How Much Does It Cost To Advertise On TikTok?

TikTok hit the international market in 2018 and has been a viral online hit ever since! As it stands, TikTok is currently worth an extraordinary $50 billion – a value that is predicted to climb exponentially in the coming years. 

For this reason, advertisers are jumping on board and boosting their sales by using this exciting social media platform.

If you are a business owner, advertiser, digital marketer or salesperson, you may be curious as to how much it costs to advertise on TikTok. The following article dives headfirst into this topic and tells you everything you need to know in just a few simple steps…

The Value of TikTok as a Social Media Platform


Marketing guru Gary Vaynerchuk believes that TikTok is relevant to digital marketing because it acts as  “training wheels” for up-and-coming influencers and content creators.

He mentions that the platform provides the opportunity to connect with new demographics, particularly younger audiences. This could pave the way for other social media platforms to be a framework for users to “create” – boosting engagement and driving content development.

What Age Is The Core Demographic on TikTok?

Before venturing into advertising on TikTok, you need to research your target audience analytics and see if your products appeal to a younger demographic.

Most of the one billion subscribers are under 30 years old. This means your products must give excitement and engagement to this demographic and provide solutions to their problems and search queries.

Which Products Sell Best On TikTok?

Some of the best products to sell on Tiktok include…

  • Beauty Products
  • Footwear
  • Teeth Whitening Aids
  • Fitness
  • Health
  • Nutrition
  • Fashion 

The user demographic of TikTok is younger than many other social media platforms. For this reason,  many of these top-selling products are orientated around beauty, fashion and personal appearance. If your product falls into these categories, then a TikTok ad could be a great choice for your brand!

How Much Does It Cost To Advertise On TikTok?

How much does it cost to advertise on this platform? This is the key question for many digital marketers and business owners. The answer is – it’s not the cheapest option on the market.

But, if you do your research and create a campaign that connects with your consumers – the benefits could be big! 

To advertise on TikTok, pricing starts at $10/CPM (cost per 1,000 impressions). On top of that, when creating an ad, you’ll need at least $500 to initiate your campaign. Therefore, TikTok does not fall into the category of low-cost advertising. 

Before choosing to advertise on this platform, you’ll need to speak to your digital marketers, analysts and accountants. Putting together this kind of team will allow you to understand your budget and the return on investment you require.

How To Create Ads on TikTok

If you’re considering creating your own ads on TikTok, this simple guide will show you how…

1: Create a TikTok Ads Account

Create a TikTok Ads Account

The first step towards creating an ad on TikTok is to create an account for yourself. Visit the TikTok Ads Home page and click the “Create an Ad” button. You will then need to fill in a form requesting your details. Afterwards, a representative from TikTok will contact you. Activating an account can take up to 48 hours, so you’ll need to have patience.

2: Create a TikTok Ad Campaign

Create a TikTok Ad Campaign

You will need to find the “Campaign” tab on the dashboard and then click the “Create” button. Similar to LinkedIn Ads, you will then be asked to define your campaign objective, namely:

  • Awareness
  • Reach
  • Consideration
  • Traffic
  • App Installs
  • Video Views
  • Conversions

You then have the option of choosing the “Daily Budget” or “Total Budget” under settings. The amount you choose cannot go lower than $500.

3: Define Your Ad Specifications, Placement and Targeting

Define Your Ad Specifications, Placement and Targeting

The next step is to create an ad group for your marketing campaign and select your targeting and placement.

Unlike other social media sites, TikTok allows you to advertise on a range of other platforms such as Vigo Video (India), BuzzVideo, Babe, and more. 

TikTok will ask you to choose 20 keywords that are applicable to your products and services. This will allow you to match your brand to a carefully selected audience. You’ll then be able to further target your audience by location, devices, gender, languages, interests, and more unique metrics.

There’s even the option of automatic placements, meaning that TikTok’s AI will decide where to place your adverts – maximising your exposure to a carefully selected consumer base.

4: Familiarise Yourself With Bidding

Like most platforms that support ad creation, such as Instagram, bidding is an important part of the process. TikTok Ads Manager allows for 4 types of bidding methods, namely:

  • Cost per Mile/Thousand Impressions (CPM)
  • Optimized Cost per Mile/Thousand Impressions (oCPM)
  • Cost per Thousand Views (CPV)
  • Cost per Click (CPC)

This bid refers to the price you pay for 1,000 impressions. The platform will expose your ads to gain the most exposure and reach, within the budget you allocate.

This model refers to the amount you pay to create 1,000 impressions. This is the default bidding option for ad objectives aimed at “Conversions” and “App Install.”

This bid refers to the amount you pay for 1,000 2 or 6-second video views. TikTok will make sure your ad gets as many views as per your budget.

It’s important to note that when choosing this option, you need to multiply the CPV you desire by 1,000, and once you have the total, enter that as the amount of the bid. For example, if you want to spend $.10 for a video view, enter $100 as your CPV bid ($.10 x 1000 = $100). 

This bid refers to the amount you will pay per click. This is a well-known bidding method in the ad world,  TikTok will show your ads to users who the system has defined as most likely to click on them at a cost that is closest to your bid. You’ll use this for “Traffic,” “Conversion,” and “App Installs” ad objectives.

5: Choose Your Ad Format

Choose Your Ad Format

TikTok shows ads as dynamic, full-screen displays. This allows for a great user experience and increased engagement. At the end of your ad, a CTA will appear, encouraging users to download your app, visit your site, or explore your online store. The opportunities for your brand are practically endless!


Choose Your Ad Format

By now you should be getting excited about advertising on TikTok! It’s a platform that’s changing the game for digital marketing and social media because it offers the unique opportunity to reach younger consumers. 

To achieve real success for your business, it’s important to familiarise yourself with TikTok’s Business Help Center and thoroughly read through everything before creating your first ad campaign.

It can be a complex process, but luckily there’s help available. For invaluable advice and years of industry expertise, contact one of our Digital Strategists today. Full-service digital marketing agency Melbourne – First Page Australia – will help drive your business forward with TikTok Ads