Full TikTok Ads Tutorial (From Zero to Organic Viral Post to Profitable Ad) 2024

Summary

In this video, the speaker outlines key strategies for effective TikTok advertising, emphasizing the importance of understanding your Lifetime Gross Profit (LTG) and Customer Acquisition Cost (CAC). They advise beginners to keep things simple, avoid overwhelming options, and focus on maximizing ad delivery for optimal results. The video also highlights the benefits of Spark Ads and the psychological tactics behind organic-feeling content. With a focus on measuring ad performance through metrics like LTG/CAC ratio, ROAS, and CTR, the speaker provides actionable tips to help advertisers achieve profitability and scale their campaigns effectively. For those looking to dive deeper, Attention Academy offers personalized training.

Takeaways

• 😀 Keep advertising simple, especially in the beginning. Don't get overwhelmed by too many options.
• 😀 Cost cap bidding can sound good but often limits ad performance due to insufficient data collection. Max delivery is usually better for gathering data and optimizing ads.
• 😀 Link your TikTok account to your ad account to use Spark Ads, which display your ad through your actual TikTok profile. This leads to better engagement.
• 😀 If you can't use Spark Ads, create a custom identity with a believable name and picture to give your ad an organic feel.
• 😀 The first few seconds of a TikTok ad are critical for capturing attention. Use psychological tactics to make the ad seem organic and encourage viewers to stay longer.
• 😀 Use native TikTok language and text in your ad to make it feel like an organic post rather than a blatant advertisement.
• 😀 Lifetime Gross Profit (LTG) is how much you make per customer, and Customer Acquisition Cost (CAC) is how much you spend to acquire a customer. If LTG > CAC, your advertising is profitable.
• 😀 The ideal LTG to CAC ratio is 3:1 or higher. This means for every $1 spent on acquiring a customer, you should make at least $3 in profit.
• 😀 To evaluate ad performance, compare LTG and CAC. If the ratio is less than 3:1, investigate other metrics like ROAS, CTR, CVR, and CPM to optimize or remove ads.
• 😀 Attention Academy is a valuable resource for learning TikTok ads and scaling campaigns. It provides peer-reviewed feedback and personalized mentorship to accelerate your learning process.
• 😀 Consistent learning and application of advertising strategies can turn TikTok from a distraction into a profitable skill, especially with the platform's exponential growth.

Q & A

What is the main reason many people quit advertising on TikTok too soon?

Many people quit advertising on TikTok too soon because they get overwhelmed by the options and confusion. If they stuck with it a little longer, they could have seen a profitable outcome and achieved success in their business.

Why is 'Maximum Delivery' recommended over 'Cost Cap' for beginners in TikTok ads?

'Maximum Delivery' is recommended because it allows for better spending power and more data gathering compared to 'Cost Cap', which can restrict the amount of money you can spend and prevent optimal performance.

What is the purpose of using Spark Ads on TikTok?

Spark Ads allow your ads to appear as though they are organic TikTok posts by displaying your actual TikTok profile picture, which can lead to higher engagement and more authentic connections with viewers.

What psychological tactic is suggested to make ads seem more organic?

One psychological tactic is to use a custom identity or persona with a unique name and picture (such as using AI-generated images). This can make the ad feel like a genuine, organic post, increasing the likelihood of engagement.

What is Lifetime Gross Profit (LTG) and how is it calculated?

Lifetime Gross Profit (LTG) is the total profit made from a customer over time, calculated by subtracting the cost of goods sold (COGS) from the total revenue generated by that customer. For example, if a product sells for $40 and costs $10 to make and deliver, the LTG is $30.

What does Customer Acquisition Cost (CAC) represent, and why is it important?

Customer Acquisition Cost (CAC) is the amount spent on advertising to acquire a new customer. It’s important because it helps determine if your advertising is profitable. If LTG is greater than CAC, your advertising is profitable; if not, you're losing money.

What is a good LTG to CAC ratio for profitable advertising?

A good LTG to CAC ratio is 3:1 or higher. This means that for every $1 spent on customer acquisition, you should earn at least $3 in Lifetime Gross Profit from that customer to remain profitable.

What metrics should you monitor when evaluating ad performance?

Key metrics to monitor include Return on Ad Spend (ROAS), Click-Through Rate (CTR), Conversion Rate (CVR), and Cost Per Thousand Impressions (CPM). These metrics help assess whether the advertising campaign is effective and meeting performance goals.

What should you do if your LTG to CAC ratio is below 3:1?

If the LTG to CAC ratio is below 3:1, you should review other metrics such as ROAS, CTR, CVR, and CPM. Depending on the findings, you may need to optimize the ad, reduce the budget, or remove the ad entirely.

What are the benefits of joining Attention Academy for TikTok advertising?

Attention Academy offers personalized mentorship and peer review, providing students with the opportunity to improve content creation quickly. It’s a platform designed for those serious about becoming experts in TikTok advertising, helping them scale their skills and run successful campaigns.