Available bidding strategies
TikTok ranks ads by how much advertisers bid and how relevant the ads are to users. A higher bid can help you reach more people and get more conversions on TikTok. Bid strategies tell TikTok how to bid for you in the ad auction. When creating ads, you can pick a bid strategy that aligns with your business and marketing goals and within the Bidding & Optimization section.
Available Bidding strategies
Tiktoks Ads manager provides two bidding strategies:
Cost Cap: This is a goal based bidding strategy in which our system optimizes delivery towards a cost per action defined by the advertiser.
Note: We will try to achieve the target cost per action (CPA), but the actual CPA can be slightly higher or lower than the target CPA. Cost Cap is the default bidding strategy for the reach and video view objectives and is supported by a suggested bid and reach estimator to help you understand the impact of the bid to be used.
Maximum Delivery: This is a spend-based strategy which aims to deliver the highest volume of conversions within your defined budget. Maximum Delivery does not optimize towards an advertiser's target CPA and some degree of CPA fluctuations should be expected.
Learn more at Simplified Bidding UI for Brand Auction.
Bidding strategies compared
Bidding Strategy | How it works | Supported Advertising Objective | Supported Billing Event | Things to remember |
Cost Cap | Keeping your average cost around your bid, regardless of your budget. | App Installs, Conversions, Lead Generation | Optimized Cost per thousand (oCPM), Cost per Click (CPC), Cost per thousand (CPM), and Cost per View (CPV) | Costs per Results may fluctuate day to day, but the average will be around the bid amount. Performance can fluctuate before passing the Learning Phase in Conversions campaigns. This may lead to high CPMs. |
Maximum Delivery | Maximizes budget usage by driving the most results possible given a specified budget in a given period of time. | Traffic, Reach, Video Views, App Installs, Conversions, Lead Generation, Catalog Sales | CPC, CPM, CPV, oCPM | Cost per Results may fluctuate day to day based on the changes in the auction environment. You will always obtain the most results at the Maximum Delivery for that time period. Performance can fluctuate before passing the Learning Phase in Conversions campaigns. This may lead to high CPMs. |
Campaigns with Conversions objective often see performance fluctuate before passing the Learning Phase. This may lead to high CPM.
Note: Cost Cap is only available for Conversions campaigns when the Optimization Goal is set to Conversion.