TikTok Ads 101 for Beginners
If you have to name one app that has gained huge popularity over the 5 years, what it will be? Well, my answer would be– TikTok. TikTok was launched in September 2016 and currently has over 3 billion downloads. Over the years, TikTok’s popularity has challenged the other platforms as well. And, because of its popularity and large user base, it became a popular option for media buyers, businesses, and brands.
Today I will discuss TikTok ads, what are TikTok ads, how they work, and the benefits and types of TikTok ads. Let’s start the discussion then!
What are TikTok Ads?
TikTok ads is the advertising platform by TikTok which allows the media buyers and business owners to run paid advertisements on TikTok.
Ads on TikTok are a form of social media marketing, and they usually aim to spread awareness about the advertiser or sell a particular product or service.
How do TikTok ads work?
Like every other platform, TikTok has an algorithm that decides which TikTok ads go to which user and when.
TikTok has two types of business manager
- Simplified
- Custom
Simplified mode takes a simple approach to ad creation, letting Tiktok’s algorithm do the heavy lifting.
Custom mode gives advertisers full control over their ads with advanced customization options, such as A/B testing, audience targeting based on video and creator interactions, and ad combinations.
How TikTok Ranks Ads
TikTok ranks the ads based on,
- Ad Relevance
- Ad Quality
- Bid Price
This is similar to many other advertising platforms where, while bidding is important, higher quality, more relevant ads will be shown more often. The idea behind this is that better ads will get more engagement and make the advertising platform more money.
The engagement factor also decides ad performance. Ads like, shares, and watch time can impact the algorithm.
How much does it cost to advertise on TikTok in 2024?
The price of the ad depends on the type of ad you choose. TikTok uses a metric called CPM, or cost-per-mile to charge for in-feed ads. The CPM refers to the ad cost per 1,000 views. The average CPM on TikTok is $9.16 (as of November 2023). TikTok advertising prices start at $0.50 CPM and $0.02 cost per click. A minimum budget of $500 is required to spend on a campaign, with a minimum daily budget of $50 at the campaign level and a minimum of $20 per day at the ad group level. These prices vary based on location, content type, quality, and engagement.
Some of the pricier ad types described above charge a flat fee ranging from $50,000 to $150,000 for the first six days. For example, a branded takeover or branded hashtag challenge can cost $150,000, for which your business will also be featured on TikTok’s Discovery banner, yielding you valuable visibility.
Which type of brands should use TikTok advertising?
There is no rulebook on which brands should do TikTok advertising, but there are certain brands that can use the leverage of TikTok ads. Such as:
E-commerce Brand
TikTok has such an impact on purchasing decisions that there’s a hashtag for this trend — #TikTokMadeMeBuyIt — that has nearly 57 billion views.
GenZ, Millennials Focused Brand
TikTok’s audience definitely skews younger. Nearly 40% of its users are under age 24.
However, the brand is growing in popularity among older users. Nearly half of its users are Millennials, and around 10% are Gen X or older.
Entertainment Industry
The entertainment industry can gain massive traction through TikTok Ads. Users of TikTok are mostly fun-loving and love engaging content. Hence, the entertainment industry can easily promote their music or shows on TikTok.
Fashion and Beauty Brands
As most of the users of TikTok are young and GenZ, Millennials, the fashion and beauty industry may have a good chance to enhance their brand visibility and drive sales. TikToks unique and engaging video content can attract the user more conveniently than other platforms
Types of TikTok ads
In-Feed Ads
Tell your brand story in a true-to-TikTok way with this sound-on, vertical video ad that can be further enhanced with interactive add-ons.
In-feed video ads appear as the fourth video users see as they scroll their ‘For You’ feed. A For You feed features videos that the algorithm believes are of interest to the user based on their app activity.
In-feed video can also use CTA and drive sales, and engagement.
TopView
This type of TikTok ads can make an impact in-feed with the first ad a user sees when they open the app. TopView ads can be up to 60 seconds. Product or businesses that require a longer time of attention period, can use this type TikTok ads. Users also have admitted that TopView TikTok ads grab their attention.
