Value-Based Optimization for Web

Value-Based Optimization for Web conversion ads (VBO Web) aims to help you find high quality audiences who are likely to generate higher value per purchase. Unlike normal web conversion ads that can only optimize towards Complete Payment events, VBO web ads will not just look for people who are more likely to take a purchase action, but also with higher value per purchase by either buying multiple products in one go or buying products with higher price points. By directly optimizing for value, VBO web will be more likely to bring higher Return on Ad Spend to advertisers.

Value-Based Optimization for Web-JPG

Availability of Value-Based Optimization (Web)

VBO Web will be available when you have obtained at least 20 attributed unique purchases (complete payment) with value over any consecutive 7 days on TikTok, Pangle, or Global App Bundle placements.


Advertising Objective

  • Supported options: Conversion, Website Conversions

Operating System

  • Supported options: Android & iOS

Optimization Event

  • Supported options: Complete Payment

Placements

  • Supported options: TikTok, Pangle, Global App Bundle

Markets

  • Supported options: All markets with auction ads

Optimization Goal

  • Supported options: ​Value

Bid Strategy

  • Supported options: Highest Value, ​Minimum ROAS


Set Up Guide for Web Advertisers

Note: Please make sure you are adopting Custom Code or Events API, and you are posting back value for Complete Payment to TikTok. If you are using Event Builder, then you need to shift to Custom Code or Events API first before you can post back value to us.

To promote a website using VBO

1. ​Create a new campaign on TikTok Ads Manager.

2. ​Select Website conversions as the Advertising Objective.

3. Under Website, choose External website.

​4. Choose your TikTok Pixel, and select Complete Payment as your Optimization Event.

5. ​For Placement choose Automatic Placement, or any specific placement: TikTok, Pangle, and/or Global App Bundle.

6. ​Under Bidding & Optimization module, select Value as the Optimization Goal.

7. Select a Bid Strategy from either Highest Value or Minimum Return on Ad Spend (ROAS).

  • ​Highest Value is the default bidding strategy if advertisers don't enter a Minimum Return on Ad Spend bid.

  • ​If advertisers select Minimum Return on Ad Spend, enter the Revenue on Ad Spend you want to achieve. For example, "2" as the bid.

8. ​Complete the rest of the settings, upload your ads, and run your VBO web campaign.


Best Practices for Value-Based Optimization (Web)

Set a reasonable Minimum Return on Ad Spend (ROAS) bid

  • ​Refer to the actual Return on Ad Spend for the past 7 days for ads targeting the same market and optimizing towards the same optimization goal, namely Complete Payment.

  • ​Setting a relatively lower Return on Ad Spend bid is helpful for the ad group to pass the learning phase faster.

  • ​If you are not sure what Minimum Return on Ad Spend bid to set, Highest Value is recommended.

Set an adequate budget

  • ​Using 10 * target CPA for Complete Payment as a daily budget.

  • ​If you want to use a lifetime budget, use 10 * target CPA for Complete Payment * Campaign Duration.

  • ​If your target CPA for Complete Payment is too high, e.g.> 100 USD, you can set the same budget as your BAU (Business As Usual) ad groups. However, too low of a budget will limit the exploration of the algorithm.

  • Increase the budget gradually when the Return on Ad Spend reaches your expectation, which will help you explore more high-value users.

Set a reasonable target audience

  • ​Do not set targeting that's either too broad or too narrow.

  • ​If you have Custom Audiences which work well, we recommend creating Lookalike Audiences for those Custom Audiences.

Let your VBO web campaigns run for at least 7 days

  • ​In the first several days, the results may fluctuate. After several days, you should have strong indicators about the performance of the VBO web campaigns.

Avoid any adjustment in the first 3 days

  • ​Editing your ad group settings within the first 3 days 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 50% at a time. The more frequent/significant the change is, the more fluctuation will be expected.

  • ​If you pause VBO campaigns for over 24 hours, they will go back to the learning phase again if you restart them.


FAQs

What is the difference between Value-Based Optimization (Web) and normal web conversion ads optimizing towards Complete Payment?

When you run normal web conversion ads optimizing towards Complete Payment events, TikTok ads delivery system will look for people who are more likely to convert, but value per purchase is not taken into account.


​When advertisers run VBO Web, TikTok ads delivery system will not just look for people who are more likely to convert but will also look for people who will generate higher purchase value for advertisers.


To summarize, normal conversion ads only optimize towards conversion quantity, while VBO web will optimize towards both conversion quantity and conversion quality.

​What is the difference between Minimum Return on Ad Spend (ROAS) and Highest Value bid strategies?

With Minimum Return on Ad Spend, there's less guarantee of spending your budget fully. This is because we might not be able to constantly meet your required minimum ROAS target. Instead, we'll aim to get you the most opportunities possible, while meeting or exceeding your minimum Return on Ad Spend value.


​Highest value tells our system to try to spend your entire budget by the end of the ad group's schedule while maximizing the Revenue on Ad Spend you get from purchases made by TikTok users.

How should I choose my bid strategy for Value-Based Optimization?

Consider the following when choosing the bid strategy that is right for you:

Bid strategy: Minimum ROAS

Scenario:

  • You want to meet or exceed a specific Return on Ad Spend.

  • ​Require more control over Revenue on Ad Spend than Budget Consumption.

Considerations:

  • ​If your Minimum Return on Ad Spend bid is set too high, ad delivery will be limited as well as your budget consumption rate.

  • We aim to stay above the Minimum Return on Ad Spend you specify, but it's not guaranteed.

  • If you care more about sufficient budget consumption than always meeting or exceeding a specific Return on Ad Spend target, then Highest Value may be a better option.

Bid strategy: Highest Value

Scenario:

  • You want to spend your budget in full while focusing on getting higher-value purchases.

Considerations:

  • When you use Highest Value, the system aims to fully spend your budget and bid for the highest possible purchase value.

  • Your Return on Ad Spend may decrease as your cost increases.


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