One of the best and most effective platforms to run an ad campaign is Tiktok ads. Unfortunately, Tiktok Ads are not cheap these days. Setting up the store, researching for the product, and sourcing the product to sell are all stressful enough, let alone tracking a complex ad campaign. However, in this post, we are going to look at how Jakub was able to make $11 000 plus in three weeks by running TikTok ads to his store.
Jakub Wieckowski is a dropshipper and a YouTuber, and he has on his YouTube Channel many videos on his various adventures of making money online. Recently, Jakub devoted himself to looking for a dropshipping business model that can work for him, and he has been building stores trying to make money in the process. Also, he has tested a lot of products which have cost him quite a fortune.
Fortunately, he discovered a true winning product that has consistently earned him $200 to $400 per day using TikTok ads. So in this article, we are going to investigate how he advertises his product using Tiktok ads in depth.
In short, the store's backend dashboard is shown above, and you can see that a total of $11 018.33 in revenue has been generated. Jakub began running ads for this store on July 20th, 2022 and has been running them for three weeks as of today, August 10th.
The store has already made $181.34 for a day's earnings, but it's one order less because an order came in today from Jakub himself while was testing out this new method. He wanted to see how quickly he can get the product and also to test its quality. Also, he was testing a new tracking system for his TikTok ads, which is very important.
How To Track Tiktok Video Ad Performance
According to Jakub,
"When you are running ads on Tiktok, what I have realized is that oftentimes people will see your ads and when they see your ads instead of clicking on 'shop now' button, they will click on your profile button to check out your profile, and then go to your home page. When that happens a lot of sales don't get tracked properly inside the Tiktok ad account"
The name of the tracking software Jakub used for his method is called Hyros.
Though it is quite expensive, with the lower package costing $350, it is highly recommended because it tracks everything. For example, if you see an ad right now and you watch it, upu can easily track it. Even if you decide to go to the shop a couple of days later, this software will still be able to track and see which ad you saw first and which ad you clicked on. As a result, it is very advanced tracking software, which justifies its high price.
In Jakub's words,
"For the past three weeks I have realized that whenever I was testing ads the sales would go up. I had days where I had like $420 in profit from sales and then the next day I would go into my ad account to check which ads gave me sales. A lot of sales were not tracked and then I would switch off the ads that were not showing any sales. The next day I would see a drop in my sales because I have probably switched off some ads that did generate sales that were not tracked".
Just to prove this strategy works, the store made up $711.99 in sales yesterday, 9th August.
To make things easier Jakub has a spreadsheet where he tracks all his sales, fees, and other expenses. This is recommended especially if you are running any ad campaign to help you know how your efforts and methods are converting. The ad campaign started running on the 20th, but he started his entry on the sheet on the 21st of August.
He made losses on the first day of running advertisements, which is understandable given that the products are still being tested. According to Jakub,
"$55 was lost, so you should be aware that with this strategy, you will most likely lose money on the first and second days, but this will set you up for an amazing start to start making real money very quickly with Tiktok ads".
The second day's profit was $239, with 16 sales which consists of 11 single orders and 5 double orders. On the 3rd day, the profit was down at $95 because Jakub probably switched off the ads that were bringing sales. He made the decision to switch them off because they were not reported in the TikTok ads manager; however, as soon as he started running new ads, sales started coming in again.
Again, he turned off some ads that were most likely bringing in sales but were not reported, and revenue dropped. So, it is extremely important to use a third-party tracking tool to avoid problems like this, particularly with Tiktok.
Jakub made £600 in the first week of running the ads; however, after the first week of running the ads, Tiktok shut down all of them for violating one of its laws — advertising too "sexual" content. Jakub had to go back to his Fiverr ad creator and request a new video ad, but this time with less "sexual" content.
This is like starting over because he now has to use new ads and set everything up all over again. Since this is completely new, Jakub lost money again on the first day of implementing this because he was testing the ads. Be aware that you will have slower days as well as better days. You cannot always have the best days every time. Nonetheless, in the new week, Jakub made £1 447 in profit without massive scaling up the amount spent on ads.
How to Advertise Your E-commerce Product with Tiktok Ads
Go to Tiktok ads manager or create an account if you don't already have one; creating an account is simple and launch a new campaign. Order for videos you are going to use for your campaign immediate. After you have received all of the video ads you want to test, you should begin with five videos, but this will vary depending on your budget.
Because the campaign we are creating is a conversion campaign, let us call it a test campaign and press the continue button. In the first setup of the campaign, we don't change anything else except the conversions.
Most people tell you to choose your pixel and then go with the full payment as an optimization event, but every time Jakub did this, Tiktok would either not spend his budget at all or spend very little of it. If it did spend the budget, it would spend it in such a way that the cost per click would be high and he would not receive any sales. So, an add-to-cart campaign is recommended because it is a much cheaper type of ad.
The Tiktok add-to-cart campaign, like the Facebook clicks campaign, is significantly less expensive than the purchases campaign. The end goal is for the ads to be cheaper with a lower cost per click, which means that your ads for that day will be seen by a much larger number of people. This will allow you to determine which of the five different video ads is performing the best, as you want to find one winner to begin with.
The second reason you should use an add-to-cart is that it will allow TikTok to show your ads to a much larger number of people for the same budget. This will then help TikTok gather a lot more data to see which type of audience is reacting to your ads the most.
Next, select placement and disable video downloads. If you go too broad with your interest, your campaign will be very expensive. Instead, choose everyone over the age of 18.
Still, under interests, look for interests related to your product, and you should have eight to fifteen interests here.
Scroll down and toggle on the targeting expansion, and click Interests and Behaviors. This will allow you to go abroad, and it will allow TikTok to show your ads to everyone. This is a good strategy because you specify your audience, and watch out for how TikTok reacts to the ads.
Now for the budget: when testing with add-to-carts, stick to a daily budget of no more than $20. After you've completed these, add the video and any necessary text. Choose the shop now button and leave the rest alone before clicking the Submit button. When we return to the ads manager after you have created this ad, we will see that we have created one ad group.
The next step is to duplicate this one ad group to create five ad groups, and then insert the new video ads into each of the ad groups. Having and testing five different video ads results in five distinct ad groups. These are the same ad groups with the same interest and target expansion, but each has a different video.
After doing all of the above, leave them alone for a day and return to see which of those video ads has the cheapest add-to-carts. After discovering the cheapest, you must return to the ads manager to turn off the campaigns, select the winning video, and create a new campaign, this time without adding to cart optimization but with complete purchases optimization.
You should create five different ad groups in a campaign, each with a different set of interests, but all of those ad groups will be promoting the same winning video; there will be no need to create another video. After two days of running this campaign, you will notice that some ad groups outperform others. Switch off the ones that aren't bringing you sales, but keep the ones that are bringing you sales on and duplicate them. Then, restart by testing the remaining video ads with purchase optimization and those winning ad groups.
Revenue and Income Analysis
Below is the breakdown of the total income:
- Revenue: $11 018.83
- Expenses: $3 768
- Total Income (Profit): $7 249.48
Conclusion
We have seen how profitable a dropshipping business can be using Jakub's Tiktok ads strategy by optimizing the settings for each ad group.
Start with add to cart because it is the cheapest option, then move on to other options. The most important thing, however, is to ensure that you have a method of tracking your ad views, as this will help you determine which video ad to optimize. Unfortunately, the TikTok ad manager is not very good at tracking, so you can use Hyros, a third-party tracking software.
When you use this method and are able to narrow down your ads to only the winning ones, you will start making a lot of money. As a result, make professional videos for your TikTok ad campaigns at all times.
