Over the years, social media marketers have become familiar with Instagram, LinkedIn and Facebook advertising. What about TikTok ads, though? TikTok’s advertising revenue increased by 200% in 2022 to $11.04 billion.
What advertising options do TikTok offer? What are your advertising goals? How much do TikTok ads cost?
Let’s examine the anatomy of TikTok ads.
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TikTok Ads: Why?
You might be asking yourself why TikTok ads are necessary if you still use TikTok organically. Here are some reasons why you should allocate some budget to this platform:
TikTok’s revenues are growing rapidly, with ad revenue expected to surpass Facebook within the next few years.
Shopify, Square, BASE, Cafe24, BigCommerce, Ecwid, Loja Integrada, TRAY, VTEX, Kyte, PrestaShop, WooCommerce, OpenCart, Salesforce Commerce Cloud, and Shopline are all partners of TikTok. Shopify, Square and Cafe24 are all partners of TikTok. The platform is used by more than 58% of TikTok users to find inspiration for their shopping.
How to choose the right objective for your TikTok ads
Advertising objectives are the goals you set and achieve to help your business grow and engage your customers. Agorapulse is a big fan of social media KPIs, so we will gently remind you to align your advertising objectives with your KPIs.
Which objectives should you choose for your TikTok ads?
In your TikTok Ads Manager Account, you can choose from the following:
Reach. This refers to the number of impressions that your TikTok ads could have in your target audience at the lowest price. Reach does not refer to clicks, downloads or signups. Traffic. Drive people to any URL. This could be your landing page, blog post, or app. Traffic is a popular goal that can be tracked with custom URLs, or by simply looking at your Google Analytics traffic sources. Video Views. This objective will increase the play of your video ads by targeting audiences that are most likely to interact with them. Similar to the Facebook lead generation form. TikTok’s Lead Generation Objective will gather leads for your company using a customizable, fast-loading form within the TikTok App. You should plan how you will follow up with the leads if you choose this option. This option is not recommended if your company has an online store or website. However, it can be useful for service-based businesses. Community Interaction. Get more people to interact with your TikTok account through driving followers and increasing traffic to your profile page. This is a great starting goal for advertisers new to TikTok who lack a fan base. Catalog Sales. Based on your user’s past likes, you can deliver personalized product ads to them. Shop Purchases (Beta). This feature is not available for all TikTok users. It is currently being introduced in different countries. This objective allows you to sell products through your TikTok Shop website, app, and app. This goal is great for TikTok users who have a website, an e-commerce store or an app. App Installs. This goal encourages people to download your app, or reactivates existing users to take action.
Different TikTok Ad Types You Can Create
It can be difficult to choose the right TikTok ad. This is especially true for those who are new to TikTok and trying to understand the various objectives, ad formats requirements, and cost.
Here’s a quick snapshot of TikTok’s core advertising offering right now.
1. Adverts for lead generation campaigns
As an objective, lead generation was discussed earlier. TikTok’s instant form in-app is a great tool for advertisers who don’t have a website but still want to capture leads. This is a great tool for service-based companies and those who have a sales team to collect and follow up leads.
An ad for a lead generation campaign can:
Create opt-in email/customer lists Customize the look of your form with your logo. Capture leads instantly. Sync with all CRMs in realtime. Include surveys with up 10 questions
2. Ads from the Collection
Collection ads are an ad format that allows users to browse and find products on a full-screen, mobile device. You can create an instant gallery page with curated products by clicking on the ad.
Collection ads combine full-screen, vertical, sound on, and more. You can also access a quick-loading Instant Gallery Page. TikTok’s advertising algorithm is intelligent (and getting smarter every day) and matches users with products that interest them. The algorithm can provide the perfect product for someone like me who is obsessed with TikToks beauty and hair!
From the Instant Gallery, users can head to your website to complete their purchase.You can either handpick the products you want to display or let TikTok Ads Manager dynamically display the most relevant for each visitor.Collection Ads give you the ability to deliver personalized product recommendations.Collection Ads are both engaging and immersive, thanks to their layout and fast speedsRemember, though, the gallery is only as good as the photos you took of your products! Pro photos and videos of poor quality will not produce the same results as professional photos and videos.
TikTok’s video will show you how to create Collection Ads.
3. Spark ads
TikTok is for businesses
Spark ads are native ads. However, unlike In-Feed ads Spark ads use posts from TikTok accounts that have their permission. This means that any comments, shares and likes gained during the promotion can be attributed to your organic posts.
Spark Ads combine the best of both the worlds. They allow brands to create ads while still maintaining the functionality and native feel of organic posts.
Spark Ads can be used in these ways:
You can feature your TikTok videos directly from your account.
Case Study: Shufersal
Shufersal Israel’s largest supermarket chain was seeking to launch a new product line: ready-to bake cookie dough for home baking. Young adults between 18 and 30 were the target audience for this new product. They wanted to provide quick and easy baking and cooking solutions. Shufersal chose TikTok to launch the product with the goal of increasing awareness and desire for the delicious cookie dough.
