Currently, businesses are considering the cost of advertising on TikTok to attract potential customers. However, not everyone knows the advertising budget and how to optimize investment costs in marketing on this platform. In today’s article, Optimal FB will share specific information on TikTok minimum ad spend in the UK.
What is TikTok Ads?
Advertising on TikTok (TikTok Ads) is an effective marketing tool that helps businesses increase brand awareness and sales. The process of running TikTok ads promises to capture customer attention for your products or services from TikTok to other sales channels such as websites, e-commerce platforms, or social media. In Vietnam, TikTok Ads is becoming an attractive marketing channel, especially when targeting young customers. Using TikTok Ads not only brings many benefits to businesses but also taps into a rapidly growing market.
About TikTok Ad Bidding
TikTok Ad Bidding is an important factor that businesses need to pay attention to. This represents the level of competition as businesses bid to secure advertising spots on the platform. Bidding higher than competitors means your ads will be prioritized for display, but it also increases advertising costs. Therefore, finding a reasonable bid is crucial to ensure advertising effectiveness and cost control. Each business will have its bidding strategy, depending on its budget, advertising goals, and the level of competition in its industry. Optimizing bids to be suitable and not wasteful is a key part of running TikTok ads.
The methods to calculate TikTok ads bidding costs are:
- CPM: Cost per 1,000 impressions
- CPM: Optimized cost per 1,000 impressions
- CPV: Cost per 1,000 views
- CPC: Cost per click
Each ad format has different characteristics and cost calculation methods. In the Ads Manager, the minimum daily ad cost for In-Feed ads is $16.42, and the total minimum cost is $229.93. The average advertising cost per 1,000 impressions (CPM) on TikTok is $2.
For YouTube ads, you might need to spend between $10,000 to $30,000 to reach 100,000 viewers. On the TikTok platform, you can place ads at a cost per 1,000 video views (CPV) for 6 seconds or 2 seconds. You can choose your spending level for each view on TikTok.
The average cost per click (CPC) on TikTok is about $0.21. The oCPM (Optimized Cost Per Mille) indicates the price you are willing to pay to generate 1,000 impressions (similar to CPM). oCPM is currently the default bidding method for “Conversion” or “App Install” advertising objectives.
TikTok minimum ad spend in the UK
To achieve optimal effectiveness in advertising on TikTok, businesses need to ensure a reasonable budget. Marketing campaigns costs not only affect the ability to reach customers but also determine the success of business plans. TikTok recommends that businesses allocate at least $500 for each campaign and $50 for each ad. This is the minimum budget required to effectively deploy marketing campaigns on this platform. However, adjusting the budget up or down can be done depending on the specific goals of each business to achieve the desired results.
Cost for 100,000 Views (CPV)
The average cost per view (CPV) on TikTok is typically much cheaper than on YouTube. While YouTube ads may cost between $10,000 to $30,000 to reach 100,000 views, TikTok allows advertisers to bid a CPV of only $0.01 to $0.03 per 1,000 views. If you want to reach 100,000 video views at $0.05 per view, it would only cost $5,000. This is a very reasonable expense compared to reaching the same number of views on YouTube.
Cost Per Click
When preparing a budget for TikTok advertising, an important factor for businesses to consider is the cost per click (CPC). This cost directly affects the ad budget as well as the effectiveness of the campaign. Recent studies indicate that the average CPC on TikTok is around $0.19. With a budget of $50,000, businesses will obtain 155% more clicks compared to advertising on Facebook and Instagram, while the cost is 36% lower. However, it is important to note that the CPC can vary depending on the specific type of ad. Factors such as the industry, target customer group, and timing will affect the CPC and the campaign’s effectiveness.
TikTok ad spend allocation methods
Standard Distribution: This is an ad budget allocation option provided by TikTok. In this method, the cost per result (e.g., per conversion) may be higher or lower than the set bid, but the fluctuations are usually not significant. This method allows ads to be shown to the target audience based on the natural distribution of traffic over the chosen period, optimizing returns from the spent ad budget.
Accelerated Distribution: This is another option for TikTok ad budget allocation. Compared to standard distribution, this method may increase or decrease the cost per result (e.g., per conversion), but on average, it stays close to the set bid. This method uses up your daily ad budget as quickly as possible within the chosen period, rather than spreading it evenly throughout the day like the standard method. For example, if you set a daily budget of $1,000, the accelerated distribution method will use this amount as quickly as possible, depending on the system’s optimization speed.
By this article, Optimal FB hopes it can help you understand TikTok minimum ad spend in the UK and the methods of ad spend allocation on TikTok.
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FAQ
The Apple TikTok service fee is a charge that businesses must pay to Apple to use the advertising service on the TikTok platform via iOS devices, such as iPhones and iPads. Apple imposes this fee to attract revenue from ads displayed on applications and websites operating on its operating system. This also affects TikTok ad costs when users access the app from Apple devices.
Closing ads on TikTok usually requires a cost, but the amount you need to pay will depend on various factors such as advertising goals, target customer audience, ad duration, and the type of ad you choose. TikTok offers a range of ad options, such as in-feed ads, brand ads, and custom hashtag challenges. The fee is typically determined based on the number of views, interactions, or other advertising objectives. In summary, closing ads on TikTok usually requires a certain amount of spending to reach your target audience effectively.
