How to Set Up TikTok App Install Ads (2025 Guide)

TikTok's average CPI sits at $2.88 in 2025, making it one of the most cost-effective platforms for reaching younger audiences.

But setup matters. Poorly configured campaigns can burn through budget in the learning phase without generating efficient installs. The right structure, targeting, and optimization settings make the difference between a $2.88 CPI and a $10+ CPI.

Here's how to set up TikTok app install campaigns the right way.

Understanding TikTok's Campaign Structure

TikTok organizes ads into three hierarchical levels: campaigns, ad groups, and ads.

Campaign level: Where you select your objective (App Promotion) and set overall budget caps.

Ad group level: Where you define targeting, placements, optimization goals, and bidding strategy.

Ad level: Where you upload creative assets and configure app store links.

Each level serves a distinct function. The most common mistake is treating these levels interchangeably or not understanding how settings cascade down.

Step 1: Install the TikTok SDK and Configure Tracking

Before you create your first campaign, you need conversion tracking in place.

Install the TikTok SDK in your app to track key events:

• App installs
• Registration completions
• In-app purchases
• Other custom events

Without proper SDK implementation, you'll have no visibility into which ad groups drive quality users versus those that deliver installs with poor retention or monetization.

TikTok's App Events Optimization (AEO) relies on this data to improve targeting over time. If the pixel isn't firing correctly, your campaigns will optimize blindly.

Step 2: Create Your Campaign

In TikTok Ads Manager, click "Create" and select "App Promotion" as your objective.

You'll then choose between two campaign types:

Standard campaigns: Full manual control over targeting, bidding, and placements. Recommended if you have experience with paid social or want granular control.

Smart+ campaigns: AI-powered automation that selects targeting and placements for you. TikTok's algorithm handles optimization based on your conversion data.

For most advertisers starting out, standard campaigns provide better learning opportunities. You can see exactly what's working and iterate faster.

Budget setting:

Set your campaign budget to at least $50/day. This is TikTok's minimum for campaign-level budgets.

If you plan to test multiple ad groups (which you should), budget enough to give each ad group at least $20/day, which is the ad group minimum.

Step 3: Build Your Ad Groups

This is where targeting, placements, and optimization goals get configured.

Recommended structure for testing:

Create 3-5 ad groups with different targeting approaches:

• Ad Group 1: Broad targeting (use TikTok's Smart Targeting feature)
• Ad Group 2: Interest-based targeting (relevant app categories or behaviors)
• Ad Group 3: Lookalike audience (based on existing app users or high-value converters)
• Ad Group 4: Custom audience retargeting (users who engaged but didn't install)

Placement selection:

For app install campaigns, focus on TikTok only initially. You can expand to TikTok's partner placements (Pangle network) later, but keeping placements isolated lets you see which environments drive the best CPIs.

Optimization goal:

Select "App Install" as your optimization event. TikTok will optimize delivery to users most likely to install based on historical behavior patterns.

If you have sufficient install volume and want to optimize for downstream events (like registrations or purchases), you can switch to App Event Optimization (AEO). But start with installs until you have at least 50 conversions per week.

Bidding strategy:

TikTok offers three bidding options:

• Cost Cap: Maintains your target CPI while maximizing volume. Recommended for most app campaigns.
• Bid Cap: Sets a maximum bid per install. More restrictive but useful if you have hard CPI constraints.
• Lowest Cost (Maximum Delivery): Spends your budget as quickly as possible. Can work for scale but watch CPIs closely.

Start with Cost Cap bidding. Set your target CPI based on your unit economics. If you don't have historical data, use $3-5 as a starting point for testing.

Budget:

Set each ad group budget to at least $20/day. More is better if you can afford it—higher budgets help TikTok exit the learning phase faster.

Step 4: Create Your Ads

Now you'll upload creative assets and configure your app store links.

Creative requirements:

• Video length: 9-15 seconds optimal (TikTok supports 5-60 seconds)
• Aspect ratio: 9:16 (vertical)
• Resolution: Minimum 720p, 1080p recommended
• File format: MP4 or MOV

Add 4-6 video creatives per ad group. TikTok's algorithm will automatically test variations and allocate budget to top performers.

App store configuration:

Link your app by searching for it in the App Store (iOS) or Google Play (Android). TikTok will automatically pull your app icon and name.

Double-check that the correct app is linked. Misconfigured links are a common issue that wastes budget.

Ad text and CTA:

Write a short description (12-100 characters recommended). Keep it benefit-focused: "Track your workouts in seconds" performs better than "Download our app."

Select a call-to-action button. For app installs, use "Install Now" or "Download."

Step 5: Launch and Monitor the Learning Phase

Once your campaign is live, TikTok enters a learning phase.

What happens during learning:

TikTok tests your ads across different audience segments to identify which users are most likely to convert. Performance will be volatile—CPIs may spike or drop as the algorithm gathers data.

How long it takes:

Typically 50 conversions or 7 days, whichever comes first. For Smart+ campaigns, plan for at least 7 days.

What to avoid:

Don't make significant changes during this period. Editing budgets, targeting, or pausing/unpausing ad groups resets the learning phase.

Monitor performance, but resist the urge to optimize too early. Let the algorithm stabilize.

Current Benchmarks for TikTok App Install Campaigns

Metric	2025 Benchmark
Average CPI	$2.88
Average CPM	$4.20 - $9.00
Average CPC	$0.17 - $1.00
Minimum Daily Budget (Campaign)	$50
Minimum Daily Budget (Ad Group)	$20
Learning Phase	50 conversions or 7 days

Source: Business of Apps, TikTok Ads Manager, industry benchmarks (2025)

Key Setup Checklist

Before launching your TikTok app install campaign:

• Is the TikTok SDK installed and firing conversion events correctly?
• Have you set campaign budget to at least $50/day?
• Are you testing 3-5 ad groups with different targeting approaches?
• Does each ad group have 4-6 video creatives?
• Is your target CPI aligned with unit economics?
• Are your app store links correctly configured?

FAQs

What's the minimum budget for TikTok app install campaigns?

TikTok requires a minimum daily budget of $50 at the campaign level and $20 per ad group. For effective testing with statistical reliability, budget $1,500-$3,000 over 2-3 weeks.

Should I use Smart+ campaigns for app installs?

Smart+ campaigns work well if you have limited optimization experience or want to test AI-driven targeting. However, standard campaigns give you more control over targeting and bidding, which can be valuable for experienced advertisers with clear hypotheses to test.

How long does it take for TikTok app install campaigns to optimize?

TikTok campaigns typically need 50 conversions or 7 days to pass the learning phase. Performance stabilizes after this period, so avoid making significant changes during the first week.

What's a good CPI for TikTok app install campaigns?

The average CPI on TikTok is $2.88 in 2025. However, "good" depends on your app's lifetime value (LTV). If your LTV is $20, a $5 CPI might be excellent. If your LTV is $2, you'll need CPIs well under $1 to achieve positive unit economics.

Should I start with iOS or Android?

Test both if possible, but if you need to choose, consider where your existing users come from and which platform has better unit economics. iOS users often have higher LTV but may come with higher CPIs depending on competition in your category.

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TikTok app install campaigns can deliver efficient growth when set up correctly. The key is giving the algorithm enough budget and time to learn, while maintaining clear tracking and realistic CPI targets based on your economics.