Everything You Need to Learn on How Much do TikTok Ads Cost

Are you curious about the cost of advertising your business on TikTok, one of the fastest-growing social networks? 

With a huge and engaged user base, marketing your business on TikTok can be an excellent way to reach potential customers.

In this blog post, we’ll discuss how much TikTok ads cost and provide some tips for effective marketing on the platform.

Understanding these costs is essential to creating a successful ad campaign, whether starting with digital advertising or looking to expand into new markets.

Read on as we cover the following:

• TikTok Ads Cost
• TikTok Auction Ads Cost
• TikTok Reservation Ads Cost
• Reach & Frequency Campaign Cost
• TikTok Influencers Advertising Rates: $5 to $2,000
• Additional Factors that Influence the Cost of Your TikTok Ads
• Final Thoughts on How Much do TikTok Ads Cost
• Frequently Asked Questions on How Much do TikTok Ads Cost

TikTok Ads Cost

These are the following bid campaigns:

• CPC: Average cost is $1
• CPM: Average cost starts at $10
• oCPM: The cost starts at $4-$8
• CPV: Average cost is 25 cents.
• In-feed ads: Start at $1,000
• TopView ads: $65,000/day
• Branded effect ads: $45,000/month
• Branded hashtag challenge: $350,000
• Brand takeover ads: Starting at $50,000/day

For Reach & Frequency campaigns, good results can be achieved with a budget of $500, although this may vary depending on the type of campaign.

TikTok influencer marketing:

TikTok Auction Ads Cost

You can access the following metrics on the auction-based TikTok Ads platform and customize them at the campaign level using your Ads Manager.

It’s important to note that even with different bidding strategies, you need a minimum budget of $500 for any advertising campaign on TikTok.

CPC: $1

The typical cost per click (CPC) for TikTok Ads is around $1, but with careful planning, you can reduce the CPC to as low as $0.20.

Consider the CPC when creating your campaign to ensure that your ad reaches the audience most likely to click on it.

It is important to correctly configure the targeting options so the TikTok app algorithm can display your ad to the target audience.

• Formula: Total cost/ Total click
• Billing: By clicks
• Best for Sales campaigns, traffic, app installs, profile visits

CPM: $10

The starting price for CPM is $10, corresponding to the cost of one thousand impressions. CPM stands for cost per mile.

• Formula: (Total cost / Total impressions) * 1,000
• Billing: By impression
• Best for Exposure campaigns

Tip: Use a thorough CPM calculator to compute the cost per 1000 impressions on diverse marketing channels. Compare the findings and select appropriate social media platforms that meet your requirements.

oCPM: Starts at $4

oCPM stands for optimized cost per mille. It is a way to help you find the best price per conversion. The oCPM is useful for getting new users for your advertising campaigns.

• Formula: (Total cost / Total impressions) * 1,000
• Billing: By impression
• Best for Purchases, conversions, lead generation, follows, and app installs.

CPV: Starts at 25 cents

The term CPV stands for cost per view. It refers to a bidding strategy metric where advertisers must pay for each video view or predefined interaction.

CPV helps optimize your ad campaign for video views:

• Formula: Total cost/ Total views
• Billing: You will pay the CPV if TikTok users:
  • Watch the entire video if it is less than 30 seconds long.
  • When watching ads on TikTok, watch for at least 6 seconds if the ad is longer than 30 seconds.
• Best for increasing reach

TikTok Reservation Ads Cost

The cost of TikTok ads varies due to their suitability for different campaign objectives.

Additionally, certain ads have lower production costs and reach a smaller audience, resulting in lower prices.

In-Feed Ads: Start at $1,000 or $10/impression

The minimum TikTok advertising cost for an in-feed ad campaign is $1,000.

Different decisions to consider:

• You can make video ads for your feed. To save money, try using free video editors like Canva. Hiring a graphic designer or an agency costs more money.
• For ads, you might choose TikTok influencers. These people may be cheaper than actors but more expensive than making the ad yourself.

Tip: Videos filmed in portrait or vertical mode work better on TikTok.

TopView Ads: $65,000 daily budget 

TopView ads cost $65,000 a day and reach 7.4 million people. Is it worth it? Yes! When people open TikTok, the ads show for one minute and take up the whole screen with sound playing automatically.

Furthermore, TopView ads catch people’s attention, so they remember the ad better. That’s why TikTok says their ads work 67% of the time.

Branded Effect Ads: $45,000/month

Ads on TikTok can be funny, quirky, or insightful. They cost $45,000. People like these ads because they help them remember your account and make them interested in it.

You also get videos from people that you can use again later.

Branded Hashtag Challenge: $350,000

Hashtags are the ones that cost the most money:

• The cost for the first six days is a flat fee of $150,000.
• The promotion cost is estimated to be between $100,000 and $200,000.

