The quick rise of TikTok over recent years has made the platform a powerful marketing tool for many businesses. While brands can open business accounts and promote their products and services organically, relying on organic campaigns only may not be effective for businesses that want to grow as fast as possible. Advertising on TikTok is perhaps the best and fastest way to widen your reach, increase your number of followers, improve engagement rates, and generally build your TikTok presence. The burning question is—how much does TikTok cost for paid ads? In this article, we explore TikTok ad prices and teach you how to optimize your campaign budget.
Whether you’re a small business or a huge brand, you will have to set aside funds for advertising on TikTok. For your ad to go live, TikTok requires you to set up a minimum budget. For an entire campaign, you’ll need at least $500, while the daily campaign budget shouldn’t be below $50.If you’re setting a budget for an ad group level, there are two options:
Businesses should have a clear objective for each campaign when trying to make the best out of TikTok as a marketing tool. You may want to:
For every campaign goal, there are specific ad options that can help you achieve the best results. TikTok ads can be categorized based on their mode of setup:Self-Service (Ads Manager) Collaborative In-Feed adsBranded EffectsTop-View adsBranded Hashtag ChallengesBrand TakeoversSponsored ads (influencer marketing)
Source: Kerde SeverinThese ads have the form of organic TikTok videos and appear on a user’s For You page. Unlike regular videos, which can be up to three minutes long, in-feed ads can last between five and 60 seconds. This type of TikTok ads is great for driving sales and other conversions since the videos can feature a call-to-action (CTA) button.The price for this ad format isn’t fixed; different ad settings influence the cost per view, but, on average, in-feed ads start at $10 per 1,000 impressions.
These videos appear once a day as the first video in the For You feed when users open the app for the first time. Like in-feed ads, top-view ads can be up to 60 seconds long. They’re great for grabbing attention and work well for brands looking to advertise products or services that require longer periods of attention, such as game trailers for soon-to-be-released games, how-to tutorials for new products, and others.Top-view ads are TikTok’s prime ad real estate, and that comes with a hefty price. While the final amount you will need to cash out depends on the specifics of your campaign, you can expect to pay some $65,000 for 7.4 million impressions.
Brand takeovers are five-second ad formats that can be in the form of videos, GIFs, or images that appear as immersive full-screen content within the first few seconds when users open the app. Running a brand takeover campaign isn’t cheap due to its exclusivity—TikTok features brand takeovers by one company per day. Prices for this ad format start from around $50,000 per day.
Source: George Pagan IIIBranded effects are custom-made 2D and 3D effects, stickers, and regular or AR filters that can be added to user-generated videos. Due to its interactive nature, this ad format is incredibly effective and engaging and works great for increasing brand awareness and boosting engagement. The cost of this type of paid ad is $45,000 for the period of 30 days.Branded hashtags are ads that businesses use to inspire TikTokers to create videos as a reaction to the brand’s challenge and include its custom hashtag. Businesses that use branded challenges have exclusive access to the performance of the branded hashtag campaign—you can see how much user-generated content gets produced and how much engagement the videos get.This exclusivity also comes at a high price of about $150,000 for six days.
Source: George MiltonApart from TikTok’s native advertising tools, you can advertise your business on the platform by collaborating with influencers. It is one of the most effective ways to enhance the reach of your brand on this social network. You can hire influencers from the Creator Marketplace. Professional content creators on TikTok are always looking for paid partnerships with businesses as this is the main method of making money on TikTok for them, other than getting into TikTok’s Creator Fund.The price for hiring an influencer varies depending on the number of followers they have, the niche they’re in, and your campaign goals. While the most famous TikTokers like Addison Rae Easterling or Charli D’Amelio may guarantee excellent content performance and unprecedented reach, they may be too expensive to hire. The following table shows how much different types of influencers usually charge per post on TikTok:TierNumber of FollowersPrice per PostNano-influencer1–10,000 followers$5–$25Micro-influencer10,000–50,000 followers$25–$200Mid-tier influencer50,000–500,000 followers$100–$1,000Macro-influencer500,000–1,000,000 followers$1,000–$2,000Mega-influencerOver 1,000,000 followers$2,000+Overall, advertising on TikTok can get expensive. To get the most out of your ads, you can optimize ad settings so your campaign can have a better return on investment.
When setting up your ad campaign, you should remember that brands in your niche are targeting the same audience as you. Determining who gets that limited ad space is done through bidding.Depending on the bidding strategy you select, TikTok's auction ads system will optimize its algorithm to keep your spending within your daily budget limit or use cost per result. The strategies include:
While you can set a budget, the rate at which it is spent and the amount you will end up spending at the end of the campaign depends on the bidding strategy and options you choose.
There is a lot that goes into advertising on TikTok—besides options for setting and optimizing your budget, the platform has numerous features and settings in Ads Manager that you need to understand to be successful on this platform. For many brands, TikTok presents a new set of challenges compared to older platforms like Facebook or Instagram:
These challenges can easily become problematic for social media managers in small in-house teams as they still have to create a lot of content and plan strategies for other platforms. To overcome these issues, you can always seek the help of a professional social media agency.
As an official TikTok partner, Kubbco has vast experience that you can count on to grow your TikTok business account. Our team of experts—including writers, video editors, graphic designers, social media strategists, paid ad specialists, and others—is committed to creating and implementing winning strategies for your business.The Kubbco team is well-equipped to handle every element of your marketing campaign, including:
You can learn more about how we approach TikTok for businesses and receive the latest tips and news on social media marketing by subscribing to our newsletter.
We have created high-performing TikTok campaigns for numerous companies and helped brands from different niches get more likes, views, and followers. Tell us what your objectives for the campaign are, and we’ll come up with an approach based on your targets and see the campaign through from start to finish. Here are some of the brands we collaborated with and the results we helped them achieve:
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