Despite the controversy happening around the restrictions and banning of the video sharing app, TikTok managed to become one of the most downloaded apps with more than 800 million users globally.
At such a growth rate, TikTok for Business was anticipated, the premium minimum budget however, is driving small to medium business with limited budgets to think twice before jumping on the bandwagon.
Here’s what you need to know when considering investing in TikTok ads
What are Tiktok Ads
TikTok for business is the latest addition to social media advertising platform. Launched in June 2019, the new tool takes a lot after the competing platforms, Instagram and Facebook, simplifying the process of creating and optimizing ads . It allows multiple targeting options based on gender, location, age, and interest among others, with the ability to create Custom Audiences and Lookalike Audiences.
The main reason that marketers have been reluctant to advertise on TikTok is the primary age group of users, predominantly teenagers. With limited purchase power and control over decision making, it make sense for marketers with low budgets not prioritize TikTok Ads.
However, if resources and budget allow, investing in TikTok could be a smart move, given the huge growth the platform achieved so far. You can start with a free Pro account, that enables you to grow your audience organically, who know it can become your primary channel one day.
Cost of TikTok Ads
TikTok ads are a bit on the premium side, with one of the highest rates in the social media sphere, requiring a minimum spend on $500 to get started with a campaign and a minimum ad group budget of $50. TikTok charges $10 per CPM, which makes it too high for small business.
Ways to Advertise on TikTok
TikTok offers 6 forms of advertising, namely, In-Feed Ads, Branded Takeover, Top View, Branded Hashtag Challenge, and Branded Effects. You can choose one of these formats, all of them, or mix and match to get the best results.
The different types of advertising mean you have the option to place your ad in your audience’s feed with clickable links, Branding Takeover will place your ad just as the user is opening their app, and in the For You page. Top view, is the longest video format, it appears 5 seconds after the user opens the app. Additionally advertisers can choose to sponsor a hashtag in the Discovery page, or customize the ad using filters, stickers and lenses.
TikTok’s algorithm takes 3 factors into consideration, content, engagement and location. The algorithm will show users the type of content they are interested in, through their shares, follows and interactions. Videos that have higher engagement will appear in front of a higher number of users, and lastly, the algorithm will display videos that are relevant to your location and preferred language.
Are you interested in running TikTok ads? Contact us, we are here to help you.