How does TikTok advertising work? (2024)

TikTok is the most recent social media platform to experience exponential growth and as with all other social media platforms, offering advertising solutions to brands will be their main source of revenue. The advertising potential is growing quickly with the recent introduction of TikTok for Business to streamline the process. Here’s all you need to know about how your business can get started…

How does TikTok advertising work? (3)

TikTok for Business

This is a newly launched venture for TikTok, who is growing its advertising potential. Unlike other social media platforms, the idea is not to make ads, but TikTok’s. This philosophy is one that is in line with the expectation of Gen Z’s who want to see content that has an authentic feel and matches the platform's lightheartedness.

Under the label TikTok For Business, brands will be encouraged to join the platform and make use of one of their 4 types of ads. With this comes the opportunity for discovery and connection with newer audiences. The app is formalising its advertising with brands so that the process is straightforward for marketers to follow. With these changes, the app is still heavily centred on the user experience, which is important for brands to keep in mind - creativity is required for your campaigns.

With these advertising opportunities, businesses can become part of pop culture and advertise through storytelling as a means of reaching the youth and growing their digital marketing on the growing digital platform. During its rise, advertising has been limited on the platform, but that is now changing.

Content on TikTok can be created with mini stories and share tidbits of relevant content with your audience. An example of this would be Seventeen magazine. They have garnered a large following and share sneak peaks of the magazine, tutorials and reposts of some of their favourite clips from their followers.

How does TikTok advertising work? (4)

TikTok Advertising

The TikTok platform is used mainly by younger audiences (between sixteen and twenty four year olds), though it is also rising in popularity with other generations who are exploring the app and finding entertaining content. It is available in over one hundred and fifty markets, in more than seventy languages.

There are options available to marketers, from hashtag challenges to working with influencers. The content heavily circulated on the platform includes quick and easy to make video clips with low production costs, offering a more ‘real’ perspective when compared to other more visually refined platforms.

Even if your brand seems a little off centre when considering the above, it is noteworthy to mention that several well known brands have found success when experimenting with TikTok content. The Washington Post, for example, have shown newsroom footage as a means to find their digital footing, while the NBA have shared funny and inspirational messages via the platform.

Ready to create an ad? How to get started with TikTok campaigns

  • Create a TikTok account: After agreeing to the terms of use and verifying your account, you can add in your business information.
  • Sign up: Sign up for TikTok advertising and create an ad campaign. You’ll first need to enter your country information, as it is only available in certain regions at the moment. If it is available, you’ll either be approved through the ads self-serve platform and if it isn’t, you can "Make a Reservation” or opt to be informed of future updates.
  • Selections: At this point, select one of 3 objectives, namely: Awareness, consideration, or conversion. The target audience will also be determined.
  • Budget: There are daily and lifetime budgets, both of which have a minimum spend and can be adjusted at any time.
  • Ad specifics: TikTok can select the ad placement for you, otherwise this can be manually selected and you can also add in visibility on affiliate platforms.

When it comes to budget, the platform caters to both big and small businesses. TikTok advertising for day-to-day business is cost effective in terms of the in-stream videos with a cost-per-click model. The other ad types, like branded takeovers and paid hashtag challenges are where significant budget is required, hence its appeal and high returns to companies like Nike.

How does TikTok advertising work? (5)


In summary

If you’re looking for the best ways to reach youthful audiences and make your mark in pop culture, your brand needs to consider advertising on TikTok, the app which continues to dominate and grow across the world.

We at Nexa are ready to help get you started with campaigns using TikTok!

How does TikTok advertising work? (2024)

FAQs

How does TikTok advertising work? ›

The platform offers different TikTok ad formats, such as in-feed ads, top-view ads, brand takeover ads, and branded hashtag challenges. These ad formats facilitate better engagement among users. For instance, in-feed ads enable users to like, comment, share, follow, and shoot videos within the same TikTok sound.

How does TikTok promote work? ›

This means that your video will be displayed as an ad for the time that you promote your video. Promote lets you track basic information on your video as a result of your Promote campaign, such as: The number of your video views. The number of likes, comments, and shares for your video.

How effective is TikTok for marketing? ›

71.2% of TikTok users have said they've shopped when they stumbled upon something on their feed or Stories and 58% of users say they have at least used TikTok for shopping inspiration. If you're wanting to increase sales through your social media marketing, TikTok is a great channel to do so.

How do you run effective ads on TikTok? ›

7 Steps to TikTok Advertising Success
  1. Get to Know TikTok Ads Manager. ...
  2. Use Creative Elements to Stand Out. ...
  3. Test Spark Ads. ...
  4. Test Different Targeting Options. ...
  5. Use Data to Leverage Hashtags Effectively. ...
  6. Create High-Quality Graphics. ...
  7. Keep Your CTAs Simple.

How long do TikTok ads take to work? ›

While some TikTok Ads might take longer than usual for the review process to complete, most TikTok Ads are reviewed within 24 hours. You will receive a notification once your TikTok Ads have been approved and published.

How much does TikTok make through advertising? ›

According to an Insider Intelligence report, TikTok is estimated to generate $11.01 billion in advertising revenue in 2024 in the United States. That will be an increase of 25.8% in the ads revenue compared to the previous year. Comparatively, TikTok generated $5.96 billion in advertising revenue in 2022.

How to get 1000 views on TikTok? ›

Post multiple videos per day

The more videos you post, the more exposure you'll likely get. For example, If you are making a tiktok video about the gym and someone who is watching workout videos on TikTok sees it, they may visit your page and watch your other videos.

How do you Promote on TikTok and get paid? ›

The easiest way to monetize your TikTok account is to create a website and direct traffic to it via a link in your bio. Whether you use this form of TikTok marketing to direct followers to a media kit or a portfolio showcasing your skills is up to you.

Why is my TikTok promotion not working? ›

TikTok will reject your ads if the products and brands shown on the video do not match those shown on the landing page. Examples of ads that Tiktok might reject are as follows: The product that you are promoting on the video is product A, while the product on the landing page is product B.

Why is TikTok good for advertising? ›

TikTok formats ads to facilitate engagement

In-feed ads appear naturally as users scroll and allow users to like, comment, share, and follow. Both of these formats enable users to engage with brands directly and build connection and brand loyalty.

Is TikTok good for business advertising? ›

TikTok for small businesses is a powerful marketing tool can help them reach a wider audience and increase their conversion rate. It allows you to showcase your products and services creatively and engagingly, which can instantly attract the viewers' attention.

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.

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? ›

To ensure that your ads have sufficient budget, the minimum budget at the campaign level is $50 and the minimum budget at the ad group level is $20.

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