TikTok is the most popular channel for online businesses to promote and sell products. However, the cost of advertising on TikTok is also an issue that businesses and business units are concerned about when choosing this channel to promote their brands and products. How do you optimize TikTok Ads cost effectively? Please follow the article below to understand this issue better!
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Popular forms of advertising on Tiktok
Advertising on Tiktok today has many forms that meet different purposes:
Top View
Top View is a form of advertising that attracts viewers’ attention when they open the TikTok application. The advertising video will appear and after 3 seconds the user can select “Skip ad”.
This type of ad will be displayed 100% in a day, and bring millions of views to your business in 24 hours. Then your business will have more cooperation and high brand coverage known by many customers.
Brand Takeover
Ads appear as soon as the user starts the Tiktok application in 2 forms:
First-view Takeover: The ad will be displayed first right on Tiktok’s startup interface.
Regular Takeover: Displayed randomly at any time when the user uses the App.
In-feed Ads
A video ad that integrates video content into a TikTok user’s “For You” timeline or is placed at the end of a TikTok video. This form of advertising has better costs than Brand Takeover and is very suitable for small and medium brands. With 2 main formats including:
Direct Native Ad: The goal is to increase views and interactions with videos right on the platform
Direct Diversion Ad: The goal is to increase traffic to the homepage.
Branded Hashtag Challenge
TikTok advertising is done by creating a trend with a certain topic and attaching a hashtag #.
Branded Effects
Or advertise TikTok with creative brand effects. This is a format that exploits the creative potential of brands using custom-designed stickers, filters, and 2D, 3D, and AR effects. This type of advertising helps connect your business’s brand with memorable user moments.
This ad will appear in the “hot” or “trending” section during the first 5 days of launch and last up to 10 days. It includes interactive extras: calls to action and QR codes.
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Methods for determining advertising costs on Tiktok
Tiktok has many types of advertising and each format will have different advertising costs. TikTok advertising costs will be determined according to the following methods:
Bidding
This is a familiar way to determine costs for advertisers, especially those who have run Google and Facebook ads. Advertisers will compete with each other for the right to display ads on TikTok by bidding for advertising positions. Characteristics of this type of bidding advertising on Tiktok are:
- Create a campaign in Tiktok Ads Manager.
- Costs are flexible and no upfront payment is required.
- No need to buy advertising space.
- Focus on optimizing performance and conversion rates.
Pre-order advertising
Because the number of advertising positions displayed on Tiktok is limited, if advertisers want to apply this method of calculating Tiktok advertising costs, they need to book in advance to reserve a spot. Therefore, you cannot proactively run ads like the bidding method. Preset ad formats include TopView, Branded Effect, and Branded Hashtag Challenge.
You need to contact Tiktok partners to reserve advertising space. However, this type of advertising helps bring efficiency in increasing brand awareness and awareness. High costs, mandatory upfront payments, and lack of flexibility are only suitable for big brands.
Reach and frequency (R&F) advertising
This type of advertising allows advertisers to control the reach of the target audience and the frequency of ad display based on a fixed price. This costing method is often combined with other formats to optimize the number of target audiences reached. Thereby helping your business become “top-of-mind” in the minds of customers.
This type of advertising has two distribution forms: Standard and Top Feed. Top Feed is a setup that helps optimize the display position for advertising reach and frequency to help increase display volume and better brand recognition.
How much does Tiktok advertising cost?
The cost of advertising on Tiktok is the amount the advertiser must pay to Tiktok so that your ad is displayed to the correct target audience. Tiktok advertising fee is not a specific number and it depends on many factors: the form of advertising, campaign goals, customer target, advertising time and position, and competition in the industry, … This is an important factor that you need to keep in mind when implementing an advertising campaign on Tiktok.
When setting a budget for the entire campaign or daily budget, you need to determine the minimum Tiktok advertising cost to help ensure continuous ad delivery. The minimum cost of Tiktok advertising will be 10 USD per CPM and this can increase to 300,000 USD total budget for large campaigns. TikTok will require a minimum of 500 USD for advertising campaigns that match your business’s business goals.
The cost of running Tiktok ads is a minimum of 12.32 USD with 2 budget options: total budget and daily budget. If the minimum budget at the campaign level is 20.53 USD, then at the ad group it will be 17.24 USD. Besides, the cost of TikTok advertising will vary depending on the advertising format you choose, causing the budget for the advertising campaign to fluctuate accordingly.
TikTok bidding advertising costs
The price of bidding ads on Tiktok will be calculated according to the following methods:
- CPM: Cost per 1,000 impressions
- oCPM: Optimized cost per 1,000 impressions
- CPV: Cost per 1,000 views
- CPC: Cost per click
Each form of advertising has different characteristics and charging methods. In Ads Manager, the minimum daily In-Feed ad cost is $16.42 and the minimum total cost is $229.93.
The average advertising cost per 1000 impressions (CPM) on TikTok is 2 USD.
If you advertise on YouTube, you need to spend up to 10,000 – 30,000 USD to reach 100,000 viewers. On the TikTok platform, you can place ads that only cost per 1,000 video views (CPV) of 6 seconds or 2 seconds. You can choose how much you spend per view on TikTok.
The average cost per click on Tiktok (CPC) is about 0.21 USD.
oCPM (Optimized Cost per Mille) bid represents the price you are willing to pay to generate 1,000 impressions (similar to CPM). oCPM is now the default bidding method for the “Conversions” or “App installs” advertising objective.
