How Much Do TikTok Ads Cost in 2024?

How Much Do TikTok Ads Cost in 2024?

TikTok has evolved beyond entertainment videos. With over 1.6 billion monthly active users, it’s become a valuable advertising platform for promoting businesses. Here comes the question, “How much do TikTok Ads cost?”. Whether you are already running campaigns and wondering about the changes in TikTok costs or just looking for a comparison with other advertising platforms to start running digital ads, it’s crucial to understand the costs and learn how to optimize them without breaking your budget. In this article, we will guide you through TikTok advertising costs, CPM and CPC changes over time and provide tips on reducing TikTok advertising expenses. But first, let’s explore the pros of using the TikTok ads.

Table of Contents:

  1. Benefits of using TikTok Ads
  2. 5 Factors Affecting TikTok Advertising Cost
  3. How Much Do TikTok Ads Cost?
  4. Types of TikTok Ads And Their Costs
  5. Minimum Budget Requirements For TikTok Ads
  6. The Average TikTok Ads CPM in 2024
  7. The Average TikTok Ads CPC in 2024
  8. TikTok Influencers Ad Rates
  9. TikTok Ads Cost vs Other Social Media Marketing Platforms
  10. 4 Tips to Reduce TikTok Advertising Costs
  11. Choose VIDEN to Enhance Your TikTok Ads Campaigns

Benefits of Using TikTok ads

Despite TikTok’s huge popularity, many businesses are still skeptical about advertising on this platform. Let’s dispel all your doubts by leveraging the advantages of TikTok ads. 

You can reach a diverse audience (not only Gen Z) 

It’s a myth that TikTok is only for Gen Z users. According to statistics, 59% of the platform comprises users from the Millenial, Gen X, and Baby Boomer generations. According to GlobalWebIndex, 18% of global internet users aged 16 to 64 prefer TikTok. Statista shows that in 2022, 56% of US users were between 20 and 29 years old, 45% between 30 and 39, and 38% were between 40 and 49. 

TikTok statistics in the U.S.

You can reach a fast-growing base of TikTok users 

Launched in 2016, TikTok’s audience is instantly growing. As the graph below shows, by the end of 2023, TikTok had more than 1.6 billion users, a 9% increase compared with Q4 2022.  

Based on Rival IQ research, TikTok brands are growing followers by at least 2% monthly across all account sizes. Smaller accounts with fewer than 50K followers average more than 3% monthly growth. 

TikTok user statistics over 5 years

You can explore the high TikTok engagement rate

Many businesses consider TikTok advertising worth it because of the most vibrant and engaged audiences and the high levels of engagement. TikTok users demonstrate a notoriously high level of engagement, ranging from 3% to 9%, and various ad formats can trigger different levels of engagement. 

According to the Rival IQ study, the average brand earns an engagement rate by view of 3.4%, and businesses earn an average engagement rate per follower of 2.6% (four times higher than Instagram and way higher than Facebook and Twitter). About 20% of brands earn an engagement rate by follower of 8% or more.

TikTok engagement statistics

You can leverage influencer marketing

Partnering with influencers handling TikTok content creation and production is a great way for businesses to get into TikTok advertising. According to the Drum research, adding an influencer to your campaign can drive a 93% higher engagement rate. Micro-influencers on TikTok boast an engagement rate of 18%, significantly higher than the 3.86% engagement rate seen with micro-influencers on Instagram.

As we discovered, the TikTok ads platform is a great way to reach your audience, but to do so effectively, you should probably understand the factors that influence the final price. Let’s examine the key factors you, as a business, should keep in mind.  

5 Factors Affecting TikTok Advertising Cost

Many factors can influence your final ad spend, so you should consider them while planning your budget. Below, we listed the key ones: 

1. Target audience demographics 

The age, gender, interests, and even behaviors of your target audience can impact ad costs. To reach a highly competitive target audience, be prepared to pay more for your ad campaign. Find the right balance between reach and relevance, aligning closely with your marketing objectives. 

