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TikTok Ads Pricing Breakdown
The average Cost Per Thousand Impressions (CPM) and Cost Per Click (CPC) for TikTok ads varies based on factors such as targeting, industry, ad format, and the specific objectives of the campaign. However, you’ll generally get a CPM from $10 to $30 and a CPC of $0.50 and $2.00.
Here’s a breakdown of TikTok ad pricing for the different ad formats:- In-Feed ads: Starting at $10 per CPM, with a minimum campaign spend of $500.
- TopView Ads: Starts at $50,000 per day, depending on the campaign’s reach and duration.
- Branded Hashtag Challenge: Pricing starts from $150,000 for a 6-day challenge, including promotion across various TikTok placements.
- Brand Takeover Ads: Starts at $20,000 per day for exclusive access to the app’s launch screen.
- Branded Effects: Starting at $45,000, allowing for the creation of custom filters, stickers, and effects for up to 30 days.
- Spark Ads: Utilizes organic posts as ads – pricing varies based on the bidding strategy but generally follows the CPM model used for in-feed Ads.
Please note that final advertising costs can vary based on several factors, including location, campaign length, and specific targeting criteria.
Average TikTok Influencer Rates
The average cost of partnering with a TikTok influencer varies based on their follower count and engagement rates. Nano-influencers (1,000 – 10,000 followers) usually charge between $4 to $25 per post, while mega-influencers (1M+ followers) can command rates between $1,600 and $2,400 per post.
The specific rate depends on several factors, including the influencer’s niche, audience engagement, and the campaign’s complexity. On average, TikTok influencers charge around $465 for a sponsored post.
TikTok Paid Ads Program Details
In the past, businesses worked independently with influencers to create TikTok content and advertise products. However, TikTok now has a formal Ads program. It can help you reach a vast audience through creative and engaging content. The TikTok Paid Ads Program allows you to create ads that blend seamlessly with user content, making them less intrusive and more engaging. To get the best of TikTok Ads, you must design ads that mirror the look and feel of native TikTok videos. Users can interact with your TikTok ads by liking, commenting, and sharing them just as they would with any other content on the platform. These ads are less intrusive and blend with organic content, translating into a higher engagement rate overall. Here are some of TikTok’s Paid Ads formats you should be familiar with.In-Feed Ads
These ads appear on TikTok’s “For You” page, blending with organic content in a user’s news feed. In-feed ads last about 15 seconds and can be used for various campaigns, such as promoting apps and websites. So, you can create different types of call-to-action (CTA) options for app downloads, website visits, and others.
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Spark Ads
Spark Ads lets you boost organic posts by turning them into ads. Like in-feed ads, they are displayed within the “For You” feed and other places where organic posts are found. It usually costs the same as in-feed ads, starting at $10 per thousand impressions (CPM). Unlike in-feed ads, you can link spark ads to a TikTok account, not just a landing page. So, users can easily browse your profile and check other content on your page. But spark ads can also include a CTA button leading to landing pages, so you can adjust your ads to promote your TikTok account or brand website.Top View Ads
TopView Ads show up first thing when users open the app. They last up to 60 seconds, enough time for a short video marketing your product or brand. Like in-feed ads, you can also add CTAs to the ads, but the engagement here is much higher.
Branded Effects Ads
Branded Effects Ads allow users to interact with your brand through custom filters, stickers, and effects within the app. Available within the creative tools section, these effects can last up to 10 days. When a user makes a post using your filter, it’ll give your business visibility, especially if the post trends. It costs $45,000 per month to run branded effects ads.Brand Takeover Ads
Brand Takeover ads display 3 to 5-second full-screen promotions when users open the app for the first time. On TikTok, users can only see one Branded Takeover ad each day. So, this exclusivity results in higher costs for these ad spots due to reduced competition. Branded takeover ads can bring in significantly more traffic if you’re launching a new product. Running this ad format costs around $20,000 to $50,000 per day. Given that brand takeover ads secure almost 9 million impressions, roughly $0.01 per impression, I’ll say it’s worth the investment.Branded Hashtag Challenge Ads
Branded Hashtag Ads allow TikTok users to create their own videos around a sponsored hashtag for your brand. These ads are displayed on TikTok’s Discovery page and have an average engagement rate of 8.5%. Here’s how it works. When viewers click on a branded hashtag challenge on TikTok’s Discover Page, they’re directed to a dedicated page showcasing the challenge’s details, rules, the sponsor’s logo, and a website link. Participants then create and share their own videos using the challenge’s hashtag, promoting the brand through their content.
Strategies To Reduce Your TikTok Advertising Expenses
If you want to reduce your TikTok advertising expenses while still achieving effective reach and engagement, I recommend you use the following strategies:Use TikTok’s Detailed Targeting Options
TikTok allows you to narrow your audience based on interests, behaviors, demographics, and more. When you specify your target audience, you can ensure that your ads are only shown to users most likely to engage with your content. For example, if you’re selling fitness equipment, you should target users interested in health and wellness to increase ad relevance and efficiency.Leverage Creative and Engaging Content
The success of your TikTok ads heavily relies on creativity and engagement. Create content that resonates with TikTok users’ preferences using authentic and entertaining videos. You can use trending sounds, engaging hooks, and clear call-to-action to increase your ad’s performance without increasing costs.Utilize TikTok’s Ad Optimization Tools
TikTok offers various ad optimization tools that automatically adjust your ad placements and bidding to achieve the best results within your budget. Set your campaign goals, and let the platform’s algorithm optimize for conversions or engagement. This way, you won’t overspend on underperforming ads.Schedule Your Ads Strategically
Timing can significantly affect your ad’s performance. To get the best of your TikTok ads, analyze when your target audience is most active on TikTok and schedule your ads accordingly. This will ensure your budget is spent during peak engagement times, reducing the need for higher bids to compete for visibility.Monitor and Adjust Bids Regularly
TikTok’s advertising platform operates on a bidding system, where costs fluctuate based on competition and demand. If certain ads perform well at a lower bid, you should reduce the bids on underperforming ads. You can also set up bid caps to help control your costs, preventing your campaigns from exceeding your budget.What type of businesses can make the most of TikTok advertising?
TikTok advertising is a potent tool for e-commerce, entertainment, and lifestyle sectors, leveraging its visual and engaging platform to showcase products, promote content, and highlight trends effectively. E-commerce brands can boost sales with influencer collaborations, while entertainment businesses go viral with trailers and behind-the-scenes content. Lifestyle brands can build a loyal following by reflecting their unique personality with striking visuals. TikTok’s capacity to connect businesses with a young, global audience is immense.TikTok Advertising Compared to Other Platforms
TikTok’s advertising options fare very well compared to other social media platforms, especially if you’re targeting a younger audience. The ads are mostly displayed in users’ feeds, resembling organic content, so it’s very easy to get high levels of engagement. Plus, TikTok offers opportunities for brands to connect with Gen Z and millennials through trends and challenges.
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Twitter (X)
Twitter’s advertising platform focuses on real-time engagement and trending topics. You can use it for campaigns that capitalize on immediate events or discussions. Twitter’s ad formats include promoted tweets, trends, and accounts. Twitter’s broad demographic and more serious tone might make it difficult to make your content resonate with the right audience. Here’s a graph showing the CPM rates for TikTok, Facebook, Instagram, and Twitter (X):