While it took TikTok a bit of time to enter the ad market, today, they have an ad program that may not be as competitive as other social media sites such as Facebook or Instagram. That means getting a good ad position at a lower cost on TikTok may be easier than on other social media sites.
This is why many brands are now harnessing the power of TikTok ads. If you are considering advertising on TikTok, one question you may have is how much a TikTok ad costs. This article will answer this and other pertinent questions on TikTok advertising.
Why Consider Tiktok Advertising?
There are several reasons why TikTok advertising is great for brands. These include:
Userbase
Whether to use TikTok for advertisement depends on your target user base. If you are trying to reach a user base of 18 to 24 years, there is no better platform to enable you to do that better than TikTok.
Cost
One of the benefits of advertising on TikTok is that the user rates grow faster than the ad rate. This means it can be a cost-effective platform for brands with a limited advertisement budget.TikTok has a lower CPM than other platforms, such as Meta and X.
Studies indicate that you should spend 2.5 times more to reach the same number of people on Meta. Similarly, when it comes to CPC, which is the cost of people clicking on your ad or visiting your website, the TikTok CPC is 30% cheaper than meta.
More engagement:
Titkok has a higher user engagement rate than other social media sites. Compared to meta, it has an 85% higher engagement rate. This is important as you want users to engage with your ad by clicking, commenting, and liking your ads.
Titkok ads have a higher engagement rate because these are designed like regular videos. It can be challenging for users to determine that they are watching an ad.
High conversion rate
Studies indicate that 49% of TikTok users confess to purchasing a product after seeing it advertised or reviewed on the platform. This is well illustrated by the hashtag #Tiktokmademetobuyit, which has generated over 4.5 billion views and illustrated the various products users have been made to buy on the platform. Therefore, Tiktok ads should therefore, be among your Tiktok marketing strategies in 2024.
Types of TikTok Ads
The cost of TikTok advertisements differs depending on the different types of ads. Here are the common types of TikTok ads:
Influencer collaboration
Before TikTok introduced an ad program, the only option that brands had was to collaborate with influencers who would promote their products or services. And even now, TikTok influencer marketing is still large on social media sites.
By collaborating with the network of influencers on TikTok to promote your brands, you can get a good return on investment. This is particularly so if your products can make interesting videos that the influencer’s followers will love.
How Much Do TikTok Influencers Charge?
The charges by TikTok influencers depend on the number of followers, their audience, and more. Generally, you can pay the following rates per post.
- Mega influencers: $1600 to $1200
- Macro Influencers: Over $793
- Micro-influencers: $50 to $200
- Nano influencers: $4 to $25
These figures are based on studies on what TikTok influencers charge and aren’t cast on stones. These will also be affected by different factors such as industry or niche, country, and post-engagement rate.
TikTok Paid Ads
This is what we will focus more on today. Of course, you can even create your account and advertise your products or services. But since we are looking at the cost of TikTok advertising, it’s only fair that we focus more on this category. There are four categories of ads on TikTok. These are:
In-feed ads
In-feed ads are similar to native ads on Instagram, Facebook, or Twitter. They usually last 15 seconds, are unskippable, and appear naturally on a user’s feed.
These ads can be a good choice for website clicks and CTA ads that require users to download or take another action. Generally, the price for this ad format isn’t fixed. However, you can pay around $10 per 1000 impressions.
Brand Takeover
These ads take 5 seconds and can be videos, GIFs, or still images. They usually appear as fully immersive full-screen content in the first few seconds when users open the Tiktok app. These, too, can be expensive, costing up to $50K per day.
Top View ads
These videos appear once a day in the “For you” feed when a user opens TikTok. They can be up to 1 minute long. They can be a good choice for grabbing the user’s attention and work for products that require a higher attention span, such as:
- movie trailers
- How to guides
- Games preview
These ads are usually the most expensive on TikTok. While the final amount you pay will depend on your specific campaign, you can expect to pay $50,000 to $150,000 daily. To get 7.4 million impressions, you can expect to pay $65,000. Therefore, these are among the most expensive ad formats on the platform.
Branded effects/hashtags challenges
These are custom 3D effects, stickers, or AR filters added to a user’s video. Since they are very interactive, these ad formats are usually very effective. They can help increase brand awareness and boost engagement. These ad formats usually cost about $45,000 for 30 days.
Final Thoughts
TikTok advertising can be an effective way of advertising your brand. Understanding the different ad formats and their cost and tracking the success of a TikTok marketing campaign can help you know which is best suited for your needs. This guide will provide you with the information you need for TikTok advertising.
