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How To Optimize TikTok Ads: Guideline From TikTok Agency

Are you looking to maximize the performance of your TikTok ads and achieve outstanding results? Look no further! We present to you our extensive guide on how to optimize TikTok Ads with TikTok help and tips straight from our experts.

3 solutions to optimize TikTok ads

There are many solutions to optimize TikTok ads, but the best and most useful methods are ABO (Ad Budget Optimization), CBO (Campaign Budget Optimization), and VBO (Value-Based Optimization). These advanced strategies will help you reach your target audience more effectively, allocate your budget wisely, and drive better results for your TikTok campaigns. In this post, we’ll guide you on how to use these techniques, when to implement them, and how to combine them for maximum impact. Get ready to take your TikTok advertising game to the next level and achieve incredible results!

Ad Group Budget Optimization (ABO)

What is TikTok ABO?

TikTok ABO is a feature that helps you gain the flexibility to manage your ad spend at the ad group level. This means you can give varying budgets to different ad groups within your campaign. 

Ad Group Budget Optimization struture

Ad Group Budget Optimization structure

When utilizing ABO, you can spread a fixed budget to individual ad groups within the campaign. For instance, if you have a $100 budget for the entire campaign, you can allocate $70 to Group A and $30 to Group B:

  • Group A: Target male sports enthusiasts aged 18-24
  • Group B: Target women aged 25-34 who love traveling.

ABO provides precise control over your ad spend, ensuring that each group receives a predetermined portion of the overall budget. It is usually recommended for brand-new accounts with no data as it allows testing of different ad groups and their performance.

Reminder: In ABO campaigns, the minimum daily budget per ad group is $20/£20.

How to set up a TikTok ABO campaign

To start with an ABO campaign, follow 3 steps:

#1 Determine the target audiences and create ad groups for each audience. 

#2 Set up ad groups.

#3 Allocate budgets to each group. 

ABO offers more control over budget management and allows advertisers to test different ad groups to identify the most successful ones. If an ad group is underperforming or not spending, pause and reallocate the budget to another group.

For example, picture an ABO campaign with 2 ad groups: Male Gamers & Female Gamers.


Ad Group

Target Audience

Daily Budget Allocation

Male Gamers

Under 25


Female Gamers

Over 30


The performance of each ad group can be evaluated after a few time-run campaigns. If the ad group targeting female gamers is generating more conversions at a lower CPA, the ad group targeting male gamers can be paused, and the budget initially given to it can be redirected to the successful female gamers group. This flexibility in budget allocation is one of the main advantages of ABO over CBO.

In conclusion, you can fine-tune budgets and ensure effective spending by pausing underperforming ad groups and reallocating funds to more successful ones.

Campaign Budget Optimization (CBO)

What is TikTok CBO?

CBO (Campaign Budget Optimization) is a feature that TikTok offers to simplify budget optimization. With CBO, you can optimize your budget at the TikTok ads campaign level instead of individually for each ad group. 

Campaign Budget Optimization structure
Campaign Budget Optimization (CBO) structure

But if you have a high budget allocated for your CBO on TikTok, advisably create more than 2 ad groups within that campaign. This strategy allows you to optimize your ad performance more effectively. By dividing your budget among different ad groups, you can experiment with: 

  • Different targeting
  • Creatives
  • Placements to identify which combination generates the best results.

Overall, TikTok CBO allows you to apply budget optimizations to all ad groups within the campaign collectively.

Tips: If you want your ads to have better automation and optimization, learn about Smart Performance Campaign! SPC combines various techniques like budget allocation, targeting, creatives, and placements to maximize ad performance across multiple ad groups in a campaign. By utilizing TikTok’s CBO and embracing SPC principles, advertisers can efficiently optimize their budget and achieve impressive results on the platform.

How to begin a TikTok CBO campaign?

