How to Turn $50 into $500 in 72 Hours with TikTok Ads

Turning $50 into $500 in 72 hours with TikTok Ads

• In just 72 hours, the speaker managed to turn $50 into $500 using a low-budget ads testing strategy for TikTok.

• The key to starting the process is having a winning product, in this case, it was viral boyfriend sweatpants with a unique design that was popular on TikTok with numerous videos showcasing the product.

• The next step was to set up a branded store, and the speaker demonstrated their own product page, emphasizing the ease and speed of creating it using a pre-built theme.

• The website was completed in less than 30 minutes, and the process primarily involved filling in the blanks to customize the store with the necessary details.

Turning $50 into $500 in 72 hours with TikTok Ads

Marketing Campaign Setup on TikTok

• The process begins by creating a new campaign on TikTok, and the focus is on website conversions.

• Campaign budget optimization (CBO) is a crucial feature, allowing for a minimum budget of $50 for effective results with low-budget strategies.

• The ad group is named 'open one,' and attention is given to setting up the TikTok pixel by selecting the appropriate pixel from the dropdown menu.

Marketing Campaign Setup on TikTok

Optimizing Ads on TikTok

• To optimize ad performance on TikTok, it is important to focus on specific settings and target audiences.

• Firstly, when setting up placements, it's crucial to select TikTok as the only platform for running ads. This ensures that the ad reaches the desired audience on the right platform.

• For advanced settings, it is recommended to disable comments, video downloading, and sharing. Disabling comments can prevent negative feedback and unnecessary interactions on the ad, making the process easier for the seller.

• When selecting the target location, targeting the USA, United Kingdom, Netherlands, and Germany is suggested as these countries have shown good potential with low saturation levels.

• By following these optimization strategies, sellers can enhance the effectiveness of their TikTok ads and reach the right audience more efficiently.

Optimizing Ads on TikTok

Understanding TikTok Agency Account

• The TikTok agency account is available for purchase, and it comes with a one-time fee of $150.

• The account settings typically target individuals aged 18 and above, as it's unlikely for younger individuals to have a credit card for purchasing.

• The decision to leave the targeting gender-neutral is based on the belief that TikTok's AI is more adept at identifying interested audiences than the user.

• Details such as languages, spending power, household income, and specific interests are often left broad and ignored, as the focus is on leveraging TikTok's algorithms.

Understanding TikTok Agency Account

Understanding Tik Tok Advertising Targeting

• Tik Tok's advertising platform allows for smart targeting based on interests.

• For example, if you are selling baby products, you can target interests such as baby, kids, and maternity. Similarly, for gym products, targeting gym-related interests can be effective.

• By leaving the targeting broad, Tik Tok can still identify potential buyers, so it's recommended to leave it blank.

• The budget and scheduling options allow for precise control, including day parting from 8:00 a.m. to midnight, which has shown promising results.

• The optimization setting is recommended to be left on 'conversion' for most campaigns, although some users may have different options available.

Understanding Tik Tok Advertising Targeting

Key Points for Campaign Setup and Ad Strategy

• The campaign setup process is almost complete after clicking 'next' and there is a comprehensive video guide available for reference.

• Smart creative ads are not being used in this campaign due to limited budget constraints.

• A new identity with a simple logo on a white background with a blue circle is being created for the store.

• For the ad strategy, three out of the ten downloaded videos for the product will be used, and it's recommended to search the product on TikTok for more content inspiration.

Key Points for Campaign Setup and Ad Strategy

Extracting and Utilizing Videos for Advertising

• The process of gathering videos for advertising involves searching for relevant content from various sources such as TikTok and PP ads.

• By utilizing TikTok's search feature, videos related to the product, like 'boyfriend pants', can be found and downloaded for potential use in advertising.

• Using PP ads' product search feature, the most viewed ads related to the product can be filtered and downloaded for inspiration and reference.

• Another method is to explore the TikTok Creative Center, where videos matching the product theme can be discovered and downloaded for potential use in advertising.

Extracting and Utilizing Videos for Advertising

Tips for Uploading Videos to TikTok Ads

• When uploading videos to TikTok ads, it's important to avoid simply copying and pasting content from other sources.

• Copying content can lead to ads being taken down, as it violates the platform's rules.

• Some drop shippers still violate these rules by downloading videos from the search and using them in their ads.

• To maintain ethical practices, it's crucial to only run clips that are original and not infringe on others' content.

