The platform has grown rapidly and How much does tiktok ads cost is swarming to it to take advantage of its high engagement rates, which are typically higher than most other social media platforms. However, with its user base mostly comprised of Gen Z and millennials, TikTok ads may not be ideal for all businesses. Luckily, this platform has an in-built advertising system that lets brands optimize their budget and generate ROI with the help of an experienced agency.

Advertisers pay for TikTok videos to appear in users’ feeds alongside regular content, similar to other social media ad platforms. They do so by using a bidding/auction model, where the advertisers determine how much they are willing to pay per optimization goal (likes, impressions or views).

Breaking Down TikTok Ads Cost: What You Need to Budget

The pricing for TikTok ads varies depending on the type of video created and the business’s goals for it. For instance, influencers’ videos can cost more to produce than other ad types on the platform, and they should only be leveraged as part of a broader marketing strategy that includes other channels.

TikTok has several ad formats, including brand takeovers, in-feed ads, and branded hashtag challenges. The latter is the most expensive, ranging from $50,000 for a day to $150,ooo to feature your branded hashtag challenge on TikTok’s Discovery banner, which gives you valuable visibility.

You can set a daily budget and a lifetime budget at the campaign level, and a budget at the ad group level. The ad group is where you define your targeting, optimization goals, schedule and bids.