TikTok Smart Performance Campaigns

With TikTok SPC you can get better results with your TikTok advertising for e-commerce and app downloads. But what exactly are TikTok Smart Performance Campaigns and how do you create such a campaign?

medarbejderbillede-2024-Jacob_endelig
Head of Social Media
April 14, 2023

On March 10, TikTok launched their own end-to-end automated campaign tool, Smart Performance Campaigns. The campaign type reminds many of Meta’s new Advantage+ Shopping campaigns and Google’s Performance Max campaigns, where the use of machine learning takes over a large part of the manual work, such as setting up target groups and A/B split tests.

TikTok itself describes SPC as follows:

“Smart Performance Campaign is a new end-to-end automation campaign solution to maximize your delivery outcomes with less manual input required from your side. Our system produces multiple creatives and bids for auctions leading to stronger performance for your campaigns (…).”

This news comes just a short time after Meta rolled out their Advantage+ Shopping campaigns to most advertisers, although there are still some who are missing the option. TikTok therefore proves itself again as a serious and attractive advertising platform that offers many of the same functions as Meta and is on the beat.

What can Smart Performance Campaigns do?

Automatic targeting: SPC uses machine learning to identify potential customers and hit them with the creative most likely to convert the user.

Optimization of creatives: Using TikTok’s own video tool, different versions of your creatives are automatically produced. On average, this gives the SPC campaigns 37% less “ad shelf time extension” compared to regular campaigns.

Improved efficiency: Leave more of the campaign setup and audience definition to TikTok itself, while using best practice implementers. It gives you more time to focus on developing the creatives and thereby supports TikTok’s core message to their advertisers: “Don’t Make Ads. Make TikToks.”

Boost performance: Smart Performance Campaigns perform better than traditional campaigns with identical optimization goals in 80% of cases, according to TikTok itself.

In a concrete case from TikTok with the transport app Bolt, SPC gave 27% lower CPA and generated 40% more purchase events in a 14-day A/B split test.

How is it set up?

Inside the TikTok Ads Manager, you can enable SPC during a confetti campaign. You must then select language, location and choose whether you want to exclude users under the age of 18 or user-defined target groups, such as former customers.

3 good tips for SPC

  1. Use an appropriate budget: to support the algorithm’s ability to effectively test and target your campaigns as best as possible, you should have a budget high enough to reach your potential customers in the target audience.
  2. Use at least 3 creatives for each SPC campaign: The more creatives you have, the greater the chance that the algorithm can choose the most optimal creative for the individual user.

  3. Update your videos regularly: In order to maintain high performance over time, it is important to test and develop your videos. Take lessons from previous campaigns and try to improve on them continuously.

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Are you considering advertising on TikTok?

Please call, so we can have a talk about how we can help you with the right strategy and execution.

Head of Social Media

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medarbejderbillede-2024-Jacob_endelig
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