According to TikTok, it is worth using the platform because it offers something that you can attain:

• The average engagement rate is 17.5%.
• 77% of TikTok users appreciate it when brands participate in local culture by using memes and trends.

Tip: Advertisers must pay $160,000 extra to upgrade to Hashtag Challenge Plus.

The Hashtag Challenge Plus feature enables TikTok users to access your store or app directly from TikTok, turning your content into a shoppable experience.

Brand Takeover Ads: Starting at $50,000/day

A Brand takeover ad is a short video before regular ads. They last for 3-5 seconds.

With them, you can get 8.9 million views, and 5 million are guaranteed. In conclusion, that means you pay $0,01 per view.

Reach & Frequency Campaign Cost

If you want to be successful with an R & F campaign on TikTok, some websites say you should have at least $25,000 saved up for the campaign. That amount of money will help you reach your goals.

While higher budgets are usually effective for paid media, there are situations where a budget of only $500 can still produce satisfactory outcomes.

Reach & Frequency campaigns may cost more money than other types of advertising because you can choose:

• Audiences you reach
• The exposure frequency to your ad messages

When you run Auction ads, the price you want to pay and how much money you have will decide if your ad will get shown.

In R&F campaigns, it fixes your budget, and it’s easier to predict how many people will see your ads.

You will also see the following metrics in real-time:

• Reach
• Impressions
• CPM
• Frequency
• Budget

Are R&F TikTok ads campaign worth the price?

If you have a storytelling advertising strategy that requires a more original format and reaches a wider audience, then the R&F TikTok campaigns are a good choice.

We recommend using R&F TikTok campaigns to achieve the best results.

• On TikTok, 95% of people look at the post more than other social media platforms.
• 82% of CMOs claim that visits and frequency are important for effective advertising.

Tip: A CPA calculator helps you get the cost per acquisition on multiple advertising platforms. Compare this data to choose the right social channels for your campaign.

TikTok Influencers Advertising Rates: $5 to $2,000

The rate of $5 to $2,000 depends on your influencers:

• Reach or number of followers
• Experience
• Engagement rate

Note: Nano-influencers charge lower fees than mega-influencers yet exhibit higher engagement rates. Therefore, it implies they interact more frequently with their followers and possess greater credibility.

Tip: Use an engagement rate calculator to ensure you partner with the correct creators.

Using TikTok influencer marketing could decrease your overall advertising expenses on TikTok and help prevent viewers from getting tired of seeing ads.

Additionally, you can expand your audience, decrease the cost per click (CPC) and cost per acquisition (CPA), and attain more conversions.

Surveys suggest that 49% of TikTok users have purchased due to advertising on this platform.

Additional Factors that Influence the Cost of Your TikTok Ads

Now that you’re here, you know the general TikTok advertising costs. However, the actual prices may depend on your specific situation.

Campaign objective

Achieving certain marketing goals on TikTok may require you to increase your advertising budget.

For instance, running awareness or conversion campaigns on a larger scale may incur higher expenses since they involve additional resources:

• More influencers
• More (polished) video ads
• More expensive ad formats

Audience segmentation

The cost of advertising on TikTok can depend on who you try to reach. You may need different messages (or ads) for different people.

• Native-looking feed videos: Cost less
• Polished ads: Cost more

Click-through rate (CTR) and conversion rate

To manage your advertising budget on TikTok, paying attention to your CTR (click-through rate) and conversion rates, especially with bid campaigns, is important.

You’ll spend more money if more people click on your ad or convert. It’s essential to track your metrics and optimize your campaign accordingly.

Alternatively, consider a Reach & Frequency campaign where you can set a fixed budget.

Tip: The CTR calculator is a tool that accurately displays the click-through rate of your ads and content on various platforms and campaigns.

Final Thoughts on How Much do TikTok Ads Cost

To conclude, the cost of a TikTok ad will depend on many factors. But in general, it’s important to consider the budget available, objectives and goals, plan of action including creatives and targeting options, and expectations.

Partner with our top-notch TikTok advertising agency to achieve your company goals and elevate your brand to the next level!

Is your company seeking to enhance its marketing strategies? AdvertiseMint, the premier social advertising agency, can assist you.

Check out AdvertiseMint’s user-friendly guides and examples and the related articles section of this blog post.

Frequently Asked Questions on How Much do TikTok Ads Cost

Are there any ad formats in TikTok?

If you choose to advertise on TikTok, you can select from a variety of different ad formats, such as:

• Image Ads
• Carousel Ads
• Video Ads
• Spark Ads
• Collection Ads
• Playable Ads

How does user-generated content work for TikTok ads?

TikTok User-Generated Content or UGC features products from a specific brand, but users rather than brands create it. These brands can use the content in their ad campaigns or show it on their social profiles.

How long do TikTok ads take to work?

People will see most ads in 24 hours, but sometimes it takes longer. Changing the age limits, pictures, words, links, or videos in your ad will take longer for people to see.

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