TikTok is quickly becoming a go-to space not just for viral dances but for ecommerce and lead generation too. As more brands join the fray, understanding TikTok Ads bidding strategies can help you snag prime placements and outpace your competition. Right now, TikTok offers only two bidding strategies: Cost Cap and Maximum Delivery. Both appear pretty straightforward at first glance, but each suits different campaign objectives and comfort levels.
In this guide, we’ll break down these two bidding strategies and help you pick which is best for your brand’s goals.
The Two TikTok Ads Bidding Strategies
TikTok’s approach to bidding is refreshingly simple. Unlike other platforms with a buffet of options, TikTok gives you only two entrées—Cost Cap and Maximum Delivery. Your mission is to pick the one that aligns best with your performance goals and budget flexibility.
Cost Cap:
If your campaigns hinge on hitting a target CPA or staying within a certain ROAS range, Cost Cap is your friend. This method focuses on controlling the average cost per conversion. TikTok’s algorithm will try its best to keep your cost per action (like leads or sales) around the threshold you set. Some conversions may cost more than you hoped, others less, but on average, it’ll aim for your sweet spot.
Cost Cap is ideal for advertisers who want stable, predictable performance and aren’t willing to watch costs fluctuate wildly just to spend their entire daily budget. That said, to run Cost Cap campaigns effectively, you’ll need a decent budget and enough conversion volume—TikTok suggests at least a budget that’s 5x, ideally 50x, your target CPA. For many, that’s a tall order, but even hitting a smaller multiple is better than nothing.
Maximum Delivery:
Where Cost Cap sets a price ceiling, Maximum Delivery sets its sights on spending your entire budget. Rather than worrying about whether your CPA stays under $10, this strategy aims to get as many conversions as possible—at whatever cost the market demands—until your daily budget is used up.
Maximum Delivery works best for advertisers who’ve found a steady audience and know their ads can drive decent conversions at scale. If you’re comfortable with performance swinging a bit as market conditions change (one day might have a sky-high CPA, the next a bargain deal), Maximum Delivery can score you more volume. Just remember, the focus here is spending your daily budget rather than strictly controlling cost per conversion.
Which TikTok Bidding Strategy Is Best for You?
Choose Cost Cap if:
- You have clear CPA or ROAS targets and want consistent performance even if that means not always spending your full budget each day.
- Your sales cycle or funnel is more nuanced, requiring stable outcomes rather than volume at any cost.
- You’re okay with occasionally underspending on tough days because you value efficiency over scale.
Choose Maximum Delivery if:
- Your main concern is pushing out volume, hitting big conversion counts, or scaling aggressively.
- You’re comfortable with some cost volatility—some conversions might be cheap, others pricey—because ultimately you want to burn through that budget and expand your footprint.
- Your product appeals to a broad audience, and you trust TikTok’s algorithm to go forth and find plenty of them.
Practical Tips for Success
- Follow Budgeting Guidelines Where Possible:
For Cost Cap, TikTok suggests making your daily budget at least five times your target CPA. If that seems huge, do your best; the closer you get, the smoother the algorithm’s learning curve. - Avoid Constant Tinkering:
Frequent changes force TikTok to relearn your campaign’s optimal settings. Whether using Cost Cap or Maximum Delivery, give your campaign time to stabilize before making big moves. - Test, Test, Test:
If you’re unsure about which strategy aligns with your brand, run a short test. Try Cost Cap on one campaign and Maximum Delivery on another. See which meets your goals more effectively, then double down. - Look at the Big Picture:
Remember, bidding strategy is just one piece of the TikTok advertising puzzle. Creative quality, audience targeting, and offer relevance matter just as much. Nail all these areas to get the most out of either bidding method.
Making the Choice: Efficiency vs. Volume
In the TikTok advertising ecosystem, you get two main bidding tools. Think of them as levers. Cost Cap lets you pull the lever to control costs closely, prioritizing consistency and efficiency. Maximum Delivery says, “Let’s go big,” and aims to spend your money to net as many conversions as possible, even if they aren’t always at rock-bottom prices.
Figuring out which path to take depends on your goals, budget, and risk tolerance. If you’re striving for predictable results, Cost Cap is for you. If you’re craving scale and can stomach cost swings, embrace Maximum Delivery. Whichever you choose, keep a close eye on metrics, and be ready to pivot as your campaigns and business needs evolve.
