Over the past few years, TikTok has been able to shift the social media paradigm and has gained popularity among smartphone users. Its impact has been noticed by platforms like Netflix and other top streaming platforms. It has also managed to capture the attention of many people on the internet. The platform provides massive reach, innovative ad formats, and intelligent targeting options, making it a powerful mix for marketing managers. TikTok’s rapid rise in recent times has transformed the platform into an effective advertising tool for many brands. While some businesses may create business accounts to advertise their products and services through organic traffic, others that wish to grow as quickly as possible may discover that relying solely on organic campaigns is ineffective.
TikTok ads are the most effective and quickest way to broaden your visibility. You also boost your follower count, enhance audience engagement, and develop your TikTok presence in general.
What is the Minimum Cost of TikTok Ads?
For a start, TikTok ads are based on a bidding format. You have the option of setting a daily or lifetime budget, which can be changed at any time during your campaign. Here are the minimum budget requirements for TikTok ads:
- Campaign level: minimum budget of $50 at the daily campaign level. Also, a minimum of $500 for an entire campaign.
- Ad group level: minimum budget of $50 at the daily campaign level. The lifetime budget is the daily budget multiplied by the number of days required.
Types of TikTok Ads
When attempting to make the most of TikTok as a marketing tool, companies should set a clear purpose for each campaign. You might want to increase brand awareness, promote a product or increase traffic to your site. There are targeted ad options for each campaign goal that may suit the results you are looking to achieve. TikTok ads can be classified according to their mode of creation.
1. TopView Ads
TopView ads are shown at the top of a user’s feed when the user opens the app for the first time during the day. This type of ad appears once a day and can run for up to 60 seconds. TopView Ads are suitable for businesses looking to advertise a product or service that require more attention, such as movie and game trailers. The costs for TopView ads are expensive, and they depend on the specificity of your campaign. For about 7.4 million impressions, you can expect a cost of $65,000.
2. In-Feed Ads
In-feed advertisements are a part of organic TikTok video content and they show up on the “For You” page. They last between 5 to 60 seconds, compared to standard videos, which can last up to three minutes. Because the videos can include a call-to-action (CTA) button, this type of TikTok ad is excellent for boosting sales as well as other conversions. Averagely, the cost of an in-feed ad starts from $10 for every 1,000 impressions.
3. Branded Hashtags
Branded Hashtags are ads used by companies to encourage TikTokers to produce content centered on a brand-related hashtag of their choosing. This ad format gives brands exclusive rights to the hashtag, which is not the case on other platforms on social media. Its exclusivity comes at a higher cost, with disclosed average costs of about $150,000 for 6 days.
4. Brand Takeovers
Brand takeovers are 5-second ad formats that may be videos, GIFs, or images and they appear as immersive full-screen content in the initial seconds of users opening the app. Because of the exclusivity, TikTok features one brand takeover per day. Running a brand takeover advertisement isn’t cheap as it starts from around $50,000 a day.
Are TikTok Ads worth it?
Believe it or not, TikTok is still a new social media platform when compared to the likes of Instagram, Snapchat, and Twitter. Despite its relatively new presence, it has already identified itself as a powerful advertising tool for marketers. Businesses of all kinds, from large global brands to daring start-ups, have realized huge success on the platform by experimenting with various formats and strategies. Furthermore, advertising companies can experiment with video ads and gradually increase investment as performance data is gathered. If you start seeing a high ROI from TikTok ads, you can increase your ad expenses and even try out new formats. TikTok is still expanding, and new possibilities for social media advertising are continually evolving. If you can afford to experiment with TikTok advertising for your product, there’s a good chance you’ll see favorable results.
