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TikTok Ads Viability Calculator (SMB)

Should you run TikTok ads for your UK small business? This calculator assesses TikTok ads viability by analysing your budget, average order value, and gross margin to determine your breakeven CPA and minimum test budget. Get a clear verdict—not marketing fluff—on whether TikTok advertising makes sense for your business before you spend a single pound.

Estimates only. Assumes first purchase only (no LTV).

This is FOR you if:

  • • UK small businesses already selling a product/service
  • • You know your prices and margins
  • • You have at least £300/month to test
  • • You can install tracking pixels

This is NOT for:

  • • Affiliates or "make money online" offers
  • • Dropshippers testing random products
  • • People looking for free traffic
  • • Anyone without a real offer to sell

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FAQ

Is £300/month enough for TikTok ads in the UK?

£300/month is the minimum recommended test budget. It allows roughly £70/week, which may generate 50-100+ clicks depending on your niche. This is enough to gather initial data, but expect limited statistical confidence. Higher budgets (£500+) provide faster learning.

What is a good CPA for TikTok ads?

A "good" CPA depends entirely on your gross profit per sale. If your gross profit is £30, your CPA must be under £30 to break even on first purchase. Aim for CPA at 50-70% of gross profit to allow room for ad optimisation and overhead.

Do I need tracking for TikTok ads to work?

Yes. Without a TikTok pixel and conversion event tracking, the algorithm cannot optimise for purchases. You will pay for clicks with no feedback loop. This calculator marks "Tracking = No" as not viable.

What gross margin do I need for TikTok ads?

You need enough margin to cover your cost per acquisition. As a rough guide, if your AOV is £50 and you want at least £10 gross profit for ads, you need at least 20% margin. Higher margins (40%+) give more room to acquire customers profitably.

How long should I test TikTok ads before stopping?

Run for at least 7 days to allow the algorithm to learn. If your CPA exceeds your breakeven CPA after 100 clicks, consider pausing and reviewing your creative or targeting before spending more.

Are TikTok ads effective for B2B in the UK?

TikTok skews younger and consumer-focused. B2B can work for low-ticket offers or awareness campaigns, but conversion rates are typically lower than LinkedIn or Google. This calculator gives B2B service a lower score modifier to reflect this.

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