When setting up a campaign using Campaign Budget Optimization, keep the following parameters in mind:

  • Choose from various advertising objectives: 
    • View
    • Traffic
    • Catalog Sales
    • Lead Generation
    • Community Interaction
    • App Promotion
    • Website Conversions
    • Reach
  • Consider using bid strategies: Lowest Cost or Bid Cap.
  • Decide between Daily Budget and Lifetime Budget as your preferred budget mode.
  • Opt for a Standard delivery type to ensure consistent ad delivery.
  • Remember, Split Test is not supported in this context.

Now, to enable Campaign Budget Optimization, follow these steps:

  1. Create a new campaign.
  2. Choose a supported Advertising Objective.
  3. Turn on the Campaign Budget Optimization toggle.
  4. Select your bid strategy, budget mode, and delivery type

Remember to configure the remaining settings of your ad group and create your ads. Ensure that all your ad groups have the same Optimization Goal.

Pro Tips

If you want to run a manual Split Test in the CBO campaign, there is still a way. TikTok generally does not recommend running manual Split Test due to potential inaccuracies caused by competing campaigns. However, if you still decide to proceed, keep the following tips in mind:

  • Ensure identical settings in both campaigns, including the budget. One should use CBO and the other should not.
  • Start both campaigns simultaneously and let them run for at least 7 days without modifications.
  • Monitor ad review statuses and address rejections promptly.
  • Compare metrics at the campaign level.

Consider the following sample test structure as a reference: [Provide sample structure if needed]

sample test structure on how to optimize tiktok ads

Value-Based Optimization (VBO)

What is TikTok VBO?

VBO (Value-Based Optimization) is a versatile feature that supports regular ads on websites and Android apps. It allows you to optimize campaigns for objectives like increasing app installs and website conversions. 

How to optimize TikTok ads with Value-Based Optimization

According to a review from TikTok, by using VBO to focus on quality users rather than quantity, a clothing brand on TikTok successfully increased conversions and improved return on ad spend (ROAS):

  • 54.2% decrease in cost per acquisition (CPA)
  • 95% increase in conversions
  • 8.9% boost in ROAS

From the success story above, we can see VBO offers numerous benefits to users:

  • Direct reach TikTok’s Highest Purchase Value Customers for your promoted App.
  • Increasing your ROAS performance in flexible ways! Support two bidding strategies to meet your different expected goals in TikTok.
  • Available on multiple objectives that match your different marketing demands.

TikTok VBO is a powerful method to engage with potential high-value customers. By optimizing your campaign, TikTok VBO targets people likely to spend more on your products, maximizing return on ad spend. It supports various objectives and requires setting up the TikTok Pixel for web advertisers. Mega Digital suggests advertisers to combine with TikTok Shopping or TikTok Carousel Ads for better impact and higher conversions.

How to begin a TikTok VBO campaign?

To get started with VBO, this is what you need to do:

  • Maximize retargeting
  • Run the campaign for at least 7 days
  • Set a reasonable minimum ROAS
  • Utilize audience analysis. 

And don’t stop yet; continue retargeting to engage with users who have shown iframes in your brand. Here are 4 tips & tricks for a value-based optimization campaign.

Tips and tricks for a vbo campaign

For improved performance in your TikTok VBO campaigns and to make sure people will spend their money on your product, here are some valuable recommendations to keep in mind:

  • Set a reasonable Minimum Return on Ad Spend (ROAS) bid based on your ad account’s performance from the last 7 days. Aim for around 80% of the calculated ROAS.
  • Analyze historical campaign data by objectives and countries for a more accurate ROAS calculation.
  • Determine an adequate budget for your VBO ad group. Starting with 10 times your CPA is a good guideline, but adjust if your CPA exceeds $100.
  • Choose a target audience that is neither too broad nor too narrow. Utilize high-performing Custom Audiences or Lookalike Audiences.
  • Allow your VBO campaigns to run for at least 7 days to gather reliable performance indicators.
  • Avoid making ad adjustments within the first 3 days to ensure a smooth learning phase for your ad group.
  • After 3 days, gradually adjust, focusing on one change at a time. Adjust your budget or bid by following your advertising objective:
    • For Web: Adjust no more than 50% 
    • For App: Adjust a maximum of +/- 20% at a time. 
  • Remember, if you pause VBO campaigns for more than 24 hours, they will return to the learning phase upon restart.


