What is likely causing fluctuating conversion costs for a new web conversion campaign on TikTok?

The learning phase is a critical period during which the TikTok Ads platform gathers data to optimize ad delivery effectively. This phase is characterized by fluctuations in conversion costs as the system tests various placements, audiences, and bidding strategies to find the conditions that yield the best results.

During this time, algorithms are experimenting with different factors that influence performance, which can lead to changes in cost per conversion. As the algorithm gains insights from ad performance metrics, it begins to stabilize and optimize, ultimately leading to more predictable conversion costs over time.

In contrast, while low bid prices, resonating ad creatives, or high campaign budgets can impact campaign performance, they do not inherently lead to fluctuating conversion costs in the same way the learning phase does. Low bid prices might result in limited reach but wouldn’t cause volatility in conversion costs. Similarly, even if ad creatives resonate well with specific audiences, the data reliability may not be consistent until the campaign has exited the learning phase. A high campaign budget may scale the reach but would not necessarily cause fluctuations in costs without the factors inherent in the learning phase.