How Much do TikTok Ads Cost ?best strategy in 2023


How Much do TikTok Ads Cost
 TikTok Ads Cost

TikTok Ads Cost (2022)

In the mobile app space of millions, there are a few apps that take up the majority of the time people spend on their smartphones and tablets . Next to YouTube, Meta, and Instagram is TikTok, a rising star . Thanks to its innovative machine learning algorithms, TikTok is able to identify people's interests after watching a small number of videos, and then keep showing similar videos .

It's the only competitor that has managed to change the social media paradigm in recent years, and has become popular among mobile users at an astronomical rate . Super-successful video streaming services like Netflix and Co . have also been affected .

According to new research, people spent about 9 .6 trillion minutes on Netflix in 2021 and a whopping 22 .6 trillion minutes on TikTok . Globally, the attention on mobile devices is clearly shifting to TikTok as the ultimate producer of compelling video content that costs zero to produce .

TikTok business account vs creator account 

Small Business TikTok Ideas

TikTok Advertising Can be Expensive Compared to Facebook and Instagram

Clearly, some of TikTok's best-known advertisers, like Nike and Disney, have deep pockets when it comes to advertising . They're unlikely to argue about cost unless there's a major difference . However, it may seem more expensive than the more popular Facebook/Instagram ads .

Ads on TikTok is still new . This means TikTok has the ability to charge a premium for them, as advertisers won't give up TikTok to compete with competitors for prime Facebook/Instagram ad space .

TikTok Now has a Formal Ads Program ?

TikTok has been in the advertising market for a period, however they have now established an official advertising program . However, this is slow, incremental progress . At the very least, it means you don't have stiff competition for those coveted ad slots on TikTok — unlike on Facebook and Instagram, where winning the best ad spot can get reckless and brutal .

TikTok Ads Cost
TikTok Ads Cost 

TikTok Ads : Cost influential factors and How to Reduce Costs

TikTok started experimenting with advertising in late 2018, although it didn't take off until well into the following year . There was a lot of early talk about the high cost of TikTok advertising . It can cost brands $50,000 to $100,000 to take over a popular TikTok channel, for instance, and the cost of a hashtag challenge has a flat fee of $150,000 For six days, companies spend additional funds to promote the challenge.

 However, prices are now much lower for brands looking to advertise on TikTok following the introduction of short native video ads on TikTok

After several years of hard work, since its launch in 2019, TikTok has managed to improve its advertising platform, which is now comparable in efficiency and usability to Google Ads or Meta Ads . Of course, as an app marketer, one of your goals is to grow your app's user base while trying to keep costs down . Here's how to reduce the cost of your TikTok ads campaigns .

Just like Meta and other popular social media platforms, brands can run campaigns themselves from the TikTok ads dashboard, or they can turn to social media marketing agencies who, thanks to their expertise, are able to cut costs and still deliver results that meet expectations  .

For starters, the minimum CPM is $0 .50 per mile, which means marketers pay 50 cents for every 1,000 views of their ad . With a lower CPC limit of $0 .02 per click, advertisers need to spend $500 per campaign .

Similar to other online advertising platforms, the factors that affect TikTok ads cost have to do with the efficiency of graphic creatives, how strongly they interact with the ads, smart ad testing strategies, and whether there is a robust analytics system in place .

Now, tips for reducing spend on TikTok ads campaigns can be broken down into multiple sections .

Making TikTok authentic ad creatives

One of the most notable features of the TikTok ads format is that on the one hand they mix well with user-generated content, but on the other hand, TikTok users can still distinguish between ads and user-generated videos . Just like regular videos, ads can be liked, commented and shared . This visual similarity leads to high engagement rates because TikTok users don't see the ads as advertisements .

However, for this perfect combination to work, advertisers need to ensure their ads are comparable to regular video content . That means if the ad wasn't shot in such a familiar TikTok visual style, it would stand out from the rest of the TikTok app's feed and users would just skip it . However, when an ad is made in true TikTok visual style, it will ensure high levels of engagement and require less marketing budget .

Conducting split-tests

Although app marketers do everything they can to create the most effective advertising tools before launching an ad campaign, in practice this is nearly impossible to achieve . Hence, split testing TikTok ads campaign is a must for app marketers .

By running multiple ads with different creatives at the same time and carefully analyzing their performance, you can identify the best-performing ad creative, which you can focus your campaign on, reducing costs . You also need to remember that different ad creations will resonate with different audiences, and since there's no way to know a priori which will work for which, split testing will help you make that connection .

Using analytics properly

Finally, it is absolutely necessary to carefully analyze each metric provided by the built-in analytics of TikTok ads and come up with viable hypotheses as to why certain creatives behave in a certain way . The platform provides both a bird's-eye view of all ongoing campaigns and campaign-level drill-downs, where data points can be filtered and customized for analysis .

