Ada Parker There are a few apps that take up the majority of people’s time using their smartphones and tablets out of the many millions of mobile apps available. One rising star is TikTok.
How much do TikTok ads cost? TikTok charges for advertisements using the cost per mile (CPM) metric. This translates to the advertiser paying roughly $10 (or £9.60) or 9 pounds for every 1,000 views.
When it came to starting a formal advertising program, TikTok lagged behind a bit. Brands had to come up with alternative methods of TikTok advertising as a result. One of the causes for the success of influencer marketing on the platform is this. How much do TikTok ads cost?
Undoubtedly, the most intriguing aspect of TikTok advertising is the cost of the ads. In 2018, TikTok began running advertisements, but things didn’t go well at first.
Learn more about TikTok advertisements by reading on.
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Table of Contents
How Much Do TikTok Ads Cost?
- Average Tiktok engagement rate – 5-16%
- Average TikTok Ads CPM – $10
- Average TikTok Ads CPC – $1
- Minimal spend per campaign – $500
- Price to create TikTok video on Canva – free
- TikTok audience’s biggest age group is 18-24 years old (24.7% of the total are male and 18.1% are female)
- TikTok influencer post pricing ranges from $5 to $2,000
In the beginning, TikTok won the hearts and minds of a young generation (think Gen Z), but as of 2022, people from all generations use the platform to watch videos, placing the company’s advertising platform, TikTok Ads, high on the list of digital marketing tools for every brand. By 2021, TikTok had over 3 billion downloads, more online traffic than Google, and a monthly video viewing time of about 20 hours.
TikTok advertising appeared soon after the platform experienced phenomenal success. Today, we can discuss the two main methods for running advertising campaigns on TikTok: using the TikTok Ads platform or using TikTok Influencers.
Different Types Of Tiktok Ads And Their Costs
In-feed Ads
This TikTok ad format is great for boosting sales and other conversions because the videos can include a call-to-action (CTA) button. The average CPV (cost per view) for this ad style is not fixed. Different ad settings influence the cost per view, although in-feed advertisements start at $10 per 1,000 impressions on average.
Top View Ads
Top view Ads are excellent for grabbing users’ attention and work well with advertising that necessitates longer durations, such as game trailers, tutorials for new products, and others.
TikTok’s most expensive ads are called Top-view Ads. While the precise TikTok Ads pricing depends on the specifics of your campaign, you should anticipate paying around $65,000 for 7.4 million impressions.
Brand-takeover Ads
A brand takeover campaign costs money to run because of how exclusive it is.
The cost of this brand-takeover ad starts at around $50,000 per day.
Branded Effects
Due to its interactive nature, this type of advertisement is quite effective and captivating. It effectively increases brand awareness and encourages participation.
TikTok Branded effects advertising costs $45,000 for 30 days.
Branded Hashtag Challenges
Businesses that run branded challenges have exclusive access to data on the effectiveness of the branded hashtag campaign. You can keep track of how much user-generated content is created and how much engagement the videos get.
How much does TikTok advertising cost? This exclusivity comes at a premium cost of almost $150,000 for 6 days.
Sponsored Ads (Influencers Advertising)
Along with TikTok’s built-in advertising tools, you can use the platform to engage influencers to market your business. It is one of the best methods for enhancing your brand’s visibility on this social network.
Influencers’ profiles can be viewed in Creator Marketplace, and you can hire them. The cost of hiring an influencer varies according to:
- The number of followers they have
- The niche they are in
- the campaign’s goals.
Do You Need Tiktok Advertising For Your Business?
TikTok is a short-video sharing app that is quickly gaining in popularity. In fact, there have been times when TikTok has topped all other non-gaming apps in both the Apple and Android (Google Play) app stores in terms of downloads. The fact that many brands want to participate in the action shouldn’t come as a surprise. They already maintain active accounts on Instagram, Facebook, Twitter, LinkedIn, and YouTube channel.
