“In this digital era, it does not matter whether you have social media, the thing which matters is how well you perform on it.”
Despite several social media apps, TikTok got popularity among mobile users due to its innovative learning algorithms. It identifies people’s interest and shows them similar videos. According to recent research, people spend 22.6 trillion minutes on TikTok as it produces engaging video content and costs nothing.
So what’s about TikTok Ads?
TikTok offers an advertising platform and connects brands with audiences, thriving influencer marketing, creating brand awareness, and enhancing businesses, website traffic, sales, etc. Is it affordable? How can it be helpful for digital marketers? Is it worth it?
Do not worry! I will solve all your queries!
So, scroll down and get the answers to your burning questions!
TikTok Ads: Which Age Group You Should Target?
Before you advertise on TikTok, you must understand which age group you should target the most. The age group ranges on TikTok include;
- 18-24 years old (24.7% are female while 18.1% are male)
- 25-34 years old (17% are female and 13.6% are male)
- 34-44 years old (6.8% are female while 5.9% are male)
TikTok Ads Cost Statistics — An Overview
TikTok uses CPM (cost per mile) metric to charge for your ads. So, the general cost statistics of different types of TikTok ads are;
- Advertising campaigns will cost $500 or 410 pounds.
- Tiktok engagement rate is about 5-16%.
- Average TikTok Ads CPC is $1.
- Starting a branded hashtag challenge will cost $150,000.
- Average rate of Tik Tok Ads CPM is $10.
- In-feed ads will cost $10 per impression.
- The price of brand takeover is $50,000, top view ads are $65,000 daily, and branded lenses are $80,000 daily.
- Price of creating TikTok videos on Canva is free.
- TikTok influencer pricing varies from $5- $2,000 per post.
How Do TikTok Ads Work?
The TikTok advertising platform is beneficial for many companies and industries, creating new paths for your business success. If you want to advertise on TikTok, select your desired ad format from the following such as;
- Image Ads: You can run it through TikTok’s partner placements, including the Pangle and Global App Bundle. Image ads include brand, image, ad text, and app name.
- Carousel Ads: It runs through TikTok’s app series, BuzzVideo. It may include 10 images, unique captions, landing pages, and unique URLs, helping you showcase your several products.
- Video Ads: It includes display images, videos, brand name, ad text, and has a duration of 5-60 seconds, running through news feed apps, Global App Bundle and Pangle. It is beneficial for self-serve ads and will show up in your target users’ FYP (For You Page)..
- Spark Ads: They generate a code and leverage existing organic TikTok posts, letting you run the videos as an ad straight from your TikTok page or content creators’ page. Spark ads also offer you high engagement rate, CTR, and low CPA.
- Collection Ads: When you run these ads and someone taps on them, the interactive element of your ad will lead them to an instant gallery page, letting visitors browse your featured products.
- Playable Ads: These ads help you showcase a captivating preview of your app following by downloading.
Types of TikTok Advertising and Marketing
The types of TikTok ads include;
- Auction ads
- Reservation ads
To run TikTok auction ads, advertisers must have a significant experience and they have to place a bid for ad placements. The types of auction ads include;
TikTok Ads CPM
The average cost of CPM (cost per mile) on TikTok is $10/1k views; however it varies according to ads performance, target audience, different geographies, etc. So, you will have to spend $500 on your ad. You may find it expensive but it offers an amazing option for exposure campaigns.
TikTok Ads CPC
The average CPC for TikTok ads is $1, referring to the price advertisers/brands pay per click. Advertisers run these ads for different audiences located in different geographies to drive more organic traffic. However, you can reduce this price to $0.20 with effective strategies.
TikTok Influencers Ads
The price for influencers’ posts/ads depends on their followers. Their tiers include; nano, micro, mid-tier, macro, and mega Influencers. The price ranges from $5-25 per video post to up to 10k TikTok followers and $1500-2,000/TikTok post to over a million followers.
So, if you want to market your firm on TikTok, you must build a relationship with the right TikTok influencer according to your desired demographics and target audiences. This tactic will help you to promote your brand cost-efficiently.
TikTok Reservation Ads
For TikTok reservation ads, you must book them through TikTok ad agencies, so they are more pricey than auction ads. However, they are effective for big/successful brands and let you market your brand on various social media platforms as TikTok has set up paid advertising programs on Facebook, Twitter, Instagram, etc.
