Social media advertising is one of the quickest and most efficient ways to reach a targeted audience. From raising general brand awareness, to driving website traffic, and eventually increasing sales conversions, social media advertising is one of the most streamlined methods of modern advertising.
With many companies augmenting their marketing and advertising efforts to prioritize social media, the challenge shifts to then strategizing spend on the social media platform with the greatest potential ROI.
With the overwhelming success and sustained growth of the social media platform, advertising was inevitably going to follow. The barriers to entry are relatively low to advertise on TikTok and the advertising platform –TikTok Ads – automates and optimizes the ad creation process similar to Google Ads or Meta Ads. But with such ease of entry, how much does it cost to advertise on TikTok?
Understanding TikTok Ads costs
There is no official advertising pricing on TikTok, but as a general rule TikTok stipulates that there must be a minimum budget established in order to advertise on the platform. The minimum budget required at the campaign level is $500 ($50 per-day), and at the ad group level, the minimum budget is about $50 ($20 per-day).
To help a wide variety of advertisers achieve their goals, the auction-based TikTok Ads platform supports a number of campaign models such as CPM TikTok Ads (Cost-Per-Mile or Cost-Per-1,000 ad views), CPC TikTok Ads (Cost-Per-Click), CPA TikTok Ads (Cost-Per-Action), and CPI TikTok Ads (Cost-Per-Install).
The most common campaign models are CPM and CPC, and on average, these TikTok ads cost:
- $10.00 per CPM
- $1.00 per CPC
These low cost ad campaigns are appealing, but couple them with the fact that the average TikTok engagement rate is 5-16%, and it is easy to understand the allure to businesses across a vast array of industries.
However, keep in mind that these CPM and CPC models can vary substantially in price depending on the target audience and specific geographical area pursued. These factors can alter the average price based on a combination of reach and the population of independent consumer age (18+).
TikTok’s primary appeal is its potential for creating high-performing ads at relatively low costs. If properly planned, designed, and executed, your ads can reach millions by going viral with either paid or organic content. However, just because the ease of reach is available does not mean users will mindlessly ingest your advertising content.
TikTok user statistics
Provided that the Generation Z audience (18-34 years old) represents the most prominent U.S. consumer population at 82 million people, and possesses over $300 billion in unique purchasing power, this demographic is the most coveted in the world. So what social media platform does Gen Z use the most? TikTok.
TikTok is one of the largest social media platforms with over one billion monthly active users across 150 countries worldwide. The latest social media giant has shown that advertisers may reach up to 1.081 billion users every month (18+) as of January 2024.
TikTok has carved out a multi-faceted niche incorporating the best parts of YouTube, Instagram, Facebook, and even Netflix. Furthermore, TikTok is showing no signs of slowing down: In the second quarter of 2024, TikTok generated around 252 million downloads from users worldwide.
Which factors will influence TikTok Ads pricing in 2025?
In 2025, several factors will continue to influence TikTok Ads pricing, just as they have in previous years. Here are some key factors:
- Ad format and placement: The type of ad format (e.g., in-feed ads, branded effects, hashtag challenges) and its placement within the TikTok app will play a significant role in pricing. Typically, ads that are more prominently displayed or integrated into the user experience may command higher prices.
- Target audience: The specific demographic or audience segment you’re targeting can affect pricing. Advertisers may have to pay more to reach certain demographics or geographic locations that are in high demand or have proven to be more responsive to ads.
- Campaign objectives: The goals of the advertising campaign, such as brand awareness, app installs, website visits, or sales conversions, will impact pricing. Campaigns with more ambitious objectives may require larger budgets and, consequently, higher ad prices.
- Seasonality and trends: Ad pricing may fluctuate based on seasonal factors and trends. For example, prices may increase during peak shopping seasons like Black Friday or during major cultural events like the Olympics or the World Cup if there’s increased competition for ad space.
- Competition: The level of competition among advertisers targeting similar audiences will influence pricing. Higher competition for ad placements may drive prices up as advertisers bid against each other for visibility.
- Ad performance and engagement: TikTok may adjust pricing based on the historical performance of ads. Ads that generate higher levels of engagement, such as likes, shares, and comments, may be rewarded with lower pricing or better placement opportunities.
- Platform changes and innovations: TikTok’s own updates, algorithm changes, and new advertising features could impact pricing dynamics. For example, the introduction of new ad formats or targeting options may affect how advertisers reach their audiences and what they’re willing to pay for it.
- Economic factors: General economic conditions, such as inflation rates, GDP growth, and consumer spending habits, can indirectly influence ad pricing by affecting advertisers’ overall marketing budgets and willingness to invest in advertising.
These factors, among others, will collectively shape TikTok Ads pricing in 2025, with advertisers needing to carefully consider their strategies and budgets to achieve their desired outcomes within the platform.