Let’s now take a look at the key data points that allow app marketers to evaluate the effectiveness of their TikTok Ads campaigns .

To help advertisers achieve their goals, the auction-based TikTok ads platform supports a range of business models such as CPM (cost per mile or the cost of paying for 1,000 ad impressions), CPC (cost per click), CPA (per action cost) and CPI (cost per install) as special cases of the CPA model . Beyond these models, app marketers should always keep in mind one of the core tenets of any type of auction-based marketing campaign — if you bid too low, your ad is likely not to serve, while if you bid too high, your return on investment Rates are going to drop becoming TikTok - the ad campaign is definitely out of control .

Top TikTok Marketing Companies

  1. Moburst - Mobile Done Right
  2. yellowHEAD - Scaling Made Simple
  3. BuzzGuru - Influencer Marketing Intelligence & Analytics
  4. Intellifluence - Influencer marketing made easy
  6. ConsultMyApp - Truly effective mobile marketing
  7. Zorka .Agency - Smart . Efficient . Worldwide
  8. Yodel Mobile - The World's Leading App Marketing Consulting Company

If controlling your daily cost is more important than achieving a certain number of conversions per day, you should select the bid cap or cost cap setting in your campaign dashboard . On the other hand, if your TikTok ads campaign is optimized for conversions, you should choose the lowest cost as your bidding strategy . Finally, if your campaign goal is to get your app users to take a specific action, you should select the app events optimization setting .

It is important to note that although the TikTok ads platform has been live since summer 2019, very few reliable sources of data are available on the costs involved . But let's take a closer look at each of the bidding strategies available on the platform, starting with CPM .

TikTok audiences’ age split

As shown in the chart below, the audience of each social media platform tends to fall within a certain age group, in the case of TikTok it is the 18-24 age group . Among TikTok users in this age group, women make up 24 .7 percent of the total audience, while men make up 18 .1 percent . Second, there is a slight gap between users in the 25-34 age group, with women accounting for 17% of the total audience and men accounting for 13 .6% . In third place are users between the ages of 34 and 44, of which only 6 .8% of the audience are women and 5 .9% are men

TikTok also has a strong female bias . This comes as no surprise to many, as it reflects typical gender differences in content types . TikTok got its name in the form of virtual karaoke, a pastime favored by women over men .

wherefore, if your business targets young women, you must seriously think about advertising on TikTok and building your presence TikTok . If you’re selling products that are more geared toward Baby Boomers or Gen Xers, you’ll likely do better on the platforms they spend their time on .

TikTok users geography

TikTok originated in China but has since spread globally, here are the percentages of TikTok’s audiences in different regions as a percentage of the total population . In countries such as Saudi Arabia and Kuwait, TikTok is used by more than 70% of the population over the age of 18, which means that about 20 million people use the platform in Saudi Arabia . In the United States, about 46% of the population over the age of 18 uses TikTok, which means that 121 million Americans 18 and over upload and watch videos recorded by others on TikTok .

TikTok engagement rate benchmark

Any digital ad is only as good as how much engagement it generates . Engagement rates among TikTok users are very high, ranging from 3% to 9% . Of course, different ad formats should trigger different engagements, especially top view format with a CTR of 12-16%, takeover generating CTR = 7-10%, in-feed video - 5-7% .

TikTok Ads Cost Statistic

As with ad production for any digital advertising platform, advertisers can hire a graphic design studio or make their own using software .

If you're going the software route, Canva is the most obvious choice, as Tiktok partnered with Canva in August 2021 to offer its advertisers Canva's superior yet easy-to-use graphics capabilities for visually appealing and efficient ad designs . Canva’s pricing includes three plans – Free, Pro ($120/year), and Enterprise ($360/year) .

If you choose to go the recruiting route, you can hire freelancers on the Upwork job marketplace . Pricing starts at $500 or more for professional, studio-quality video ads, and can be ready in 2-3 weeks .

How Much do TikTok Ads Cost
How Much do TikTok Ads Cost

TikTok Ads CPM

According to platform rules, the average cost per mile starts at $10 per 1,000 views, with a minimum cap of $500 per campaign . Different companies running TikTok ads campaigns report different CPM numbers based on the performance of their ads, which target different audiences in different regions . For example, TuffGrowth says it costs $6 .06 to view 1,000 ad views on TikTok ads, JungleTopp claims a TikTok CPM of just $1 .82, and according to Digiday, the CPM for 2020 is just $1 .00 .

TikTok Ads CPC

According to multiple sources, the average 

(aka cost per click) for a TikTok ad is around $1 .00 . Likewise, CPC figures from different companies are scattered throughout because they represent campaigns targeting different audiences in different regions . Digital media consultancy JungleTopp pegs the CPC at $0 .19 .

