How Much Do TikTok Ads Cost? 2022 Guide

What are the prices of TikTok ads? Every newcomer to the TikTok advertising market always has this question on their mind when they first enter the market. Advertising will cost 10 dollars (or 9 pounds) with the CPM (cost per mile) charging system for every 1,000 views. However, the necessary budget for an advertising campaign is 500 dollars (or 410 pounds).

That, however, is just the tip of the iceberg. In reality, advertisers cost more than $500! So, how much do TikTok ads actually cost? This blog will spill the beans on every detail!

What Are TikTok Ad-buying Methods?

There are undoubtedly no advertisers or bloggers who can provide you with an exact cost breakdown for TikTok Ads. TikTok offers a variety of advertising options, each with a unique price range. We must therefore comprehend each of TikTok’s ad-buying strategies in order to determine the precise number of each solution.

Currently, advertisers can buy TikTok ads with 3 approaches as follows:

• Bidding
• Booking
• Reach & Frequency

Each buying style is appropriate for a particular goal. Depending on your objectives when using TikTok for advertising. But for all sizes of businesses to use for their sales campaign or branding campaign, bidding or CPC is the most widespread, flexible, and approachable technique.

Let’s delve into the specifics!

Bidding Types

As mentioned above, if you’ve ever used Facebook or Google ads, this advertising strategy will sound all too familiar. There are currently 5 different bidding ad types available on TikTok: In-Feed, Collection, Dynamic Showcase, TikTok Shopping solutions, and Deeplink to Marketplace.

Unique features of bidding methods:

• Easy to create on TikTok Ads Manager.
• No up-front fees and adjustable prices.
• There is no requirement to purchase advertising space.
• suited for conversion effectiveness.

Booking Types

Because there are so few ad placements, TikTok provides this booking option. Advertisers who want to use these ad formats must reserve their space in advance. Furthermore, they are unable to automatically run as bidding ad types. TopView, Branded Effect, and Branded Hashtag Challenge fall under this category.

Unique features of booking methods:

• more expensive than the bidding type.
• Mandatory to make reservations and pay in advance with TikTok partners.
• fantastic for raising awareness and branding
• Unique advertising options available only on TikTok.

Reach & Frequency

R&F (Reach and Frequency) allows you to set a fixed budget and control the number of times your ads are seen by your target audience.

R&F offers two types of distribution: Standard and Top Feed. Top Feed is an advanced setting form that aids in standard distribution by optimizing the display position.

This type of advertising is frequently used in conjunction with others to reach and interact with the greatest number of people possible, thereby boosting brand recognition.

How Much Are TikTok Ads?

The minimum budget for TikTok advertisements should be $500. The costs start at $0.50 per mile, or 1000 views, and $0.02 per click. On Quora, users recommend that you should budget at least $500 for a simple campaign and $50,000 to $100,000 for the bigger ones.

How Much Do TikTok Ad-bidding Types Cost?

Bidding advertising costs are estimated based on 4 bidding methods including:

• ​CPM: Cost per 1,000 impressions
• oCPM: ​Optimized Cost Per 1,000 Impressions
• ​CPV: Cost per 1,000 views
• ​CPC: Cost Per Click

The price will vary depending on the type of advertising. For instance, the daily minimum for In-Feed advertising on TikTok Ads Manager is $20.

What is the Cost of 1000 Impressions (CPM)?

The minimum cost is $10 for each 1,000 CPM.

CPM (Cost Per Mille/Cost per Thousand Impressions) is a price you’re willing to pay for 1,000 impressions. As a result, TikTok will distribute your advertisement to as many users as possible while staying within your budget.

How to Calculate Cost Per View (CPV) on TikTok?

If a YouTube advertisement costs $10,000–$30,000 to reach 100,000 viewers, TikTok enables you to set a maximum CPV bid for 1,000 with a 6-second or 2-second video view. On TikTok, you can simply pick your own cost per view.

CPV (Cost Per View) is the bid you are willing to pay for every 1,000 video views within 2 or 6 seconds till the end of the video. Within your budget, the system will distribute the video to as many viewers as possible.

