how much does tiktok advertising cost in 2023



TikTok ads cost
TikTok ads cost


How much does TikTok Ads cost?

 we will talk about tiktok advertising cost, because tiktok is One of the quickest and most effective ways to reach a specific audience is such as social media advertising. TikTok ads is one of the most efficient forms of contemporary advertising, serving multiple purposes from increasing general brand awareness to boosting website traffic and ultimately increasing sales conversions.

The challenge now is to strategically plan spending on the social media platform with the highest potential return on investment because many businesses are enhancing their marketing and advertising efforts to prioritise social media.

Advertising was inescapably going to come along with the social media platform's resounding success and continued growth. Advertise on TikTok has relatively low entry requirements, and its advertising platform, TikTok Ads, optimises and automates the ad creation process in a manner akin to Google Ads or Meta Ads. But how much does it cost to advertise on TikTok? with such ease of entry.

How much do TikTok ads cost?

How much do TikTok ads cost?

Understanding TikTok Ads costs

Although there is no official advertising pricing on TikTok, the platform generally requires that a minimum budget be set in order to advertise. At the campaign level, a minimum budget of $500 ($50 per day) is needed, and at the ad group level, a minimum budget of about $50 ($20 per day) is needed.

The auction-based TikTok Ads platform supports a variety of campaign models to assist a wide range of advertisers in achieving their objectives, including CPC TikTok Ads (Cost-Per-Click), CPM TikTok ads (Cost-Per-Mile or Cost-Per-1,000 ad views), CPI TikTok ads (Cost-Per-Install), and CPA TikTok ads (Cost-Per-Action).

The two most popular campaign models are CPM and CPC, and these TikTok ads cost:

  • $10.00 per CPM 
  • $1.00 per CPC 

These affordable ad campaigns are appealing, but when you consider that the average TikTok engagement rate is between 5 and 16 percent, it is simple to see why so many different types of businesses find them appealing.

However, keep in mind that the cost of these CPM and CPC models can vary greatly depending on the target market and the particular geographic area targeted. Based on a combination of reach and the population of independent consumers (18+), these variables may change the average price.

TikTok’s primary appeal is its prospect for creating high-performing ads at a relatively low price. Your ads can reach millions of people by going viral with either paid or organic content if they are carefully planned, designed, and implemented. The availability of ease of reach does not guarantee that users will passively consume your advertising content, though.


TikTok Ads ad creatives production cost

As with ad creatives for every digital advertising platform, advertisers also can hire a graphic design studio or just use software to create it on their own.

Canva is the most obvious option if you decide to use software, as Tiktok partnered with Canva in August 2021 to give its advertisers access to Canva's superior yet simple-to-use graphical capabilities to design visually appealing and effective ads. There are three price tiers for Canva: Free, Pro ($120/year), and Enterprise ($360/year).

You have two options if you decide to go the hiring route: either hire a freelancer through the Upwork work marketplace. Pricing for a professional, studio-quality video ad creation starts at $500 and goes up from there, and you can anticipate it to be finished in two to three weeks.


TikTok Ads CPM

The minimum spend per campaign is $500, and the average cost per mile starts at $10 for every 1,000 views, according to the platform's rules. Based on the effectiveness of their ads targeted to different audiences in various geographies, the various companies that run TikTok Ads campaigns report varying numbers for CPM. For instance, according to TuffGrowth, the cost of 1,000 views of a TikTok ad is $6.06; according to JungleTopp, TikTok CPM is as low as $1.82; and according to Digiday, CPM in 2020 was only $1,00.


TikTok Ads CPC

The typical CPC (also known as Cost Per Click) for TikTok Ads is around $1,000, according to a number of sources. And once more, the CPC figures provided by different businesses are all over the map because they represent advertising campaigns that were carried out for various target audiences in various regions. The CPC value presented by JungleTopp digital media consultancy agency is $0.19.

The more complete image provides recent Hootsuite research on TikTok Ads CPC for different businesses that ran advertising campaigns to promote their brands. Keep in mind that the prices are listed in the local currencies of the nations where those campaigns were conducted.

Skincare brand Synth Labs Intl. managed to drive traffic, spending only $0.32 per click, online jewelry store Lion Wild team managed to burn their TikTok Ads campaign with $0.13 per click, Mallows Beauty brand achieved CPC as low as mere £0.04.


TikTok user statistics

With only $0.32 spent per click, skincare company Synth Labs International was able to generate traffic. Online jewellery retailer Lion Wild's team burned through their TikTok Ads campaign for $0.13, and the Mallows Beauty brand achieved a CPC of just £0.04.