However, the demographics of your target audience will be a major factor in any TikTok advertising (or even managing a company TikTok account).
The creators of TikTok (and Musical.ly, which served as a precursor) decided to make an app for people under the age of 18. Yes, many TikTok fans have continued to use the app as they’ve gotten older, but it’s obvious that young people make up the majority of users. 41% of TikTok users are currently between the ages of 16 and 24. In fact, younger users make up 66% of TikTok’s user base.
Tiktok Ads Is Expensive Compared To Facebook & Instagram
Of course, some of TikTok’s most well-known advertisers, like Nike and Disney, have substantial advertising budgets. Unless there is a significant difference, they are very unlikely to argue about the price. However, it might appear more expensive than the more well-known Facebook and Instagram advertising.
TikTok ads are a recent addition. Because they are confident that their advertisers won’t switch to TikTok’s rivals in order to compete for valuable Facebook/Instagram advertising space, TikTok can afford to charge a premium price for them.
The cost per 1000 views (CPM) for TikTok advertisements begins at $10. Additionally, they mandate that you fund a campaign with a minimum of $500. So for a low-cost, fun viral marketing campaign, you won’t be using formal TikTok ads.
Read More: How To Go Live On TikTok?
Cost Influential Factors Of TikTok Ads
Since it launched in 2019, TikTok has made improvements to its advertising platform over the course of a few years, and as a result, its effectiveness and user-friendliness are now on par with those of Google Ads or Meta Ads. Naturally, one of your objectives as an app marketer is to increase the app’s user base while attempting to cut costs. Here’s how to cut your TikTok Ads ad campaign costs.
Like Meta and other well-known social media platforms, TikTok Ads offers brands the option to run their own advertising campaigns, or they can choose to work with a social media marketing firm that, thanks to their experience, can lower costs while still delivering results.
First off, the lowest CPM is $0.50 per mile, which means advertisers must pay $0.50 for every 1,000 views of their ads. Advertisers must spend $500 per ad campaign, and the lowest CPC cap is $0.02 per click.
Similar to other online advertising platforms, the effectiveness of graphic creatives, the degree of engagement with ads, clever ad testing techniques, and the presence of a strong analytics system all affect how much TikTok Ads cost.
Now, there are several categories into which the advice for lowering your TikTok Ads advertising expenses can be divided.
Different Types Of Tiktok Advertising
Working With Influencers
Up until recently, the only real option for a business looking to market on TikTok was to collaborate with an influencer on the platform to advance its brand. This still holds true today in a lot of ways. This is still likely the most economical method of disseminating your message if you can establish cordial relationships with successful and well-liked TikTok users whose follower demographics align with your target audience.
You stand a chance of getting a good return on your investment if you can work with an influencer to market your goods to a sizable network of interested followers. Of course, this assumes that the product you offer makes for engaging, alluring videos that will attract an influencer’s audience to your business.
Sharing Tiktok Content On Other Social Platforms
It’s not necessary for something to remain on TikTok just because it started there. For instance, you can find a ton of channels on YouTube where people share TikTok highlight videos.
You can also advertise relevant TikTok content on your Instagram Stories and Snapchat Snaps, whether it’s your own work or that of influencers you’ve partnered with. Just be careful not to spend too much time promoting TikTok on social networks with distinctly different user demographics from TikTok.
Tiktok Challenges
Challenges are now associated with TikTok. Undoubtedly, Jimmy Fallon’s #Tumbleweed Challenge was the most well-known. He challenged people to make a video and share it on TikTok, of somebody rolling around on the ground like a tumbleweed, with Western-style music playing in the
background. The challenge was a huge success, garnering over 9 million views in just seven days thanks to the 8,000 videos uploaded by TikTok users.
It would be more difficult to persuade cynical TikTok users to follow the lead, even though a successful brand-focused challenge would generate the most publicity.
