TikTok is constantly introducing new solutions for advertisers to make it even easier to spend budget and scale on this still-nascent channel. As one of the first agencies on TikTok, at Admiral Media, we are always eager to get our hands on the latest innovations and test them in the wild. TikToks latest feature is called Smart Performance Campaigns and Admiral Media was one of the first in Europe to try out this feature.
With Petit BamBou, we are lucky to have a client who is as curious and open to testing new things and always pushing to innovate in their advertising approach. Petit BamBou is a popular meditation and mindfulness app with over 2,000 guided meditation sessions in six languages, used by 9+ million people worldwide. We found success together on TikTok before, which encouraged Petit BamBou to be one of the first advertisers to test the new Smart Performance Campaigns (SPC).
What are Smart Performance Campaigns?
SPC is TikTok’s first-ever end-to-end automation solution, leveraging TikTok’s existing machine learning-powered capacities combined with enhanced creative exploration. The goal is to reduce the input from advertisers to a minimum and leverage machine learning and automation on a new level. Advertisers only provide: budget, objective, targeting country, videos, and ad copy. The algorithm produces multiple creatives and bids for each auction, continuing to explore a better combination. Currently, SPC supports all mobile app campaign types for Android. Web ads and iOS are to follow later this year.
To find out how SPCs perform, we ran a two-week A/B test for our client Petit BamBou, comparing the SPC campaign with a regular campaign using TikTok Auto Targeting, so we already had some degree of automation in place.
We ran the test for two weeks in September 2022 for Mobile App Install (MAI) campaigns on Android, giving both campaigns the same budget. To see what the SPC algorithm is capable of, we chose in-app event (AEO) optimization, optimizing towards finding users who will complete the first lesson within the meditation app. We were asking the algorithm to find the users who were most likely to perform this action.
After two weeks, we saw that SPC could indeed improve performance for this campaign. Click-through rates improved by 14% – meaning the ad was shown to more relevant and interested users. The conversion rate increased over 23% for the desired in-app event, which led to a 21% lower CPA. We were converting over 20% more users for the same budget.