How Much Do TikTok Ads Cost?

In the next 60 seconds, users will watch about 167 million TikTok videos. But they’re doing more than just watching, they’re also spending. Consumers around the world spent over $2.3 billion on TikTok in 2021 alone.

TikTok isn’t just for silly dance videos anymore. Over the past few years, TikTok has become an effective advertising platform, creating new marketing opportunities for your brand!

Any business can create a TikTok account and post videos featuring their products and services for free. But now TikTok has an ad program to help you reach your target audience faster and more efficiently.

TikTok Ads are promotional content that the creator pays TikTok to show on specific user feeds. You can use TikTok ads to advertise your brand or to promote your products and services.

If you’re brand new to advertising on TikTok, check out our guide on TikTok marketing to learn the basics.

Now, let’s explore the cost of TikTok ads and how they can power up your social advertising.

• How much do TikTok ads cost?
• TikTok pricing breakdown
• Is TikTok advertising worth it?
• Tips for lowering TikTok Ads campaign costs

How much do TikTok ads cost?

The minimum cost of a TikTok advertising campaign is $500. Beyond that, you decide how much to invest in each campaign.

There are different types of TikTok ads that you can purchase through a bidding system. The cost of running a TikTok ad campaign depends on your industry, the goal of your ad, and the type of offer you’re making.

TikTok’s advertising program gives you the flexibility to control the cost of each campaign based on your budget and marketing goals.

TikTok pricing breakdown

TikTok offers four different auction and bidding models for in-feed advertisements:

• Cost per view (CPV): A CPV bid is the price you choose to pay per view. TikTok counts one view when a user watches your video for more than six seconds or clicks on it — whichever happens first). CPV bidding is ideal when your goal is to increase video views.
• Cost per thousand impressions (CPM): A CPM bid is the price you choose to pay per one thousand impressions. TikTok counts one impression when your video appears in a user’s feed, whether they click it or not. Choose CPM bidding when your goal is to spread brand awareness and reach more customers.
• Optimized cost per thousand impressions (oCPM): An oCPM bid is the price you choose to pay per one thousand impressions, specifically targeting users who are more likely to convert. oCPM bidding is ideal when you want to expand your reach and increase conversions simultaneously.
• Cost per click (CPC): A CPC bid is the cost you choose to pay per click. TikTok counts one click every time a user clicks on your ad. Choose the CPC bidding method if your goal is to increase conversions.

Below are the average bids and minimums associated with TikTok’s bidding models:

Average TikTok influencer rates per post

TikTok influencers have a large audience of followers who trust and value their opinions. By partnering with the right influencers, you can quickly increase your brand awareness and gain new customers.

The key to influencer marketing on TikTok is finding the right person to endorse your brand whose followers match your target demographic. For example, Taco Bell has released a TikTok campaign with Pete Davidson featuring their breakfast options:

Producing an ad in partnership with a TikTok influencer will also increase the cost of your campaign.

Below are the average prices for partnering with a TikTok influencer based on their popularity:

Is TikTok advertising worth it?

TikTok has skyrocketed in popularity, with over one billion users every month. The average user spends nearly one hour on the app every day. With the creation of TikTok Ads, businesses can target qualified leads worldwide. Many brands are swarming to TikTok to capture this new marketing opportunity.

TikTok’s algorithm learns users’ interests quickly and populates their feeds with videos on those topics. This unique capability can also help marketers maximize their budget by targeting the most qualified leads.

However, TikTok ads are not suitable for all businesses. It depends on what you sell and the demographics of your customers.

Approximately 75% of TikTok users are 18-34 years old. There are also slightly more women using TikTok — 61% of users are female.

TikTok could provide an excellent advertising opportunity if you’re targeting Gen Z and Millennials. Alternatively, if your customers are 40 and older, you’ll probably have more success advertising on other platforms.

Tips for lowering TikTok Ads campaign costs

TikTok advertising gives you flexibility over your budget and tactics. Use these strategies to optimize your ads and lower the cost of your TikTok Ad campaigns:

1. Analyze campaign performance

Use A/B testing to evaluate several versions of the same ad to see which is the most successful. Then, you can invest the remainder of your budget into the winning campaign.

Continue measuring the performance of each campaign to see which styles and promotions resonate best with your target audience using the TikTok Ads Manager.

The TikTok Ads Manager reports on the following metrics for each of your ads:

• Total results
• Cost per result
• Total cost
• Impressions
• Clicks
• Cost per click (CPC)
• Click-through rate (CTR)
• Conversions
• Cost per acquisition (CPA)
• Conversion rate CVR
• Audience age and gender
• Audience location
• Audience interests and behaviors

Use this information as a guide to help you maximize your return on investment with future campaigns.

2. Mirror a user-generated style

Paid ads on TikTok appear on users’ For You pages just like any video, but users can quickly tell which videos are ads.

The key to a good TikTok ad is making it blend in with regular video content, so people don’t immediately scroll past it.  Videos that are overly scripted and polished will stick out like a sore thumb. Follow the same amateur style and casual tone as the videos created by users to maximize engagement with your ad.

3. Use a Maximum Delivery bidding strategy

TikTok offers two different bidding strategies to help you reach your advertising goals. The two strategies are Cost Cap and Maximum Delivery.

The Cost Cap strategy is designed for advertisers with the primary goal of making conversions with less regard to budget. Use Cost Cap when you want to earn as many sales or app installs as possible.

The Maximum Delivery strategy is a spend-based approach that helps you maximize your budget usage. We recommend using Maximum Delivery when your goal is to drive the most results possible with a predetermined amount of money.

You can select your desired bidding strategy within the campaign and ad group setup.

Advertise your brand on TikTok with WebFX

TikTok offers a unique opportunity to capture your target audience with paid video advertisements. Launching a successful TikTok advertising campaign can help you grow your following and boost sales.

If you’re just getting started with TikTok Ads or need help maximizing your budget, hire a team of social media professionals to do it for you!

Growing your social presence with WebFX is a walk in the park.

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