TikTok is part of the long line of social media apps targeting teens and young adults. Since it appeared a few years ago, it has boomed into one of the biggest social media in the world. However, even in the beginning, TikTok had to find its footing. This includes putting in an advertising program. Because of this, brands had to come up with innovative ways to advertise on TikTok, which then led to influencer marketing. But, how much do TikTok ads cost?
TikTok did not start working on ad-related content until the back half of 2018. It wouldn’t be until the following year that advertising started to take off. Those early days had many meetings about the costs. For a well-known brand, it cost somewhere between $50,000 and $100,000 to take control of a famous TikTok channel. As an example, a hashtag challenge can cost up to $150,000 for a week. But, brands would spend additional moolah to promote the challenge.
In the present day, TikTok has introduced video ads that are more affordable for a brand to advertise on TikTok. If you have a brand that you want to advertise on TikTok or if you want to earn money from ads, then below will have all the information you need!
TikTok’s Formal Ads Program
While TikTok did take a hot minute to get advertising on their app, they have slowly, but surely made successful progress in social media. Luckily, TikTok is very different from Instagram and Facebook, meaning that you don’t have to worry about getting the best ad revenue places.
Is TikTok a Good Advertising Business?
TikTok has rapidly grown in popularity with its short videos. It grew so much, that on Apple and Android app stores, it was the most downloaded app for months on end. Many brands of course want a piece of the successful pie, leading to TikTok having accounts on Facebook, Twitter, YouTube, and LinkedIn.
But, running a TikTok account means you have to understand the demographic of your audience and your customer base.
The creators of TikTok wanted to make an app that targeted youths under 18. But many have continued to use the app even as they have aged. As of August 2022, 66% of TikTok users are under the age of 30. Meanwhile $1% of users are between the ages of 16 and 24.
TikTok also skews slightly toward women due to the content type. The app itself was made famous because of its ability to be online lip-synching. Because of that, it is more popular with women than men.
If you are in luck, your business may cater to young women. In that case, you should start up a TikTok channel. However, if your business relates more to Boomers or Gen X, then you may want to try elsewhere.
They Are Expensive
You may have seen on TikTok the many ads from big companies like Disney. That makes sense because of how much money they have on hand. While they are less likely to complain about ad costs, it can actually be more expensive than older social media presences like Facebook and Instagram.
TikTok can charge a rate for ads on their service because they are still new. They can do this because TikTok knows that advertisers won’t be leaving for the other sites that are more competitive.
A TikTok ad starts at exactly $10 per CPM (cost per 1000 views). They also require you to spend at least a minimum of $500 for your marketing campaign.
There are many ways to market on the app. For instance, one can work with famous influencers by asking them to promote your brand. This can lead to a good relationship with the influencer, thus, this gets back to their audience base. As of now, it is still the most cost-effective way to market your brand.
You can also promote your brand on your own TikTok channel. Make videos about the brand and incorporate that into TikTok trends like the various challenges that happen every day or you can share your content onto other social platforms.
TikTok is a famous brand that has now over 2 billion users worldwide. Its format to create short videos has been increasingly popular with the younger generations. TikTok is not the first social media presence to do what it does. Vine and Musical.ly made short videos famous while Facebook, Twitter, and Instagram are known for their ads. By combining these aspects together, lightning in a bottle is founded.
Now that you know how much TikTok ads cost, it is best to get going on a strong marketing campaign so that people can see you and what you have to offer to the world.