“How much do TikTok ads cost?” While TikTok ads can be at more of a premium compared with other social platforms, ultimately, it depends on several factors.
TikTok ads start at $10 per CPM. Reports from AdAge in late 2019 show that TikTok’s cost of advertising can be between $50,000 to $120,000 depending on the ad format and duration.
Although these ad costs may be too high for small businesses, the good news is that there are many different ways to advertise on the platform aside from TikTok’s native paid advertising program to find the right fit for your program.
Factors That Influence the TikTok Ads Cost
There are a few main factors that influence the cost of your TikTok ads:
- Ad objective: traffic, conversions, or app installs
- Bidding method and amount
- Audiences (based on gender, location, age, language, interests, connection types, and OS versions)
- Your industry
- Ad Formats*
TikTok ads cost is particularly influenced by Ad Formats, so let us take a look at these further.
Types of TikTok Ad Formats
TikTok has 5 ad formats.
- In-Feed Ads
- Branded Takeover
- Branded Hashtag Challenge
- Branded Effects
Here is how each type works:
In-Feed Ads are like the ads you see while scrolling through your Instagram feed. They appear as the user scrolls through the For You section on TikTok’s homepage. In-Feed video ads can be 9 – 15 seconds long. You can also add a call-to-action to increase your conversions.
The call-to-action can be a link to your website (to help you increase website traffic), a link to your online shop (to increase sales), or a link to a landing page (to help increase subscriptions to your service). The sky’s the limit when it comes to call-to-actions. You can even include multiple calls-to-action if you want.
Another feature of TikTok In-Feed Ads is that users can like, comment, share, and interact with the videos. So, if you want to increase engagement with your followers, In-Feed Ads are a suitable option.
Branded Takeover ads are TikTok ads that appear immediately when a user opens the app. The ad would appear as a full-screen video on the user’s device.
This ad format is more direct than In-Feed Ads because your ad is the first thing the user sees when they open the app. Another feature of this ad format is that your ads can also appear on the For You page as videos, GIFs, or still images.
You can also include a clickable link that directs users to a Hashtag challenge within the app or as an external link to a landing page.
Note that Brand Takeover Ads are exclusive. This means that users see only one Brand Takeover ad a day. This factor makes the cost of Brand Takeover Ads high.
TopView Ads are very similar to Brand Takeover Ads. The only difference is that TopView Ads appear 5 seconds after the user opens the app.
It is also TikTok’s longest video ad format. TopView videos can be as long as 60 seconds. The videos are full-screen with sound and auto-play. The ad allows you to add links to internal or external pages.
A typical TopView ad will show a product video as well a call-to-action to send people to a landing or shopping page.
Branded Hashtag Challenge for TikTok Ads Cost
Branded Hashtag Challenges are sponsored hashtag challenges that are featured in TikTok’s Discover Page.
When a user clicks on the sponsored hashtag, they are redirected to a landing page with the sponsor’s logo, website link, challenge description, and the most popular videos using the hashtag.
The only disadvantage of this ad format is its expensive cost. You might have to pay up to $150,000 to get featured on TikTok’s Discovery banner.
The good news is that you can run a Branded Hashtag Challenge without spending so much. Instead of using TikTok’s advertising program, you can partner with influencers to promote your branded hashtag.
With this ad format, brands can customize their ads using AR filters, stickers, lenses, and branded shareable stickers. You can also create a custom filter directly on the app.
Branded Effects can help add personality to your ads. Your goal is to draw the attention of the user and get them to take a specific action. Branded effects like stickers and augmented reality can help you increase the engagement of your ad.
The Best Way to Lower Your TikTok Ads Cost? Hire Someone Who Knows How to Do It
To get the best performance from your TikTok ads, you need to ensure you work with a knowledgeable marketing partner and you need to do extensive quantitative creative testing. This is essential for user acquisition campaigns now. It is imperative to focus on developing an effective creative strategy as well as conducting competitive analysis to get ahead.
Focus on expanding your skills in those areas, specifically, being able to distill and interpret A|B split testing data from creative so your team can deliver better creative, and feel free to reach out to us anytime with questions.
Additionally, TikTok ads will continue evolving, too. We want to help you stay up-to-date with all the latest changes and strategies to succeed. Learn more about our advertising support services here.