Branded Hashtag Challenge
Crowdsource authentic content from creators on TikTok, boost top-performing videos as ads and drive brand equity.
Branded Effect
You can create a custom effect that engages TikTok users across the globe. Branded Effects ads use 2D, 3D, or AR to add images of your products into TikTok videos. Brands typically create stickers of their products or filters that TikTokers can use when creating their videos.
Spark Ads
Spark Ads is an ad format that uses organic TikTok content as the ad creative. The Spark Ads format allows you to create TikTok In-Feed Ads or TikTok TopView Ads using your organic posts or content made by creators (with their authorization)
With Spark Ads, brands can grow through real connections with our community by delivering native content for greater authenticity. TikTok users can also create a new video with the same soundtrack or co-create with you by making a Duet or Stitch.
Brand Takeover Ads
Brand Takeovers are an ad format that can include TopView, In-Feed, and Branded Hashtags all at once, and the takeover aspect of this type is that the platform only features one business per day.
As soon as users open the app, this type of TikTok ads automatically plays for five seconds, and you can get really creative with what you present. It can be a series of videos, GIFs, screenshots, etc.
Shopping ads
As of spring 2023, TikTok is phasing out both “Dynamic Showcase Ads” and “Collection Ads” and incorporating the main functions of these features into Video Shopping Ads, which are currently in the testing phase and only available to select advertisers.
Carousel Ads
Carousel Ads are available only in TikTok’s news feed app series, BuzzVideo. Advertisers can post up to 10 images (each with its own caption) in one ad.
TikTok Ads Benefit
TikTok is one of the world’s most popular social media platforms. And, nowadays, it’s one of the popular choices for advertising. Here are some reasons for choosing TikTok ads in 2024
TikTok’s Popularity
TikTok has gained huge popularity within some years. Since 2019, TikTok has ranked the most downloaded app on Apple’s app store, with over 2 billion downloads. So, it would be wise to choose TikTok ads for your brands if you want to capture this large audience.
TikTok is Budget-Friendly
You don’t need a large budget to create TikTok ads, as the platform caters to raw, unedited videos made on mobile phones. TikTok offers flexible budgets by allowing users to choose how much money they want to spend and adjusting the advert’s reach accordingly.
TikTok’s Trend
If you follow TikTok’s trend, you can reach a lot of potential customers. Anyone, including brands, can start trends and go viral on TikTok. Businesses can make use of branded hashtag challenges and brand takeovers to encourage participation and enjoy a wider reach.
TikTok Ads Don’t Look Like Ads
How sponsored posts are served is one of the biggest advantages of TikTok advertising.
Rather than interrupt users, most TikTok ads are presented on the “Following” or “For You” feeds. Ads can seamlessly pop up in your audience’s feed as they’re scrolling through content.
TikTok ads Simplicity
Anyone with a mobile phone can use TikTok for marketing purposes. The idea of the platform is not to create slick, scripted videos. This characteristic has paved the way for new creators to emerge on the app constantly, building their unique audiences and appearing repeatedly on the “For You” page.
Variety of TikTok Ads Targeting Option
TikTok Ads offer businesses a variety of targeting options, including demographic, interest-based, location-based, and custom audience targeting. This allows businesses to reach the right audience on the platform, increasing the visibility and reach of their ads.
I believe you have got enough idea of TikTok ads and the benefits of it. Do you know, that TikTok ads are coming to Bangladesh? Get to know more from my other blog about the opportunities for TikTok ads in Bangladesh.
References:
Spark Ads 101: Make TikToks into Ads | TikTok for Business | TikTok For Business Blog
Varies depending on ad type and bidding strategy, but can range from $0.50 CPM to $150,000 for premium placements.
Algorithm shows relevant video ads to users. Two campaign creation modes (Simplified/Custom) and factors affecting ad ranking (relevance, quality, bid price, engagement).
TikTok became available in Bangladesh in 2024. Check the blog to get more details- TikTok Ads in Bangladesh