Tips for optimizing TikTok Ads costs
TikTok users are spending over 95 minutes per day consuming content on the app. While some advertisers view this as an opportunity to “feed them anything,” users of the app can be actually more in tune with what they want to see, and more importantly, what they don’t want to see.
You cannot feed TikTok consumers anything and expect results. Remember these three tips when cultivating your optimal TikTok Ads campaign:
1. Share creative authenticity
Advertisements must blend in, in order to stand out. If a video advertisement is not shot in a visual style that matches TikTok’s signature look and feel, users will skip it reactionarily. While initially perceived as a challenge, producing advertising content in this manner is an increasingly cheaper method that simultaneously extends an advertiser’s reach. To further extend this reach, advertisers can partner with influencers or brand ambassadors to expedite their sprawling efforts.
TikTok influencers are in an ideal position to engage directly with their audiences. But with that in mind, it is imperative to secure the right influencers for the right price to spread your brand to optimize your influencer marketing budget. Nano-influencers (1-10,000 followers) cost between $5-$25 per post, while mega-influencers (10,000+ followers) can cost up to $2,000 per post.
Without an authentic look or a reputable influencer, the ad will be dismissed and quickly forgotten.
2. Engage with the right format
TikTok advertisements can be liked, commented upon, and shared by users as easily as any content on the platform. TikTok users demonstrate a notoriously high level of engagement, that ranges from 5-16%, but where and when those ads appear could be the difference between 150,000 impressions and 1,000. Here are five different advertising format options you should be familiar with:
- In-Feed Format: Located on the “For You page,” these ads seamlessly appear in a user’s feed like any original TikTok content.
- Brand Take-Over Format: These ads appear on the app’s entire screen for a duration of five seconds. These ads are the most aggressive, but give advertisers the most isolated exposure of any format. However, the five second ad must be succinct and thought-provoking to avoid being viewed as a useless pop-up.
- Top Views Format: Similar to the Take-Over format, but this style only occupies a portion of the user’s screen. Perhaps even more so than the Take-Over format, these ads must spark curiosity or interest great enough to drive the user away from the other side of the screen.
- Spark Ads Format: The most efficient style allows advertisers to make an ad from an existing video that has a high level of engagement. In a sense, advertisers are remixing a popular video with a creative tie-in to their product or service. You can use them to boost your TikTok likes and build social proof.
- Hashtag Challenges Format: Hashtags and challenges are a great way of driving an increased sense of community and shared experience across the platform. Company’s can get involved and spin it with their own twist unique twist (i.e. “#StateFarmSafetyDance”) and risk a high return for a minimal investment.
If you’re looking for inspiration for your next TikTok campaigns, check out some of the best TikTok Ads examples.
3. Run tests and take advantage of data analytics
Despite time, effort, and logistical strategy, it is nearly impossible to understand the most efficient and effective ways to advertise on TikTok. Advertisers must endure a trial and error testing period to further understand their target audience and utilize the data in order to maximize marketing spend.
- Using TikTok Ads built-in analytics: Further understand why ads are performing the way that they do. The analytics platform provides an outlook of the entire set of operational ad campaigns and a detailed examination of each campaign, with customizable data points.
- Conducting split-tests: Target a specific audience, run ads with and without influencers, and try out several different advertising formats to understand which process is working the best. By analyzing their performance results, you can concentrate your efforts and decrease your costs.
With a diverse trial and error approach that can easily be tested and evaluated, advertisers should be able to quickly identify the most lucrative and viable lanes for their marketing strategies.
4. Schedule ads strategically
Consider the timing of your ad placements to maximize effectiveness and minimize costs. Analyze when your target audience is most active on TikTok and schedule your ads accordingly to increase visibility and engagement while avoiding oversaturation during off-peak hours.
5. Monitor ad frequency
Pay attention to ad frequency to prevent fatigue among your target audience. Overexposure to the same ad can lead to ad fatigue and decreased engagement. Rotate your creatives regularly and adjust frequency caps to maintain user interest without oversaturating the market.
6. Allocate budget sensibly
Monitor and adjust your budget allocation based on the performance of different ad sets, campaigns, and targeting options. Shift more budget towards top-performing ads or audience segments to maximize ROI and minimize spending on underperforming elements.
FAQ’s
Are TikTok ads worth it?
TikTok has been the most downloaded mobile app for the last two years and it’s the fastest-growing video-sharing platform on the planet. At a relatively low cost ($10 per CPM and $1.00 per CPC) to advertise to a targeted audience, and an average user engagement rate between 5-16%, TikTok ads have one of the highest potential ROI’s in all of advertising.
What type of businesses can use TikTok advertising?
TikTok is suitable for most businesses but not all. TikTok advertising is ideal for companies looking for large and engaged audiences. Here are some statistics to consider: In 2022, TikTok has an average engagement rate of 17.99%, an overall 90% of users who visit the app more than once a day for an average of 52 minutes per day. Considering all these numbers, TikTok is one of the best platforms for audience engagement.
