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Answers to Frequently Asked Questions
To calculate ROI, you need the total revenue generated from TikTok ads and the total amount spent on TikTok advertising.
By analyzing the ROI, you can identify which campaigns are most profitable and adjust your targeting, budget, or ad creatives accordingly.
ROI benchmarks vary by industry, but a positive return (above 100%) indicates a profitable campaign. At the same time, anything lower suggests the need for optimization.
Yes, it can be used for all TikTok ad formats, including In-Feed Ads, TopView Ads, Branded Hashtags, and Spark Ads.
The accuracy of the calculation depends on the accuracy of the input data. Ensuring precise tracking of revenue and ad spending will yield the best results.
Yes, by calculating ROI for different advertising platforms, you can compare TikTok’s performance with Facebook, Instagram, Google Ads, and others to determine where your budget is best allocated.
Regular analysis is recommended, ideally after every campaign or on a monthly basis, to continuously optimize performance and maximize returns.