The types of reservation ads include;
In-feed ads are skippable and last for 15 seconds and appear on “For You Page”. They include website clicks, app downloads, and various CTA (call-to-action) types.
Brand Takeover Ads
Brand takeover ads are pricier and include GIFs, videos, or images. These ads last for 5 seconds, appear on the app’s entire screen, and are directly connected to hashtag challenge or a brand’s profile. TikTok allows only one brand at a time to utilize this feature and guarantees them 5 million impressions.
TikTok’s best feature is the hashtag challenge. It allows users to see a purposeful ad and encourages interaction between brand messaging and user creativity. Hashtag challenge’s ads are expensive and you have to pay $150,000 to display your brand on a discovery banner.
TikTok’s branded lens feature is similar to Snapchat’s branded filter feature, offering various filter options to elevate your videos. They appear in the trending section, letting you use them while filming your videos.
For branded lenses, you must have a budget of $80,000, but do not worry they are worth your penny and improve your brand visibility.
Top View Ads
TopView ads last for 60 seconds and are not skippable. When someone launches the app, these ads pop up and spark curiosity. To run these ads, you will need $65,000 daily.
How to Reduce TikTok Ads Cost?
After a few years of working, TikTok improved its advertising platform and now it has become more efficient and convenient than Google Ads or Meta Ads. It helps marketers to increase their app’s user base at a low price. You can lower your TikTok ads and campaign costs in the following way such as;
Making TikTok Authentic
TikTok Ads ad formats are perfectly blended with user-generated content and allow TikTok users to distinguish between users’ ads and videos. These ads can be commented on, liked, or shared like a regular video, increasing engagement.
So advertisers must ensure their ads are running on par with their regular video, leading to more engagement with less marketing budget.
Partnering with Influencers
On other social platforms, influencers act as brand ambassadors; however on TikTok, the situation differs. On TikTok influencers engage with people and deliver them brand’s messages due to its For You page section.
So, approach the right influencer for your products/brand, create captivating video for your TikTok campaign or ads, and bring down the overall cost.
App marketers must run a split-test for their TikTok Ads and campaigns. If you run numerous ads with different creative simultaneously, they will resonate with different audiences, establish connections, lessen your marketing budget, and help you identify the best creative ad.
Running Creative Ads
The cost of TikTok creatives depends on their mode of production, so either hire a professional from Upwork/Fiverr on a freelance basis or go with a DIY approach. DIY approach is inexpensive, if you choose it, you will only require software and you can simply use Canva’s free/premium feature for this purpose.
Using Analytics Properly
Too low bid will not deliver your ads to the target people while too high bid will make your ROI go out of whack. So, you must analyze every TikTok Ads’ metric, built-in analytics, key data points, business models, etc. carefully. These metrics include;
- Total number of views, likes, shares, comments, and videos’s play time.
- The video’s average watch time.
- How many people save the video and watch it fully?
- Total number of clicks/conversion rate.
Analyzing Other Factors
Moreover, you must also consider the following factors to bring down the TikTok ads cost such as;
- Before advertising, choose your preferred campaign objective.
- Perform audience segmentation and automatic targeting.
- Set up your budget & bid amount with bid caps or cost caps.
- Make your landing page relevant and seamless to your campaign/ad.
- Keep a close eye on CVR for your ads. If don’t explicitly know what is CVR in digital marketing? Read our blog post.
TikTok Advertising Compared to other Social Platforms Ads
The ads cost depend on your industry, keyword competence, target audience, geographies, etc. The remarkable differences between TikTok ads and other social media ads cost include;
TikTok has become the most popular and downloaded mobile app due to its remarkable attributes such as; ad formats, easy-to-navigate dashboard, amazing targeting option, and robust bidding system. People of almost all ages are using this digital advertising platform to enhance the visibility of their brands or sales of their products.
Although, TikTok ads require comprehensive investment but they are worth the money. The TikTok ads cost depend on your objective, budget, action plan, target options, etc., so examine each factor carefully before running any ad/campaign.
Want to create your brand awareness? Run ads on TikTok, interact with your target audience, boost sales, and take your business to greater heights!