Nowadays TikTok is a popular social networking software that allows users to record, watch, and publish 15-second videos using their smartphones. The app is known for its hypnotic quality and high levels of engagement, thanks to its tailored feeds of humorous short films set to music and sound effects.
TikTok was launched in its current version in 2018 and rapidly rose through the ranks of social media titans. According to Wallaroo Media, it had around one billion active monthly users worldwide by the start of 2021 and had been downloaded at least 200 million times in the United States.
Like all social media firms, TikTok has been the subject of ongoing if hazy, worries about the possible use or misuse of the personal information it collects from its users.
The distinction is that TikTok is primarily owned by Chinese people.
TikTok was a little late to the game when it came to launching a professional advertising campaign. As a result, businesses had to come up with new strategies to promote on TikTok.
One of the reasons influencer marketing has boomed on the platform is because of this! In late 2018 TikTok began experimenting with promotion, but it didn’t really take off until the following year.
The exorbitant cost of TikTok commercials was a topic of contention in the early days. For example, it may cost $50,000 to $100,000 for a company to take over a prominent TikTok channel, and a hashtag challenge costs $150,000 for six days, with companies spending additional money on promotion
Let’s delve deep into this subject(advertising on TikTok cost) and will tell you what you need to be aware of in a couple of easy actions.
Advertising On TikTok Cost
This simple question may come to your mind, how much does it cost to run a TikTok ad campaign with TikTok Ads Manager? Well, The cost of TikTok advertising starts at $0.50 per mile, or every 1000 views, and $0.02 each click. A $500 minimum expenditure is also required for a TikTok sponsored advertisements campaign.
The TikTok minimum ad spend applies to all campaigns, but there are a variety of price points and ad formats, as well as different ways to set your ad budget (total budget, daily budget, lifetime budget, etc.) to ensure that brands of all sizes can benefit from a TikTok marketing push, regardless of their budget.
However, if you do your homework and build a campaign that resonates with your target audience, the rewards might be substantial. The cost of advertising on TikTok starts at $10 per CPM (cost per 1,000 impressions).
Furthermore, you’ll need at least $500 to start a campaign when producing an ad. As a result, TikTok does not qualify as a low-cost advertising medium.
Getting the Most Out of Your TikTok Advertising Cost
Like many social media platforms, TikTok has its own ad landscape. That means you’ll need to know how to customize your campaign to the platform if you want it to succeed. And it’s worth it: TikTok-specific branded videos are watched 13 per cent longer than non-TikTok material, according to studies.
One of the most alluring aspects of TikTok advertising is how smoothly assets are integrated. While going through the For You Page, advertisements display alongside native content (FYP). All of the elements of a standard post, such as the option to like, comment, and share, are still available.
The CTA button at the bottom, such as ‘Shop Now‘ or ‘Learn More,’ is the only thing that indicates it is an advertisement. As a consequence, TikTok advertising has high click-through rates, and many consumers don’t realize the material is paid right away, based on our experience.
This is a one-of-a-kind opportunity to win over potential consumers in ways that other platforms can’t – particularly among younger audiences, who are known to purposefully shun visible digital advertisements.
A recipe for success includes having an ad that is native in look, utilizes essential TikTok elements, and preferably uses prominent influencers to drive the campaign. Using audio and effects in sponsored content is a terrific method to establish a connection with potential consumers by demonstrating that you’ve spent time learning about the platform.
It is true that influencer marketing is prevalent on most social media platforms, but on TikTok, where the customized For You Page places the community at the centre of the app experience, the influencer marketing effect is enormous.
According to certain TikTok statistics, collaborating with TikTok influencers increases view rates by 193 per cent.
Ads featuring TikTok creators had a better engagement rate, with an 83 per cent increase in interaction (versus 12 per cent from ads without them).
It’s critical to locate influencers who will be recognized by the audience you’re aiming to reach when working with creators to generate effective creatives.
Using The Right Format of Ad
On TikTok, there are a variety of ad types to choose from, so it’s crucial to pick the perfect one. TikTok has been extending its ad platform since it originally launched in 2019, which means there is now a range of formats to select from, with the perfect one boosting your KPIs significantly.
Knowing which ad style would best fit your requirements is wonderful advice, but in order to get the most out of each, you must first understand what each ad demands. Make sure you have the correct requirements in place and that you’re doing all the required measures to convert engaged eyes into KPIs.
TikTok offers such types of ads. These are-
Brand Takeover Ads
These adverts appear immediately when a TikTok user starts the app and turns the entire screen for a brief period of time – typically 3-5 seconds. They also promise a 100% share of voice for the day they’re featured, making this a high-cost TikTok advertising option.
Branded Effects Ads
On TikTok, branded effects are a more participatory type of commercial. Users may experiment with and add fun filters, stickers, and effects to their own video material, which is a terrific way for consumers to interact with your business.
TikTok In-feed Native Ads
Short films are the most common TikTok in-feed native advertisements, although you may also use static photos if you wish. You may even apply custom filters to make your work seem better.
On Quora, experienced marketers that have employed native TikTok advertisements advise that even a modest campaign should cost at least $1,000. One marketer even goes so far as to say that running advertising on the network can set you back $50,000 to $100,000.
As TikTok is based on challenges and trends, developing a branded hashtag challenge will allow you to take advantage of user-generated content. Engaging TikTok users in your campaign by encouraging them to make videos in response to your instructions can boost brand awareness.
Also, Read 12 Incredible Secrets You Want to Know about Social Media Strategies for Business
Because TikTok’s algorithm is one of the finest, you’ll usually notice lesser expenses when your audience is huge and diverse. In fact, TikTok recommends combining your audiences as much as possible, either by combining all of your interests into one audience or by operating the ad group with no interest targeting and allowing the TikTok algorithm to serve the ad to the user who is most likely to take the action you’re optimizing for.
However, audience segmentation is vital for some businesses, and they must focus on a specialized niche (EX: age or location parameters). If this is the case, CPCs and CPMs will be slightly higher than for campaigns targeting huge, broad audiences.
Budget and Bid Amount
At both the campaign and ad group level, TikTok allows you to specify a daily or lifetime budget. You can utilize a cost cap or the lowest-cost bid to determine the budget at the ad group level.
The cost cap ensures that you will never spend more than the amount you bid for the action you’re optimizing for. You might not spend your daily or lifetime ad budget if the cost cap is too low for the conversion cost.
Last but not least, ad creativity is the most crucial component in attaining minimal expenses on TikTok. While TikTok users are often more engaged in video ads than users of any social ad network, TikTok’s average CTR is typically lower than other social ad platforms.
You’ll want your video CTR to be greater than 1% on your ad in order to maintain a good CPA. Your prices will rise whenever the CTR drops below 1%, indicating that it’s necessary to spin in the new creative.
Using TikTok advertisements to raise brand recognition, attract leads, and drive sales for your online store is a great approach to do so. This article should assist you in getting started on your own ad campaign and ad costing.