Who doesn't love a good TikTok scroll nowadays? (please don't ask to see my screen time). TikTok is one of Gen Z's favourite platforms, with 60% of Gen Z using the app. For this reason, brands and marketers have struck a golden opportunity to advertise on TikTok and boost critical performance metrics. In today's blog, let's answer some common questions, like what a good CTR for TikTok Ads is. How can the CTR of TikTok ads be improved? And why is CTR an essential metric to track on TikTok?

The Baseline CTR of TikTok Ads

Click-through rate (CTR) is a metric used to represent the ratio of users who click on an advertisement to the total number of users who have viewed an ad. By tracking how many users engaged with an ad through CTR, marketers and brand owners can understand the ad's effectiveness in capturing the attention of your target market.

A high CTR = a message that has resonated with your audience.

A low CTR = indicates that your ads may need adjusting. 

Each industry will have a baseline click-through rate, like an industry average. 

The baseline CTR allows marketers and brand owners to set a standard they want to reach during their ads campaign. You can also set valuable metrics like increasing engagement and ad conversion rates. 

A baseline CTR provides insight into how an ad's performance compares to industry standards, enabling a strategic approach to improving and optimising ad reach and engagement.

Are you looking to introduce TikTok to your marketing strategy but don't know where to start? Check out our recent blog, 'Are TikTok Ads Worth It - Using an Agency?' and discover how Soar With Us can transform your strategy.

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What is a Good CTR for TikTok Ads?

A good CTR for TikTok ads varies across industries. It is informed by user engagement and the nature of the marketing products or services. On TikTok, different categories of businesses, including beauty, personal care, home and clothing, can generate high engagement, translating into an improved CTR.

Creative campaign strategies that resonate with viewers can significantly increase your numbers on TikTok.

The Baseline CTR for TikTok Ads

According to research across the web and our vast client base, the average CTR for TikTok ads is around 0.84%, with the average conversion rate at 0.46%. Although these numbers are not particularly high, it's important to remember the competitiveness of TikTok ads, the sheer volume of users you can reach, and, importantly, the ROI you achieve. 

Say you spend £1000 on TikTok ads this month and reach an audience of 100,000 people, achieving 0.84% with an average conversion rate of 0.46%. Imagine these conversions are worth £20 per order. 

0.46% of 100,000 is 460.

460 X £20 = 9,200, which is an ROI of 820%.

The CTR and conversion rate may seem small initially, but the rewards speak otherwise when correctly invested.

Testing and Iterating to Elevate CTR

Testing in paid ads strategy is crucial to any effective TikTok advertising strategy. Through carefully monitored testing, you can discover valuable insights into performance. By subjecting your audience to different variations of an ad to compete, advertisers can gauge which version is the most effective and use this to inform future marketing strategies and achieve higher CTR.

For more information on the effectiveness of TikTok ads, see our recent blog post, ‘How Effective are TikTok Ads?’

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The Power of Testing 

TikTok ads aren't as simple as just creating something and setting it live; many different components within TikTok ads must be considered. From the hook of your video to the concept you test, these components directly impact user engagement and can determine the success of your campaign. Conducting tests pushes the boundaries and enables brands and marketers to refine their ads from start to finish to understand what resonates with your target audience and what doesn't.

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How to Conduct TikTok Ad Testing

Testing on TikTok involves creating a few variations of an ad. These ads should be very similar, with some minute, noticeable changes, such as a different headline, graphic, or CTA. TikTok's algorithm will then display these ads to similar audiences, allowing you to collect data on which variant achieves a higher CTR. 

The reality of running TikTok ads is that if the first 1-3 seconds of your ad, or more specifically, your hook, fails to pull people in and grab their attention, then nothing else in the video matters. If you can’t stop the scroll, no one will watch your ads, see what you have to offer and most certainly won't take any action. So, the relationship between your ad's first couple of seconds and the click-through rate is super important to get right. TikTok's algorithm will display these ads to similar audiences, allowing you to collect data on which variant achieves a higher CTR. 

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Fuelling the Future with Testing

Analysing the data gained from testing allows brands and marketers to understand which versions performed the best. This data can be used to make informed decisions for upcoming content, knowing that these tests have offered a sort of blueprint for what captures the attention and interest of your target audience on TikTok.

Additionally, by accurately assessing broader trends in successful tests, you can discover audience insights to steer your future TikTok advertising campaign strategy toward higher engagement rates and better campaign performance. Remember, continuous testing and adaptation are the key to sustaining and advancing CTR on TikTok's dynamic platform.

Our Final Thoughts

TikTok offers brands and marketers unparalleled opportunities to engage with audiences through targeted TikTok advertising. Understanding and optimising ads targeting a high CTR are pivotal to success on this platform.

A high CTR signifies that your content is resonating with viewers, while a lower rate indicates a need for adjustments. By measuring against industry standards, you can ensure your ads perform around the right benchmark. You can also use the data gained from testing to refine your content and capitalise on what resonates best with your target audience to boost engagement and CTR and achieve sustainable growth in the form of ROI.

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Our TikTok growth specialists create and implement a dynamic TikTok strategy that focuses on growth and measurable ROI. View our TikTok Ads services today!

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