Strategy Deep-Dive: Maximizing ROI with TikTok Ads Funnel

TikTok may be the most creative ad platform on earth — but creativity alone doesn’t drive ROI.

The brands scaling fastest in 2025 have cracked a simple truth:
TikTok success isn’t about one viral video — it’s about a structured, full-funnel strategy.

At Somerce, we’ve managed millions in TikTok ad spend for UK brands, building funnels that turn attention into action, and action into long-term growth.
Here’s how to architect a TikTok Ads funnel that delivers performance, efficiency, and brand lift — all at once.

1. Understanding the TikTok Funnel

TikTok isn’t a search-driven platform like Google — it’s discovery-driven.
That means your funnel must create awareness before intent, and retention before remarketing.

The modern TikTok funnel:

Somerce insight:
Top-of-funnel videos may not convert directly, but they fuel bottom-funnel efficiency.
Brands that invest 40%+ of spend into upper-funnel content typically see 20–30% lower CPAs later.

2. Crafting the Creative Mix

Your creative is 70% of your ad’s performance.
TikTok’s best funnels use a blend of UGC, educational, and offer-based creatives.

Ad TypeRole in FunnelSomerce Benchmark ROASUGC-style organic clipsAwareness2.0×–3.0×Product demos / tutorialsEngagement3.5×–4.5×Offers / bundlesConversion4.0×–6.0×Testimonial videosRetention3.0×–4.0×

Pro tip: Rotate creative weekly. TikTok’s learning algorithm favours freshness — even small text or audio tweaks reset performance positively.

3. Ad Formats That Work Together

TikTok offers multiple placements — but not all serve the same purpose.

a. In-Feed Ads

Your bread and butter for awareness. Best for testing hooks, CTAs and trend styles.

b. Spark Ads

Boost organic or creator posts while keeping original engagement and comments.
Used strategically, Spark Ads deliver 40% higher CTR and 2× retention versus traditional In-Feed campaigns.

c. Video Shopping Ads (VSA)

The 2025 powerhouse format. They merge In-Feed Ads with TikTok Shop — letting users buy without leaving the app.
Perfect for beauty, fashion, and lifestyle products.

d. LIVE Shopping Ads

Drive traffic to your TikTok Live events, or retarget past viewers.
Brands using Somerce’s Live ad templates see 8–10% Live conversion and +60% viewership uplift.

4. Audience Targeting: From Broad to Data-Led

TikTok’s targeting is moving toward AI optimisation — meaning your first-party data matters more than ever.

Phase 1: Go Broad (Testing)

• Use 18–45 demographic, interest-based segments (e.g. “Beauty Enthusiasts,” “Wellness”)
• Let the algorithm identify engaged pockets

Phase 2: Build Warm Audiences

• Custom audiences from profile visits, video views, add-to-carts, and Live viewers
• Lookalike audiences of your TikTok Shop customers

Phase 3: Retarget With Precision

• Focus on users who engaged in the past 14–30 days
• Tailor CTAs to urgency (“Back in stock,” “Offer ends midnight”)

Somerce advice:
Don’t stack too many filters. TikTok’s machine learning works best when you feed it clean, conversion-rich signals.

5. Measurement and Attribution

TikTok performance is best tracked through a multi-touch lens.
Relying solely on last-click metrics undervalues TikTok’s discovery role.

Track Across 3 Layers:

1. Platform Analytics: CPM, CTR, CPA, ROAS (native data)
2. TikTok Pixel / Events API: On-site behaviour and checkout data
3. Shop Analytics: GMV, conversion, and refund rates

Somerce metric tip:
For consumer brands, healthy benchmarks are:

• CTR: 1.5–3%
• CVR: 5–10% (Shop)
• CPA: £4–£8 for low-ticket items
• ROAS: 3×+ sustainable target

6. Scaling With Creative Insights

Once you have winners, scale smartly.
TikTok’s algorithm prioritises creative consistency, not massive budget jumps.

Somerce Scaling Framework:

• Increase budget 20–30% every 48 hours (no sudden spikes).
• Duplicate winning ad groups into new campaigns with slight creative variation.
• A/B test hooks, captions, and voiceovers — not just audiences.

Example:
For Icy Bear, Somerce scaled one high-performing creator ad by duplicating it across six audiences and slightly altering captions. Result: 5× GMV growth in 30 days.

7. Integrating TikTok Shop for Instant Conversion

In 2025, the highest ROI TikTok funnels end inside the app.

TikTok Shop and Fulfilled by TikTok (FBT) remove friction — users see, click, and buy without leaving their feed.

When paired with TikTok Ads:

• Users trust faster (TikTok verifies fulfilment).
• Checkout happens instantly (higher CVR).
• Tracking is native (clearer attribution).

Somerce clients integrating TikTok Shop report 4–6× ROAS, even on modest spend levels.

8. Beyond the First Sale: Retention and Community

ROI isn’t just first-purchase revenue — it’s lifetime value.

TikTok lets you retarget your customers through:

• Post-purchase content (“How to use your product,” “Your next favourite item”)
• Live customer check-ins
• Exclusive discount codes for repeat buyers

Somerce insight:
Brands with strong creator communities see up to 50% repeat GMV because customers stay inside their content ecosystem.

9. Somerce Funnel in Action

Case Example: Glow For It – Beauty Brand
Objective: Build a sustainable TikTok sales funnel
Strategy:

• Awareness: Trend-led skincare skits (UGC)
• Engagement: Creator tutorials with product demos
• Conversion: Spark Ads to TikTok Shop bundles
  Results:
• CTR 3.2% | CVR 8.7% | ROAS 4.9×
• 5× GMV in 90 days
• 60% of total revenue from TikTok Shop

10. Key Takeaways

✅ Build your funnel around attention, not assumptions
✅ Blend entertainment-led creative with performance tracking
✅ Use Spark Ads and TikTok Shop for seamless conversion
✅ Scale through creative testing, not budget spikes
✅ Measure ROI across awareness, engagement, and retention

As Somerce’s strategy team puts it:

“On TikTok, performance starts with culture — but ends with data.”

A great TikTok ad doesn’t just sell once. It builds momentum.

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