TikTok is testing a new incentive for advertisers using its Pmax format called "Smart+". This program aims to support advertisers who are not meeting their target Return on Ad Spend (tROAS) or target Cost Per Acquisition (tCPA). If a campaign exceeds certain CPA or Minimum ROAS thresholds, TikTok will provide ad credits that can be used within the same ad account.
Requirements
- The ad group must achieve more than 20 conversions.
- One optimization change each to the campaign's bid and targeting is allowed.
- For Cost Cap ad groups: CPA must be more than 1.5 times the advertiser's Cost Cap bid.
- For Minimum ROAS ad groups: Actual cost must be more than 1.5 times the target cost, based on the minimum ROAS bid.
How It Works
For example, if you set a minimum ROAS bid of 2:
- Actual Performance:
- Spend: $80
- Conversion value: $100
- ROAS: 1.25
- Ad Credit Calculation:
- Expected spend based on $100 conversion value and Minimum ROAS bid (2): $50
- Ad credit: $30 (Expected spend - Actual spend)
This approach is seen as more favorable compared to Google's Smart Bidding exploration, which can lower your tROAS when necessary.
