How to achieve CPA Stability whiles caling spending on TikTok
When you scale spending on TikTok, it is crucial to maintain a stable Cost Per Action (CPA). You can use the following guide to help you increase spending while keeping your CPA efficient and stable for ad groups targeting the following objectives: Traffic, Web Conversions, Lead Generation, Product Sales, and App Promotion.
How to scale with Cost Cap bidding
We recommend advertisers use Cost Cap bidding if they prioritize CPA stability and efficiency. Cost Cap's CPA controls help advertisers achieve CPAs that are equal to or around your target CPA (bid). Unlike Maximum Delivery bidding, these controls ensure that CPAs will remain efficient when you decide to scale investments on our platform.
For New Ad Groups: When you create a new ad group in TikTok Ads Manager (TTAM), choose Cost Cap as your bid strategy by entering your target CPA in the bid input field under the Bidding and Optimization section.
For Existing Cost Cap Ad Groups: Increase your budget. Cost Cap’s controls will work to keep your actual CPA aligned with your target bid, even at higher spending levels.
For Existing Maximum Delivery Ad Groups:
Prior to increasing budget: Switch your bid strategy to Cost Cap using the Hybrid Bidding feature, which allows advertisers to change bid strategies on active ad groups. When you switch to Cost Cap bidding, increase the budget to maintain CPA stability as you scale. Note: Hybrid Bidding does not currently support Product Sales (Shop) objective.
After experiencing CPA spikes: If your ad group has already experienced a CPA spike, we recommend that you switch your ad group from Maximim Delivery to Cost Cap using Hybrid Bidding instead of pausing/ending the ad group. This will allow you to retain engagement history for the ad group while optimizing delivery towards your target CPA.
Scale with Maximum Delivery bidding
Maximum Delivery is designed to maximize conversion volume within your budget but lacks cost controls, leading to potential CPA fluctuations when scaling.
Instead of increasing the budget for an existing Maximum Delivery ad group, create additional ad groups with the same bid strategy. This increases the likelihood that your current ad group maintains its CPA while allowing you to scale by having multiple active ad groups.
Requirement | Solution |
Increase scale by launching new ad groups. | Use Cost Cap bidding for new ad groups. |
Increase scale on existing Cost Cap ad group. | Increase the budget directly. Cost Cap’s controls will work to keep your actual CPA aligned with your target bid, even at higher spending levels. |
Increase scale on existing Maximum Delivery ad group | Preferred: Switch active ad group from Maximum Delivery to Cost Cap bidding using Hybrid Bidding functionality. Increase budget after you have switched to Cost Cap bidding. Alternate approach: Launch additional Maximum Delivery ad groups to increase scale instead of increasing budget on existing ad groups. |
