Unless you’ve been asleep for the past five years, you’ve probably heard of TikTok. TikTok is a social media app that launched in 2016. Since then, it has exploded and has over a billion monthly active users worldwide. It is especially known for featuring people dancing and lip-syncing and has become the playground of influencers that have amassed millions of followers and fortunes.
In 2018, TikTok got into the social media marketing game and now has a formal ads programme, providing a framework for businesses of all sizes to effectively advertise their products on the app.
Advertising on TikTok has been made simpler with its official paid advertising programme. There are different types of ads you can use such as In-feed ads, Brand Takeover ads, Hashtag Challenges and TopView ads.
But nothing in this life comes for free. With the opportunity to reach a massive audience, these ads come with a cost and knowing the ins and outs of TikTok advertising strategies can help you get ahead of the competition in 2023.
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The Average Cost of TikTok Ads
TikTok uses a cost per mille/cost per thousand impressions metric when charging for their ads. The average CPM for TikTok video ads is £8.26.
If you want to start a TikTok ad campaign, the minimum daily budget is £50. When doing an Ad-set budget, the minimum cost is £20 per day. The prices do fluctuate so it is not set in stone how much you will pay to run ads. You are also required to spend around £400 on a campaign.
Certain TikTok ad formats require a flat fee. If you want to do a Hashtag Challenge and have it run on the TikTok Discovery banner that will cost around £120,000. This sounds like a lot but it provides you with a huge amount of visibility. Brand Takeovers can cost up to £40,000 per day.
There are TikTok ad case studies to show you how effective a campaign can be and what strategies may work for you – depending on your budget.
What Factors Affect TikTok Ad Costs?
Various factors affect the cost of running ads on TikTok:
Campaign Objectives
Deciding what you want to accomplish is important. Whether you want traffic, conversions or app installs this can impact the Cost per Click, Cost per Mille and Cost per View for your ads. The latter costs will be lower if your campaign is optimised for traffic and page views.
Ad Format
As stated above, the TikTok Ad formats you choose have different prices. In-Feed ads are scrolled through and are the cheapest. Like paying for Google ads, or using Brand Takeovers, Hashtag Challenges come with instant audience reach but are far more expensive.
TikTok Targeting Options
TikTok ad audience targeting can affect cost. If you are trying to target a popular audience then the prices will be higher. Age, location, gender, interests and language can all impact the cost of a TikTok ad.
How to Make the Most of Your TikTok Ad Budget
Whilst there are a huge amount of users on TikTok, there is just as much content for them to look at. If you are a smaller business or just dipping your toe in, maximising your TikTok ad budget is important. You don’t have to break the bank to create effective TikTok ad campaigns.
Target the Right Audience
Having a clear idea of who your audience is, what they want and what they respond to is vital. With this information, you can have a better idea about what sort of content will resonate with them. Making use of native TikTok features like fonts, the editor and filming on a film is better than bringing over something you used on another platform.
Create Great and Original Content
Authenticity is key on TikTok. You want to stand out but also blend into the style and feel of TikTok. The limitations of TikTok are its greatest strength and allow you to be more creative when trying to advertise your business.
Outsource to Influencers
Influencers are the rulers of TikTok. These personalities are tuned into TikTok and its users and are better equipped for video production that works on the platform. Even smaller influencers can have tens of thousands of followers and help you grow your audience base at a low cost.
Analyse Ad Performance
When implementing an effective SEO strategy on a website, using analysis to discover what is most effective is the best way to maximise a TikTok ad budget. TikTok Ads has a built-in analytics platform. You can use this to look at many TikTok ad performance metrics and use this data to make changes if needed.
Are the Cost of TikTok Ads Worth it?
There can be many benefits to running a TikTok ad campaign that will justify the cost of it.
Audience Reach
TikTok is massive. And it won’t stop growing. Getting on TikTok gets you access to an audience that is predominately younger and many of them don’t use other social media apps such as Facebook. Whilst TikTok is mainly catering to Gen Z users at the moment, its continued growth means that eventually, the audience will diversify. Sites such as Twitter and Facebook were once the realm of the young but now have a much more diversified user base.
Budget Friendly
As TikTok is based on producing short and raw videos that are viewed on a phone, you don’t need a huge budget to produce good content. With your budget going into TikTok ads cost rather than the content, you can pick TikTok ad formats that are better for your product.
Ease of Use
What cuts through on TikTok is authenticity. To be authentic, you don’t need to know what you are doing. An ad that goes viral on TikTok can be produced on your phone and feature nothing more than a person on the screen doing something memorable. Something that is overproduced and overthought can fall to the wayside compared to content that feels real.
Stay Relevant
TikTok is one of the most popular social media apps in the world and is seen as the cutting edge of pop culture. Following TikTok trends and taking advantage helps you keep up with the algorithm and makes sure you continue to appear on people’s feeds. TikTok is not a static medium and there is always a trend coming around the corner that you can use to stay ahead of your competition.
Content Focused
TikTok is content driven. Entertaining users rather than dryly advertising products is what will make you a success. TikTok allows you to stretch your creative muscles and produce content that catches people’s attention. With the short-form aspect of TikTok, you can always be producing something new and learning what resonates with your target audience.
Learn More Now
If you are interested in knowing more about TikTok ad campaigns and how you take advantage of them, Maxweb Solutions can help. Alongside advertising, we can provide other digital solutions including Wirral web design and eCommerce web design to help grow your business.
Call us at 0151 652 4777 to learn more today.
Links
https://www.tiktok.com/business/en-GB/getinspiration
Posted on Sunday, March 12th, 2023 in Social Media.
