OK Boomer, Here's the Scoop on TikTok Advertising Costs (2024)

It seems everyone is talking about the TikTok app. While you might not know much about it, you do know that young folks find it all the rage and that it's had more than 1 billion downloads, especially in the "under 30" crowd. So maybe you need to look into advertising on this hot social media platform.

OK Boomer, Here's the Scoop on TikTok Advertising Costs (1)

What Do You Need to Know About TikTok?

First of all...while TikTok is extremely popular among the under-30 crowd, it also has a pretty large following in the Millennial (21.7 percent) and Gen-X (20.3 percent) crowds. If you do the math, that's 217,000,000 Millennials alone, not to mention all the other users.

TikTok isn't just a platform where teenagers record themselves dancing to music...(yes, we thought that at first, too). It's a short-form video-only platform that allows users to self-publish 1-minute, 3-minute, or 10-minute videos (select creators) about whatever they want (as long as it doesn't violate community guidelines).

Content ranges from people showing funny pet videos to complaining about a bad day at the office to...yes, dancing to music. But mainstream news organizations now have business pages and make news posts, and even host live streams (the Johnny Depp court proceedings were all over TikTok from the mainstream news agencies).

TikTok has become a legitimate platform to be on if you're a business...and one you should be on. Step one is to create a profile on the platform and then switch it to a pro account complete with the Business Suite. Then you will have access to the different types of advertising functionality.

TikTok Advertising...What Types Are There?

What's most important about TikTok advertising is that it is extremely NON-competitive right now. The platform is still young. It isn't yet oversaturated with advertisers and paid social media ads. This gives anyone who does choose to get in early on the advertising side a distinct advantage. And the platform boasts an average 17.99 percent engagement rate in 2022, according to EasyViral and Grin.

TikTok offers a few different types of ads:

  • In-Feed ads are videos that show up on the "for you" page with a call-to-action button like "shop now."

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  • Spark ads: These use already existing viral videos on your business TikTok page and link to a landing page instead of an account page.
  • TopView ads: These ads play for 60 seconds as soon as a user opens the TikTok app. They are full screen and auto-play sound. TopView ads are the most "traditional" type of advertising as they don't appear in-feed and definitely look like advertising. That doesn't stop them from boasting a supposed 67 percent effectiveness rate, says TikTok. These ads are also the priciest, with 7.4 million impressions costing $65,000 per day in 2020.

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  • Brand Takeover Ads: Users see one Brand Takeover Ad per day on TikTok, which makes this option a bit pricier as well because of the lack of competition. These full-screen ads appear on someone's "For You Page"...aka their newsfeed after they open the app for 3 to 5 seconds. These are usually used for product launches and are ideal for brands with big budgets.
  • Branded Hashtag Challenge Ads: What would social media be without hashtags? TikTok is no different. Brands create specific hashtags surrounding a specific challenge they want users to make videos of and promote the challenge using this type of advertisem*nt. The users then create videos using the products and post them, making sure to include the challenge hashtag. This is a great way to engage TikTok users and get your brand out there.

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  • Branded Effects: TikTok users just love a new effect they can add to their videos to make them look different. Think "filter with your brand included." These are good for brands looking to create a unique identity on TikTok and become more well-known.

So What Is the TikTok Advertising Cost?

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TikTok advertising doesn't have to break the bank. You can use already-existing video templates on the platform that have music, input your own images, add your own URL and discount codes, and promote the video. The minimum TikTok ad campaign budget is $50. The average cost per 1,000 views on TikTok is $10, and the average cost per click is $1. This author has reached more than 5,000 people using less than half of that budget...so you could promote a couple of videos for $50. This is for in-feed video ads. Small businesses can be TikTok advertisers.

Now, if you want to get into the sponsored hashtag challenges, those are a flat rate of $150,000 per week.

A good rule of thumb is to budget a minimum of $500 per ad campaign to start, then take a look at your analytics, re-evaluate, and go from there.

What About TikTok Influencer Marketing?

Yes, you may have heard about this quite a bit. TikTok was a little slow in the beginning as far as setting up official paid advertising on its platform. During this time, users were building large followings, even in the millions. This especially happened at the beginning of the COVID-19 pandemic.

Brands began reaching out to these TikTok users with large followers, asking them to partner with and promote their products to their followers. TikTok Influencers were born, and it became a whole new source of income for some on the platform. Additionally, influencer partnerships gave brands an entirely new way to promote their products.

While some only charge $5 per post, it can range up to $2,500+ for an influencer with a large following. Using influencers to market your product or brand could be more effective than utilizing typical TikTok ads. Sources say 49 percent of TikTok users have purchased a product after seeing it promoted by an influencer on the platform. Just be sure that the influencer you choose is a good match for the type of product you are trying to sell.

