The TikTok application represents a treasure trove for advertisers targeting a younger youth audience. If you are going to start using this platform, read this article to learn everything about TikTok ad prices.

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Not only has TikTok surpassed other platforms in popularity, but the app has also become less saturated with ads than its predecessors. Since the platform launched a beta version of its advertising offerings in 2019, major brands such as Nike, Fenty Beauty, and Apple Music have flocked to use ads on TikTok to promote their products in unique and visually engaging campaigns.

With advanced targeting and unique ad creation features, the TikTok advertising platform is unlike many of its predecessors. When targeting is used effectively, it can help you tap into one of the most lucrative user bases.

Before investing your time, effort, and budget into TikTok ads, we review in this article the most important things you need to know about TikTok ad prices.

Is advertising on TikTok suitable for your online store?

While major companies like Nike, Disney, and Grubhub have quickly started advertising on TikTok ads to make a good impression, some small companies may be lagging behind. Before looking for TikTok ad prices, it is important to make sure that investing in TikTok ads is beneficial for your business.

Many statistics show that advertising on the TikTok platform adds value to brands that have added TikTok to their marketing strategies. But, will it also add value to your store?

Nearly 50% of the global TikTok audience is under the age of 34, with 32.5% aged between 10 and 19 years. Additionally, 90% of these TikTok users visit the app more than once a day. Therefore, if your online store offers products tailored specifically for a younger youth audience, such as Millennials and Gen Z, you are in the right place. However, if your store offers products for older individuals (over 50 years old), it is an unsuitable platform for your business.

If your product is geared towards both genders, you are also on the right platform, as the number of males using the TikTok platform is estimated at 56%, compared to 44% of females.

Why is it important to advertise on TikTok?

These statistics show how important it is to integrate the TikTok platform into your advertising strategies on social media networks:

• 61% of TikTok users feel that ads on TikTok are unique compared to other platforms.

• 43% of TikTok users feel that advertising on the platform blends in with local content.

• 52% of users say they discovered new products on TikTok.

• 14% of marketers planned to increase their spend on TikTok more than in 2021.

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What are TikTok ad prices?

Getting started with TikTok ads is a bit expensive, as it is well known that the cost of advertising on TikTok is higher than most social media platforms. While you can create In-Feed ads with your own budget and schedule, you will need a minimum campaign budget of $500 to get started. The minimum ad group budget is $50, unlike Facebook where you can start a campaign for less.

TikTok ads start at $10 per CPM (cost per thousand impressions). Reports show that the cost of TikTok ads can range from $50,000 to $120,000 depending on the ad format and duration. For small businesses or solopreneurs, these TikTok ad prices might be too high, but the return on investment is rewarding. Other free marketing strategies can also be used on this platform.

Choosing TikTok ad bidding strategies

The TikTok platform allows you to choose a bidding strategy that fits your plan. For TikTok ads, you can choose between: standard bidding and maximizing conversions.

Standard bidding: This strategy is ideal for controlling the cost spent while fully spending your budget and getting as many results as possible. This is because TikTok will seek to keep the cost spent from exceeding your bid.

Maximize conversions: Conversely, by choosing "maximize conversions", TikTok will use the entire budget but will also adjust the amount of each bid. This is the strategy to choose if you want to maintain some stability in your daily spend. This strategy achieves better results but at varying costs.

Another advantage of advertising on TikTok is the ability to optimize your ads by setting the frequency capping. For example, you can limit the delivery of your campaign group to 3 times a day per user.

How do you set up a TikTok ad campaign?

Now that you have reviewed TikTok ad prices and decided to choose the right bid for you, let's learn how you can launch an advertising campaign on TikTok.

Here are the steps you will follow when setting up a campaign on TikTok:

Create a TikTok Ads account now

Go to the TikTok Ads main page as a first step, and click on the "Create an Ad" option.

You will need to go through a TikTok ad representative before you can open an ad account; you will need to fill out a form where you enter your business details.

After you fill out the form, a TikTok ads representative will contact you.

Create your ad campaign

 When you open the TikTok Ads dashboard, you will see four tabs - Campaign, Library, Reporting, and Insights. Click on the "Campaign" tab and click the "Create" button to start.

Now choose your advertising objective. The advertising objective will be the foundation upon which your campaign is built. The options available for you to choose from on TikTok are:

• Traffic

• Conversions

• App Installs

The next step is to determine your budget for TikTok ad prices. Under the "Settings" tab, you can choose either a daily budget or lifetime budget. As mentioned above, your daily budget or lifetime budget cannot be less than $50.

Create a TikTok Ad Group

After setting up your advertising objective and budget, you will need to create an ad group. This is the section where you set up your ad placement, details, targeting, schedule, pricing method, and bid type.

Set up your ad placements: This is the point where you choose where your ads will appear. You can either choose automatic placements or set them up manually.

Set up ad details

Next, you will fill in the ad details section. You will need to provide a complete description of your ad subject.

Ad details include:

• Promotion Type: Here you choose the advertising objective of the ad; you can choose either app install or online store.

• Display Name: Add a new product name for your brand.

• Profile Image: This is the image your audience will see in the ad. The aspect ratio should be 1:1 and no larger than 50 KB.

• Category: Select the appropriate category that describes your promotion.

• Ad Tags: TikTok algorithms will use the tags (keywords) you choose to match your ad with the right audience. You can add up to 20 tags per ad.

• User Comment: You can enable this feature if you want users to be able to comment on your ad.

• Targeting Setup: This section allows you to define who sees your ads. The parameters you define include audience, gender, location, age, languages, interest category, connection type, and OS versions.

If you have a custom audience you want to show ads to, TikTok offers the option to upload a custom list either as a CSV, TXT, or Zip file.

Set up the budget for TikTok ad prices and the schedule: Next, you can set the campaign budget and schedule to determine your content strategy. You can choose either a daily budget or a lifetime budget.

After that, you can schedule how long you want the ad to run. After selecting the dates you want the ad to end, you can take it a step further by specifying the times of the day the ad will be displayed and knowing the TikTok ad prices.

Choose pacing options

At this point, you choose how fast your ad is delivered. There are two options you can choose from - Standard and Accelerate delivery method.

• The standard delivery method will pace your ad evenly throughout the duration of the campaign.

• The accelerated delivery method will spend your ad budget as quickly as possible.

Define the optimization goal

The optimization goal should generally reflect the purpose of your campaign. You can choose conversions, clicks, or impressions as your ad goal. Your bid will also depend on the optimization goal you choose.

How does TikTok rank ads?

The key factors TikTok uses to rank ads are relevance, ad quality, and TikTok ad bidding. Even though TikTok ad prices are important, high-quality, relevant ads are prioritized because they get more engagement and make the platform more money. Ad buyers say that TikTok also takes into account interaction factors such as shares, comments, and likes.

TikTok likely uses watch time and watch loops (the number of times a user watches an ad) to determine its relevance, so to increase watch time, you need to consistently create high-quality videos for your ads and know TikTok ad prices.

Finally..

The TikTok platform has enjoyed massive and rapid growth compared to other networks, and its progress seems continuous. Regardless of TikTok ad prices, the return on investment achieved by this platform is worth everything you spend on it. At Salla, we help store owners advertise on this platform through the easy integration between Salla and TikTok Pixel. Your guide to designing images and videos that attract the attention of your target audience on Instagram