TikTok Advertising

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TikTok ads

What are TikTok ads?

Tiktok is one of the most popular apps to grace the whole world of media, with its popularity continuously growing across generations by leaps and bounds. As it offers exciting, spontaneous, and genuine content to its users, it also provides opportunities for companies that are looking to expand their social media presence.

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Should I advertise on TikTok?

With over 800 million active users worldwide, TikTok presents an enormous opportunity for advertisers who wish to reach a large community of users who prioritize entertainment and authenticity. Ultimately, if younger people are one of the primary audiences for your business, TikTok ads could be greatly beneficial for you.

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Why advertise on TikTok ads?

Effective reach and engagement

As one of the world’s most talked-about apps in 2020, TikTok’s reach spans over 150 countries across the globe. Its diverse audiences will help you drive more traffic to your business.
On TikTok Ads, you are also able to access its family of apps, which cover multiple verticals like entertainment, news, and content discovery apps. [1]

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Endless options for creative advertising

Creative ad formats are necessary components to keep your audiences engaged. On TikTok Ads, you are given great liberty to choose formats that best suit your campaign goals from a variety of options. This includes but not limited to: horizontal, vertical, or square videos and images.
However, it doesn’t stop there. What really makes it successful is being able to make engaging ads and consistently optimizing them. This is why TikTok Ads offers unique tools that help brands excel — big or small.

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Precisely targets your potential customers

Precisely targeting your audience is a significant step for any successful marketing strategy. With TikTok Ads, you get exactly that, and it has never been easier. Using this, you can target your audience specifically by age, gender, interests, location, and other more unique variables. Furthermore, you can even take your ads to the next level, through creating “Custom Audiences” and “Lookalike Audiences” to reach more customers similar to what you already have.

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How do you want to portray your brand through your ads?

With over thousands of brands joining the TikTok marketing craze, it is necessary for your brand to stand out. Unfortunately, there is no exact formula to ensure this. However, there are a few key points which you always have to consider in every decision you make:

  • What is your goal?
  • Who is your audience (target audience)?
  • Do you have a unique value proposition?
  • What is your strategy?
  • What is your campaign objective?

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How to run ads on TikTok?

  1. Create a TikTok Ads account
  2. Create a TikTok Ad campaign
  3. Define your TikTok Ad placements, specifications, and targeting
  4. Manage your TikTok Ad spend, duration, and goals
  5. Design your TikTok Ad

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How much does it cost to advertise on TikTok?

TikTok Ads Cost is definitely the most interesting part of TikTok advertising. Since it is based on a formal ad platform, this means that you don’t need to counter heavy competition just to seek the prime spots on the TikTok platform.

TikTok Ads gives you two budgeting alternatives: daily or lifetime. Your budget can be changed anytime all through your campaign, and the system will not spend more than the budget you set.

TikTok ads pricing starts at $10 per CPM (cost per 1000 views).

The minimum budget at the campaign level is $500 while the minimum budget at the ad group level is $50.

A bid indicates how much you’re willing to pay for the actions that you want users to take after they see your ads. TikTok Ads offers you diverse bidding strategies to choose from.

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Types of TikTok advertising/ creatives

In-feed video ads

In-feed ads are native ads that operate similarly to those on Facebook and Google. This means that you have to bid for spots for your ads to serve them to your target users. [2] In most cases, you may prefer to bid CPC (cost per click) which averagely costs $10, making them a more affordable option than brand takeovers.

These can be found either at the bottom of TikTok videos or in the feed as part of the video queue, depending on the product type. These ads also redirect users to your website or app.

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Hashtag challenge

As with all challenges, the greatest benefit of a hashtag challenge is the amount of user-generated content it can gather. All this engagement can only be positive for a company. And while you have to pay for the hashtag challenge ads that begin this process, the hashtag challenge posts made by participants are effectively free publicity. You can also consider tapping on to TikTok’s marketing team to help your brand create a sponsored hashtag challenge and encourage users to share content about your brand.

However, the overall cost of a hashtag challenge is still quite high for small businesses or those that prefer a more viral approach to their marketing. It lasts for generally 6 days, with a $150,000 flat fee and an additional cost of $100,000 to $200,000 for its promotion.

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A brand-takeover ad will appear as soon as a target user opens their TikTok app. The ad can then be redirected to either an internal or external link. Currently, this ad type is limited to only one advertiser per day. And with this limited opportunity, the amount it costs reflects this scarcity. So, if you’re leaning towards this type of TikTok ad, you have to make sure that the landing page is of high quality enough to make users stay and watch.

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Advertising models

Cost per click (CPC)

This means your bid is the cost you are willing to pay per click. The system will deliver your ads to users who are most likely to click them at a cost that is as close to your bid as possible.
Calculation: Total cost / Total click
Billing Event: Charged by click
Applicable Advertising Object: Traffic, App Installs, Conversion

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Cost per view (CPV)

Currently in Beta and only available for certain accounts. [3]

This means your bid is the price you are willing to pay for per one thousand 6-second or 2-second video views.

The system will deliver your video to get as many views as possible within your budget.

Note: When setting your bid for cost per view in your ad group, make sure that you multiply your desired cost per view by 1000 and enter your total as the bid amount.

For example, if I am willing to spend $.05 for a video view, I will enter $50 as my CPV bid ($.05 X 1000 = $50).

Calculation: Total cost / Total video views * 1000

Billing Event: Charged by 2-second video views, 6-second video views, or video completion

Applicable Advertising Object: Video View (currently in Beta and only available for certain accounts)

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Cost per action (CPA)

This means your bid is the cost you are willing to pay per result. The system will deliver your ads to users who are more likely to take the action you want at a cost that is as close to your bid as possible.

Note: You set your bid for how much you are willing to spend per result (conversion), but your actual billing is based on clicks, not results.

  • Calculation: Total cost / Total result
  • Billing Event: Charged by click
  • Applicable Advertising Object: App Installs, Conversion

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1 Advertising on TikTok Ads, https://ads.tiktok.com/help/article?aid=6667447877242978309

2. How Much do TikTok Ads Cost? https://influencermarketinghub.com/how-much-do-tiktok-ads-cost/

3. Bidding Methods on TikTok Ads-CPC/oCPC/CPM/CPV, https://ads.tiktok.com/help/article?aid=6712334968997019653

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