What Types of Businesses Should Advertise on TikTok?

This brings us to another key point. TikTok's best-performing advertisers are business-to-consumer and mostly focused on the sales of products. In addition to the previous advertising options mentioned, TikTok has partnerships with Shopify and Square, making it possible for consumers to shop directly on the app. This is done through a link on a merchant’s TikTok profile. Additionally, TikTok has a partnership with TalkShopLive, allowing some businesses to sell via live streaming on the platform.

What Metrics Should I Measure on TikTok?

With your TikTok video ads, you will want to track the following metrics:

  • Total number of video views
  • The total video play time
  • The average video watch time
  • How many people watched the full video
  • How many likes the video received
  • How many shares the video has
  • How many people saved the video
  • What the comments are
  • Clicks on action button

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OK Boomer, Here's the Scoop on TikTok Advertising Costs (2024)


How much does TikTok advertising cost? ›

TikTok Ads CPM

According to the platform rules, the average pricing of the Cost Per Mile starts at $10 per 1,000 views, and there is a minimum cap of $500 per campaign to be spent.

Why is it so expensive to promote on TikTok? ›

Ads on TikTok are still new. This means that TikTok can afford to charge a premium rate for them, knowing that advertisers aren't going to abandon TikTok to compete with their competitors for prime Facebook/Instagram advertising space. TikTok ads start at $10 per CPM (cost per 1000 views).

Are TikTok ads worth the money? ›

Are TikTok Ads Worth it for Your Business? TikTok ads can be worth it if you have a well-defined target audience, are willing to invest in creative content, and closely monitor and optimise your campaigns.

What is the minimum budget for TikTok ads? ›

TikTok Ad Costs

Minimum Spend: TikTok requires a $500 minimum ad spend, with a minimum campaign level daily budget of $50, a minimum AdGroup level daily budget of $20. A Brand Takeover: TikTok will guarantee five million impressions with this advertising strategy. It comes with a hefty cost of $50,000 per day.

How much does TikTok pay for 1,000 views? ›

According to reports from top influencers, TikTok pays around $0.02 and $0.04 for every 1,000 views. These are reports based on payments received through the TikTok Creator Fund. This is a program that TikTok introduced in 2021 in a bid to compensate content creators for creating content on the platform.

How much money is 50000 views on TikTok? ›

How much does TikTok pay for 50K views? TikTok pays approximately $1.50 for 50,000 views.

Is it cheaper to advertise on Facebook or TikTok? ›

Ad costs: CPM comparison

The average cost per click (CPC) on Facebook is around $1.84, while the average cost per thousand impressions (CPM) is around $6.97. TikTok's advertising costs are generally lower than Facebook's, but they also vary depending on the targeting options, ad format, and ad placement.

How can I Promote my TikTok video without paying? ›

How to Promote TikTok Videos for Free
  1. Excite Viewers with High-Quality Content.
  2. Amplify Your Video Reach With Popular Hashtags.
  3. Post on TikTok at the Right Time.
  4. Run a TikTok Giveaway or Contest.
  5. Embed TikTok Videos in Your Blog Posts.
  6. Add Your Best Videos to Your Sidebar.
  7. Cross-Promote TikTok Videos on Other Social Networks.

How can I Promote my TikTok for free? ›

Set up a Promote video
  1. On your Promotions page, tap the video you'd like to promote. ...
  2. Choose a goal for promoting your video, then tap Next at the bottom.
  3. If you choose More website visits, you'll enter your website URL and choose an action button for your website (example: Learn More, Shop Now, or Sign Up).

What is the success rate of TikTok ads? ›

TikTok's advertising strategy is effective, with 83% of users finding the app's advertisem*nts entertaining, emphasizing the platform's success in creating engaging and enjoyable ad content.

What are the disadvantages of TikTok advertising? ›

Content Format Limitations (Con)

One of the main disadvantages of marketing on TikTok is its content format limitations. TikTok videos can be no longer than 60 seconds, which can pose a challenge for marketers who need to convey complex messages or showcase detailed product features.

How long do TikTok ads last? ›

All video ads on TikTok should be between 5 and 60 seconds. Ads less than 5 seconds and more than 60 seconds will not be approved. If the video is too long or too short, add a new ad to your ad group. Saving changes or editing ad creative will trigger an ad review, which may take up to 24 hours to complete.

What is a good cost per follower on TikTok? ›

Average TikTok influencer rates per post
Number of followersAverage price per post
1 more row
Nov 14, 2023

How much does TikTok ads cost per day? ›

TikTok has two different minimum daily spends, depending on where you set the budget: If you set your budget at the campaign level, there is a minimum daily budget of $50. If you set your budget at the ad set level, there is a minimum daily budget of $20.


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