2. Targeting geography

It’s all about location. If you decide to target areas with higher TikTok usage, it will increase costs. Align your geographic targeting with your TikTok ads campaign goals and budget. 

3. Ads types & it’s options

Remember that your TikTok ads’ format and creativity will also influence costs. Innovative, engaging ads tailored to the TikTok platform often see better performance but may require a higher investment in creativity and budget.

4. Competition 

The level of competition within your niche on TikTok can impact the cost of ads. When businesses compete for the same target audience, the demand for ad placements increases, potentially driving up the cost. Monitoring the competition and adjusting your ad strategy accordingly can help you achieve an optimized cost for your advertising campaign.

5. TikTok ads campaign duration

TikTok provides different options for running campaigns for specific periods: days, weeks, or months. Longer campaigns may come with discounted rates, while shorter campaigns may be more expensive per day. You can manage your advertising strategy to achieve significant results at a minimum cost.

Now that we understand the factors that influence pricing let’s explore the cost of TikTok ads in 2024 and how it has changed.

How Much Do TikTok Ads Cost?

First of all, the cost can vary from the TikTok ad type you have chosen. TikTok ads platform supports a number of ad formats. To help you make an informed decision, let’s examine each type of TikTok ad and pricing in more detail.

Types of TikTok Ads and Their Costs

Let’s explore ad types available to businesses and their expected prices. 

Branded Hashtag Challenge. A three-to-six-day TikTok ad campaign format where user-generated content appears on the hashtag challenge page. With HTC, your brand can spark trends and cultural movements by issuing participatory challenges to the TikTok Community. The cost is about $150,000 for six days.

To help you create a Branded Hashtag Challenge, TikTok launched a series of tips covering the following topics: 

  • Tips to launch a successful Hashtag Challenge
  • Tips on how to find the right creators
  • Tips on how to partner with creators
  • Tips on how to develop a sound for a Hashtag Challenge
  • Tips on how to amplify Hashtag Challenge performance

TopView ads. A full-screen video takeovers appear for 5 to 60 seconds when users open the TikTok app. This ad format begins with a 3-second video takeover, then transitions into the native in-feed video experience with icons and interactive elements. After the initial 3-second takeover, Top View ads engage audiences via various interactions and destinations, including likes, comments, shares, visits to the brand’s homepage, and music page visits. You can expect to pay around $65,000 for 7.4 million impressions, although the final cost will depend on the specifics of your ad campaign.

Branded effects. This ad format helps businesses create shareable filters, stickers, and special effects for self-promotion. The cost for this 30-day campaign is approximately $45,000.

Brand takeover. These full-screen ads appear first when a user opens the TikTok app. With this format businesses can get a high reach with a great performance due to the clickable screen. It’s a 3-second image or a 3-5-second video that allows brands to direct traffic to an external and internal landing page. The price starts from around $50,000 per day.

In-feed ads. You can create a video ad that auto-plays within a user’s For You feed using this ad format. In-feed video ads can be up to 60 seconds long and blend seamlessly with native content due to their similar interface to organic posts. They include a clickable CTA button to drive traffic to app downloads, external landing pages, or your brand’s TikTok Business Account. Typically, in-feed ads start at $10 per 1,000 impressions, although various ad settings can affect the cost per view.

Follow the link to find out how to set up a TikTok ad campaign.   

Minimum Budget Requirements For TikTok Ads

Whether a small business or a big enterprise, TikTok requires you to set up a minimum budget. You’ll need at least $500 for an entire campaign, a daily minimum budget of $50 at the campaign level, and $20 at the ad group level.

Need help configuring your TikTok Ads campaigns?

