Getting the most out of your TikTok ads with Value-Based Optimisation

Value-Based Optimisation (VBO), TikTok's game-changing bidding strategy that drives higher ROAS, is now available to all advertisers on TikTok.

VBO doesn't just help brands find users who are more likely to convert, it also identifies those individuals with a higher value per purchase, meaning it finds users who are likely to spend more with each conversion. And it works! During beta testing, 94% of advertisers saw a higher ROAS vs campaigns that didn't use VBO, and 72% of advertisers saw a higher value per purchase vs non-VBO campaigns.

VBO in action

A popular clothing brand running ads on TikTok were looking to utilise VBO to increase the number of conversions in an attempt to achieve a lower-than-average ROAS. By introducing VBO to their campaign, the brand aimed to increase the average ROAS and reduce the CPA per conversion.

To achieve these results, the clothing brand released a new optimisation goal that focused on quality of users rather than quantity, leading to some outstanding results: by enabling VBO, the clothing brand decreased their CPA by a massive 54.2% while seeing conversions climb by 95% and ROAS by 8.9%.

A few tips to help you get started

To introduce VBO into your next TikTok campaign, follow our top tips to get started:

Maximise Retargeting to see higher ROAS

Begin your VBO campaigns with Retargeting Ad Groups to capitalise on custom audiences created from upper/mid-funnel campaigns.

Let your VBO campaign run for at least 7 days

Results may fluctuate at first, so avoid any adjustments for the first week. After this, you should have a strong indication of the campaign's performance and can optimise accordingly.

Set a reasonable minimum ROAS

Once your campaign has run for 7 days, you should have a good idea of your ROAS. Set your minimum ROAS to 80% of this.

Make full use of Audience Analysis

A detailed analysis of Ad Impression delivery will provide you with insights that will help with targeting criteria for your VBO campaign.

If you're already set up in TikTok Ads Manager, then you can go ahead and set up a VBO campaign today. If you need a little more help getting started, we've got you covered.