Guide to running TikTok conversion ads for beginners

TikTok conversion ads are often used when businesses want to drive sales revenue or generate potential leads. So how can you run conversion ads that not only achieve the desired results but also help save TikTok advertising costs? Discover the 4-step process in the article below!

What is TikTok Conversion Advertising?

TikTok conversion advertising focuses on transforming user behavior into specific actions that hold value for businesses. Examples include transitioning from watching videos to downloading an app, making a purchase, or submitting contact information.

How is the Conversion Rate on TikTok Calculated?

The conversion rate on TikTok is calculated using the same formula as other types of advertising:

Conversion Rate = Conversions / Ad Reach

Conversions include:

• The number of completed registration forms.
• The number of TikTok users who view a product.
• The number of users who add a product to their cart.
• The number of successful orders (this is the most common and primary conversion type).

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Why Should You Run TikTok Conversion Ads?

Running TikTok conversion ads is an effective choice for increasing revenue, optimizing costs, and building brand awareness. Specifically:

Diversifying Advertising Channels

• TikTok Pixel can be integrated into websites, landing pages, etc., helping to track customer data, measure performance, increase conversion rates, and build data for remarketing campaigns.
• Expanding advertising channels and reaching potential customers across multiple platforms.
• Easily and quickly identifying potential customers.

Driving Purchases

• Conversion ads allow trending video ads to reach users more quickly.
• Including a call-to-action (CTA) encourages purchases and increases conversion rates.

Understanding Customers

• With just a few simple ad setup steps, TikTok’s optimization helps businesses accurately grasp customer behavior and psychology.

What Are the Goals of TikTok Conversion Ads?

• App downloads (via App Store/Google Play)
• Website conversions (purchases, form submissions, etc.)
• Purchases on TikTok Shop

What Do You Need to Prepare Before Running TikTok Conversion Ads?

A landing page and TikTok Pixel are two essential elements that every advertiser or seller must prepare before running conversion ads on a website. If your business offers non-physical products (such as courses or consulting services) and cannot use TikTok Shop for listing, setting up a landing page and pixel tracking is crucial for measurement.

Landing Page

A landing page is a single web page displaying specific product or service information. Its purpose is to guide and attract viewers to take action.

Tips for Optimizing Landing Page Conversions

1. Keep the structure simple and highlight core content

   • Put yourself in the customer’s shoes, understand their desires and behavior when clicking on the landing page, and optimize their experience.

2. Create a sense of urgency to increase click-through rates

   • Add countdown timers or offer exclusive deals for the first few users who make a purchase or submit their information.

3. Make the CTA button stand out

   • Use psychologically stimulating colors, add value to the CTA, and position it conveniently for viewers.

4. Ensure fast page loading speed

   • Page speed is crucial for retaining visitors. Faster load times contribute significantly to higher conversion rates.

5. Deliver a clear message and avoid external distractions

   • Highlight product features that customers care about, use brand-related colors, and add credibility-boosting content (e.g., customer feedback).

6. A/B Testing and Landing Page Analytics

   • Four key metrics to track include:
     • Page views
     • View rate
     • Conversion rate
     • Total number of potential customers

TikTok Pixel

TikTok Pixel is an HTML code snippet provided by TikTok that can be embedded into websites, landing pages, apps, etc. When users visit a page, the pixel automatically activates and collects user behavior and data.

There are three key benefits of using TikTok Pixel for conversion ads:

1. Measuring ad campaign performance
2. Optimizing ad delivery
3. Building audiences based on user behavior

Step-by-Step Guide to Running TikTok Conversion Ads

Step 1: Set Advertising Goals

There are two types of conversion ad goals:

• “App Ads” – Suitable for increasing app downloads or engagement.
• “Website Conversion Ads” – Ideal for driving actions such as form submissions or adding products to a cart on a business website.

Step 2: Configure Ad Group Settings

Setting up an Ad Group involves six key elements:

1. Selecting the website type
2. Choosing ad placement
3. Deciding on the creative format
4. Defining the target audience
5. Setting the budget and schedule
6. Determining the bidding strategy and optimization

These steps follow a similar process to running standard TikTok ads.

Note: You need to set up TikTok Pixel to track conversion activities on your landing page. TikTok offers two pixel setup options:

• Manual installation
• Third-party integration

Step 3: Upload Ad Content

At this stage, you need to clarify the following details:

• Ad Name
• Identity (Brand or Account Details)
• Ad Details
• Tracking (Optional)

Note: In the “Ad Details” section, make sure to include the landing page you are using. If you don’t have one, you can use TikTok’s built-in form, though customization options will be limited.

Once completed, submit the ad and wait for TikTok’s approval process.

Step 4: Measure and Optimize TikTok Conversion Ads

After launching a conversion ad campaign, TikTok will provide a performance report, including key metrics.

To maximize ad performance, focus on three key metrics: CTR, CPC, and CPM.

• CTR (Click-Through Rate) – Indicates the percentage of users who click on your ad. A higher CTR means your ad is engaging and attracting interest. This is the most important metric for conversion ads.

• CPM (Cost Per Mille) – Represents the cost per 1,000 impressions. Analyzing CPM helps optimize audience targeting and measure competitor activity within the same target group.

• CPC (Cost Per Click) – Reflects how much you pay per ad click. This metric shows:

  1. Ad appeal – How compelling your ad is to viewers.
  2. Overall budget efficiency – The cost-effectiveness of your ad campaign.

>>Read more: 7 Ways to Optimize TikTok Ads to Increase Conversion Rates

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