The Average TikTok Ads CPM in 2024

According to the platform rules, the average pricing of CPM starts at $10. For various industries, you can find the costs below:  

  • Automotive Advertising CPMs on TikTok: Avg. $7.50 CPM
  • Health & Fitness CPMs on TikTok: Avg. $6.50 CPM
  • Pet Care CPMs on TikTok: Avg. $8.50 CPM
  • Non-Profit CPMs on TikTok: Avg. $7.50 CPM
  • Education CPMs on TikTok: Avg. $10.50 CPM
  • Franchise CPM’s on TIkTok: Avg. $7.00 CPM

TikTok CPM Changes  

You probably marked some cost changes if you are running TikTok ad campaigns. In the final month of 2023, the median TikTok advertiser experienced a 14% decline in CPM. However, this trend reversed with a 9% increase in January, culminating in a 17% rise by March. The 15% CPM growth observed in Q1 2024 was the largest since Q1 2023 when CPM soared by 44% year-over-year.

Below, you can discover how TikTok’s average CPM changed from month to month in 2024-2023 based on the “True Cost of Social Media Advertising” report:

CPM data in TikTok

The Average TikTok Ads CPC in 2024

According to multiple sources, the average CPC (Cost Per Click) for TikTok Ads is around $1,00. 

  • Automotive Advertising CPC on TikTok: $2 avg. CPC
  • Health & Fitness CPC on TikTok: $2.25 avg. CPC
  • Pet Care CPC on TikTok: $1.75 avg. CPC
  • Non-Profit CPC on TikTok: $1.25 avg. CPC
  • Education CPC on TikTok: $2.25 avg. CPC
  • Franchise CPC on TIkTok: $2.50 avg. CPC

TikTok Influencers Ad Rates

In addition to TikTok’s native advertising tools, you can promote your business by partnering with TikTok influencers, often open to paid collaborations with businesses. Here is an overview of potential price ranges. 

Influencer advertising costs in TikTok

The cost of these partnerships varies based on the influencers’ TikTok followers count, their niche, and the specific objectives of your campaign. On average, TikTok influencers charge around $465 for a sponsored post. 

TikTok Ads Cost vs Other Social Media Marketing Platforms

Here’s a general overview of TikTok’s ad costs compared to other major social media platforms:

Cost of advertising in TikTok vs other platforms

Remember, costs depend on several factors, such as campaign goals, targeting, competition, and bidding strategy.

4 Tips to Reduce TikTok Advertising Expenses

1. Use detailed targeting options

TikTok enables precise audience targeting by considering interests, behaviors, and demographics. By defining your target audience, you can ensure that your ads reach users most likely to interact with your content. 

2. Remember, ad creative and engaging content is king 

It’s not a secret that the effectiveness of your TikTok ads depends on creativity and engagement. Craft content that aligns with TikTok users’ preferences using authentic and entertaining videos. Incorporate trending sounds, captivating hooks, and clear calls-to-action to boost your ad’s performance without raising costs.

3. Don’t forget about TikTok’s ad optimization tools

TikTok, as a platform itself, provides ad optimization tools that automatically fine-tune your ad placements and bidding to maximize results within your budget. With this approach, you can ensure to avoid overspending on underperforming ads.

4. It’s all about regularly monitoring and adjusting bids

TikTok’s advertising platform uses a bidding system where costs vary with competition and demand. If some ads perform well with a lower bid, consider lowering the bids on those underperforming. Additionally, you can set bid caps to manage costs effectively, ensuring your campaigns stay within budget.

We can highlight four key TikTok ads bidding methods you should pay attention to: 

  • CPM (Cost per 1000 impressions): You pay each time your ad is displayed 1,000 times.
  • CPC (Cost per click): You are charged whenever a TikTok user clicks on your advertisement.
  • CPV (Cost per 1000 views): You incur a cost each time a user completes a designated portion of your video, such as 25% or 100%.

When selecting a bidding strategy, pay attention to your main campaign objective. 

  • If you aim to maximize clicks or conversions, go with CPC. 
  • If increasing brand awareness is your priority, opt for CPM.
  • CPV could be the best choice for engaging with video content. 

Choose VIDEN to Enhance Your TikTok Ads Campaigns

Contact us to discuss your TikTok advertising strategy today! 

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