If you’re wondering how much TikTok ads cost, you’re not alone! With over 1 billion active users, TikTok has quickly become a powerhouse for businesses looking to reach a wide, engaged audience. TikTok continues to grow as a prime platform for advertising, with increasing consumer engagement and platform usage over the years.
Understanding the cost of a successful TikTok advertising campaign can be tricky, but we’ve got you covered. In this guide, we’ll break down how to effectively use TikTok ads, helping you maximize your reach and engagement while staying within your budget. We’ll walk you through everything you need to know to run a TikTok ad campaign that aligns with your marketing goals and resonates with your audience.
How Much Do Tiktok Ads Cost?
The minimum investment cost for a TikTok ads campaign is $500. However, you should know that TikTok ads don’t have a one-size-fits-all price tag. The cost can vary depending on several factors.
TikTok Ads operate on a bidding system, allowing you to set a maximum bid for specific actions, such as impressions or clicks.
Below is the average breakdown of TikTok ads price:
- Average TikTok engagement rate: 5%–16%
- Average TikTok ads cost per mille (CPM): $10 per 1,000 views
- Average TikTok ads cost per click (CPC): $1 per click
- Fee to create a TikTok video using Canva: Free
- TikTok influencer post pricing range: $5–$2,000
How Much Does TikTok Advertising Cost?
The cost of TikTok advertising depends on the bidding model you choose. For in-feed ads, TikTok offers four bidding models that cater to different advertising budgets, helping businesses achieve their goals.
1. Cost Per View (CPV)
CPV refers to the average amount you pay each time someone views your ad for a specific duration. For example, you might be charged if someone watches at least 25% of your video ad. You can use CPV bidding if you plan to increase video views.
2. Cost Per Thousand Impressions (CPM)
CPM, which stands for “cost per mille” (Latin for “thousand”), is a common metric on TikTok. It represents the average cost you pay for every thousand impressions your ads receive. An impression is counted each time your ad appears on a user’s feed, regardless of whether they click on it or interact with it.
3. Optimized Cost Per Thousand Mille (oCPM)
This is an advanced bidding strategy whereby you set a target cost for achieving a specific optimization goal. This is the price you pay per one thousand impressions that actually convert. This means you don’t pay for impressions only like for CPM but you pay for impressions that lead to conversions on your business website.
4. Cost Per Click (CPC)
This metric refers to the average amount you pay each time someone clicks on your ad. It’s a good way to measure how effective your ad is on TikTok to lead to conversions and traffic to your website or landing page. So, every time a TikTok user clicks on your ad, you get a click.
| In-Feed Ads | Minimum Cost Per Bid | Average Cost Per Bid |
| CPM | $0.50 | $10 |
| oCPM | $4 | $4–$8 |
| CPV | $0.01 | $0.10–$0.30 |
| CPC | $0.02 | $1 |
| Per Campaign | $500 | This Varies |
Average TikTok Influencer Rates per Post
Unlike TikTok Ads, which have a bidding system, TikTok influencer pricing is more flexible. This ad system is based more on influencer marketing than the TikTok ads algorithm.
Moreover, TikTok influencer rates per post vary depending on factors such as:
- Number of followers
- Industry or niche
- Key metrics (engagement, likes, views, shares)
However, these are the average TikTok influencer rates per post as of recently.
| Influencer Tier | Price Per Post |
| Nano-influencer (1,000–10,000 followers) | $5–$25 |
| Micro-influencer (10,000-50,000 followers) | $25–$125 |
| Mid-tier influencers (50,000–500,000 followers) | $125–$1,200 |
| Macro-influencer (500,000–1,000,000 followers) | $1,200–$2,500 |
| Mega-influencer (1,000,000+ followers) | $2,500+ |
Are TikTok Ads Worth It?
TikTok advertising is a valuable investment. With users spending much more time on TikTok compared to other platforms, it’s clear that TikTok is a profitable space for brands to connect with and engage their target audience.