Promoting Your Own Tiktok Channel
You might think about creating a TikTok channel for your business if you have a young social media marketing team and your brand targets the right TikTok demographics. This is the same as a business creating accounts on Instagram, Facebook, or Twitter or uploading videos to a YouTube channel.
However, keep in mind that people don’t visit TikTok to learn about your company and its offerings. They typically visit there for fun or to exhibit their creative endeavors. The advertisements for your products are the last thing they want to see.
Therefore, you must provide value to your followers if you want to start a TikTok channel. Share videos that catch their attention and might even pique their interest enough to explore more of what your company has to offer.
Naturally, some goods and services succeed on TikTok much more quickly than others. Film studios can set up and distribute videos of the newest blockbusters with ease. The sharing of music clips is also a natural fit for music labels.
TikTok’s Paid Advertising Program
Finally establishing its official paid advertising program, TikTok has followed in the footsteps of Facebook, Instagram, Twitter, YouTube, and LinkedIn.
The official paid advertising program on TikTok may have a better structure than the other, more informal forms of the platform’s marketing. This is still in its infancy, so the platform lacks some of the finesse of, in particular, the Facebook and YouTube versions. But since it is less likely that your rivals will oversaturate TikTok with higher ad bids than yours, you might be able to make up for this.
How To Get Brands Driving Results?
TikTok has a distinct ad landscape, as is true of all social networks. To put it another way, you must know how to modify your campaign for the platform if you want it to be successful.
And it’s worthwhile: according to research, TikTok-specific branded content is watched 13% longer than non-TikTok content.
As TikTok ads experts at Fanbytes, we’re providing some insider advice for maximizing your TikTok advertising budget. Take it from us, the best TikTok ad campaigns
1. Creative Ideation
The seamless integration of assets into TikTok ads is a major benefit. While scrolling through the For You Page (FYP), advertisements appear alongside native content. Like, comment and share options are all still available, as are all the other features of a regular post. Only the CTA button at the bottom, such as “Shop Now” or “Learn More,” gives away the fact that it is an advertisement.
Due to this, TikTok ads have impressive watch-through rates, and based on our experience, a lot of people frequently aren’t immediately aware that the content is sponsored. This is a rare opportunity to attract potential customers in a way that other platforms can’t, particularly among younger audiences, who are known to actively take steps to avoid overt digital ads.
However, creating an “ad that doesn’t feel like an ad” is only half the battle. Gen Zers shouldn’t be the only ones who avoid you. You desire their full attention as you speak. Therefore, having a potent ad creative is crucial.
A successful campaign requires an advertisement that is native in appearance, makes use of key TikTok features, and ideally includes well-known influencers. By demonstrating that you have taken the time to understand the platform and Gen-Z culture, using audio and effects in paid content is a great way to establish rapport with potential customers.
2. Use The Right Format
It’s critical to choose the appropriate ad format on TikTok because there are many available. TikTok has been expanding its ad offerings ever since the platform was first introduced in 2019; as a result, there are many different formats to choose from, and picking the right one can significantly increase your KPIs.
Knowing which ad format will best suit your needs is a great tip, but to make the most of each type, it’s crucial to be well aware of what each ad requires. Make sure your specifications are correct and that you are taking all the necessary steps to convert engaged viewers into KPIs.
3. Work With An Influencer
True, influencer marketing is present on the majority of social media platforms, but on TikTok, where the individualized For You Page places the community at the center of the app experience, the impact of influencer marketing is enormous.
A study found that working with TikTok influencers significantly increases view rates by 193%. Ads involving TikTok creators had an 83% higher engagement rate than ads without them, which had a 12% rate. Engagement rates are also higher.
It seems like a no-brainer, right?
Finding influencers who the audience you are trying to reach will recognize is crucial when working with creators to develop effective creativity. The best influencers for paid and organic campaigns are ensured at Fanbytes thanks to our proprietary analytics search tool Bytesights.
