What Is the Cost of TikTok Ads? All Questions Answered

If you’re here, chances are you already know about TikTok advertising in general. You may be considering TikTok ads for the first time or need a trustworthy source to check if your ad spend is correct.

So we won’t bore you with marketing fluff. Let’s dive straight into it:

Tl;dr:

1. Bid campaigns:

• CPC: Average cost is $1
• CPM: Average cost starts at $10
• oCPM: The cost starts at $4-$8
• CPV: Average cost is 25 cents.
• In-feed ads: Start at $1,000
• TopView ads: $65,000/day
• Branded effect ads: $45,000/month
• Branded hashtag challenge: $350,000
• Brand takeover ads: Starting at $50,000/day

2. Reach & Frequency campaigns: Depends on the type of campaign, but you can get good results even with $500.
3. TikTok influencer marketing:

If you want to read a more in-depth analysis of these charges, we’ll explain each below − after all, our title does promise to answer all your questions.

TikTok Auction Ads Cost

The auction-based TikTok Ads platform includes the metrics below, which you can set from your Ads Manager at the campaign level. Regardless of your bidding strategy, the minimum budget required for an advertising campaign on TikTok is $500.

CPC: $1

The average TikTok Ads CPC is $1. However, a wisely-planned campaign can see a decrease in CPC to $0.20.

CPC defines the cost per click. Set the targeting options correctly so that the TikTok algorithm shows your ad to the target audience who is most likely to click on your ad.

• Formula: Total cost/ Total click
• Billing: By clicks
• Best for: Sales campaigns, traffic, app installs, profile visits

CPM: $10

The average cost for CPM starts at $10.

CPM stands for cost per mille (aka Thousand Impressions) and defines the sum you will pay for one thousand impressions.

• Formula: (Total cost / Total impressions) * 1,000
• Billing: By impression
• Best for: Exposure campaigns

Pro tip: Use a comprehensive CPM calculator to calculate your cost per 1000 impressions on different marketing channels. Compare the results and choose the right social media platforms for your needs.

oCPM: Starts at $4

The optimized cost per mille (oCPM) shows you the best price per conversion and is best for advertising campaigns where you acquire new users.

• Formula: (Total cost / Total impressions) * 1,000
• Billing: By impression
• Best for: Purchases, conversions, lead generation, follows, app installs

CPV: Starts at 25 cents

CPV means cost per view. This metric in your bidding strategy indicates that advertisers are charged for each video view or predefined interaction.

CPV helps optimize your ad campaign for video views:

• Formula: Total cost/ Total views
• Billing: You will pay the CPV if TikTok users:
  • Watch the whole video: For TikTok ads less than 30 seconds
  • Watch at least 6 seconds: For TikTok ads longer than 30 seconds
• Best for: Increasing reach

TikTok Reservation Ads Cost

Different types of ads on TikTok have different prices because they’re best for different campaign goals. Besides, some ads are cheaper to produce and have a smaller outreach.

In-Feed Ads: Start at $1,000 or $10/impression

From our experience at inBeat, the minimum TikTok advertising cost for an in-feed ad campaign is $1,000. However, we have had clients with budgets between $50,000 and $100,000.

Several variables come into play:

• How you create your feed video ads: Using free video editors like Canva for your ad creatives lowers your budget. Hiring a graphic designer or an agency increases the marketing campaign budgets.
• Who you feature in those ads: TikTok influencers that produce organic content may be cheaper than hiring actors but more expensive than an in-house animation.

Pro tip: Vertical videos perform much better on TikTok.

TopView Ads: $65,000 daily budget 

TopView ads reach a $65,000 daily budget for a larger ads campaign that delivers 7.4 million impressions.

Is it worth it?

Well, TopView ads show for a whole minute as soon as active users open the app. They take over the entire screen, and the sound is auto-play. That means they address a captive audience, considerably increasing recall rate and awareness.

That’s why TikTok claims their ads’ effectiveness rate is 67%.

Branded Effect Ads: $45,000/month

These ads entail creating a special effect that people on TikTok use because it’s funny, quirky, or even insightful to do so.

Is it worth $45,000, though?

Branded effect ads increase social proof, desire, and recall and drive traffic to your account. Besides, you get more user-generated content that you can repurpose anytime.