What is the Cost Per Click (CPC)?

On TikTok, the average cost per click is around $1.

CPC (Cost Per Click) means the cost you are willing to pay per click. The system will show your advertisement to users who are most likely to click the link in it at a price that is closest to your bid.

How to Calculate the Cost of ​optimized Cost Per 1,000 Impressions (oCPM)?

oCPM (Optimized Cost per Mille) bid represents the price you’re willing to pay to generate 1,000 impressions (similar to However, the system will focus on users who are most likely to convert, develop into leads, or are interested in comparable products (CPM).

oCPM is currently the default bidding method for the “Conversions” or “App Installs” ad objective.

How Much Do TikTok Ad-booking Types Cost?

Top View

When a user opens an application, a form of advertising video called Top View is shown. With a full day of display time, millions of views, high engagement, and brand recognition, this is the most sophisticated form of advertising on TikTok.

For Top View ads, advertisers need to spend:

• The base cost for 1 impression: $1.35
• Targeting cost per impression: $1.69

Branded Effect

Branded Effect highlights goods, campaigns, and brand names using stickers, filters, and motion effects. The TikTok video recorder’s filter list allows users to create their own content with brand effects. To be able to advertise with Branded Effect, the cost you need to spend is:

• Standard (2D/2D pro effect): $37,350
• Advanced (3D/GBE effect): $67,350

Branded Hashtag Challenge

A specific kind of advertisement known as the “Branded Hashtag Challenge” asks users to add a featured hashtag to a video with a relevant subject. This type of ad costs:

• Offer for the first 3 days: $11,100
• The minimum cost for a minimum campaign: $29,500
• Maximum total cost for one campaign: $40,600/70 days

How Much Does Reach & Frequency Cost?

Advertisers can set a fixed price for R&F and decide how many people see their ads and how frequently they are displayed. The system will estimate the number of ad objects reached, the number of ads displayed and delivered at the average cost per 1,000 impressions (CPM), and other metrics after gathering information about the audience, purpose, and budget.

As a result, the price of an R&F advertising campaign can be adjusted to suit the requirements of each advertiser.

Compare TikTok Ads Cost With Other Platforms

There are so many factors to consider when comparing the prices of social advertising platforms. However, TikTok and Facebook and Instagram are quite similar in terms of CPCs and CPMS.

Depending on the type of ad you select, the cost of a single TikTok Ad can range from $50,000 to $120,000.

What is the Average CPM for TikTok Ads?

TikTok employs CPM as its measurement metric, unlike other platforms such as CPC (Cost Per Click), which is used by Facebook and Instagram. It means that the price for the advertisement is set at $1.00 for every 1000 views.

TikTok commercials have an average CPM of $10.

• Charged by impressions
• Target to increase reach

What is the Average CPC for TikTok Ads?

TikTok advertisements are relatively new to the world of advertising, but they have proven to be successful for digital marketers. TikTok advertisements have an average CPC of around $1.00, depending on bidding – not the most cost-effective campaign, but a promising one.

• Charged by click
• Increase community engagement, traffic, installations, and conversions.

How to Optimize Your Budget for TikTok Ads

Depending on the bidding strategy you select, TikTok’s auction ads system will optimize its algorithm to keep your spending within your daily budget cap or use cost per result. But keep in mind that during this time, the TikTok ad space between you and your rivals will be decided.

• Bid cap: This is the particular bid amount you’re willing to pay per optimization target (click, conversions, impressions, views, etc.). Your daily budget will change if your competitor places a higher bid. Your money might not be spent if the competition outbids you. This implies that your advertisement won’t work well.
• Cost cap:With this option, the cost per result varies between being lower and higher than the bid amount. This strategy serves the following advertising goals: app installs, conversions, and lead generation.
• Lowest cap: Your daily budget is considered when using this method. The budget is always used up at the end of the day/campaign, but the advertising system automatically adjusts to maximize the number of conversions based on the budget. Therefore, this ad model is built for traffic, reach, views, app installs, conversions, lead generation, and catalog sales.

