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With its powerful virality and massive user base, TikTok has quickly become a highly potent advertising channel for businesses. However, for advertising campaigns to achieve optimal effectiveness, it’s crucial to understand the advertising costs on this platform and how to use your budget efficiently. In the article below, Adsupport will share the latest and most useful information surrounding TikTok ad campaign cost. Let’s dive in!
The cost of a TikTok ad campaign is a crucial factor that every business needs to consider before launching. Currently, in the Vietnamese market, the minimum cost to start a TikTok ad campaign is around VND 200,000. However, depending on the ad format, targeting goals, and budget optimization methods, this figure can vary significantly. Below is a summary of common costs for various TikTok ad formats, helping you easily choose a solution that fits your budget and needs.
Bidding is a common way to control your budget and ad effectiveness. Costs will be calculated based on one of four models:
Reservation ads allow businesses to book fixed ad placements and schedules on TikTok with more transparent costs, specifically:
Note: The costs above are for reference only and depend on the specific market and campaign requirements.
This ad format allows precise control over reach and impression frequency. In Vietnam, the cost for an R&F ad campaign typically starts from VND 1,200,000/week with estimated results as follows:
This format is suitable for businesses that want to ensure extensive coverage and repetition of their ads, thereby effectively enhancing brand recognition.
Determining the cost of an advertising campaign on TikTok depends not only on your budget but also on the advertising format you choose. Each format will have different prices, different calculation methods, and be suitable for each specific advertising goal. Below are the three most popular advertising methods that you need to understand clearly to be able to calculate costs accurately and effectively.
Bidding is a familiar mechanism if you have ever run ads on Facebook or Google. On TikTok, advertisers will participate in a “virtual auction”, in which they set a budget and a desired bid to win the right to display ads in front of users.
TikTok will base on many factors such as bid price, quality of ad content, relevance to the target audience, and predicted performance. The system will then automatically select the winning ad to display. Some common bidding targets:
This method is flexible and suitable for both small and medium-sized businesses, especially when you want to control your budget and test multiple strategies.
This ad format gives you control over who sees your ads and how often. It’s an ideal strategy if you want to reach the right people at the right time and avoid annoying users by showing ads too many times.
For example, if you want your ad to reach 100,000 people in one week with an average frequency of 1.5 times, the TikTok system will distribute your ad to match those metrics. This format helps you:
Specifically, Reach & Frequency is well-suited for branding or remarketing campaigns, where controlling the “exposure frequency” to your brand is crucial.
Campaign Budget Optimization (CBO) is a crucial feature within the TikTok Ads Manager. Instead of setting individual budgets for each ad group, CBO allows you to allocate a single, overarching budget for your entire campaign. The system then automatically optimizes the distribution of this budget to the most effective ad groups.
This ensures your budget is used more efficiently, campaigns are more likely to achieve desired results, and you save time on management. Before setting up a CBO campaign, make sure you’ve clearly defined:
Step 1: Create a new campaign in the TikTok Ads Manager.Step 2: Select the appropriate advertising objective (e.g., increase conversions, boost traffic).Step 3: Turn on the Campaign Budget Optimization (CBO) option.Step 4: Choose your budget mode:
Step 5: Select your bidding strategy:
Step 6: In the “Delivery” section, the mode will default to Standard and cannot be changed.
Step 7: Create your ad creatives and finalize the campaign.
To ensure CBO works most effectively, keep these principles in mind:
TikTok ad campaign cost aren’t fixed; they’re flexible based on your campaign’s objectives, formats, and scale. You can start with a small budget or invest heavily in reservation formats, depending on your marketing strategy. Most importantly, understanding the characteristics of each cost type will allow you to allocate your budget appropriately to achieve optimal results on this powerful social media platform.
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Frequently Asked Questions
The cost for a TikTok AGE (Automated Goal-based Experience) ad campaign isn’t fixed. It depends on several factors, including your campaign goals, target audience, competition level, ad format, and your chosen budget. However, the minimum daily budget to start an AGE campaign is typically around VND 200,000. This starting point provides TikTok with enough data to automatically optimize your ads, aiming for the highest effectiveness at a suitable cost for both small businesses and large brands.
Yes, TikTok allows businesses to set flexible budgets based on their financial capacity. You can kick off an ad campaign with a minimum daily budget of approximately VND 200,000. The platform supports optimizing performance towards specific goals like views, engagement, or conversions. This means that even with a smaller budget, you can still reach the right audience and achieve significant results if you optimize your campaigns effectively.
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