Tik Tok has gone for a while without a formal ad space. Recently, this has changed as they have slowly entered the advertising market. This is leaving many brands and businesses to try to navigate what this could mean for their marketing strategy.
Before advertising through native ads, companies were having to turn to well-known Tik Tok influencers for partnerships. While this is nothing new, it has been an expensive option for companies depending on their agreement and the influencer’s popularity. While this is still a viable option, native ads are a much more affordable option for most companies at this point.
Since formal ads on Tik Tok are fairly new on the scene, this means this is a great time to start using them. Unlike other social media platforms like Instagram or Facebook, not many companies have jumped on board yet. This means there isn’t as much competition yet, and you can make your marketing dollars stretch a little more on Tik Tok.
Who Should Use Tik Tok Ads
When Tik Tok designed their app, it was built with people under the age of 20 in mind. Today, a majority of their users fall between the ages of 16-24 years old. The statistics show that 66% of Tik Tok users are under the age of 30. It is also predominantly used by women.
This is an important factor to consider when you’re thinking about advertising on Tik Tok. Does your ideal customer really use Tik Tok? Do they fall within this younger demographic? Are you targeting a female customer base? If the answer is “yes,” then Tik Tok ads may be the perfect fit for your company!
How Much do Tik Tok Ads Cost
This is where Tik Tok differs the most from other social media competitors. They are known for being more expensive than IG, LinkedIn, and FB. For example, there is a required $500 minimum on a campaign with a $10 cost/1000 views.
It can be very expensive to advertise with them, making this an unrealistic option for smaller businesses. Hashtag challenges alone cost $150,000 for 6 days, with brand takeovers starting at $50,000.
Types of Tik Tok Ads
TikTok offers 3 main types of advertisements:
- Brand takeover ads
- Hashtag challenges
- In-feed native ads
Each offers a unique opportunity for businesses and creates different types of engagement with users. We’ll break them down for you below:
In-Feed Native Ads
As expected, TikTok in-feed native ads are typically short videos designed to catch people’s attention immediately. Companies can opt to use static images if they prefer. They even offer filters to help enhance videos and images used for these ads.
Brand takeover ads are a little more unique to Tik Tok. These show the moment a user clicks into the app. From there, they have the option to head directly to your website or to remain on the app. One thing to note about these is users are only shown one take-over ad per day.
TikTok users enjoy creating content for hashtag challenges. If they are done correctly on the front end, hashtag challenges can go viral and give your brand a quick boost. One main benefit is that participating in hashtag challenges is super easy for content creators. All it takes them is a few simple clicks. This ability to participate easily is a huge benefit for businesses. It is important, though, that you set up any hashtag challenges with intentionality so they won’t be a flop.
The minimum budget recommended to market on Tik Tok is at least $1,000 for even a simple campaign. However, some experts go as far as to suggest that you should plan to pay $50,000 to $100,000 to run ads on Tik Tok.
So, are Tik Tok ads worth it? If you have the budget and time to do them correctly, yes! For most small businesses, though, it’s not an option due to the heavy budget requirements.
If you’re looking for more help with your social media marketing, contact us today!