Today we are bringing you a case study from Kevin Krieg, an e-commerce entrepreneur and the founder of Vindex Media, a Tiktok advertising agency based in the USA. Kevin was able to scale his client’s Shopify store from $1 000 per day revenue to $16 000 per day revenue while maintaining a ROAS of 3.6 in just 6 days by using Tiktok ads.
Kevin attained this scale after just 6 days of running the campaign on Tiktok ads and in this article, he shares how he did it, day by day, and how you can replicate his strategy to be able to scale marketing campaigns really fast with Tiktok ads.
Spoiler alert: He used the combination of Tiktok’s Automated Creative Optimization campaigns (ACO) and manual bidding to attain this scale. Just read along to see how he did it.
Day 1: Shifting the Сlient’s Initial Campaigns to ACOs
Kevin’s client had existing ad campaigns that were set up with several ad groups that were running one creative in them. The campaigns already had a positive ROAS and were generating the client $1 000/ day in sales but were not able to scale further simply because their setup was great for getting initial data, but not so great for scaling.
So the first thing Kevin did was to move the best performing creatives into ACOs. He set up 2 creatives per ACO with 5 different texts/ captions.
Note: Automated creative optimization is a display ad technology that creates personalized ads based on data about the viewer during the moment the ad shows.
Day 2: Cutting Off Underperforming ACOs and Collecting More Data with the Positive and Break-Even ACOs
Most ACOs worked well. Kevin’s next move on paper was to shift into manual bidding. However, he didn't have enough data to figure out which ACO to favor and which bids to test. So he waited another day for the data to mount up in order to do this move.
On day 2, he only cut off some underperforming ACOs and left the others to gather more data.
Day 3: Shifting the Top-Performing Campaigns to Manual Bidding
On day 3, Kevin collected some data and he identified 2 of the best-performing ACOs and moved forward with manual bid testing for them. He duplicated each of the 2 winning ACOs 5 times, and set a different bid for each starting at the value which was the average CPA cost minus $2.
He also cut off the rest of the ACOs and remained with these new duplicated ones.
Day 4: Duplicating the ACOs that Were Able to Spend the Most and Introducing a Retargeting Campaign
By day 4, only the ACOs that had the highest bid were able to spend, the rest didn’t spend much. So Kevin cut all the low-spending ACOs and created 2 more duplicates of the high-spending ACOs. He then increased 1 more dollar to the bids of the new duplicate ACOs.
At this point, Kevin also introduced retargeting in a separate campaign. He set up the campaign using the largest audiences; one audience per ad group, and 2 best creatives per ad group.
Day 5: Duplicating the ACO with the best ROAS
On day 5, the high-spending ACOs were already spending a large portion of their budget nicely. It was the exact position Kevin wanted to be in and at this point, he was ready to scale the one ACO with the winning bid in terms of ROAS.
He duplicated the best one 3 times and increased their budget to $200 per day for each.
Day 6: Scaling Further by Creating More Duplicate ACOs with a Bigger Daily Budget
Kevin had only one of the new ACOs approved, and the other 2 were rejected. The approved one spent nicely so he needed to scale it further.
He appealed the rejected ones and duplicated the approved one 5 times, setting them at a new budget of $500 per day for each.
Day 7: Success
All got approved and the appealed ones got approved too. The ad spends picked up in the morning and spread evenly throughout the day. Overall, Kevin was able to hit $16 000 in revenue on that day with a 3.6 ROAS.
He kept on running them and he did over $250 000 in revenue in that month and the store still continues to grow till today.
Kevin was able to scale his client's revenue from $1 000 per day to $16 000 per day by using the combination of Tiktoks ACOs and Manual bidding. The TikTok platform is the leading social media platform today, so it’s a wise decision to create digital advertisements with the capability of high engagement there. In fact, the platform has proven they have users that aren’t subscribing to others.
Other frontrunners like Facebook and Instagram haven’t been able to keep up with TikTok’s capabilities recently, the main reason being a lack of engagement. To keep engagement active with an opportunity for improved sales, TikTok offers automated creative optimization with proven results as we can see from the case study from Kevin Krieg.