Hootsuite’s recent study on the TikTok ads CPC provides a broader picture of the companies running campaigns to drive traffic to their brands . you should know that fees are calculated in the local currency of the country wherever these campaigns occur .

Please note that fees are calculated in the local currency of the country where these activities take place

Skincare brand Synth Labs Intl . managed to drive traffic while spending just $0 .32 per click, online jewelry store Lion Wild team managed to burn down their TikTok ads campaign at $0 .13 per click, Mallows Beauty brand went from £0 .04 A CPC is reached . TikTok ads CPC

Hootsuite TikTok ads CPC for many ads ($)
Now let’s see how much it costs to run a TikTok ad campaign with TikTok influencers .

TikTok Influencers ad rates

Influencer posts on TikTok are priced based on their follower count, which is well established now . Existing 5 main tiers that define the price range for each TikTok post -  Micro Influencer, Medium Influencer, Nano Influencer, Mega Influencer and Macro-Influencer . Pricing starts as low as $5-$25 per TikTok video post for up to 10,000 followers and up to $2,000 per TikTok post for over 1 million TikTok follower

Tier                  Number of Followers                 Price per Post

  Nano-influencer                  1-10k                                      $5-$25

Micro-influencer            10k - 50k                            $25-$200

Mid-tier influencer        50k - 500k                    $100-$1,000 

Macro-influencer            500k - 1,000k               $1,000-$2,000

Mega-influencer             Over 1000k                             $2,000

Types of TikTok Advertising and Marketing

Working with Influencers

If you're a business looking to market on TikTok, until recently you had only one viable option - partner with TikTok influencers and partner with them to promote your brand . Influencers are brand ambassadors on alot of social media platforms, but with TikTok is a special case. Make users of TikTok highly visible out of the "For You" section of the page, and that hasn't changed in multiple ways . If you can build rapport with high-performing and popular TikTok users whose follower demographics match your target audience, it may still be the most cost-effective way to spread your message .

If you can partner with an influencer to get your product in front of a large and interested following, you stand a chance of a great return on investment . Of course, this is assuming that the products you sell make for fun, engaging videos that attract influential followers to your brand .
The most important thing you must remember with this tip is that always making sure you target the right influencers for your brand, they could be real in the video creative you shoot for your TikTok Ads ad campaign . If you don’t meet this requirement, you will most likely waste your influencer marketing budget and fail to reduce your costs .

Promoting Your Own TikTok Channel

If you have a young social media marketing team and your brand is targeting the right TikTok demographic, you might consider launching a TikTok channel for your business . It's no different than a company setting up an Instagram, Facebook, or Twitter account, or sharing a video on a company's YouTube channel .

However, remember that people are not coming to TikTok to learn more about your brand and its products . They commonly go there to chat or even share their creative endeavors . The last thing they want to see is an ad for your product .

So when you build a TikTok channel, you need to provide value to your followers . They want to share videos that interest them, maybe enough to interest them to take a closer look at what your brand has to offer .

Of course, some products and services are easier to gain a foothold on TikTok than others . Movie studios can easily set up and share video clips of their latest blockbusters . also, it's natural for music companies to share their clips of music .

Sharing TikTok Content on Other Social Platforms

Just because something created on TikTok doesn't mean it must stay there . You can find many channels on YouTube that share content, such as great TikTok videos .

You can even promote relevant TikTok content (your own or created by influencers you have a deal with) through your Instagram Stories and Snapchat Snaps . Just avoid spending too much time sharing TikTok promotions on social networking sites with significantly different demographics than TikTok .

How Much do TikTok Ads Cost
How Much do TikTok Ads Cost

TikTok’s Paid Advertising Program

The TikTok Ads platform offers advertisers a variety of ad formats to use,following Facebook, Instagram, Twitter, YouTube and LinkedIn . and you need to be familiar with each one to get the most out of it . 

TikTok offers three main types of ad :

  • In-feed native ads
  • Brand takeover ads
  • Hashtag challenges

As you might expect, TikTok In-Feed native ads are usually short videos, but you can choose still images if you want . You can even use custom filters to improve the look of your work .

On Quora, seasoned marketers who have used native TikTok ads recommend that you should budget at least $1,000 for even a simple ad campaign . One marketer even suggested that you would be willing to pay $50,000 to $100,000 to run ads on the platform .

TikTok Native Ads

The format of the native in-feed ads is like what Meta and Google serve to advertisers directly on a TikTok user’sFor You” page, which is comparable to the regular video content provided by TikTok users . This means you have to bid for a spot on your ads in order for them to reach your target YouTube audience . We mentioned CPM (technically cost per mille, or cost per 1000 views) above . Some choose the related metric CPV (cost per view) . nevertheless, in some cases, you may prefer to offer a CPC (cost-per-click).