A popular TikTok foodie created four TikTok videos. Each video featured a different recipe using the new product. The videos were a great fit for TikTok as the creator used all the latest recipe trends, including quick editing and ASMR sounds.
Shufersal also partnered up with three top creators, who were each asked to create a “Duet”, with one of the videos, and then show their version to the recipes.
These results were truly amazing!
Wow Fact: TikTok Spark Ads have an impressive 134% higher completion rate, 157% higher 6-second viewing rate, and a 37% lower CPA than standard Infeed Ads. The new profile landing page UI for TikTok Spark Ads also has a 69% better conversion rate and 37% less CPA than any other.
4. Pangle ads
TikTok for Business’s ad network, Pangle allows you to create engaging ads that blend well with native content. These ad formats are available:
Banner Ads. In TikTok, they are displayed in the form of rectangular banners across the app.Rewarded Video Ads, which are full-screen video ads with in-app rewards for users who watch the entire duration.Interstitial Ads are displayed during certain transitions within the flow of the app, such as post-level clearance or in pauses between levels.App Open Ads will display when the app is opened, and the user begins a session.Icon Ads will display the app icon and app name.
5. Catalog listing ads
TikTok’s Catalog Listing Ads make it easier for merchants and users to connect with each other through TikTok. This algorithm-based advertising feature allows users to discover products based upon their shopping habits and interests.
Ecommerce merchants have the opportunity to benefit from:
Upload a product catalogue with no video assets. A wider reach for users looking to buy similar products to yours. Information about your most valuable clients and the most popular merchandise
6. TikTok Carousel ads
Advertisers can share up to 10 images with unique captions using TikTok carousel ads. Advertisers can:
Each frame can be used to tell a story or feature a different product, or to show features of the product.
7. Advertisements for live shopping
All TikTok Shops have access to the Live Shopping Ads feature. To use this ad type, you need TikTok shopping set up. Live Shopping Ads allow people to discover your videos, browse your products, and then buy them. This is a win-win situation for all social media KPI goals.
Different types of pricier ads
These TikTok ads are very popular with celebrities, influencers and brands with a lot of money.
A brand takeover is presented as an immersive, full-screen ad. This is usually displayed within the first few seconds after opening the app. You can choose to use an image or animated GIF. Hashtag challenges are very popular but many brands do not create them. Although it can be expensive (as seen below), it often leads to viral results. Find out more about hashtag challenges.
Information source
What is the cost of TikTok ads?
Like other social media networks like Facebook, TikTok’s ad pricing depends on many factors, such as the objective and region, demographic, ad length, and ad style.
These are some examples of pricing:
TikTok promos require a minimum of $3 USD per day and a maximum of $1,000 per day. TikTok offers a reach benchmark of 1,000 views per day for as low as $10. The average CPM on TikTok ads costs $10. TikTok ads start at $0.50 CPM with $0.02 cost per view. Paid posts can be purchased anywhere from $1 to $50 per day. TikTok ads are only charged when someone views the sponsored post.
Information source
What is a good CTR for TikTok Ads
Advertisers need to have a high CTR (click through ratio). A CTR of 1% and above indicates that your ad is moving in the right direction.
You can expect a higher CTR if you have a budget for your TikToks.
Takeover ads have a click-through rate around 7%-10%, while Top View ads can achieve CTRs as high as 16%. In-feed ads, on the other hand, can increase your CTR by 5-7%.
You should review these options if your CTR falls below 1%.
Your video, including graphics, music, and effectsContent, captions, hashtags and CTAYour demographic targeting
Agorapulse: How to Calculate the ROI of Your TikTok Ads
TikTok has built-in metrics so you can monitor them when you run ads or post organically.
TikTok’s dashboard will show you: CVR (Conversion Rate), Impressions, Retention, Reach, CTR (Click-Through-Rate), CPC (Cost per Click), CPV (Cost per View) and CPA (Cost per Action).
Your Agorapulse dashboard also allows you to manage your TikTok accounts. This is great news for busy agencies and social media managers.
You will have the following TikTok management options depending on your plan:
Publish TikToksReview CommentsSchedule TikTok Sharing to Other ChannelsReal-time Collaboration ToolsAll Filtering OptionsAssign commentsLabel remarksMonitor TikTok Video MetricsGenerate reportsSaved Replies ManagementMobile App Access
Agorapulse is a tool that allows you to gain key insights about your TikTok account and generate impressive reports.
It is important to regularly review your social media ROI if you are serious about allocating budget for TikTok ads. It is important to ensure that your return on investment is equal to the effort you put in.
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TikTok ads have been growing in popularity. They will be simpler and more streamlined over the next year, I predict.
Learn how Agorapulse could help you with TikTok. Register now for a demo!
