Launched in 2016, TikTok has rapidly become a dominant social media platform, empowering users to create and share engaging short-form videos. Its immense popularity has drawn countless businesses to leverage it for promoting products and services, both organically and through its diverse paid ad formats. In this comprehensive guide, we’ll explore everything you need to know about using TikTok ads, including factors influencing cost, various ad types, optimization strategies, and how to effectively boost organic posts. Let’s dive in!
Why Advertise on TikTok?
TikTok has rapidly grown to become the sixth most popular social media platform globally by monthly users, boasting more than one billion active users since September 2021. A key driver of its engagement is the “For You” page (FYP), which offers a completely personalized feed to each user, powered by an algorithm that quickly learns individual interests.
This powerful personalization is precisely what attracts marketers to TikTok. The algorithm’s ability to understand user preferences significantly increases the chances of interaction, brand recall, and conversions. Moreover, TikTok ads are designed to integrate seamlessly into the user feed, often appearing as organic posts. While they include clear Calls to Action (CTAs) to drive traffic and sales, their native feel gives them ample time to capture viewer attention before users swipe to the next video.
Minimum Spend on TikTok Ads
When planning your TikTok ad campaigns, understanding the minimum spend is essential. For campaigns utilizing Campaign Budget Optimization, TikTok ads require a minimum daily budget of £50. If you opt for Ad-set budget allocation, the minimum spend is £20 per ad set.
Factors That Influence the TikTok Ads Cost
Understanding the costs associated with TikTok ads is crucial for effective budgeting. Several key factors can influence how much you’ll spend:
Ad Objective
The cost of your TikTok ads can vary significantly based on your chosen campaign objective, which aligns with different stages of the marketing funnel. TikTok offers objectives tailored to various goals:
-
Awareness (Top-of-Funnel): Focuses on Reach to maximize visibility.
-
Consideration (Middle-of-Funnel): Includes Traffic, App Installs, or Video Views to encourage engagement.
-
Conversions (Bottom-of-Funnel): Aims directly at driving sales or specific actions.
Bidding Method and Amount
TikTok provides five distinct bidding methods that influence your ad costs:
-
Cost per Mille/Thousand Impressions (CPM): You pay for every thousand times your ad is shown.
-
Optimised Cost Per Mille/Thousand Impressions (oCPM): TikTok optimizes delivery to get you the most cost-effective impressions for your objective.
-
Cost per Thousand Views (CPV): You pay for every thousand video views your ad receives.
-
Cost per Click (CPC): You pay each time a user clicks on your ad.
-
Optimised Cost per Click (oCPC): TikTok optimizes delivery to get you the most cost-effective clicks for your objective.
Audiences
The audience you target is another critical factor influencing ad cost. Highly sought-after or niche audiences can increase competition and, consequently, your ad spend. You can refine your audience targeting based on:
-
Gender
-
Location
-
Age
-
Language
-
Interests
-
Connection types
-
Operating System (OS) versions
Your Industry
The level of competition within your industry directly impacts ad costs. Industries with many brands vying for the same interests, categories, or search terms will likely experience higher CPC and CPM rates. For instance, businesses in financial services typically face higher ad costs due to intense competition for specific keywords.
Ad Formats
While all TikTok ads are video-based, the various display options available can also affect pricing. The choice of ad format depends on how organically you want your brand to appear and the desired impact.
Types of TikTok Ads
In-Feed Ads
These are perhaps the most common type of TikTok ad, appearing seamlessly within users’ For You Pages, interspersed between organic content. Their ability to blend in is both an advantage and a challenge. Advertisers must incorporate clear Calls to Action (CTAs) to ensure users stop scrolling, watch the video, and take the desired action.
“In-stream video ads are the most impactful TikTok ad formats I’ve used. This format allows advertisers to create ads that appear in between videos while users are watching content on the app itself; this helps them stand out from other ads which may appear before or after the video itself (or both).” – Daniel Barrett, CEO of Adwords Nerds
Brand Takeover
Brand Takeover ads deliver maximum impact by appearing instantly when users open the TikTok app. This format is ideal for driving significant brand awareness. These ads can also show up on the FYP, offering great value. A unique advantage of Brand Takeovers is their exclusivity: users will only see one brand per category per day, ensuring your message stands out. As expected, this is one of the most premium and expensive ad types.
Branded Hashtag Challenge
This creative ad type is an excellent way to encourage user-generated content (UGC) and boost brand awareness. It involves creating a fun, engaging campaign that prompts users to participate by creating and sharing videos using a specific branded hashtag, fostering community involvement and virality.
Branded Effects
TikTok allows brands to develop custom stickers, AR effects, and branded lenses that users can incorporate into their videos. While this is a fun and interactive concept, Branded Effects often require a supporting campaign to actively encourage users to utilize them, maximizing their reach and impact.
TopView
TopView ads serve as an alternative to Brand Takeovers, offering high visibility without immediately greeting users upon app launch. These ads appear approximately three seconds after a user begins scrolling through their FYP, providing an impactful yet less intrusive initial impression.
Influencers
Brand collaborations with influencers and content creators are a highly effective strategy on TikTok. This approach is a powerful way to reach niche audiences, significantly raise awareness about a brand or product, and drive conversions through authentic endorsements.
Branded Missions
TikTok has introduced Branded Missions, a program that connects creators with brand-sponsored content challenges. Brands outline campaign requirements, and creators can submit up to three videos. TikTok’s algorithm then recommends top-performing, brand-safe videos, which the brand can boost as sponsored ads. This innovative ad format excels at driving community engagement and dramatically increasing brand visibility.
Boosting Organic Posts on TikTok
TikTok offers a powerful feature to amplify your existing organic content through paid promotion, known as Spark Ads. These ads seamlessly integrate into users’ For You Pages, appearing as In-Feed Ads. This allows brands to leverage their best-performing organic videos with targeted advertising, enhancing reach and engagement beyond their typical organic audience.
How to Optimize Content
Investing time in optimizing your content for TikTok ads can significantly improve performance and return on investment:
-
Make it native to the platform: Design your ads to feel authentic to TikTok. Use native colors, fonts, and editing styles. However, don’t forget to subtly incorporate branded elements like your logo or unique iconography to ensure brand recognition.
-
Display the Message Upfront: Users scroll quickly on TikTok. To capture attention before they swipe away, ensure your key message, product, or service benefit is clearly and engagingly presented within the first few seconds of the video.
-
Share Entertaining Video: Content that performs best on TikTok is inherently entertaining. Strive to create ads that are not only informative but also fun, creative, or humorous, aligning with the platform’s culture while showcasing your products or services effectively.
Unlocking Your Brand’s Potential with TikTok Ads
TikTok’s advertising platform, while continually evolving, offers immense potential to connect with your target audience. By understanding its ad formats, cost factors, and optimization techniques, you can effectively leverage this dynamic platform to achieve your marketing objectives. As TikTok continues to innovate its ad offerings, marketers have a growing opportunity to build strong brand presence and drive impactful results.
