TikTok Advertising Cost

TikTok For Business is an all-in-one tool for marketers to advertise on TikTok. Instead of devising their own strategy, the platform helps marketers through the entire process of creating advertisements, setting budgets, reaching target audiences, and analyzing campaign data. When it comes to budgeting for TikTok advertising, here's the breakdown.

You can select a daily or lifetime budget, which can be changed at any point during your campaign. At the campaign level, you must have a minimum daily and total budget of $50 USD. For an ad group level, your budget must exceed $20 USD daily. As for the advertising cost, TikTok hasn't released its pricing policy. However, there is some information out there.

In 2020, Digiday reported that TikTok had a cost-per-mille (CPM) as low as $1. After running their own experiment, JungleTopp reported that the cost-per-click was $0.19 – much lower than Facebook and Instagram. With this platform, you can choose between several bidding strategies, each optimized for specific goals. That being said, some of TikTok’s most well-known companies, like Nike and Disney, have substantial advertising budgets. Unless there is a significant difference, they are quite unlikely to argue over price. However, compared to the more well-known Facebook and Instagram advertising, it can appear to be more expensive.

TikTok ads are a recent addition. Because they are confident that their advertisers won’t switch to TikTok’s rivals to compete for valuable Facebook/Instagram advertising space, TikTok can afford to charge a premium price for them. In the real world, costs for TikTok ads can be anywhere from $1 to $10 per CPM. Additionally, you must invest at least $500 in a campaign. So, for a low-cost, fun viral marketing campaign, you won’t be using official TikTok advertising.

Should you leverage TikTok in your marketing strategy?

Since peaking in 2020, TikTok has become a go-to advertising platform for many brands. As the number of users increased, the number of ads they saw also followed from 19% in 2020 to 37% in 2021. A 2021 report ranked the short-form video platform in the number one spot for ad equity, surpassing Amazon, Instagram, Google, and Twitter. This isn't the first time either – they also held that spot the year prior.

Should you choose to incorporate TikTok into your advertising strategy, it can be a valuable tool for growth. While the app does call for niche types of content, brands and businesses can diversify their strategy and advertise to a new audience. Whatever your final decision is, TikTok For Business is available to those who want to harness the app's advertising potential, and for some, it definitely has plenty of potential.