How does TikTok advertising work? (2024)

How does TikTok advertising work? (1)Shannon Correia How does TikTok advertising work? (2)July 25, 2020

TikTok is the most recent social media platform to experience exponential growth and as with all other social media platforms, offering advertising solutions to brands will be their main source of revenue. The advertising potential is growing quickly with the recent introduction of TikTok for Business to streamline the process. Here’s all you need to know about how your business can get started…

How does TikTok advertising work? (3)

TikTok for Business

This is a newly launched venture for TikTok, who is growing its advertising potential. Unlike other social media platforms, the idea is not to make ads, but TikTok’s. This philosophy is one that is in line with the expectation of Gen Z’s who want to see content that has an authentic feel and matches the platform's lightheartedness.

Under the label TikTok For Business, brands will be encouraged to join the platform and make use of one of their 4 types of ads. With this comes the opportunity for discovery and connection with newer audiences. The app is formalising its advertising with brands so that the process is straightforward for marketers to follow. With these changes, the app is still heavily centred on the user experience, which is important for brands to keep in mind - creativity is required for your campaigns.

With these advertising opportunities, businesses can become part of pop culture and advertise through storytelling as a means of reaching the youth and growing their digital marketing on the growing digital platform. During its rise, advertising has been limited on the platform, but that is now changing.

Content on TikTok can be created with mini stories and share tidbits of relevant content with your audience. An example of this would be Seventeen magazine. They have garnered a large following and share sneak peaks of the magazine, tutorials and reposts of some of their favourite clips from their followers.

How does TikTok advertising work? (4)

TikTok Advertising

The TikTok platform is used mainly by younger audiences (between sixteen and twenty four year olds), though it is also rising in popularity with other generations who are exploring the app and finding entertaining content. It is available in over one hundred and fifty markets, in more than seventy languages.

There are options available to marketers, from hashtag challenges to working with influencers. The content heavily circulated on the platform includes quick and easy to make video clips with low production costs, offering a more ‘real’ perspective when compared to other more visually refined platforms.

Even if your brand seems a little off centre when considering the above, it is noteworthy to mention that several well known brands have found success when experimenting with TikTok content. The Washington Post, for example, have shown newsroom footage as a means to find their digital footing, while the NBA have shared funny and inspirational messages via the platform.

Ready to create an ad? How to get started with TikTok campaigns

  • Create a TikTok account: After agreeing to the terms of use and verifying your account, you can add in your business information.
  • Sign up: Sign up for TikTok advertising and create an ad campaign. You’ll first need to enter your country information, as it is only available in certain regions at the moment. If it is available, you’ll either be approved through the ads self-serve platform and if it isn’t, you can "Make a Reservation” or opt to be informed of future updates.
  • Selections: At this point, select one of 3 objectives, namely: Awareness, consideration, or conversion. The target audience will also be determined.
  • Budget: There are daily and lifetime budgets, both of which have a minimum spend and can be adjusted at any time.
  • Ad specifics: TikTok can select the ad placement for you, otherwise this can be manually selected and you can also add in visibility on affiliate platforms.

When it comes to budget, the platform caters to both big and small businesses. TikTok advertising for day-to-day business is cost effective in terms of the in-stream videos with a cost-per-click model. The other ad types, like branded takeovers and paid hashtag challenges are where significant budget is required, hence its appeal and high returns to companies like Nike.

How does TikTok advertising work? (5)


In summary

If you’re looking for the best ways to reach youthful audiences and make your mark in pop culture, your brand needs to consider advertising on TikTok, the app which continues to dominate and grow across the world.

We at Nexa are ready to help get you started with campaigns using TikTok!

How does TikTok advertising work? (2024)

FAQs

How does TikTok advertising work? ›

Short answer: TikTok Ads cost as much as you want them to. The platform uses an auction and bidding model, meaning you decide how much you pay per view, click, or impression. However, there is a minimum spend — $50 USD/day per ad campaign and $20 USD/day per ad group.

How effective are TikTok ads? ›

Specifically, for TikTok, research conducted by its Marketing Science unit suggests 50% of the impact from a TikTok ad is realized in the first 2 seconds, and the first 6 seconds capture 90% cumulative impact on Ad Recall and around 80% for Awareness.

