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Bidding Methods

Bidding is an important part of the overall ad creation process. There are various types of bidding methods available that depend on your overall strategy and objectives.

This article provides you a basic overview of each method giving you the knowledge you need to start running TikTok Ads. Currently, TikTok Ads Manager provides 4 different bidding methods:

  • ​Optimized Cost per Mille/Thousand Impressions (oCPM)
  • ​Cost per Thousand Views (CPV)
  • Cost per Click (CPC)

oCPM​

Note: oCPM is now the default bidding method for the Conversions and App Installs advertising objectives.

This means your bid represents the price you are willing to pay to create one thousand impressions, targeting users that are likely to complete a conversion event, become a lead, or install an app.

  • Calculation: (Total cost / Total impressions) * 1,000
  • ​Billing Event: Charged by impression
  • ​Applicable Advertising Object: Conversions, App Install, Lead Generation, Community Interaction (Follows).

CPV​

CPV bidding means that you pay when a viewer watches 6 seconds of your video (or the full duration of the video if it's shorter than 30 seconds) or interacts with your video, whichever comes first. The system will deliver your video to maximize engagement and views to your creative.

  • Calculation: Total cost / Total video views
  • Billing Event: Charged when a viewer watches 6 seconds of your video (or the full duration of the video if it's shorter than 30 seconds) or interacts with your video, whichever comes first.
  • ​Applicable Advertising Object: Video Views

CPC​

This means your bid is the cost you are willing to pay per click. The system will deliver your ads to users who are most likely to click them at a cost that is as close to your bid as possible.

  • ​Calculation: Total cost / Total click
  • ​Billing Event: Charged by click
  • ​Applicable Advertising Object: Conversion, Community Interaction (Profile Visits).