4. Incorporate Split-testing
Observational advice rolling out a paid campaign with a minimum of three different creatives produces the best results.
There are many reasons for this, but the main one is that it enables you to test different creatives in different groups. Once the data has been gathered for a few days, you will notice a pattern where some creatives consistently outperform others. The results will be more cost-effective once there is a clear “winner,” allowing you to devote more money to that particular advertisement.
Added justification for split testing? Building a portfolio of creatives that will appeal to various audience segments is important because different creatives may resonate with various demographics.
TikTok offers precise targeting, ensuring that only your target audience is reached. You can divide the population based on their age, gender, location, interests, languages, and type of device. Therefore, in addition, to split testing the creatives, we frequently discover that creating various ad groups with various targeting options is also essential for success.
Testing out various combinations of age and gender, or interests and location, along with the innovative split-testing, really helps to lower the CPA because you can fine-tune to ensure the best results.
Your campaign’s effectiveness will affect how well your TikTok advertising budget is utilized.
5. Know How To Analyse
After your TikTok advertising campaign has ended, the platform offers detailed reporting on the number of conversions generated and how well the campaign resonated with the various target demographics; for instance, CVR breakdowns by gender and age.
It is crucial to apply these lessons to future endeavors, particularly those involving the creative sector. Consider what worked and what didn’t, then make an educated guess as to why your audience reacted this way.
Users of TikTok can still like and comment on TikTok advertisements, as was already mentioned. Spend some time reading the comments to determine the consensus. You might discover more about your audience than you imagine. For businesses attempting to adopt the mindset of their ideal target market, the following remarks are excellent: treat them like a digital focus group.
Average CPM For TikTok Ads
TikTok employs CPM as its measurement metric, unlike other platforms such as Utilizing CPC (Cost Per Click), Facebook, and Instagram It means that the price for the advertisement is set at $1.00 for every 1000 views.
TikTok commercials have an average CPM of $10.
- Charged by impressions
- Target to increase reach
Average CPC For TikTok Ads
TikTok ads are relatively new to the advertising world, but they have proven to be successful for digital marketers. TikTok advertisements have an average CPC of around $1.00, depending on bidding – not the most cost-effective campaign, but a promising one.
- Charged by click
- Increase community interaction, installs, conversions, and traffic.
How To Optimize Your Budget For Tiktok Ads?
Depending on the bidding strategy you select, TikTok’s auction ads system will adjust its algorithm to keep your spending under your daily spending cap or use cost per result. You should keep in mind, though, that during this time, TikTok ad space will be allocated between you and your rivals.
- Bid cap: This is the particular bid amount you’re willing to pay per optimization target (click, conversions, impressions, views, etc.). Your daily budget will change if your competitor places a higher bid. Your money might not be spent if your rival outbids you. Additionally, this suggests that your advertisement won’t work well.
- Cost cap: With this option, the cost per result varies from less than the bid amount to more than it. This strategy serves the following advertising goals: app installs, conversions, and lead generation.
- Lowest cap: This method takes your daily spending into account. The budget is always used up at the end of the day/campaign, but the ad system automatically adjusts to maximize the number of conversions based on the budget. Therefore, this ad model is built for traffic, reach, views, app installs, conversions, lead generation, and catalog sales.
Read More: What Happens When You Get 1000 Followers on TikTok?
Is It Worthwhile To Invest In Tiktok Ads?
The answer is yes.
The advertising on TikTok is working well for smaller e-commerce companies, and the network’s marketing opportunities are growing. -Smaller businesses can start experimenting with video ads because standard feed advertising is reasonably priced, and they can gradually increase their lifetime budget as performance data becomes available.
If your ROAS allows it, you can increase your spending and even invest in custom solutions once you gain confidence in the results TikTok is producing. As a result, advertisers can easily adopt a gradual and steady approach to reach a responsive audience on a platform that is still developing.
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