TikTok Ads: the Cost Influential Factors & How to Reduce It

The TikTok advertising platform has improved after a few years of work-in-progress since it was launched back in 2019, and as a result, its effectiveness and usability are now on par with Google Ads or Meta Ads. Increasing the app’s user base while attempting to reduce costs is obviously one of your objectives as an app marketer. Here’s how to cut the cost of your TikTok Ads advertising campaign.

Similar to Meta and other well-known social media platforms, brands can run ad campaigns through the TikTok Ads dashboard themselves or by choosing to work with a social media marketing company that, thanks to their experience, can lower costs while still delivering results.

To begin with, the minimum CPM is $0.50 per mile, which means that advertisers must pay 50 cents for every 1,000 views of their ads. Advertisers are required to spend $500 per ad campaign, and the minimum CPC is $0.02 per click.

The effectiveness of graphic creatives, the degree of engagement with ads, smart ad testing strategies, and the presence of a strong analytics system all play a role in determining TikTok Ads costs, just like they do for other online advertising platforms.

The advice for lowering your TikTok Ads advertising expenses can now be divided into different categories.

Making TikTok Authentic Ad Creatives

The ability of TikTok Ads ad formats to blend seamlessly with user-generated content while maintaining the ability for users to distinguish between ads and user-generated videos is one of their most distinguishing qualities. Ads can receive likes, comments, and sharing just like a regular video. Due to their visual similarity, TikTok users do not recognize these ads as advertisements, which results in high rates of engagement.

Having said that, advertisers must make sure their advertisements are on par with regular video content for this seamless blending to work. In other words, if an advertisement wasn’t created in the recognizable TikTok visual style, users would simply skip it because it would stand out from the rest of the TikTok app’s feed. As opposed to this, an advertisement created in the authentic TikTok visual style will guarantee a high level of engagement and use less of your marketing budget.

Partnering With Influencers

On many social media sites, influencers serve as brand ambassadors, but TikTok is an exception. Influencers are well-positioned to interact with audiences and spread brand messages because of TikTok’s For You page section, which is very visible to users. The key takeaway from this advice is that you should always be careful to approach influencers who are appropriate for your brand and who can actually be authentic in the video creative they will be shooting for your TikTok Ads ad campaign. If you don’t fulfill this requirement, you’ll probably waste your influencer marketing budget and be unable to reduce your expenses.

Using the Right Ad Format

To get the most out of the TikTok Ads platform, you must be familiar with all of the different ad formats that are offered to advertisers.

The In-Feed Ads format is similar to what Meta offers advertisers, it’s located directly on TikTok user’s “For You” page and this is the one that is meant to blend with regular video content posted by TikTok users.

The Brand Take-over The name of the ad format says it all; it’s designed to present brands front and center to users for a brief period of time (up to 5 seconds). The exposure it receives ends here. Advertisers must, undoubtedly, exercise extra caution when using this format because of the limited amount of time they have to convey their message in a 5-second video ad.

The Top Views format is similar to Take-over but it actually doesn’t occupy the entire screen, only a portion, and in this case, it’s the job of an app marketer to create a message catchy enough to users pause and watch an entire video ad.

The Spark Ads format really stands out from the rest because it allows advertisers to make an ad from an existing video that has a high level of engagement and hence has the potential to be an efficient ad.

And finally the Hashtag Challenges format – challenges and hashtags are two major drivers of virality on App marketers can use TikTok and the platform to run ads using these potent tools.

Conducting Split-tests

App marketers must conduct a split-test for a TikTok Ads campaign because, despite their best efforts, they can hardly ever come up with the most effective ad creatives before launching the ad campaign. The best performing ad creative can be chosen to focus your ad campaign on and thereby lower costs by running a number of ads with various creatives at once and carefully analyzing their performance. A split test is what enables you to establish this connection because it is impossible to know a priori which ad creative corresponds to which audience. This is another important thing to keep in mind.

Using Analytics Properly

Last but not least, it’s crucial to carefully examine each metric provided by TikTok Ads’ built-in analytics and develop working hypotheses regarding the reasons why particular ad creative performs in a particular manner. With filtering and customizing data points available for analysis, the platform offers both a bird’s-eye view of the entire set of running ad campaigns and a deep dive on a campaign level.