Branded Hashtag Challenge: $350,000

Hashtag challenges are the most expensive with:

• $150,000 flat fee for the first six days, followed by:
• $100,000 – $200,000 for promotion

TikTok says it’s worth it because you can get:

• An average engagement rate of 17.5%
• The appreciation of 77% of TikTok users who like to see brands taking part in the local culture with memes and trends

Pro tip: There’s an additional fee of $160,000 that allows advertisers to upgrade to Hashtag Challenge Plus. This feature allows TikTok users to see your store or app from the TikTok platform. Basically, this adds a shoppable dimension to your content.

Brand Takeover Ads: Starting at $50,000/day

Brand takeover ads last 3-5 seconds and show as fullscreen before becoming regular in-feed ads. The price is worth it because you can buy 8.9 million impressions with it.

And since 5 million impressions are guaranteed, you pay $0,01 per impression.

Reach & Frequency Campaign Cost

The cost of an R&F campaign depends on your goals. Some online sources claim that you need at least $25,000 at the campaign level on the TikTok channel for everything to pan out.

But at inBeat, we call BS on that.

Although higher budgets are generally better with paid media, there are plenty of scenarios where 500$ budgets can yield great results.

However:

Reach & Frequency campaigns may entail higher advertising costs because you have more control over the:

• Audiences you reach
• The exposure frequency to your ad messages

In Auction ads, your bid and bid strategy determines ad delivery. In R&F campaigns, you have increased predictability and a fixed budget to reach your optimization goal.

You will also see the following metrics in real time:

• Reach
• Impressions
• CPM
• Frequency
• Budget

Is it worth the price?

R&F TikTok campaigns are best if:

• You want to build a successful campaign to address a larger audience.
• Have a storytelling advertising strategy that needs a rawer format.

Besides:

• The average engagement rate on TikTok is 95% − considerably more than other social platforms.
• 82% of CMOs claim that reach and frequency are essential for effective advertising.

Pro tip: This CPA calculator helps you determine the cost per acquisition on multiple advertising platforms. Compare this data to choose the right social channels for your campaign.

TikTok Influencers Advertising Rates: $5 to $2,000

The rate of $5 to $2,000 depends on your influencers:

• Reach – aka number of followers
• Experience
• Engagement rate

Important side note: Nano – influencers charge less than mega – influencers but are usually more engaged. That means they interact more with their followers and are more credible.

Pro tip: Use a return on ad spend calculator to ensure you partner with the right creators.

Is it worth it?

TikTok influencer marketing can decrease the overall advertising costs on TikTok and reduce ad fatigue. At the same time, you can increase your reach, lower your CPCs and CPAs, and get more conversions. In fact, 49% of TikTok users bought something they saw on this advertising channel.

Additional Factors that Influence the Cost of Your TikTok Ads

Now that you’re here, you know how much TikTok advertising costs in general. But these prices depend on your particular situation:

Campaign Objective

Some marketing goals may increase your advertising budget for the TikTok channel.

For example, larger-scale awareness or conversion campaigns may be more expensive because you will use:

• More influencers
• More (polished) video ads
• More expensive ad formats

Audience Segmentation

The type of audience you are addressing also influences TikTok advertising costs. And that’s because the audience segments affect the kind of messages (i.e., ads) you are producing:

• Native-looking, feed videos: Cost less
• Polished ads: Cost more

Click Through Rate (CTR) and Conversion Rate

The CTR and conversion rates affect your advertising budget on TikTok, especially if you are using a bid campaign. You will have to pay more depending on the number of people who click on your ad or convert.

That’s why you must keep track of your metrics and optimize your campaign.

Alternatively, focus on a Reach & Frequency campaign that allows a fixed budget.

Pro tip: This CTR calculator is very precise at showing your click-through rate for ads & content across different channels and campaigns.

How Much Will You Pay for TikTok Advertising?

As a rule of thumb, larger advertising budgets can optimize your campaign and increase your ad performance.

You just need to work with the right agency and have the right strategy.

For example, we slashed CPAs to 75% for our client NielsenIQ, using UGC ads that decrease ad fatigue.

You can also become an example that moves the needle without wasting your resources. But you need the right strategy for that.

So, let’s schedule a free strategy call. We’ll help you decide what plan would best fit your brand so you can optimize your TikTok advertising costs and reach the results you need.