1. Concentration Rate
Compared to other social platforms, TikTok has the highest user attention and retention rate. With users spending an average of 95 minutes daily on the app, this provides ample time to push your ads towards them.
2. Customer Insights
Another unique feature of TikTok is the TikTok ads analytics. This algorithm provides insights into campaign performance, like impressions, click rates, engagement, conversion rates, and cost per action. This way, you can monitor everything and make improvements as needed.
3. Wide Audience
TikTok boasts a huge user base. The younger demographics, particularly Gen Z and millennials are some of the largest demographics. More so, with TikTok’s over 1 billion active monthly users, you get a highly engaged audience that can help increase brand awareness and conversions.
4. Smart Targeting Options
Furthermore, TikTok enables precise audience targeting based on detailed demographics such as location, interests, and behaviors. This allows you to optimize your reach and influence among your ideal customer base.
5. Encourages Creativity
TikTok is a highly creative platform that thrives on unique content and marketing strategies. Many successful brands have embraced TikTok trends and work with influencers to gain more followers and attract customers.
Is TikTok Advertising Suitable For Your Business?
TikTok advertising is suitable for your business because new, small, and large businesses flock to TikTok to advertise their products and services. It’s not an exaggeration to say all the big brands are on there, even smaller brands you haven’t heard about have made notable success on TikTok.
Below are some reasons why TikTok advertising is suitable for your business:
- Over 1 billion active users
- Direct access to a younger audience
- Effective for driving website traffic, sales, and brand awareness
- High engagement rates across content
- Features designed to support small businesses
What Are the 6 Main Types of TikTok Advertising & Marketing?
TikTok has a variety of advertising and marketing options you can choose from. You can use one or more of these for more reach and hype.
1. In-Feed Ads
In-feed ads are the most popular format many businesses use. They appear like regular TikTok videos on the “For You” page (FYP), making them feel less intrusive and more engaging. This format lets you showcase your product, start a trend, or tell your brand story effectively.
2. Branded Hashtag Challenge
Brands often sponsor Hashtag Challenges on TikTok, aiming to promote a campaign or new product by encouraging users to participate using a specific hashtag. For this to take off on TikTok, brands often offer incentives, such as prizes or recognition to users who join the challenge and produce content based on the particular hashtags.
3. Branded Effects
This fun ad format is similar to branded hashtags, allowing users to create filters and stickers on TikTok. Filters and special effects are huge on the platform and can be monetized, not just for entertainment. As an advertiser, you can develop custom filters, stickers, or effects for users to integrate into their videos.
4. Influencer Marketing
Partnering with TikTok influencers boosts your brand’s reach and helps attract followers and customers. Collaborating with creators connects you with their fanbase, allowing direct access to your target audience. This method feels more authentic, leveraging the influencer’s credibility to promote your brand or product.
5. TikTok Shopping
The TikTok Shop is another smart feature that benefits small businesses. Similar to eCommerce platforms like Shopify, TikTok Shopping allows you to integrate your product catalog directly into the platform. This enables TikTok users to discover and purchase your products without leaving the app.
6. TopView Ads
This is a type of ad format on TikTok that appears at the top of the user’s feed when they launch the app. They are full-screen videos that can only be skipped after 6 seconds. This type of ad takes priority placement and ensures high visibility to users.
Conclusion
Here’s the deal—TikTok ads are a smart choice if you want to put your brand in front of a massive audience. With over a billion active users, it’s the perfect platform to stand out and drive real results. Whether you’re looking for more clicks, views, or just to build brand awareness, TikTok lets you tailor your approach. And with a starting budget of just $500, it’s a low-risk opportunity for businesses of all sizes.
Ready to dive in? Now’s the time to test the waters and find what works for you. Book a discovery call today and let’s make it happen!
The Armful Media Content Team is a group of skilled writers, researchers, and strategists passionate about influencer marketing. We create content that drives real results, engages audiences, and builds trust, helping brands expand their reach and connect with their audience in meaningful ways.
