The best ad slots on TikTok do not always go the highest bidder

New Ideas in MarketingEssential news for marketers, summarised by YouGov
May 20, 2020, 2:02 PM UTC

While the platform has not revealed details, frequent buyers have made some inferences.

The ByteDance-owned platform leverages a mixture of the bid price, ad relevance and ad-quality to determine which ads are displayed to the users. The algorithm also factors in the likelihood of user interaction to decide the order the ads appear in the feed.

While it is very similar to how other platforms operate, TikTok also factors in engagement metrics including likes, shares and comments. The popular network also factors in the watch time and the loops.

Industry insiders report that the click-through rates on TikTok are lower than Facebook’s but its creative environment and community offer unique advantages. “It’s safe to say that ads which keep consumers engaged and watching — and even better on the app itself — will perform best,” Brendan Gahan of ad agency Mekanism says.

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