Advertising strategies to increase revenue on TikTok Shop

An advertising strategy (TikTok Ads) is essential for scaling a business and increasing revenue on TikTok Shop. The main difference between TikTok advertising and other platforms is its combination of entertainment-first content and e-commerce.

I. Build the Advertising Foundation (Creative Strategy)

1. Content Testing Strategy (A/B Testing & Rapid Iteration)

Focus on the Hook (the First 3 Seconds): Create multiple versions of the first 3 seconds — the hook that determines whether viewers stop scrolling. Test different hooks: surprising statements, questions and problem-solving approaches.

Test Camera Angles and Scripts: Do not just test videos; test different ways of presenting the product:

The problem-solving angle: 'What pain point does this product solve for you?'

The proof angle: Test videos, unboxings and before-and-after comparisons.

The value angle: Emphasise distinctiveness, quality or value for the price.

Use TikTok's Language: Ads should look like organic TikTok videos, not traditionally polished advertisements. Customers trust KOCs/KOLs (Creators) more than brands.

2. Recreate Successful Content (Scaling Winning Creative)

Identify Winning Creative: A video is considered a winner when it achieves positive ROAS (Return on Ad Spend) and a CPM (Cost per 1000 Impressions) below the industry average.

Produce Variations: When you find effective content, do not just increase the budget. Create 5-10 variations instead (for example, change the background music, KOC or setting while keeping the script) to avoid Ad Fatigue, where viewers see an ad too often and start ignoring it.

II. Budget Optimisation Strategies (Bidding & Budget Allocation)

3. Optimise for Conversion Objectives (Conversion Optimization)

• Use OCV (Optimization for Conversion Value): TikTok Ads lets you optimise not only for the number of purchases but also for conversion value. Use this feature to prioritise reaching higher-spending customers, helping increase AOV (Average Order Value).
• Use a Bidding Strategy:
• Cost Cap: Use this when you know your exact target CPA (Cost per Purchase). It helps control costs while scaling.
• Lowest Cost: Use this when testing for the first time or seeking rapid growth without focusing too closely on cost control initially.

4. Allocate Budgets Across the Funnel (Funnel Budget Allocation)

Top of the Funnel (Awareness/Traffic): Allocate 10–20% of the budget to reaching potential new customers through introductory videos.

Middle of the Funnel (Consideration/Add-to-cart): Allocate 30–40% of the budget to retargeting people who watched videos, engaged or added products to their carts but have not purchased.

Bottom of the Funnel (Conversion/Purchase): Allocate 40–50% of the budget to campaigns directly optimised for purchases. This portion delivers the highest ROAS and should be prioritised.

III. Retargeting Strategies (Retargeting Strategy)

5. Tiered Retargeting

Create Custom Audiences based on behaviour:

• Tier 1 (Cold Traffic — Viewers): People who watched 50%-75% of your video. This group needs a gentle reminder about the product.
• Tier 2 (Warm Traffic — Engaged Customers): People who clicked the Shop Link or added products to their cart. This group is ready to buy and needs encouragement through a voucher, special offer or free shipping.
• Tier 3 (Hot Traffic — Previous Buyers): Run cross-selling or upselling ads introducing complementary products or special vouchers for repeat purchases.

6. Advertising to Promote Livestreams

Use Short Videos to Drive Traffic to Live: Advertise short videos announcing an upcoming livestream, emphasising deals available only during that livestream (Live Exclusive Deals).

Retarget Livestream Viewers: Retarget people who watched a livestream but did not buy, offering them discount codes to purchase after the stream ends and capitalising on their existing interest.

IV. Leverage TikTok Events and Features (Platform Leverage)

7. Make Use of Events and Peak Hours

Proactively Run Major Campaigns: Increase budgets substantially and prepare special content for major sale days (9/9, 10/10, Black Friday, Tết). TikTok prioritises visibility for stores that prepare early and have clear campaigns.

Advertise at Peak Times: Run ads during low-CPM periods (usually early morning) to collect data, then accelerate delivery during high-conversion periods (usually in the evening).

8. Collaborate With Creators (Creator/Affiliate Ads)

Spark Ads: This is the most effective advertising format on TikTok Shop. You use videos from KOCs/KOLs (Affiliates) to advertise your store. This format leverages:

Trust: Creators' videos have greater credibility than the Shop's ads.

Reach: Creators' channels reach customer groups that are difficult for the Shop to access.

Process: Collaborate with a Creator -> Obtain an Authorization Code -> Run ads through the Shop's Ads Manager account. This helps optimise conversions directly to the shopping cart.

By combining strong creative content with smart bidding and multilayer retargeting, your TikTok Shop can scale revenue quickly and effectively.

If your business is looking for a comprehensive growth solution on TikTok Shop, contact our expert team now for detailed advice.

Let Height Media support your business on TikTok Shop!

Learn more about store operations at Height Media: https://heightmedia.vn/dich-vu/Tiktok/dich-vu-van-hanh-gian-hang-tiktokshop.html

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