1. What is oCPX?
oCPX (optimized Cost Per X) is a system in which the system automatically adjusts bid prices in real time to achieve the most efficient results for the goals set by the advertiser (conversions, clicks, etc.).
Advertisers simply specify how much they are willing to pay for each acquisition, and the AI will then select users who are likely to convert from a vast amount of user data in milliseconds.
2. The formula for winning the auction: eCPM
TikTok's ad space is determined through an auction system, but simply bidding for the highest price is not enough. The system prioritizes ads that maximize eCPM (effective cost per thousand impressions).
Ad Auction Formula
eCPM = Bid × eCTR × eCVR × 1,000
- Bid: The target cost per acquisition set by the advertiser.
- eCTR（Estimated Click-Through Rate）: The probability that the user will click on the ad.
- eCVR（Estimated Conversion Rate）: The probability that a clicker will achieve a result.
In other words, only when both "creative quality (CTR)" and "data accuracy (CVR)" are met can ads be widely distributed even at low bid prices.
3. The Importance of the Learning Phase
When you create a new ad set, the system goes through a period of time where it tries to figure out what kind of users will respond to it. This is the **learning phase**
Estimated completion date
Generally, once you have achieved 50 conversions within 7 days, the learning phase ends and your ad will enter stable mode. If you change your settings frequently during this period, the learning phase will be reset, so be careful.
4. The quality of the signal determines success
The oCPX algorithm predicts the future based on past conversion data (signals), which can be problematic due to **missing data**.
- Inaccurate data: Due to the impact of iOS14, only 10 conversions were reported (in fact, 20 conversions occurred).
- Impact on AI: The AI will mistakenly assume that the ad is unlikely to sell well, lowering the predicted eCVR.
- Result: Lower eCPMs, fewer auction wins, and reduced serving.
Mirai accelerates algorithms
Mirai's server-side integration provides previously missing signals that are fed back to TikTok's AI with near 100% accuracy.
- Complete the learning phase twice as fast
- Improved eCVR prediction accuracy and increased delivery volume
- Reduce wasted clicks and optimize CPA
5. The "Golden Rules" that operators should follow
To maximize the benefits of oCPX, keep the following three points in mind:
- Budgeting: Set a daily budget that is at least 20 times your target CPA.
- Make changes carefully: Avoid changing bids or making large targeting changes by more than 20% at a time.
- Preparation of the measurement environment: Continue to teach the AI the correct answer (conversion).