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It's official: TikTok is one of the fastest-growing social channels in the game. And in case you missed the memo, TikTok hit a major milestone in October of 2021 and has reported that it now has 1 billion active users on the app—a 45% increase since July 2020. As of 2022, TikTok is the 6th most used social media platform.
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In this article, we will cover how TikTok Advertising work, which niches do well with TikTok ads, TikTok Advertising formats (and when to use each), and lastly, how much it cost in 2023.
Everything You Need To Know About Tiktok Ads
Despite what you might think, TikTok is not mainly catered to Gen-Zs. One of the strongest growing demographic on TikTok is actually 30-39 year old females, whom have solid acquisition power.
This underrated advertising platform is still a blue ocean opportunity for advertisers. We are seeing some of the cheapest cost per clicks across multiple niches (compared to other ad platforms like Facebook and YouTube), as the competition is currently as low as it can get.
According to Statista: as of April 2022, 24% percent that made up TikTok's global audience were women between the ages of 18 and 24 years, followed by users aged between 25 and 34 years old.
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Evidently, the majority of TikTok’s demographic fall within the young-adult spectrum. This brings us to a very important question to ask yourself: does your target audience belong to this age group?
We all wish there is a one-size-fits-all marketing strategy—heck, that would be every marketer’s dream! But that, my friend, does not exist.
Based on tests we have conducted with our clients, brands that are in the info-product (for example, online mentorship, coaching, courses) and ecommerce space tend to perform really well when it comes to TikTok advertising.
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If you are wondering whether or not TikTok advertising can work for your business, we highly recommend doing some competitor research. Find out whether or not your competitors are running TikTok Advertising, and perform an analysis on how effective these TikTok advertising campaigns are.
: This completely free ad spy tool from TikTok itself is essentially a TikTok ads library where you can see the top ads on Tiktok, with filter options by campaign objective, industry, and date.
When you choose to advertise on TikTok, you can choose where end-users can view your ad(s) which—of course, has an impact on your ad cost. Depending on what you choose, your self-serve newsfeed may come in any of the following ad types:
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This is where it gets super fun. As you can see on the sample images above, you can be as creative with In-feed Ads as you’d like, include multiple call-to-actions, and have it run anywhere between 9 to 15 seconds!
Pretty sweet, eh? But just like any other ads out there (well—at least, for now), In-feed Ads are skippable and can be scrolled-past. This leaves you a good 2-3 seconds to really grasp your audience’s attention so make sure your ad(s) are top-notch!
Example of a TikTok Spark Ad shown on the right side. Compared to organic TikTok videos, Spark Ads have a call-to-action button.
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Compared to In-Feed Ads, Spark Ads tends to convert a lot better. This is because Spark Ads leverages the power of social proof in the form of organic likes, reactions, and comments.
Step 4: Turn your best-performing organic TikTok videos into Sparks Ads. One major benefit of spark ads is the ability to test your creatives (organic TikTok content) for free before running them as an ad.
Brand Takeover ads are the kind you see upon opening the app that typically run for three to five seconds. These also appear on the
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On full-screen which may be as a still image, GIFs or videos which may include a clickable link to drive users to a landing page or a hashtag challenge within TikTok.
This type of ad is (kinda) exclusive to their category since TikTok only allows a brand to take over a category once per day—meaning, users can only see one brand takeover ad per day. That’s plenty of airtime with little competition!
While this type is super effective, it also comes at a hefty price tag. That said, you may want to leave this for later especially if you are just starting out with TikTok ads.
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Unlike Brand Takeovers which appear upon launching the app, TopView ads are the first in-feed post you see after 3 seconds. This is also considered to be the most ‘traditional’ of TikTok’s video ads because they feel like commercials.
What’s great about these is that these ads are played full-screen and auto-plays with sound. It also allows advertisers to include a call-to-action button within the ad.
And while these bad boys feel less ‘organic’ and may interrupt user experience, 71% of TikTokers say TopView ads grab their attention.
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In addition, Branded Hashtags Challenges offer both organic and sponsored opportunities for brands, similar to regular hashtag trends and challenges on TikTok.
Here’s the thing though: while using Branded Hashtag Challenges ads may give you maximum exposure, it may still cause a dent on your bank account. We read that it may cost up to $150, 000 per day to be featured on TikTok’s Discover banner. That being said, partnering with popular TikTokers may be a great alternative to help you achieve the same results at a fraction of the price.
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This ad type offers branded AR filters, shareable stickers, and lenses to allow you to design an ad that is custom-made by you.
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Think Snapchat and Instagram! Similarly, Branded Effects allow brands to create sharable stickers, filters and special effects on TikTok for self-promotion, and often combine it with other TikTok ads.
You can start by setting up a free TikTok Ads account. As other types may be on the pricier side, begin with In-Feed ads and set a budget and schedule that works for you.
At present, TikTok’s minimum campaign budget is $500 and the minimum ad group budget is $20 (this means that you must set your minimum daily budget to at least $20 USD).
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If you are (however) a more established brand and are looking to dabble on TikTok ads to see what returns it can bring you, you have the advantage of choosing whichever ad type because advertising on this platform has been reported to cost anywhere between $50, 000 to $120, 000, depending on the type and duration.
TikTok Advertising is a massive blue ocean opportunity for advertisers right now. We are noticing some of the lowest ad costs so far (compared to other paid platforms such as Facebook and YouTube).
By the way, we published a TikTok ads case study on our client in the Make-Money-Online niche. Find out how much did TikTok ads cost for our client in 2022 (cost-per-click, CPA).
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If you curious about TIkTok ad costs for the information product niche, check out our case study here. (For context, this case study is conducted in June of 2022 for our client in the Online Education space)
Understanding the average spend or ROI can be a bit of a challenge since TikTok Ads are relatively new. That being said, you may assume that businesses are very well still in the experimentation stage — and while that may be the case, do not let it shoo you away from giving it a go!
If you want to find out more about what TikTok Ads could do for your business, jump on a free strategy call with us so we can advise how we can help you grow your company!
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Want to learn how to achieve great results with TikTok Ads yourself? Enroll in our TikTok Ads Masterclass where we show you our exact methodology for success with TikTok Advertising.
If you want to stay up to date with the latest news on the world of YouTube advertising and online marketing, then it's in your best interest to sign up to our weekly newsletter where we give you a quick heads up on the latest whereabouts in the space.The platform for short videos is becoming increasingly lucrative, but competition is fierce. In this case study, you will find out which elements attract and engage the audience.
It is no news for marketers that TikTok is on the rise and has become one of the main content creation and advertising platforms. The app was the most downloaded in the world in the first quarter of 2022, surpassing big established apps with more than 3.5 billion all-time downloads and being the first app outside of the Meta conglomerate to achieve this landmark.
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And if you think that TikTok is only relevant if your audience is part of generation Z, think twice. The app might have started with dancing routines, memes, and lip-syncing, but now has different generations watching content about science, education, parenting, cooking, and so much more. Food, by the way, is a big part of the platform, which has more than 25.2 billion views on the hashtag #TikTokFood and big names like Emily Mariko and Ahmad Alzahabi accumulating millions of
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