How much does it cost to advertise on TikTok? ›

TikTok uses a cost per mile (CPM) metric to charge for ads. This roughly translates into the advertiser paying 10 dollars or 9 pounds for every 1,000 views. If you want to start an advertising campaign, that will cost a minimum budget of 500 dollars or 410 pounds.

How much do you get paid for an ad on TikTok? ›

TikTok Influencers pricing per post ($)
TierNumber of FollowersPrice per Post
Micro-influencer10k - 50k$25-$200
Mid-tier influencer50k - 500k$100-$1,000
Macro-influencer500k - 1,000k$1,000-$2,000
Mega-influencerOver 1000k followers$2,000
1 more row
Feb 1, 2024

How does TikTok ads payment work? ›

When you create your TikTok Ads Manager account, you must select a billing option. Your account's billing option will determine how and when your account is charged. Note: After you have set your billing option to Automatic Payment, you will be unable to change it back to Manual Payment.

What are the cons of TikTok ads? ›

Cons
  • Exclusively Video-Based. The main USP of TikTok is also a limiting factor for businesses that cannot always deliver their message through video content. ...
  • Expensive Ads. Although effective, advertising on TikTok is expensive compared to other social media platforms. ...
  • Limited Diversity. ...
  • Safety & Privacy Concerns.
Mar 16, 2023

How much money is 50000 views on TikTok? ›

How much does TikTok pay for 50K views? TikTok pays approximately $1.50 for 50,000 views.

How much do ads cost per 1,000 views on TikTok? ›

For every 1,000 impressions, the TikTok CPM average ranges from $10 to $30. However, TikTok CPM rates can vary widely and may be higher or lower than this range.

What is the minimum budget for TikTok ads? ›

TikTok Ad Costs

Minimum Spend: TikTok requires a $500 minimum ad spend, with a minimum campaign level daily budget of $50, a minimum AdGroup level daily budget of $20. A Brand Takeover: TikTok will guarantee five million impressions with this advertising strategy. It comes with a hefty cost of $50,000 per day.

Is TikTok ads better than Facebook ads? ›

Facebook achieves a higher CTR through ad copy optimization, whereas TikTok relies on captivating video content for increased CTR. With the right creative and targeting, businesses can achieve a high CTR on TikTok.

What is the best way to promote on TikTok? ›

Besides video ads, you can run campaigns for promoted hashtags and special effects that other users can add to their TikTok videos. Working with influencers is a highly effective TikTok promotion method, and it works even better when you pair it with Spark Ads.

How do I monetize my TikTok ads? ›

How to Monetize TikTok
  1. Design in-feed ads using the TikTok ads manager. ...
  2. Join the TikTok Creator Next program. ...
  3. Participate in the TikTok Creator Fund. ...
  4. Create videos that drive sales. ...
  5. Use your videos to collect gifts and tips. ...
  6. Discover partnerships in the TikTok Creator Marketplace. ...
  7. Add affiliate links to your profile.
Feb 3, 2022

How long do TikTok ads take to get approved? ›

Getting Your Ads Approved: Exploring the TikTok Ad Review Process. How long does it take for TikTok to review an ad? Generally, most ads are reviewed within 24 hours, swiftly determining whether your content will grace the users' screens.

Can you advertise on TikTok without paying? ›

There are 2 criteria you need to remember to get affiliates to promote TikTok videos for free. Find the appropriate influencers in your niche market. Negotiate for a better result of advertising for FREE.

Do you have to spend 500 on TikTok ads? ›

TikTok ads start at $10 per CPM (cost per 1000 views). Also, they require you to spend a minimum of $500 on a campaign. So you aren't going to use formal TikTok ads for a cheap and cheerful viral marketing campaign.

Do you pay for ads on TikTok? ›

As much as you want them to. TikTok uses an auction and bidding model when it comes to ads. That means you decide how much you pay per video view, click, or impression. Keep in mind that, while you can spend as much as you want per optimization goal, there is a minimum spend on both campaigns and ad groups.

How much does TikTok pay for 1 million views? ›

between $20 to $40

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