TikTok Shop Spark Ads - Run the Numbers First

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Ad-justing Your Strategy: Mastering the Art of Profitable Business Growth with Sourav Ghosh

Sourav Ghosh

14 episodes

1 week ago

Are you tired of your ads not working? Are you struggling to drive growth for your business? Then "Ad-justing Your Strategy" with Sourav Ghosh is the podcast for you. With 15+ years of experience as a business consultant and 7+ years running an agency, Sourav shares DIY strategies to help you grow your business profitably. From optimizing your ads to e-commerce marketing and business strategy, the podcast covers a range of topics to help you understand what it takes to drive growth beyond just advertising. Tune in each week for practical tips and strategies you can implement right away.

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TikTok Shop Spark Ads - Run the Numbers First

Ad-justing Your Strategy: Mastering the Art of Profitable Business Growth with Sourav Ghosh

1 minute 59 seconds

1 year ago

TikTok Shop Spark Ads - Run the Numbers First

In this episode of Ad-justing Your Strategy, we dive into the intricacies of TikTok Shop Spark Ads. Before diving headfirst into using Spark Ads, it's crucial to analyze the numbers and understand the potential costs.

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Tried https://elevenlabs.io to clone my voice in this episode. Personally, I didn’t like it. It doesn’t sound like me, even though the pronunciations are better than mine. But it’s not me.
Could you use this or any similar AI tool to clone your voice better? I’d love to hear from you. DM me @souravghosh on X or Instagram please.

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Here’s how it works: When a creator tags your product in their post and makes a sale, they earn a commission. If you then use that post as a Spark Ad, they continue to receive their full commission.

However, combining the cost per acquisition (CPA), commission, and TikTok referral fee can quickly escalate expenses.

So, is this customer acquisition cost (CAC) sustainable for your brand?

Moreover, is it fair for the creator to earn a percentage of sales from the ads run by your brand solely for creating the content?

Let’s break it down:

Calculate your CPA: Include the commission paid to the creator and the TikTok referral fee. This will give you a clear picture of your total expenses per acquisition.
Evaluate your margins: Can your business sustain these costs while maintaining a healthy profit?
Consider the value of the content: The creator not only brings authenticity and trust to your brand but also contributes to your overall marketing strategy. Weigh the benefits against the costs.

In conclusion, while TikTok Shop Spark Ads can be an effective way to leverage user-generated content and drive sales, it’s essential to thoroughly assess the financial implications and ensure they align with your brand’s goals.

Thanks for tuning in to Ad-justing Your Strategy. If you enjoyed this episode, don't forget to subscribe and leave a review. Until next time, keep growing!