TikTok is no longer only about dance videos. In recent years, the platform has become a potential advertising landscape for promoting your business. Ultimately, to ensure effective marketing on TikTok, you need to be well-informed of the TikTok ads cost and how to optimize it and avoid stretching your budget.
This article will show you a clear picture of how much you have to invest on your TikTok ad campaign and, hence, help you find the right ways to balance between results and affordability.
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How Much Do TikTok Ads Cost?
Generally, the cost for TikTok ads depends on the types of TikTok ads you use, your campaign duration, target audience, and ad placement. Below, we’ve compiled the detailed pricing based on the ad format and primary ad benchmarks.
TopView ads
How much do tiktok ads cost per day? As per Digiday’s report, TopView ads on TikTok, which appear when you open the app and play for 60 seconds with sound on, come with a daily cost of approximately $65,000.
Brand takeover ads
Brand takeover ads on TikTok, although pricey, are considered valuable. TikTok permits only one brand to utilize this feature each day, ensuring a guaranteed 5 million impressions.
These ads, available in video format, image, or gif, direct users to a brand’s profile or challenge. The starting cost for a brand takeover ad is approximately $50,000 per day – as MagicBrief reported.
Hashtag challenge
Branded hashtag challenges stand out as the priciest ads on TikTok, with the average cost of TikTok ads reaching up to $150,000 for featuring your branded hashtag on the Discovery banner – as per Varos’s data.
Beyond being a conventional ad, a hashtag challenge encourages user interaction with your brand, offering a more engaging experience compared to simply viewing an image or video. To elevate the impact, consider partnering with influencers to amplify the reach of your hashtag challenge.
Branded lenses
If you’re familiar with Snapchat’s branded filters, TikTok’s branded lenses work in a similar way. These lenses offer users unique effects to enhance their videos creatively.
Influencer Marketing Hub reported that the cost for using branded lenses on TikTok is $50,000 to $120,000 per day. Despite the price tag, they are considered valuable for enhancing brand visibility and fostering user-generated content campaigns.
In-feed ads
In-feed ads on TikTok, those 15-second ads that show up in users’ feeds and are skippable, can be used for various campaigns, including promoting apps and websites.
How much does it cost to run ads on TikTok? According to Business of Apps, to run an in-feed ad campaign, you should have a budget of at least $1000 or $10 per impression.
CPC
In the same report, Business of Apps said that CPC, or TikTok ads cost per click, has an average price of around $1 for advertisers. While there’s no fixed cost, a well-planned strategy can bring down your CPC to as low as $0.20.
Understanding the TikTok algorithm can also help you target your ads to audiences more likely to click on them.
CPM
CPM, or cost per mille (1000 impressions), is the cost TikTok charges for every thousand impressions. The average CPM on TikTok is $10.
Advertisers are also required to invest a minimum of $500 in an ad campaign on the platform. While this may appear costly, it proves to be a worthwhile choice for exposure campaigns due to TikTok’s extensive reach.
TikTok influencer ad rate
The cost of collaborating with TikTok influencers varies based on factors like their follower count, engagement rate, and expertise. When selecting an influencer, consider your goals and budget. TikTok influencers may charge anywhere from $5 to $2000 for their services.
To sum it up, here’s a table breaking down how much does it cost to run ads on TikTok:
| TikTok Ads Format | Cost |
| TopView ads | Daily: $65,000 |
| Branded Lenses | Daily: $80,000 |
| Hashtag Challenge | Weekly: $150,000 |
| In-Feed ads | $10 per impression |
| Brand Takeover | Daily: $50,000 |
| TikTok Influencer Ad Rate | $5 to $2000 |
| CPC | $1 |
| CPM | $5 |
How To Reduce Your TikTok Ads Costs?
The platform grants you complete control over your ad budgeting tactics. If you plan your spendings wisely, you can optimize the TikTok ad costs while still yielding desired ad results.
Here are some useful tips to note down:
Use the right TikTok ad formats
The type of format you select directly influences your campaign expenses. For instance, if you opt for TikTok video ads, it’s essential to monitor your CPM (Cost Per Mille) to gauge the expense of reaching specific audiences. CPMs can fluctuate, so staying informed through regular reports is key.
If you’re running high-impact formats like Hashtag Challenges or Brand Takeovers, you’ll be charged a fixed cost for the campaign, securing a predetermined number of guaranteed impressions.
Being strategic about your choice of ad formats can contribute significantly to optimizing your TikTok advertising budget.
Split-test
Despite marketers’ efforts to create efficient ad creatives, achieving optimal results can be challenging. Conducting a split test for your TikTok Ads campaign becomes essential.
By running multiple ads simultaneously with different creatives and analyzing their performance, you can pinpoint the most effective ad creative.
This focused approach helps optimize your ad campaign and, consequently, reduce costs. Keep in mind that different ad creatives resonate with different audiences, and a split test is the key to establishing these connections, as it unveils which creative works best for which audience.
Use analytics strategically
Keep a close eye on each campaign’s performance through the TikTok Ads Manager. This tool provides insights into various metrics for each ad, including total results, total cost, cost per result, impressions, clicks, CTR, CPC, conversions, CPA, CVR, and audience demographics like behaviors, interests, location, gender, and age.
If you rent TikTok agency account, the ad performance tracking process will be less of a burden with the help of the agency. This is particularly important when your campaigns involves multiple projects and complex activities.
This valuable analytics serve as a guide to optimize your return on investment in future campaigns, helping you make informed decisions and reduce unnecessary costs.
Work with influencers
Until recently, partnering with TikTok influencers was the primary marketing option for businesses, and this strategy remains effective.
Building positive relationships with well-performing and popular TikTok users, whose follower demographics align with your target audience, is likely the most cost-efficient way to spread your brand message.
By teaming up with influencers who can promote your products to a large network of engaged followers, you have the opportunity to achieve a favorable return on investment.
However, it’s crucial that your products lend themselves to interesting and enticing videos that capture the attention of an influencer’s followers.
Bottom Line: Are TikTok Ads Worth It?
The TikTok ads cost is generally higher than Instagram and Facebook. Still , the platform’s algorithm swiftly adapts to users’ interests, optimizing ad targeting for better results on a budget.
So, yes, TikTok advertising is worth investing. In our opinion, whether TikTok ads are worthwhile ultimately boils down to what you sell and the demographics of your customer base. While TikTok may not be the perfect fit for all businesses, it proves beneficial for those aiming to reach large and engaged audiences.
