For online businesses, TikTok is one of the most popular platforms for product promotion. However, the TikTok ads cost is a concern for many businesses when choosing this channel to promote their brand and products. How can you accurately calculate TikTok advertising costs? Follow the article from Optimal FB below to learn TikTok ad budget calculators.
How much is the TikTok ads budget?
TikTok ads cost is the amount that advertisers have to pay TikTok to display their ads to the right target audience. TikTok advertising fees are not a fixed number and depend on various factors: ad format, campaign goals, target audience, ad timing and placement, industry competition,… This is an important factor to consider when launching a TikTok ad campaign.
When setting a budget for the entire campaign or a daily budget, you need to determine the minimum TikTok ads cost to ensure continuous ad distribution. The minimum TikTok ads cost is $10 for each CPM, and this amount can increase to $300,000 for large campaign budgets. TikTok requires a minimum of $500 for ad campaigns that align with your business goals.
The minimum cost for running TikTok ads is $12.32 with two budget options: total budget and daily budget. If the minimum budget at the campaign level is $20.53, then at the ad group level, it will be $17.24. Additionally, TikTok ad costs will vary depending on the ad format you choose, leading to fluctuations in the campaign budget.
Pre-set TikTok ads budget on TikTok
For Top View video ads, the basic cost per impression is $1.35, and the targeting cost per impression is $1.69. The minimum daily budget for Top View ads is $10,800.
The cost of Branded Effect ads in standard format (2D/2D pro effects) is $37,350. For advanced format ads (3D/GBE effects), the cost is $67,350.
The cost for Branded Hashtag Challenge ads for the first three days is $11,100. The minimum cost for a campaign is $29,500. The maximum total cost for a Branded Hashtag Challenge ad campaign is $40,600/70 days.
TikTok Ad Bidding Budget
The cost of bidding ads on TikTok is calculated using the following methods:
- CPM: Cost per 1,000 impressions
- oCPM: 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 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, it might cost between $10,000 to $30,000 to reach 100,000 viewers. On TikTok, 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” ad objectives.
R&F TikTok ads Budget
The minimum budget for a 1-week R&F campaign is approximately $53.69, aiming to achieve 100,000 reach and a frequency of 1.28, meaning that out of 128 people reached, 28 will see the ad at least twice.
TikTok ad budget calculators. Methods to determine TikTok ads budget
TikTok offers various types of ads, and each format has different advertising costs. The TikTok ads costs can be determined by the following methods:
Bidding
This is a familiar way of determining costs for advertisers, especially those who have run ads on Google and Facebook. Advertisers compete for ad placement on TikTok by bidding for ad positions. Features of TikTok bidding ads include:
- Creating campaigns in the TikTok Ads Manager.
- Flexible costs without upfront payment.
- No need to purchase ad space.
- Focus on optimizing performance and conversion rates.
Pre-set ads
Because the number of ad placements on TikTok is limited, advertisers must pre-book to secure a spot if they want to use this cost calculation method. This means you cannot run ads on-demand as with the bidding method. Formats under pre-booked advertising include: TopView, Branded Effect, Branded Hashtag Challenge.
You need to contact TikTok partners to pre-book ad space. However, this type of advertising is effective for increasing brand visibility and awareness. It has high costs, requires upfront payment, and is less flexible, making it suitable only for large brands.
Reach and Frequency (R&F) ads
This type of ad allows advertisers to control the reach and frequency of ad displays to the target audience based on a fixed price. This cost determination method is often combined with other formats to optimize the number of target audience reach. This helps your business become “top-of-mind” in the customer’s mind.
This type of ad has two distribution forms: Standard and Top Feed. Top Feed is set up to optimize ad placement for reach and frequency, enhancing ad visibility and brand recognition.
Tips for optimizing TikTok ad budget
Once you know the TikTok ads cost, you need to know how to optimize these costs. Here are some tips to avoid wasting your TikTok ad budget:
Adhere to TikTok’s advertising policies
Similar to other advertising platforms like Facebook and Google, TikTok has specific policies for each ad category. Advertisers need to adhere to these principles to avoid wasting their TikTok Ads budget.
Create engaging ad content
TikTok values unique, interactive content. Videos that lack creativity and fail to capture viewers’ attention will not attract viewers, even with TikTok ads. To avoid wasting the ad budget, you need clear guidance on creative content for your TikTok channel. Consider hot topics such as entertainment, humor, trends, exploration, new experiences…
Diversify communication activities on TikTok
This is one way to optimize TikTok ad costs. Successful TikTok Ads campaigns require combining ads with activities such as:
- Collaborating with celebrities (KOC, KOL, Influencers) who have an influence on the target audience. This helps your video spread quickly on TikTok and persuades customers to purchase more easily.
- Sharing TikTok ad videos on multiple platforms: This method helps your ad video reach a wider target audience. Share your ad campaign on platforms like Facebook and Instagram…
- Actively creating hot trends on TikTok will support running ads to attract viewers to your channel.
Optimal FB has listed the most accurate TikTok ad budget calculators. We hope you can apply these methods to calculate the ads costs on this platform.
Contact Info
Information about “TikTok ad budget calculators” hopes to provide you with additional necessary knowledge. At optimal FB, there is a team of highly qualified and experienced staff and experts who will provide… as well as support when you run Facebook ads. Contact us via phone number: +84 564 104 104.
FAQ
When deciding to increase your TikTok ad budget, it is crucial to have a careful and effective strategy. First, identify the specific goals you want to achieve from your ad campaign, such as increasing views, sales, or brand awareness. Ensure you understand TikTok’s advertising tools and how to use them to achieve your goals. Finally, propose a budget that fits your goals and strategy, and monitor and evaluate the campaign’s performance to make necessary adjustments. This helps optimize the effectiveness of your TikTok ad budget and achieve the desired results.
The monthly cost of running ads on TikTok can vary depending on factors such as advertising goals, audience, business sector, and competition. For each ad campaign, you can set a daily budget or a total budget for the entire campaign. Costs can start from a few hundred to several thousand dollars per month for small and medium businesses. However, larger businesses or bigger ad campaigns may invest more to achieve their goals and effectively reach their target audience. TikTok typically uses a bidding model where you compete with other advertisers for ad placement to determine specific costs.