Every social media platform has a core demographic that it attracts users from, and as you can see from the graph below, TikTok's core demographic is people between the ages of 18 and 24. 24.7% of the audience on TikTok users this age are female, and 18.1% are male. The users in the 25–34 age group follow with a small gap, with 17% of the total audience being female and 13.6% being male.


TikTok users geography

TikTok originated in China but has since taken off globally. The following chart shows the percentage of the global population that TikTok's audience represents in each region. More than 70% of people in developed nations like Saudi Arabia and Kuwait who are 18 or older use TikTok, which equates to about 20 million users in Saudi Arabia. Around 46% of adults in the US over the age of 18 use TikTok, which equates to 121 million Americans who are 18 or older uploading and viewing other people's videos on the platform.

tiktok advertising cost

tiktok advertising cost


Tips for optimizing TikTok Ads costs 

TikTok users are spending over 95 minutes in a day watching shows on the app. However, users of the app may be more aware of what they want to see and, more importantly, what they don't want to see. Some advertisers may see this as an opportunity to "feed them anything."

TikTok users cannot be fed anything and expected to produce results. Keep in mind these three suggestions as you develop your ideal TikTok Ads campaign:


1. Making TikTok authentic ad creatives

To stand out, advertisements must blend in. Users will instinctively skip a video ad if it is not produced in a way that embodies TikTok's distinctive look and feel. Producing advertising content in this way may seem difficult at first, but it is becoming a more affordable technique that also widens the reach of an advertiser. Advertisers can collaborate with brand ambassadors or influencers to expand their reach even further and hasten their extensive efforts.

 tiktok Influencers are in a great position to interact with their audiences directly. To spread your brand and make the most of your influencer marketing budget, it is essential to secure the right influencers at the right price. Mega-influencers (10,000+ followers) can cost up to $2,000 for every post, while nano-influencers (1,000–10,000 followers) can cost as little as $5.

Without an authentic appearance or a trustworthy influencer, the advertisement will be ignored and forgotten very quickly.


2. Using the right ad format

Users can easily like, comment on, and share TikTok advertisements just like any other content on the platform. Although the engagement rate of TikTok users is well-known to be high (5–16%), the placement and timing of those ads may mean the difference between 150,000 and 1,000 impressions. The following are five types of advertising formats that you ought to be familiar with:

In-Feed Format: Located just on “For You page,” these ads smoothly appear in a user’s feed the same as any original TikTok content.

Brand Take-Over Format: For five seconds, these ads occupy the entire screen of the app. Despite being the most aggressive ads, they offer advertisers the most solitary exposure of any type. However, in order to avoid being dismissed as a pointless pop-up, the five second advertisement needs to be brief and thought-provoking.

Top Views Format: Comparable to the Take-Over format, however this style only occupies a portion of the user’s screen. These advertisements need to pique the user's interest or spark their curiosity more than the Take-Over format, perhaps even more so.

Spark Ads Format: The most effective style allows advertisers to start making an ad from an existing video which has a high level of engagement. Advertisers are essentially remixing a viral video with a clever connection to their product or service.

Hashtag Challenges Format: Challenges and hashtags are excellent tools for fostering a stronger sense of community and a common experience across the platform. Companies can get involved and give it their own special spin (like "#StateFarmSafetyDance") and take a chance on a high return for a small outlay of capital.


3. TikTok engagement rate benchmark

Any digital ad is as good and effective as how much engagement it’s capable to invoke. TikTok users demonstrate a notoriously high level of engagement, it ranges from 3% to 9%. Different ad formats should, undoubtedly, result in varying degrees of engagement. For example, the CTR for the Top-view format is 12–16%, the CTR for Take-over is 7–10%, and the CTR for In-Feed video is 5-7%.

 


4. Carry out tests and take advantage of data analytics 

It is essentially impossible to comprehend the most efficient and effective ways to advertise on TikTok, despite time, effort, and logistical planning. To better understand their target audience and use the data to make the most of their marketing budgets, advertisers must go through a period of trial and error testing.

Using TikTok Ads Built-in Analytics: Learn more about why ads perform the way they do. The analytics platform offers a broad overview of all currently running advertising campaigns as well as a close examination of each campaign with user-customizable data points.

Conducting Split-Tests: Target a particular audience, run ads with and without influencers, and try out many different advertising formats to know which process is working the best. You can focus your efforts and reduce spending by looking at their performance results.

Advertisers should be able to identify the most profitable and viable lanes for their marketing strategies quickly by using a variety of trial and error approaches that can be easily tested and evaluated.

5. Using analytics properly

Finally, it's crucial to carefully examine each metric provided by TikTok Ads' integrated analytics and develop working hypotheses regarding the reasons why particular ad creative performs in a particular manner. The platform provides both a bird-view look at the entire set of ad campaigns running and a deep dive on a campaign level, with filtering and customizing data points available for analysis.