Merging VBO with AEO (App Event Optimization)  in your strategy can bring you many benefits, and here is how to optimize the campaign structure strategy by combining them:

Optimal outcomes

Always use a combination solution to get the best performance results: It is recommended to leverage both AEO and VBO campaigns together to achieve optimal outcomes in your advertising strategy.

Drive ROAS

If your primary objective is to maximize your ROAS (return on ad spend), it is advised to allocate budgets to both AEO and VBO campaigns. This allows you to take advantage of the unique benefits offered by each campaign type.

Target the right users

VBO will help you find users who are more likely to spend more on your app: By utilizing VBO campaigns, you can target and reach users who have a higher propensity for making substantial purchases within your app. This can result in increased revenue and overall app performance.

More purchase conversions

AEO (App Event Optimization) will help you find more purchase conversions.  AEO campaigns are designed to optimize for specific app events, such as making a purchase. By implementing AEO campaigns, you can effectively reach and engage users who are more likely to convert into paying customers, thereby driving more purchase conversions.

Greater flexibility

To maximize the effectiveness of your campaigns, it is crucial to monitor their performance periodically, such as every 7 days. This allows you to identify areas for improvement and optimization. Additionally, allocating budget flexibility based on performance insights enables you to optimize your ad spend and allocate resources effectively to campaigns that yield the best results.

How to Optimize TikTok Ads: 5 Tips from Experts

Define clear objectives

According to TikTok, campaigns with specific objectives like app installs or website clicks have a 60% higher conversion rate than campaigns without specific objectives. Whether it’s increasing brand awareness, driving website traffic, or generating conversions, clearly defining your advertising goals will help you optimize your TikTok ads effectively.

Test different audiences

TikTok reports that advertisers who test different audience segments see a 43% increase in conversion rates compared to those who only target one audience. So, experiment with various target audiences to find the most responsive ones. Use ABO to allocate budgets to different ad sets targeting specific audience segments and monitor their performance.

Monitor ad performance

On average, TikTok campaigns achieve a 50% lower CPC and a 30% higher CTR when advertisers monitor and optimize their campaigns daily. 

Keep a close eye on the performance of your ads using the TikTok Ads Manager. Analyze TikTok key metrics such as click-through rates, conversion rates, and cost per acquisition. Use this data to identify top-performing ad sets and optimize your budget allocation accordingly.

Implement value-based optimization

Utilize VBO to optimize your ad delivery based on the value it generates for your business. Define KPIs that align with your business goals and track them to measure the effectiveness of your ads. Advertisers who leverage value-based optimization on TikTok have achieved a 25% higher ROAS compared to those who don’t use it.

Test and iterate

According to TikTok, advertisers who test multiple ad variations experience a 17% increase in conversion rates compared to those who use a single ad version. Continuously test different ad creatives, audiences, and optimization strategies to uncover what works best for your brand. Experiment with different TikTok ad formats, visuals, and ad copy to find the winning combinations that yield the highest engagement and conversion rates.

Final Word

How to optimize TikTok ads? Well, you got the answer now. Involving leveraging 3 key features: CBO, VBO, and ABO to help you efficiently manage budgets, align campaign goals with desired outcomes, and fine-tune budget allocation at the ad group level. Mixing with our experts’ guidelines, you can enhance the performance of TikTok ad campaigns, drive better results and increase engagement for your brand or business. Want to let the experts do their job? Then, we are here to help! Let’s level up your advertising game!

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Phuong Linh Linh
Phuong Linh Linh
TikTok Advertising Specialist


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