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How Much Do TikTok Ads Cost in 2023


From small, home-based businesses to large global corporations, everyone is trying to get a piece of the action when it comes to TikTok.
With its massive user base and high engagement rates, who wouldn’t want to advertise on one of the world’s largest social media platforms?
That’s why in this blog, we’ll talk about the cost of advertising on TikTok in 2023, the factors that influence the cost, and more.

What are TikTok Ads?

Before we go deeper into the realms of TikTok Advertising and how much it costs, let us give you an overview of what TikTok Ads are and how they work.
TikTok ads appear on users’ feeds, which can be either organic or sponsored. They usually appear as “native” content, meaning they look just like any other post from a user. This helps to ensure that your ad gets the maximum engagement possible and doesn’t come off as intrusive.

Different Types of TikTok Ads

Before starting any campaign on TikTok, it’s best to understand the different types of ads available and what ad group each one is best suited for. These are some of the most popular ad types used on TikTok:
In-Feed Ads: These are the most popular of all types of TikTok Ads, allowing you to show your ad directly in users’ For You feeds as they scroll. In-feed ads can be videos, images, or GIFs and can include links to a landing page or an external website.
Best for: In-feed ads are best for increasing brand awareness, as a large number of people can see them in a short amount of time. These are also best suited for brands that prefer an organic approach to advertising.
Spark Ads: These are similar to in-feed ads since they give off an organic feel and do not interrupt the user experience. Spark ads allow brands to boost their already well-performing content or that of an influencer by turning it into an ad. According to TikTok, spark ads perform better than in-feed ads as it has a 24% higher completion rate and 142% higher engagement rate.
Best for: Spark Ads are best for established brands with a lot of content or those who work with influencers. These are also great for remarketing campaigns to reach target audiences, that have previously interacted with the brand’s content.
Brand Takeover Ads: These ads are full-screen ads that appear for 3 to 5 seconds when a user first opens the app. They can be either an image or a video and can link to an external website or a landing page within TikTok.
Best for: Brand Takeover Ads are a great way to quickly get your brand in the spotlight. In addition, they can be used to drive traffic to external websites and landing pages, making them ideal for businesses looking to promote a new product or service.
Branded Hashtag Challenges: Branded hashtag challenges are shown at the top of TikTok’s Discover Page that features a particular hashtag, often sponsored by brands. 
These types of ads are a great way for brands to go viral on TikTok, as many people engage with them more than ordinary posts. And because these videos are user generated content, they often get more engagement and better results.
Best for: Branded hashtag challenges are great for businesses looking to create fun and engaging ad campaigns that encourage user participation. They can be used to drive up brand awareness and engagement with your target audience.

How much do TikTok ads cost? 

Like other social media platforms paid advertising, you can customize the budget for your TikTok ads. But keep in mind that TikTok uses a cost-per-mille (CPM) metric, meaning you pay for every thousand views of your ad.
So, how much can you expect to spend on TikTok ads in 2023? While it’s challenging to provide a specific answer, industry experts suggest that the average CPM for TikTok ads ranges from $10-$20, and the average CPC ranges from $0.50-$1.00. However, remember that these numbers can vary depending on certain factors.


What Factors Influence the Cost of a TikTok Ad Campaign

Several factors can influence the cost of your TikTok advertising campaigns. Some of these include:
Campaign objective: The cost of your TikTok advertisement will depend on the campaign objective. Your campaign objective will affect the ad events needed to gain sufficient data to get your ad out of the learning curve.
  • Audience targeting: The cost of your ad will also depend on the audience you’re targeting. The more niche the audience, the higher the cost, as there may be less competition for that particular audience.
  • Budget and bidding strategy: While the budget is the amount of money you spend on your campaign, the bidding strategy is how you plan to use that budget. TikTok supports three bidding strategies: bid cap (manual), cost cap (goal-based), and lowest cost (spend-based).
  • Ad formats and placements: TikTok offers a variety of ad types and placements, from regular video ads to branded hashtag challenges and brand takeovers. The cost of each placement will vary, so it’s best to experiment with different placements to determine which yields the best results.
  • TikTok advertisement pricing


In Summary…

TikTok advertising can be more expensive than other social platforms, but the reach and engagement you can achieve with it are unparalleled. By understanding the different ad types and factors that influence cost, you can make an informed decision when setting your budget and devise a successful marketing campaign.
So, is TikTok advertising a good investment for your business in 2023? With the platform’s rapidly expanding user base and unique ad placement options, it certainly has the potential to be. However, the final answer will depend on your industry and business goals.
To reap the greatest rewards from TikTok advertising in 2023, it’s important that you understand both the advertising platform itself and your target audience inside and out.
But if you want to ensure you’ll get the best possible result, partner with an agency with the knowledge and expertise to create a customized, effective ad strategy for your business.
So, if you need help creating a successful and cost-effective TikTok ads campaign for your business on TikTok, don’t hesitate to contact us!