it.
LIVE Shopping Ads
Avoid making any adjustments during the campaign
Due to the typically limited duration of LIVE videos, it is recommended not to make any adjustments to the campaign while it is live.
Editing your ad group settings during the campaign may impact your ad group's ability to pass the learning phase.
The more frequent/significant the change is, the more fluctuation in performance will be expected.
Product Shopping Ads
Run ads with as many products as possible.
Ensure ads schedule is as long as possible to capture always-on consumer demand.
Minimum ROAS
Set a reasonable Minimum ROAS bid.
Refer to actual ROAS for the past 7 days for ads targeting the same market and optimizing towards the same optimization goal, namely Purchases.
Setting a relatively lower ROAS bid is helpful for the ad group to pass the learning phase faster.
If you are not sure what Minimum ROAS bid to set, the Highest Gross Revenue is recommended.