TikTok booking advertising costs
For Top View video advertising, the basic cost per impression is 1.35 USD and the targeting cost per impression is 1.69 USD. The minimum 1-day budget for Top View advertising is 10,800 USD.
Branded Effect advertising cost in standard form (2D/2D pro effect) is 37,350 USD. With advanced advertising (3D/GBE effects), the cost is 67,350 USD.
Regarding advertising costs for the Branded Hashtag Challenge, the first 3 days will be 11,100 USD. The minimum cost for a minimum campaign is 29,500 USD. The maximum total cost for a Branded Hashtag Challenge advertising campaign is 40,600 USD/70 days.
R&F TikTok advertising costs
The minimum budget for a 1-week R&F campaign is approximately 53.69 USD and to achieve the following results of a reach of 100,000 and a frequency of 1.28, that is, for every 128 people reached, 28 people will be reached saw the ad at least twice.
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How to effectively optimize the cost of running Tiktok ads
Once you know how much Tiktok advertising costs, you need to know how to optimize the cost of running ads on Tiktok. Please save the following tips to avoid wasting your Tiktok advertising budget:
Ensure compliance with TikTok’s advertising policies
Similar to other advertising platforms such as Facebook and Google, TikTok also has separate policies for each advertising category. Advertisers need to follow these principles to avoid wasting budget running Tiktok Ads.
Create attractive advertising content
TikTok highly values originality, uniqueness, and interactivity in content. Therefore, videos that are not creative and do not attract attention, even if they run ads on TikTok, will not attract viewers. To avoid wasting the advertising budget, you need to give clear direction for creative content on the TikTok channel. You can refer to some hot topics: entertainment, humor, trends, discovering and bringing new experiences,…
Diversify communication activities on Tiktok
This is one of the ways to optimize TikTok advertising costs. To deploy successful Tiktok Ads campaigns, businesses need to combine advertising with the following activities:
- Cooperate with celebrities (KOC, KOL, Influencers) who are influential to the target public. This will help your video spread quickly on TikTok and convince customers to buy more easily.
- Sharing TikTok promotional videos on multiple platforms: Is one of the methods to help your promotional videos reach a wide target audience. Therefore, please share your advertising campaign on platforms: Facebook, and Instagram,…
- Actively creating hot trends on TikTok will greatly support running ads to attract more viewers to your channel.
Use a TikTok Agency account
This is an account type for professional advertising agencies that allows them to manage many different advertising accounts and receive many incentives from TikTok. If you want to have a quality TikTok Agency account to deploy effective advertising campaigns. Please rent a TikTok advertising account from Optimal Agency.
As a senior partner of Tiktok, he owns a huge account warehouse to meet all customer needs. When you choose to cooperate with us, you will be granted a quality Tiktok Ads Agency account with the best fee on the market. Our Agency account has high trust and stability: always has green camps and strong payouts, ads are approved quickly and bids are optimal, rarely locked,…
Using Optimal’s Agency account, you don’t need to worry about spending limits or the number of advertising campaigns. Optimal’s Tiktok Ads experts accompany and support you 24/7. Our team of experts will free account setup and 10 days of support for running advertising campaigns and sending daily reports. You also receive many attractive promotional vouchers, wrapping VPCS links with a safe and effective internal wrapping system, content consulting, advertising optimization, etc. If you want to know more detailed information about the service you receive together For the best quote, contact the hotline: +84819004282
Optimize the budget in the early stages of advertising installation
The effective way to optimize Tiktok advertising costs is to optimize your budget in the early stages. Start with a small budget, then test different ad campaigns and track the results. You can increase the budget for your most effective ad campaigns and stop or adjust ineffective ad campaigns. This will help you avoid wasting your budget and focus on highly effective ads.
At the ad group level, if you run conversion ads, set Least Cost as your Bid Strategy and Conversions as your Optimization Target. Set your initial budget at least > 20 times your cost to acquire an action (CPA) and greater than or equal to 100 USD. If you want to determine how much budget you should set, refer to the average daily ad spend in previous ad groups in the same account.
With the content shared above, you can better understand TikTok advertising costs and know how to effectively optimize costs. Hopefully, this useful information will help you in implementing successful Tiktok Ads campaigns!
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Frequently asked questions
The answer is no. TikTok is a new social networking platform and the number of users compared to Facebook is not much, most of them are young people. During this period, TikTok ads will be similar to Facebook ads in 2015 – 2016. The cost per CPM (1000 impressions) of Tiktok ads is about 10 USD but with Facebook, it can be 5 – 10 times higher. Because the competition between sellers on TikTok is much lower than on Facebook, the cost of advertising on TikTok will be cheaper.
TikTok is a new social networking platform with a large number of users, mainly young people, who love it and are very suitable to start running ads. According to Q&Me’s report in early 2022, TikTok is the application with the best growth when the proportion of active users increased from 49% to 62%, and the number of daily users of this application is 74%.
With many forms of advertising in the form of short videos that are intuitive, vivid, attractive, and easy to create different trends compared to Facebook and Instagram. Advertising costs on TikTok are not high, and advertising budgets are flexible according to goals. You can easily cooperate with the KOLs/Influencers community to increase advertising campaign effectiveness.