Let's now examine the crucial data points that app marketers use to evaluate the effectiveness of their TikTok Ads campaigns.

The auction-based TikTok Ads platform supports a number of business models to help advertisers achieve their objectives, including CPM (Cost-Per-Mile or cost of paying for 1,000 ad views), CPC (Cost-Per-Click), CPA (Cost-Per-Action), and CPI (Cost-Per-Install) as an example of the CPA model. Aside from these models, app marketers should always remember one of the core principles that underpin any kind of auction-based marketing campaign – if you bid too low Most likely your ads are not being conveyed, and if you bid excessively, the ROI of your TikTok Ads campaign will be off.


6. Partnering with influencers

Influencers work as brand ambassadors on many social media platforms, but TikTok is an exception. Influencers are in a fantastic position to engage audiences and spread the messages of brands thanks to its For You page section, which is highly visible to TikTok users. The most important thing to remember from this advice is to be cautious when approaching influencers who are suitable for your brand and who can be sincere in the video creative they will be shooting for your TikTok Ads campaign. If you don't comply with this requirement, you'll probably waste your influencer marketing budget and be unable to reduce your expenses.


7. TikTok Influencers ad rates

It is now well-known that the cost of an influencer's post on TikTok depends on how many followers they have. Nano Influencer, Micro Influencer, Mid-tier Influencer, Macro Influencer, and Mega Influencer are the 5 main tiers that determine the price range for a TikTok post. The pricing starts with just $5-25 per TikTok video post to up to 10k followers and all the way up to $2,000 for a TikTok post to over .a million TikTok followers


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

tiktok advertising cost

tiktok advertising cost

FAQ’s

Are TikTok ads worth it?

The fastest-growing video-sharing platform on the planet, TikTok has been the most downloaded mobile app for the past two years. TikTok ads have one of the highest potential ROIs in all of advertising thanks to their reasonably low cost ($10 per CPM and $1.00 per CPC) to advertise to targeted audience and a user engagement rate of 5–16% on average.

Most businesses can benefit from TikTok, but not all can. TikTok advertising is perfect for businesses seeking out sizable and active audiences. Here are some figures to think about: The average user engagement rate for TikTok in 2022 is 17.99%, with 90% of users visiting the app more than once per day and spending an average of 52 minutes per visit.

26% of the TikTok audience worldwide is between the ages of 18 and 24, making up 50% of the total audience. Thus, TikTok advertising is likely to be successful for your company if it caters to the younger demographic.

Finally, TikTok is a global platform. Additionally, if your company has a global clientele, you have a higher chance of running successful campaigns. Your company will see excellent returns on its advertising investments if your audience fits into the aforementioned categories. Find out more about TikTok's use for small businesses.


How much does TikTok advertising cost?

According to TikTok, there needs to be a set minimum budget for advertisements on the platform. A campaign must have a minimum budget of $500, and an ad group must have a minimum budget of about $50.


How much are TikTok ads per day?

At the campaign level, TikTok mandates a minimum budget of $50 per day, and at the ad group level, $20 per day.


The bridge to your future

LeadsBridge satisfies your integration requirements by focusing on bridging gaps between major marketing platforms, such as CRM, email marketing software, autoresponder, and so much more, and top advertising platforms, including official LeadsBridge partners Google, Meta, LinkedIn, and TikTok.

The LeadsBridge platform was created specifically for businesses that want to integrate their marketing stack with Meta Ads, Google Ads, LinkedIn Ads, and TikTok Ads to streamline their advertising activities.

Learn about all the TikTok Lead Generation integration options available and sync your lead data with your marketing tools instantly. Join the waitlist for TikTok Custom Audiences right away if you're interested in creating specific TikTok Custom Audiences to retarget your current CRM lists and/or creating lookalike audiences (if lookalike audiences exist in TikTok).


TikTok Conversion

Advertisers can share website visitor events from audience segments directly to TikTok using the TikTok Conversion integration. The TikTok Pixel and TikTok SDK business tools are used to process this data, which is shared via the Events API. You can specify the mapping between the data segment in your CRM and the TikTok destination using this integration with the TikTok Conversions destination. Therefore, this integration is exactly what you need if you are using complex workflows on TikTok, such as dynamic showcase ads, custom targeting, campaign optimization, or attributions. Find out more about the TikTok Conversion integration's capabilities for your company.


Conclusion

tiktok is one of the biggest social media networks in the world, attracts the most sought-after consumer demographic. Because implementing advertising on the TikTok platform at the campaign or ad group level is becoming more straightforward and affordable, advertisers are lining up to participate.

TikTok advertising can become the most profitable area of your entire advertising budget and help you maximise your ROI with the right data, format, and authentic creative.

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