Let’s now examine the crucial statistics that app marketers use to evaluate the effectiveness of their TikTok Ads campaigns.

The auction-based TikTok Ads platform supports a variety of business models, including CPM (Cost-Per-Mile, or cost for 1,000 ad views), CPC (Cost-Per-Click), CPA (Cost-Per-Action), and CPI (Cost-Per-Install), which is an example of the CPA model. Aside from these models, app marketers should always keep in mind one of the fundamental tenets of any auction-based marketing campaign: if you bid too low, it’s likely that your ads won’t be delivered, and if you bid too high, your TikTok Ads campaign ROI is undoubtedly out of whack.

Effective TikTok Ads With Brands

In a wide range of industries, TikTok has already proven to be an incredible source of reliable results for advertising.

Synth Labs Intl.

A Spark Ads campaign was run by this skincare company to produce 300,000 impressions at a $0.32 CPC. Spark Ads was were a perfect fit for Synth Labs Intl which already had experience producing organic creative material on the platform. Spark Ads are a native ad format that enables marketers to promote their own original videos or the videos of well-known artists as In-Feed Ads.

In addition to increasing profile likes by 80% and total video views by over 100,000, the campaign also increased the brand’s organic following by twofold.

G2a

G2A, an online gaming marketplace, achieved 12 million impressions with video advertisements at $0.16 CPM and $0.06 CPC.

By using the auction method of TikTok Ads Manager, the company was able to achieve its marketing goals by purchasing In-Feed Ads. Together, G2A and TikTok created a fantastic campaign that increased awareness while also luring new customers to the G2A marketplace. In the end, it received close to 12 million impressions and over 2.2 million users.

Wet N Wild

The Big Poppa campaign by Wet n Wild was a success. Significant awareness was produced by a combination of the Branded Hashtag Challenge #BiggerisBetter, TopView, One Day Max, and In-Feed Ads. This campaign generated over 1.5 million new video users in total, 2.6 billion total views, and an astounding 18.6% average engagement rate.

Is TikTok Advertising Suitable for Your Business?

As a platform for sharing short videos, TikTok is gaining popularity quickly. In fact, there have been months when TikTok was the non-gaming app with the highest download volume in both the Apple and Android (Google Play) app stores. It is not surprising that many brands want to participate in the action. They already maintain active profiles on YouTube, Facebook, Twitter, LinkedIn, Instagram, and these other platforms.

However, the demographics of your target audience will be a major factor in any TikTok advertising (or even managing a company TikTok account).

TikTok’s creators, along with Musical.ly’s, decided to make an app geared toward people under the age of 18. Yes, many TikTok fans have continued to use the app as they’ve gotten older, but it’s obvious that young people make up the majority of users. As of right now, 41% of TikTok users are between the ages of 16 and 24. Yes, 66% of TikTok users are under the age of 30.

Also heavily skewed toward women is TikTok. Since it frequently reflects the typical gender difference in preferred content types, this probably doesn’t surprise many people. TikTok gained popularity as a form of virtual karaoke, which is a pastime that attracts more females than males.

As a result, if your company caters to young women, you ought to give both setting up your own TikTok presence and running ads on the platform some serious thought. You will probably perform better on the platforms where Baby Boomers or Generation X spend their time if you sell products that are more appropriate for them.

Conclusion

For the past two years, the most downloaded mobile app has been TikTok, which is also the world’s fastest-growing video-sharing platform. Users of TikTok log on for 49 minutes on average per day, and 18% of its female users and nearly 25% of its male users are between the ages of 18 and 24.

TikTok has succeeded in democratizing its platform so that regular users can get their video content to go viral; unlike Instagram or YouTube, which is limited to a select group of celebrities. This is made possible by an interest-graph-based algorithm. TitTok Ads positions itself as one of the top digital advertising platforms, competing with Meta Ads and Google Ads, thanks to its simple-to-use dashboard, robust bidding system, selection of 5 ad formats, and sophisticated targeting options.

TikTok Ads outperforms Meta and Google platforms in terms of efficiency when it comes to reaching the Gen Z age group.

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