How Much Does TikTok Advertising Cost in 2023? | Taradel (2024)

Published by Staff on Jan 4, 2023 7:56:17 PM

There's no denying that the TikTok app is one of the most popular social media platforms nowadays with over one billion active monthly users across the globe. For comparison, Snapchat has about 500 million monthly active users, while Twitter has about 300 million.

However, despite this fact, many businesses still underestimate the power of this social media app, which is a big mistake.

Just take a look at the #Tiktokmademebuyit hashtag, which at the time of writing this article, has over 33 billion views. So, it's safe to say that if your target audience includes mostly younger people, especially those between 13 and 40 years old, then you should definitely at least consider TikTok advertising.

But how much does it cost to start advertising on TikTok? That's what we will be talking about in this article.

TikTok Ads - Are They For You?

Although TikTok has been around for close to five years now, it took them a while to enter the ads market, and since then they have created their own TikTok ads manager. However, the thing with TikTok advertising is that you first need to assess whether it is the right choice for you and your audience.

While other platforms, for example, Facebook, usually have representatives of almost all age groups within their users, TikTok is mostly dominated by Gen Z and Millenials. In fact, according to statistics from November 2022, 62% of TikTok's users are under the age of 30. Users over 40 make up about 21% of all users.

So, consider who is your target audience - if you're targeting Gen Z or Millennials, Tiktok advertising will probably be an ideal solution. If, on the other hand, your target audience is Baby Boomers, then it's better to consider another social media marketing strategy.

Most Common Types of TikTok Ads

Once you establish that TikTok advertising is the right choice for your business, you need to understand what different types of TikTok ads there are:

• Working with influencers - for some time, this was the only way to promote your products on TikTok - and while now you have also other options, working with influencers continues to be one of the most cost-efficient of advertising on TikTok; just make sure that the audience of the influencer you decide to work with fits your target audience.
• Creating your own TikTok channel - if you know a little bit about social media, or have an internal social media team, then why not try creating your own TikTok account? You need to keep in mind, however, that social media advertising is a little bit different on TikTok - people don't really want to learn about your product. They come there for entertainment, so if you decide to create an account, you need to make sure that the videos you put out are interesting and make someone who sees them take a closer look at your brand.
• TikTok challenges - TikTok is probably most known for its challenges. While the majority involves dancing to a song, there are plenty of other ones, such as Jimmy Fallon's #Tumbleweed challenge (the hashtag has over 39 million views)
• Paid advertising platform - while it took a while, TikTok followed the lead of other social media platforms and introduced a paid advertising program.

Paid TikTok Ads

The paid TikTok advertising program is probably the most official of all the types of ads on TikTok. There are three main types that you can choose from:

• in-feed ads
• brand takeover ads
• hashtag challenge

Generally speaking, those are video ads - however, you can choose static image ads if you prefer as well. So, let's talk a bit more about them.

In-Feed Ads

As you can imagine, those are ads that show up on users' For You Page as they scroll. They support Calls to Action in the sense that you can redirect the user to your website, or for example, App Store or Google Play if your goal is app installs.

Brand Takeover Ads

Those ads show up on a user's For You Page as soon as they open the app, before any other video. Since TikTok has a limit of one advertiser allowed per day, the spots for this type of ad are a lot more limited than for an in-feed ad, which also reflects in the cost.

When deciding on a brand takeover ad, you should remember that your ad needs to be of high-quality and makes people want to redirect to your page - otherwise, you will spend money for nothing.

Hashtag Challenge

Tiktok challenges are great for brands because of how much user-generated content you can generate. Sure, you have to pay for the ads to get started, but after that, every video that users create to participate in the trend is basically free publicity.

TikTok Ads - The Cost

First things first, we need to mention that there is a minimum requirement for the TikTok campaigns - you need to spend at least $500. It is also still quite difficult to find clear information about how much exactly a Tiktok Ads campaign will cost you.

The TikTok ads' cost starts at $10 per CPM, which is the cost per mille or cost per 1000 views. CPC (Cost per Click), on the other hand, will probably cost you somewhere around $1, although that depends on bidding. Brand takeover's reported cost is about $50,000 per day.

As for the hashtag challenge and branded hashtag ads - this is the most expensive type of TikTok ad, as you have to pay a flat fee of $150,000 for the first six days of the challenge. However, that's not all, as you will also need to invest money into promoting the challenge, which will most likely cost you anywhere between $50,000 and $100,000.

Finally, we have the cost of working with influencers. It's hard to say how much exactly you will pay for that, as every influencer has their own rates.

It also depends on how much content you want them to produce for your brand and whether you want them to also post on their other social media, such as Instagram and so on. However, on average, you can expect to pay between $500 and $10,000 for an influencer's collaboration.

TikTok Ads - Frequently Asked Questions

Are TikTok Ads a good investment?

That depends mostly on who your target audience is. If they are part of the TikTok community, and especially if they're younger, then you should go for it. TikTok ads are probably the most effective ones for this group when compared to Facebook Ads or Instagram Ads.

Can you earn money from ads on TikTok?

If you're someone who is just starting in this influencer world, you probably want to know if you can earn money from it. The answer is yes. On average, you can earn between $0.01 and $0.02 per view on sponsored video ads.

This means that if your video gets about 100,000 you will earn between $1,000 and $2,000. Once you start becoming more popular and you gain a following, you will be able to reach out to brands on your own and offer your services.

How can you manage your TikTok ads?

The easiest way to manage your TikTok campaign is by using TikTok Ads Manager. It provides you with transparent tracking, showing you your ad's performance and giving your customized reports.

How to create a TikTok Ads Manager account?

Creating a business account on TikTok Ads Manager is actually very straightforward. If you don't have a private account on the TikTok platform, then you should definitely consider doing it as a first step, as it will allow you to get familiar with the app.

Here is a short instruction on how to create a TikTok Ad account:

• Go to the sign-up and fill out all the boxes you will see there, such as your email address and password. Then, click on the "Send Code" box - you'll receive a verification code. Click the "Sign Up" button to create the account.
• Next, you will be asked to provide some basic information about your business, such as the country or region in which you are located, your time zone, and in which currency you prefer to be billed, as well as the name of your company. Double-check the information, as you won't be able to check it later. Click "Register".
• Now, you will have to add some more information about your business, including the street address and postal code. Next, you will have to provide your website, and this is very important if your website needs to pass an account review. To do it, it needs to include contact information, function properly, and clearly promote a service or a product.
• The next step is selecting your payment method - you can opt for manual payments or automatic payments. It's important to know that this can't be changed.
• Once you put in all the required information, click the "Submit" button - your application will be reviewed, and you'll be notified if you've been approved.

The Bottom Line

TikTok is slowly becoming the most popular social media platform in the world. With over 1 billion TikTok users active every month on the app, this shouldn't come as a surprise. With the right skills and knowledge, businesses can take advantage of this situation and start investing in TikTok ads and establishing a TikTok presence.

If you want to increase your online presence with digital ads, don't hesitate to get in touch with us - thanks to years of experience, we can help you reach your campaign objective, and we will be there for you every step of the way, from the start of the campaign to the very end.