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TikTok Just Guaranteed Your Ad Performance (Wait, What?)

Holy shit, TikTok just did something I've never seen before.

They basically said: "Hey, if our ads don't work for you... we'll give you your money back."

I'm talking about their new ROI Protection feature for GMV Max campaigns. And honestly? It's kinda genius.

Here's What Happened

You know how running ads usually feels like throwing money into a black hole and praying something good comes out?

Well, TikTok just flipped that script.

Now, if you're running GMV Max campaigns (their smart bidding thing) and your return on investment falls below 90% of what you targeted... TikTok automatically gives you ad credits.

Not after you complain. Not after you file a support ticket.

Automatically.

(I had to read this twice because it sounded too good to be true)

🤝 The Deal Breakdown

Here's how it works:

• You set up a GMV Max campaign with a target ROI. Let's say you want 3x return - so for every $1 you spend, you want $3 back.

• If your campaign only hits 2.7x (which is 90% of your 3x target), TikTok goes: "Our bad, here's some money back."

• They calculate it daily using this formula: Ad Credit = What You Actually Spent - (What You Made / 90% of Your Target ROI)

So if you spent $100 but only made $270 when you wanted $300... TikTok gives you $30 back.

Every. Single. Day.

The Catch (Because There's Always A Catch)

Of course, it's not that simple. Here's what you need to qualify:

The Good News:

• You need 20+ orders per day (shows you're actually moving product)

• It works for the entire lifetime of your campaign

• You'll see a little green shield icon if you're eligible

• The money gets added automatically to your account

The Fine Print:

• Change your ROI target mid-campaign? No protection that day.

• Pause your campaign? No protection that day.

• Using "Max delivery" for products or live rooms? Nope.

• Get suspended for policy violations? Obviously no.

Basically, don't mess with the campaign once it's running, and follow their rules.

🤯 Why This Is Actually Brilliant

Think about it from TikTok's perspective.

They want businesses to succeed on their platform. Happy businesses spend more money. But ads are scary for small businesses because... what if they don't work?

This feature removes that fear.

It's like TikTok saying: "We're so confident in our algorithm that we'll share the risk with you."

And for businesses? It's a no-brainer. Why wouldn't you try TikTok ads if they're literally guaranteeing your performance?

The Real Talk

Here's what I think is happening...

TikTok is making a big bet that their GMV Max algorithm is good enough that they won't have to pay out credits very often. They're essentially saying their AI is so dialed in that guaranteeing 90% performance is no big deal.

That's either really confident or really stupid.

(My guess? They've run the numbers and know most campaigns hit their targets when people follow the guidelines)

What This Means For You

If you've been on the fence about TikTok Shop...

This might be your sign.

The risk just got way lower. And if TikTok is confident enough to guarantee performance, maybe their algorithm really is as good as they claim.

Just remember:

• Set realistic ROI targets (don't get greedy)

• Let the campaign run for at least 24 hours before judging

• Don't mess with settings once it's live

• Follow their guidelines religiously

Bottom Line

TikTok just removed the biggest objection to trying their ads: "What if it doesn't work?"

Now the answer is: "Then we'll give you credits."

That's some next-level platform confidence right there.

- Paul 👊

P.S. - We are running 5 of these campaigns as we speak….. message me if you want to be one 🚀