• When adding text to the videos, it's best to avoid mentioning specific discounts or promotions that could be easily searched and copied by others.

• Instead, phrases like 'BOGO sale Ends Tonight' can create a sense of urgency without revealing specific details.

• After adding the text, it's important to verify that the provided URL leads to the correct landing page by using the preview button.

• Once the URL is confirmed, it can be copied and pasted onto the ads to direct users to the intended destination.

Tips for Uploading Videos to TikTok Ads

Tips for Running TikTok Ads

• When setting up TikTok ads, it's important to uncheck the box that would otherwise make the videos appear on the creative center.

• After submitting the campaign, it's essential to uncheck the box to prevent the videos from appearing on the creative center.

• The campaign includes one ad group scheduled to spend $50, and it contains three videos, giving TikTok the freedom to allocate the budget.

• The goal is to let TikTok determine the best-performing videos to maximize sales based on the allocated budget.

• On day one, the campaign has already generated three orders totaling $134.95, indicating a promising start.

• The next step involves breaking down the profit and loss, and planning the strategy for the upcoming days of the campaign.

Tips for Running TikTok Ads

Analyzing Ads Performance Metrics

• The current columns being used in the ads manager include purchases, cost per click (CPC), click-through rate (CTR), and CPM (cost per mille).

• It's important to ensure that the cost per purchase is lower than the break-even point to generate profits from the sales.

• The campaign has resulted in three sales, and the $50 spent on ads translates to a cost of $16 per purchase.

• The target cost per click for the USA audience is below $1, and a range of $1 to $1.50 is considered average.

• Ideally, the CTR should be above 1%, but between 0.8% to 1% is still acceptable, while below 0.8% may indicate room for improvement.

• A CPM below $10 when targeting the USA is considered excellent, although occasional fluctuations to $30 or $40 should not cause panic and should be analyzed alongside other metrics.

Analyzing Ads Performance Metrics

E-commerce Campaign Profit Analysis

• The speaker discusses the performance of an e-commerce campaign, emphasizing the importance of monitoring add to cart conversions.

• They detail the revenue and costs incurred from three orders, highlighting a net profit of $45 with a 33% profit margin.

• The speaker also mentions a sponsorship by True Profit for analyzing profit and loss, encouraging viewers to install the app for a 14-day free trial.

• They plan to reinvest the $45 profit into tomorrow's ad spend, expressing confidence in their strategy for the next day.

E-commerce Campaign Profit Analysis

Summary of Advertising Results and Recommendations

• The current advertising campaign has resulted in $314.65 in revenue from 7 orders.

• The ads were run for a full day with a total budget of $95, resulting in a cost per click below $1 and a clickthrough rate above 1%.

• The return on ad spend (ROAS) is $330 for every $1 spent on TikTok ads, indicating a highly profitable campaign.

• The audience is encouraged to sign up for TikTok ads using a custom link in the description to target worldwide, although it's a standard account.

Summary of Advertising Results and Recommendations

E-commerce Profit Report

• The net profit for today is $12819, and the budget for tomorrow will be $223 after adding the $95 spent today.

• A link for installing a tool to track true profit is provided in the description, which calculates net profit after fulfilling orders, ads, and transaction fees.

• The revenue for day three is $600 from 13 orders. The ads were run with an increased budget, and the net profit for the day is $230.

• The process of increasing the ad budget is demonstrated to show how to make a few hundred dollars per day easily through e-commerce.

E-commerce Profit Report

Drop Shipping Success and Future Plans

• The speaker shares that they have spent $211 on ads, but have not yet used their full budget for advertising.

• They discuss the profitability of drop shipping, stating that they made a $200 net profit after all expenses, with a revenue of $1,000, within 72 hours.

• The speaker also announces plans for 2024, including the development of a free drop shipping course focused on using AI to fully automate a store.

• They emphasize the potential for increased profits over time, encouraging viewers to imagine the results over a few months.

• Finally, the speaker thanks their sponsor True Profit and encourages viewers to book a call for help with drop shipping.

Drop Shipping Success and Future Plans

Conclusion:

In conclusion, this comprehensive guide outlines the process of achieving remarkable results with low-budget TikTok ads. From setting up the campaign to optimizing ad performance and analyzing the metrics, the strategies discussed have proven to be highly effective. By following this guide, marketers can unlock the potential of TikTok ads for successful dropshipping endeavors.