How Much Do TikTok Ads Cost? All On TikTok Ads Pricing (2024)

TikTok came onto the scene much later than other platforms, but what an impactful entrance it made! This platform has entirely revolutionized marketing, drawing millions of brands and companies eager to promote their products.

You’ve probably noticed TikTok ads popping up at every corner around the globe, and it’s tempting to join the trend. Yet, the big question remains: Can you afford the TikTok ad prices?

How Much Does It Cost To Advertise On TikTok?

On this platform, you’ll be charged $10 for every 1,000 views (CPM TikTok) and about $1 for each click (CPC TikTok). For high-quality ads, set aside a minimum budget of around $500 to hire freelancers. If you want to team up with influencers instead, prices can vary from $5 (for Nano Influencers) to $2,000 (Mega TikTok celebrities with over 1 million fans).

Ads Production

You have two options for TikTok ads: use software (like Canva) or hire a professional designer!

Canva is among the top picks for many brands, especially since TikTok became their partner in 2021. They offer user-friendly design tools and three pricing plans: Free, Professional ($120 a year), and Enterprise ($360 a year)

How about those going for the hiring option? Consider finding freelancers from work marketplaces like Upwork and shell out around $500 for a high-quality video ad. It usually takes 2 to 3 weeks to finish.

CPM (Cost Per Mile)

This social media platform charges a CPM starting at $10 for every 1,000 views (with a minimum campaign spending limit of $500).

Nevertheless, the actual CPM rates vary depending on several factors, such as your targeted audience and their geographical locations. For instance, Tuff Growth reported an average CPM of $6.06, while JungleTopp claims only $1.82. A few years back, in 2020, Digiday even reported a CPM as low as $1!

A quick look into TikTok reach rate by geography:

Ads CPC (Cost Per Click)

According to various sources, the cost for each click on TikTok Ads averages around $1. However, these numbers can vary A LOT since they reflect ad campaigns targeted at different audiences in different parts of the world. For instance, JungleTopp, a renowned consultancy agency for digital media, reports a CPC value as low as $0.19.

Here’s a more detailed look at recent research by Hootsuite, which sheds light on the CPC for TikTok Ads across different companies and campaigns. It’s worth noting that these costs are listed in the local currencies of the countries/regions where the advertising campaigns were carried out.

Synth Labs Intl., a skincare brand, attracted immense traffic at just $0.32 a click, and the Lion Wild jewelry store achieved a remarkable CPC of $0.13. Even more astonishing is Mallows Beauty, which reached an exceptionally low CPC of merely £0.04.

Influencers Ads Rate

The average cost for influencers’ TikTok posts is mostly based on their follower count, which has become a well-established system by the time of this writing. Five main tiers that determine the price range per post:

• Nano Influencers
• Micro-Influencers
• Mid-tier Influencers
• Macro Influencers
• Mega Influencers

Prices start at a modest $5-25 for a video post (for influencers with less than 10 thousand followers) and can reach as high as $2000 for over 1 million followers.

TikTok offers 4 types of ads to help businesses promote themselves:

In-feed/Native Advertisem*nts

These ads pop up as your audience scrolls through their TikTok feed (similar to the ads you often see on Twitter or Instagram). They last about 15 seconds and are skippable — unless the audience clicks on them to visit the brand’s website or download the app.

Brand Takeover Advertisem*nts

A bit more expensive than in-feed ads, brand takeover ads are pictures, GIFs, or clips that take over the entire screen when the audience opens TikTok. Only one business or brand a day can monopolize that feature, so it’s quite a big deal! Your brand basically owns the entire TikTok platform for 24 hours.

Hashtag Challenges

Considered one of the most popular TikTok features, it usually involves active users in challenges related to a specific hashtag. Increasing ad views is no longer the sole purpose here; brands want their target audience to join the fun and actively create user-generated content. Sometimes, they even team up with popular TikTok influencers to spread the word.

Branded Lenses

Think of them as special effects everyone can add to their videos (like Snapchat filters!). TikTok users can pick from hundreds of branded effects to make their videos more eye-grabbing. Since these lenses are displayed in TikTok’s trending section, they usually get tons of attention.

What Are The Pros and Cons Of TikTok Ads For Businesses?

The Pros

Easy Production

TikTok marketing has its fair share of ups and downs, but one major advantage is its investment in short yet entertaining videos. That’s why it’s a breeze for most marketers to share engaging content in minutes without overspending! The platform’s built-in effects and editing tools only smooth out the process further.

Example: A clothing store can showcase its latest collection with a fun, short clip in which models flaunt the outfits in various settings. Use TikTok’s editing features to add more visual flair.

Influencer Marketing Opportunities

Unlike traditional advertising, influencer marketing feels less sales-y since people are more willing to try out recommendations from people they follow. Thus, partnering with the right influencer allows you to leverage their established audience and credibility for a more organic reach!

Also, TikTok itself fosters a strong sense of community, so influencers often have a very engaged fanbase that actively interacts with all their advertising content. That translates to a receptive audience likely to be swayed by the influencer’s opinion, further boosting your brand’s online presence.

Virality Potential

We all know TikTok prioritizes organic content based on the average engagement rates. That means a truly great video always has the potential to be seen by millions, regardless of the creator’s popularity! Plus, since people spend most of their time on TikTok on the “For You” page (a curated feed showcasing trending videos), people can easily see your content without following your TikTok channel directly.

Needless to say, viral content sparks conversation and exposes your brand to a massive audience in an impressively short time. It not only saves you lots of money on marketing but also positions your brand as trendy and relevant. In fact, that’s how many successful enterprises boost their products’ credibility with potential customers.

The Cons

Unpredictability

Here’s some bad news: viral content is difficult to replicate. Your business might experience a lucky win with one video but struggle to make it happen again in the future.

Most of us find that lack of control over results very stressful and frustrating. And let’s face it: trends on TikTok move fast. What’s hot today might be forgotten tomorrow, making it all the more difficult to plan long-term marketing campaigns or ensure consistent outcomes.

Although levels of engagement (like video views and likes) are important, they don’t always translate to product sales or brand loyalty. In fact, unlike other similar platforms, directly attributing sales to TikTok marketing efforts is a real struggle for even some of the biggest brands. As a result, you can not always measure the return on investment (ROI) or campaign success accurately.

Skew In The Target Demographic

A large part of TikTok’s user base falls under Generation Z (born roughly between the mid-1990s and mid-2010s).

Sure, this can be a great fit for businesses targeting that demographic. However, if your audience skews older, TikTok might not be the most effective platform.

Extra Tips To Save The Cost Of Advertising And Optimize Your Ads

• Utilize TikTok’s lookalike audience feature to target users similar to your existing customers or high-performing audience segments. This helps your brand target the right people who are more likely to convert.
• Run A/B tests with different ad groups targeting slightly varied demographics or interests. Analyze the results to see which group performs better and optimize your targeting accordingly.
• While you don’t need Hollywood-level production, ensure your ad is visually appealing and uses good sound quality.
• Consider collaborating with smaller influencers or content creators (but with engaged audiences) to save costs during earlier campaign stages. Contests or giveaways can also be a cost-efficient way to generate buzz for your business!

Conclusion

Producing high-quality ads or teaming up with a famous TikTok Mega influencer can come with a hefty price tag.

But there are also many cheaper options available on the platform, and once your content really takes off, its reach easily surpasses that of most traditional advertising methods combined! So take a moment to consider the ups and downs, and don’t hesitate to contact us if you need help.