Brand Takeover Ads

With Brand Takeover Ads, your ad will play as soon as your targeted TikTok users open their app . Interested users click on the ad, and you send them to a page on your website . Because TikTo ensures that no user sees more than one brand takeover ad per day, there are limited opportunities to do so, and the amount you pay will reflect this scarcity . If you do manage to take over the ad with your brand, make sure your landing page is of high enough quality to justify the cost . There's no point in redirecting people to your site if they'll leave immediately .

The name of the Brand Takeover Ads format speaks for itself, it is designed for short bursts (up to 5 seconds) across the entire app screen, showcasing the brand and presenting it to people . This is the maximum possible exposure . This format of course requires advertisers to be extra careful with their message and what the 5-second video ad is trying to deliver in such a short amount of time .

TikTok TopView ads

The TopViews format is similar to Take-Over, but it doesn't actually take up the entire screen, just a portion of it, and in this case, it's the app marketer's job to craft a memorable video that's compelling enough for users to stop and watch . Message the entire video ad .

tiktok Spark Ads

The Spark Ads format really stands out because it allows advertisers to create ads from existing videos with high engagement and therefore has the potential to be effective .

tiktok hashtag challenges

I talked about the popularity of informal challenges. You can go a step further and formalize this as an official hashtag challenge .

As with all challenges, the big bonus here is that you can generate a lot of user-generated content . All of these commitments can only have a positive impact on the company . While you have to pay for a hashtag challenge ad to start the process, the hashtag challenge ads created by participants are actually free advertising .

However, the overall cost of the hashtag challenge is still too high for small businesses or those that prefer a viral approach to marketing . There is a flat fee of $150,000 for the first six days of the challenge, and an additional fee of $100,000 to $200,000 may be required to promote the challenge .

The TikTok name has become synonymous with challenges . Most famously Jimmy Fallon's #Tumbleweed Challenge . He urged people to create and share a video on TikTok of someone rolling on the floor like a tumbleweed while Western music was playing

background . The challenge was a huge success : Tikok fans uploaded 8,000 videos in 7 days with more than 9 million views .

While successful brand-focused challenges garner the most publicity, it can also be more difficult to get cynical TikTok followers to follow suit .

summary about TikTok Ads Cost

Thanks to an interest graph-based algorithm, TikTok has managed to democratize its platform, allowing ordinary users to make their video content go viral, and it's not limited to celebrity groups, like Instagram or YouTube . With an easy-to-use dashboard and powerful bidding system, 5 ad formats and sophisticated targeting options, TitTok Ads positions itself as one of the best digital advertising platforms on par with Meta Ads and Google Ads .

TikTok Ads offers higher efficiency than Meta and Google platforms when it comes to reaching the Gen Z age bracket .

How Much do TikTok Ads Cost
 TikTok Ads Cost

Frequently Asked Questions

Are TikTok ads worth it ?

The TikTok ads platform deserves to create accessible and great campaigns . Many brands -- especially small businesses -- aren't sure whether advertising on TikTok is worth it, especially given the time involved . But it's easy to set up campaigns, create authentic video content, and track your analytics and data

Can you get paid for ads on TikTok ?

According to a report by Business Insider, you can earn an average of $0 .01 to $0 .02 per sponsored view on TikTok . it means you can earn $1,000 from sponsored ads, when your video gets 100,000 views on TikTok. Once you've built a following on TikTok, you can start thinking about the brands that serve you

How much do TikTokers get paid ?

It's possible to get paid if you have a strong followers on TikTok . TikTokers with large followings (hundreds of thousands or millions of followers) can make $200 to $5,000 per month . Crowd depends on their follower count . If you have less than 100,000 followers, you  .will not get paid much money

Who owns TikTok ?

Bytedance owns TikTok . In 2020, TikTok reached cooperation agreements with Oracle and Walmart . The deal allows the U .S . company to take a stake in the app and provide security technology . ByteDance still owns 80% of the business, a source told CNBC

Which country banned TikTok ?

TikTok has been banned in alot of countries in all the world . In 2020, the Indian government banned TikTok following a border dispute with China . also, Indian banned 233 other Chinese apps . in addition to TikTok has been banned in Pakistan . US and Indonesia try to ban TikTok but fail .

Is TikTok Advertising Suitable for Your Business ?

TikTok is gaining popularity as a short video sharing app. In fact, TikTok has been the most downloaded non-gaming app in the Apple and Android (Google Play) app stores for several months. No wonder so many brands want to get involved. They already have active accounts on Instagram, Facebook, Twitter and LinkedIn, as well as a YouTube channel.

nevertheless, any TikTok advertising and even running a TikTok business account dependents on the demographics of your target customer base.