What Is TikTok’s Smart Performance Campaign And What Are The Best Practices For Setup?

TikTok’s Smart Performance Campaign and Meta’s Advantage+ shopping campaigns are similar in that they both use machine learning to optimize ad delivery and targeting to achieve specific business goals. In fact Smart Performance Campaign taps into all of TikTok’s semi-automation capabilities across targeting, bidding and creative, removing previous manual working and therefore saving time. We’ve seen promising results with this new solution so far, so let’s dig a bit deeper into each of the automation areas mentioned above, along with the best practices we’ve gained to date.

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3 Benefits Of TikTok’s Smart Performance Campaign

1. Automated Targeting

In BAU TikTok campaigns, finding the perfect audience can be a time-consuming and challenging process. Advertisers have a spectrum of target audience options and often have to test numerous approaches to arrive at the ideal campaign setup. 

However, with Smart Performance Campaign automated targeting, advertisers can save time and effort while still achieving their advertising goals. You can exclude those under the age of 18, set language and location preferences, as well as exclude custom and lookalike audiences. Once your parameters have been set, the automated targeting delivers ads to the most relevant audiences and placements possible – using machine learning algorithms to analyze performance and adjust optimization accordingly. This results in an automated campaign that positions itself toward the best possible results for each individual advertiser.

2. Dynamic Creative Testing

TikTok advertising campaigns have traditionally required a manual setup process to test several ads per ad set to find the most effective creative assets. Smart Campaign advertisers can streamline this process and achieve better results in less time as the system can create multiple versions of creatives and find the optimal version to drive your desired business outcome.

3. Improved Campaign Management And Budget Optimization

The campaign adjusts bids and placements in real-time to maximize results within the allocated budget.

Therefore by using Smart Performance Campaign, advertisers can create a single portfolio campaign that targets multiple segments, improving performance and reducing effort.

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TikTok Ads Cheat Sheet

Building an effective TikTok campaign driven by our optimization consideration has allowed our clients to make TikTok an integral part of their larger digital plan.

Results To Date

TikTok have reported that “Smart Performance Campaigns outperform traditional campaigns up to 80% of the time using identical optimization targets”. In our own testing for eCommerce direct response advertisers, we’ve seen Smart Performance Campaigns deliver up to a 25% lower CPA compared to business as usual campaigns.

How To Setup A Smart Performance Campaign

Select your desired campaign objective and budget

Toggle on Smart Performance Campaign

Continue the normal setup flow process where you can set preferences for targeting and audience, scheduling, tracking and then upload your video and text assets.

3 Best Practices When setting Up Your Own Smart Performance Campaign

1. Obey the learning phase

Similarly to Meta, TikTok advises that 50 conversions will ensure you pass through their learning phase and deliver stable outcomes (anything below 20 conversions in 10 days will not exit the learning phase). During this period you should be patient and refrain from making adjustments.

2. Set an optimal budget

In line with the above, and where possible, ensure you’re setting a budget which allows you to attain the 50 conversions target within 10 days (or at minimum 20 conversions within 10 days).

3. Focus on both quantity and quality of video creative

You should have at least 3 creatives in a Smart Performance Campaign, with larger budgets allowing for up to 20 video creatives. It’s important to note that while 20 videos may seem like a lot, advertisers should still prioritize quality over quantity. It’s better to have a few high-quality creatives than a lot of low-quality ones. Advertisers should also regularly monitor their campaign performance and adjust their creatives accordingly to ensure they’re consistently getting the best results.

Wrapping Up

TikTok’s Smart Performance Campaigns are a great choice for advertisers looking to optimize their advertising campaigns and reach their target audience more efficiently.

Reducing the CPA and ROAS of your campaigns is enough of a reason to try this more automated, dynamic approach to building your campaigns.

Of course, setting up campaigns like this still requires dedicated expertise on both Smart Performance Campaign efforts and the larger TikTok Ads environment and that’s where we come in.  

As former Facebook employees with plenty of experience in the paid space, we have helped eCommerce brands grow consistently and are ready to do the same for your business. Get in touch to start a conversation about implementing TikTok’s Smart Performance Campaigns today.

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Looking for help in strategizing and running your campaigns? Get in touch and we can help you revolutionize your digital marketing campaign.

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