50% of the TikTok global audience is under 34, with 26% between 18 and 24 years of age. So if you have a business that sells to the younger generation, you are likely to do well with TikTok advertising.
Lastly, TikTok is an intercontinental medium. And you are more likely to run successful campaigns if you have a business with an international audience.
If your audience falls into the categories above, your business will generate great returns on ad spend. Learn more about:
- How to use TikTok for Small Businesses.
- How to use TikTok for real estate
- How to use TikTok for ecommerce
- How to use TikTok for car dealerships
TikTok stipulates that there must be a minimum budget established in order to advertise on the
platform. The minimum budget required at the campaign level is $500, and at the ad group level, the minimum budget is about $50.
How much are TikTok ads per day?
TikTok requires a minimum budget of $50 per-day at the campaign level and $20 per-day at the ad group level.
How much do TikTok Ads cost per month?
The cost of TikTok ads per month can vary significantly depending on different factors such as your campaign objectives, target audience, ad creative, bid strategy, and competition within your industry. There isn’t a fixed cost for TikTok Ads as it operates on a bidding system similar to other advertising platforms like Facebook Ads or Google Ads.
To run TikTok ads, you’ll typically set a budget for your campaign, which can range from as little as a few hundred dollars to thousands or even more per month, depending on your goals and resources. Your actual spending will depend on factors such as how much you bid for ad placements, the duration of your campaign, and how effectively your ads perform in terms of engagement and conversions.
Your actual monthly spend on TikTok ads will depend on your specific advertising goals, strategy, and the performance of your campaigns. It’s essential to monitor your campaigns closely, optimize your ad spend based on performance data, and adjust your budget and bidding strategy as needed to achieve your desired outcomes within your budget constraints.
Why are my TikTok ads not spending?
This can be frustrating, but there are several common reasons why your TikTok ads may not be spending. Here are 5-6 potential causes and tips to address them:
- Audience size is too narrow: If your target audience is too specific, TikTok may struggle to deliver your ads effectively. Pro tip: Broaden your targeting options to reach more users, and consider using TikTok’s “Automatic Targeting” feature to let the platform optimize your audience.
- Low budget or bidding issues: A budget that’s too small or a bid that’s lower than the competition might prevent your ads from entering auctions. Pro tip: Increase your daily budget or adjust your bidding strategy to be more competitive in the ad auction.
- Creative issues: If your ad creatives don’t meet TikTok’s standards or are less engaging, the algorithm might deprioritize them. Pro tip: Ensure your videos are high-quality, native to TikTok’s style, and comply with the platform’s creative guidelines. Test multiple creatives to find what resonates with your audience.
- Campaign learning phase: TikTok ads go through a learning phase to optimize performance. If you’ve just launched your campaign, it may take some time to start spending effectively. Pro tip: Give your ads time to exit the learning phase while ensuring that your ad set has sufficient data to optimize.
- Ad rejections or policy violations: Ads that don’t meet TikTok’s policies might be paused or not spend. Pro tip: Double-check that your ad content complies with TikTok’s advertising guidelines to avoid rejections.
By addressing these issues and making strategic adjustments, you can help your TikTok ads start spending and drive better results!
The bridge to your future
LeadsBridge fulfills your integration needs, focusing on bridging gaps between top advertising platforms –and official LeadsBridge partners: Google, Meta, LinkedIn, and TikTok– and main marketing platforms – CRM, email marketing software, autoresponder, and so much more.
The LeadsBridge platform is specifically designed for companies that want to streamline their advertising activities by integrating their marketing stack with Meta Ads, Google Ads, LinkedIn Ads, and TikTok Ads.
Discover all of the possible TikTok Lead Generation integrations and automatically sync your lead data into your marketing tools in real time.
Take a look at the best TikTok integrations to enhance your lead generation.
And if you’re interested in creating specific TikTok Custom Audiences to retarget your current CRM lists and/ or creating lookalike audiences (if lookalike audiences exist in TikTok), join the waitlist for TikTok Custom Audiences today.
TikTok Conversion
The TikTok Conversion integration lets advertisers share website visitor events from the audience segments directly to TikTok. This data is shared through the Events API and is processed similarly to TikTok pixel and TikTok SDK business tools.
This integration with TikTok Conversions destination lets you define the mapping between the data segment in your CRM and sends it to TikTok.
So if you are running complex workflows such as dynamic showcase ads, custom targeting, campaign optimization, or attributions on TikTok, this integration is just what you need.
Learn more about what your business can do with the TikTok Conversion integration.
Conclusion
TikTok is one of the largest social media platforms in the world and is occupied by the most coveted consumer demographic. Advertisers are lining up to get involved because advertising on the TikTok platform is increasingly uncomplicated and affordable to implement at a campaign or ad group level.
With the right data, format, and creative authenticity, TikTok advertising can become the most lucrative sector of your entire advertising budget and help maximize your ROI.
Discover all the possible integrations for TikTok today.
