TikTok paid ads cost

TikTok paid ads cost are a primary concern for many businesses looking to reach young customers on this platform. With a flexible advertising model, TikTok allows advertisers to actively control their budget and optimize campaign effectiveness for specific goals. What is the actual cost of running ads on TikTok? Let’s explore the details with Adsupport in the article below.

What is TikTok paid ads cost?

What is TikTok paid ads cost?

TikTok paid ads cost is the budget that a business or individual must spend to display their ads to TikTok users. This is the cost you invest in the platform to increase reach, attract engagement, website traffic, or drive sales through the advertising formats TikTok provides.

On TikTok, you can choose from various ad formats such as In-Feed Ads, TopView, Branded Hashtag Challenge, Brand Takeover, or Video Shopping Ads, etc. Each format has different costs, depending on the campaign goals, target audience, content quality, as well as the level of competition in the industry you are promoting.

TikTok currently has a recommended minimum daily budget of about 200,000 – 300,000 VND per ad group, and about 10 – 20 USD per overall campaign, depending on the market and account type (personal or TikTok Agency). However, if you have a larger budget, TikTok can still expand reach and help campaigns achieve optimal performance.

Summary of TikTok paid ads cost to help users choose campaigns

TikTok is becoming one of the most attractive digital advertising platforms today. However, to launch an effective campaign, thoroughly understanding the costs is crucial. Below is a detailed summary table of TikTok paid advertising costs, helping businesses choose the appropriate format for their goals and budget.

Minimum TikTok ad costs

TikTok sets a minimum budget for an ad campaign at approximately 500,000 VND per day or 500,000 VND per month. This amount allows advertisers to start testing campaigns on a small scale.

Basic advertising costs are calculated using the CPM (Cost Per Mille) model, which is the cost for every 1,000 impressions. The average CPM is 10 USD, equivalent to about 255,000 VND.

Average monthly TikTok ad costs

TikTok advertising costs aren’t fixed; they depend on the scale, business sector, and campaign goals. However, here are two common budget suggestions based on deployment levels:

Basic package for new shops:

  • Ad budget: 10,000,000 VND
  • Fee for 3 ad creatives: 600,000 VND
  • TikTok channel optimization fee: 500,000 VND
  • Campaign monitoring and optimization fee: 1,000,000 VND
  • Total average monthly cost: 12,100,000 VND

Advanced package for shops looking to scale:

  • Ad budget: 20,000,000 VND
  • Fee for 3 ad creatives: 600,000 VND
  • TikTok channel optimization fee: 500,000 VND
  • Campaign monitoring and optimization fee: 1,800,000 VND
  • Total average monthly cost: 22,900,000 VND

TikTok ad costs by bidding model

Bidding allows you to manage your budget more effectively. There are two common bidding models:

  • CPM (Cost Per Mille): This is the cost for every 1,000 impressions. The cost is around $2 USD, equivalent to 50,000 VND.
  • CPC (Cost Per Click): This is the cost for each click. The average cost per click is about 5,000 VND.

You can set specific bid amounts to control your spending and ad performance.

TikTok prepaid advertising costs

With the prepaid model, sellers deposit their ad budget into their TikTok Shop account, and the platform automatically allocates it according to the campaign plan. If there’s any budget left after the campaign, TikTok will refund the unused portion. Here are some specific cost ranges:

  • TopView Ads: Costs approximately $1.35 USD per impression, with a minimum budget of $10,800 USD for 8 million impressions.
  • Branded Effect: Minimum budget ranges from $29,500 USD to a maximum of $40,600 USD for a 70-day campaign.
  • Branded Hashtag Challenge: Costs $37,350 USD for the standard version and $67,350 USD for the advanced version.

TikTok ad fees by reach and requency

This advertising model lets you precisely control the number of people reached and the frequency of impressions.

  • Minimum budget: Approximately $53.69 USD per week.
  • This is equivalent to 1,200,000 VND for 100,000 reaches.

This is a suitable option for businesses that want to tightly control their target audience and optimize campaign performance.

Guide to optimizing TikTok paid ads cost

Guide to optimizing TikTok paid ads cost

TikTok paid ads cost can vary significantly depending on your goals, target audience, and campaign execution. To ensure every penny of your budget is spent effectively, you need to master cost optimization strategies. Here’s a detailed guide to help you maximize your resources and boost the performance of your TikTok Ad campaigns.

Clearly define your goals and target audience persona

Before launching any ad campaign, defining your objectives is the most crucial step. You need to answer the question: What is the goal of this campaign?

  • Increase website traffic?
  • Drive sales?
  • Boost brand awareness?
  • Increase video or account engagement?

Once your goals are set, the next step is to define your ideal customer: their age, gender, geographical location, behaviors, interests, devices used, active hours, etc. TikTok offers a range of smart targeting tools to help you narrow down your audience and reach the right people – at the right time – in the right way.

Design engaging and captivating ad content

On TikTok – a platform that prioritizes short, impactful, and easily shareable content – your content is the most important “weapon” for your campaign to stand out.

  • Invest in high-quality visuals, audio, and effects.
  • Create a genuine, relatable feel; avoid being overtly salesy or incorporating overly “stiff” content.
  • Utilize the 9:16 vertical video format to take full advantage of the screen space.
  • Craft a compelling story within the first 3 seconds to keep viewers engaged.

A creative, eye-catching video is essential for success.

Effectively control ad frequency

Showing ads too many times to the same audience doesn’t just annoy them; it also reduces conversion effectiveness and wastes your budget.

  • TikTok lets you limit daily impression frequency per user.
  • Use A/B testing to experiment with the same content but with variations in images, headlines, and calls-to-action (CTAs) to see which version performs best.
  • Monitor data in Ads Manager to identify which customer groups yield the highest performance. Then, reallocate your budget to those groups instead of spreading it too thin.

Smartly optimize your ad budget

Prudent spending will make your campaign more sustainable. Don’t rush to spend too much money at the start, especially if you don’t yet fully understand user behavior on TikTok.

  • Set a minimum budget so TikTok can gradually distribute your ads, helping you measure initial performance.
  • Monitor CPC (cost per click) and CPM (cost per 1,000 impressions), and adjust your budget based on actual conversion rates.
  • Avoid frequently pausing/resuming ads, as this “interrupts” the optimization process of the TikTok Ads system.

Partner with a reputable agency to optimize your budget

If you’re starting or lack extensive experience, collaborating with a professional TikTok advertising agency is a smart choice.

  • An agency will help you create a detailed plan, select appropriate ad formats, and effectively optimize content and display formats.
  • They possess real-world campaign data and understand TikTok user trends and behaviors across different industries.
  • Additionally, agencies authorized by TikTok often receive preferential pricing, reducing costs like taxes, international processing fees, and payment card charges.

TikTok advertising costs are highly flexible and depend on many factors, such as ad format, marketing objectives, budget, and business size. For highly effective campaigns, advertisers should carefully confsider their budget, combine various suitable ad formats, and regularly monitor performance for optimization. TikTok is a promising platform that can help businesses reach their target customers and increase conversion rates if leveraged correctly.

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Frequently asked questions

How much advertising budget is enough to start an effective TikTok campaign?

You can start with a minimum budget of about 500,000 VND/day to test and monitor performance. Once you have identified a potential audience and effective content, you can gradually increase the budget to optimize results while still saving costs.

Do you need to hire an Agency when you first start running TikTok ads?

If you don’t have much experience, working with an Agency is a smart choice. They not only help you optimize content and target effectively, but also have support policies from TikTok to help reduce costs and increase conversions, especially during the campaign testing phase.

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