How Much Are TikTok Ads

How much do the paid ads on TikTok cost?

If you're here because you want to know how much TikTok ads actually are, I can't really help. It's such a loaded question that I risk giving bad advice simply because I don't know your overall business goals. I can't see the bigger picture.

Most of the articles around this topic suggest that TikTok's ad inventory starts at a $10 CPM (cost per mille). In other words, it will cost you $10 for every 1,000 impressions. Again, every business and every campaign is entirely unique. None of them will be the same. It's best to first determine if your business is even ready for paid ads.

I'm sorry I wasn't able to give you the clear-cut answer you were looking for.

I did scour the Internet for tidbits I thought you might find useful/

Please find these useful. 🙂

How much do TikTok ads cost?

• You don't pay per ad, you pay per impression.

An impression (also known as a view-through) is when a user sees an advertisement. In practice, an impression occurs any time a user opens an app or website and an advertisement is visible. It is not to be confused with anengagement.

How big of a budget do I need to reach my audience?

Beware of anyone who makes a concrete budget recommendation without understanding the bigger picture. That being said, I've found starting with anything less than a $20 daily budget will strangle a campaign before it has a chance to get off the ground... but that's with Facebook ads. 

$20 daily budget = $600 per month

TikTok requires you to commit to spending at least $500 on a single campaign before they'll serve your ad.

If you're starting out, please start small. Paid ads work. But if you dive in headfirst and light a couple thousand dollars on fire with no ROI, you're going to be one of those sourheads that say "tHe AdS dOn'T wOrK". Don't be that guy. Be smart. Set a marketing budget limit and experiment/test/learn within that limit.

If you still need help with this, please find these three resources useful:

• How big experts thing your marketing budget should be
• And then how much you should be allocating to paid digital ads
• Bonus: see how much you'd be required to budget per day if you wanted to run ads on TikTok in 2020.

How do I pay for TikTok ads?

TikTok accepts credit/debit card and other forms of payment. If you have a pulse, you likely know how to submit payment to TikTok. 

If you're one of those people who loves to devour a Terms of Service page on payment terms, here you go! Read TikTok's ToS.

Why are they so expensive?

TikTok requires a minimum of $500 spent per ad campaign. If $500 is expensive to you at this stage of business, paid ads are not for you. Yet. If you're not able to spend $500 on a marketing test, you shouldn't be focusing on any kind of paid ads. You should focus on creating original, educational content to help nurture your audience.

Is it worth promoting on TikTok?

Yes, absolutely. There are already over 1 billion people on TikTok. Your target audience is here, and, if you want to reach them, you should be too. Running paid ads on social media platforms like TikTok, Facebook, and Instagram are an exceptional way to reach your target audience. You just have to know what you're doing, otherwise it comes with a hefty price tag. Pro tip: Promote your best-performing organic videos as Spark Ads to help increase reach.

How long should the video ads be?

This is completely dependent on the overall goal. If your ad is at the very top of the funnel, aim for 15 seconds. If it's a remarketing video, you can bite off a little more. What value-packed insight can you deliver in one minute? Focus on that and you'll have a dynamite ad on your hands.

TikTok ads vs Facebook ads experiment

Check out this person's key takeaways when they tested TikTok ads vs Facebook/Instagram ads:

• TikTok is great for targeting younger audiences
• The costs are generally lower on TikTok
• Facebook and Instagram offer more options – TikTok is still very new
• TikTok doesn’t have proper conversion tracking yet to optimize for clicks and views
• 99% of the TikTok ads ran on iOS
• TikTok has a lot of new (updated) creative options

Don't overlook influencer marketing either

We all love to poke fun at social media influencers, but we often forget to realize how valuable that *influence* actually is. A TikTok account with a solid audience can command $10,000 per sponsored video. Of course, these aren't the common costs of working with an influencer. 

TikTok is, without a question, one of the fastest growing social media platforms in the history of the universe. We also believe it to present the greatest opportunity (in the world of social media) for business/companies/brands.

The organic reach is insane.

Any video can go viral for seemingly any reason (and at any time). To put it simply, their algorithm is SO good.

They know how to deliver videos people actually want to see.

If you have the time, invest it into building an audience on TikTok. I promise you won't regret it.

Bonus TikTok Ads Costs resources:

• The ultimate guide to TikTok advertising in 2022
• TikTok is largely favored by Gen Z, but more older users have started jumping on the platform in 2020. During Q1 2020, the share of 24–34-year-olds on the platform increased from 22.4% to 27.4%. At the same time, the 35–44-year-old demographic increased from 13.9% to 17.1% (Comscore). With such a broad range of ages represented on the platform, it’s a good chance that your target audience is on there.
• TikTok advertising can be expensive compared to Facebook and Instagram
  
• Ads on TikTok are still new. This means that TikTok can afford to charge a premium rate for them, knowing that advertisers aren’t going to abandon TikTok to compete with their competitors for prime Facebook/Instagram advertising space.
• TikTok ads start at $10 per CPM (cost per 1000 views). Also, they require you to spend a minimum of $500 on a campaign. So you aren’t going to use formal TikTok ads for a cheap and cheerful viral marketing campaign.
• How TikTok ranks ads
  
• At a high level, TikTok ad rankings are determined by a combination of ad relevance, ad quality, and bid price.
• This is similar to many other advertising platforms where, while bidding is important, higher quality, more relevant ads will be shown more often. The idea behind this is that better ads will get more engagement and make the advertising platform more money.
• TikTok advertisers also cite engagement as an ad ranking factor. Ads that get more likes, shares, and comments are going to show up more across the platform. Even better if those ads have high watch time or watch loops (how many times users watch a video on TikTok).

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