Intending to identify scale, CPI, and profitability potential from our test budget, we started in iOS. After the first few days of being live, we started to increase daily budgets by 20% and expanded to Android.
We ran bid tests to compare scale vs cost efficiency - the headroom on CPA from our original higher bids was over 50%, so we quickly tested 50% bid decreases on new ad groups. We were able to still achieve the same amount of scale as those ad groups of higher bids but at a much more efficient CPI.
Our test showed TikTok
to be an extraordinarily profitable ad channel. TikTok CPI was extremely low cost relative to other active channels such as Facebook and UAC.
Each channel has its period of learning where the algorithm looks to reach the most fitted users for your ads. TikTok is most comparable to Facebook (except for the 7-day rule) where an ad group requires 50 conversions to end the learning phase. The TikTok algorithm will try to push new ad groups until it reaches 20 conversions, which TikTok calls the "cold phase". It's recommended to leave everything intact while in learning unless performance plunged or it seems unlikely to achieve at least 20 conversions in 10 days.