As you know, TikTok, with more than 800 million monthly users, has become a prominent social platform for advertisers looking to reach young audiences. Advertising on TikTok requires you to carefully consider whether it is right for your brand or not. This is important because TikTok is not only a place to promote products but also an opportunity to build interesting stories and strong connections between brands and young consumers. This platform is not only a place for creativity to explode but also brings valuable lessons and new successes. Let’s explore with Optimal FB details about the advantages and disadvantages of advertising on TikTok in the article below!
What is advertising on TikTok?
TikTok Ads is a method of using the TikTok social networking platform to deploy marketing and advertising campaigns for products or brands. TikTok Ads allows users to create and post short videos about 15 seconds long, with creative and unique content. Running ads on TikTok Ads helps bring customers to the products they are interested in on TikTok and thereby redirect them to other websites such as Facebook, Shopee, TiKi, Lazada, or the business’s own website.
There are three forms of advertising that TikTok provides to users:
- Brand Takeover: This is a type of ad that appears as soon as the user opens the TikTok application. The advertising video will only display for a short period of time, from 3-5 seconds, and then redirect viewers to a destination link such as another application or website. This type of ad is limited to one advertiser per day.
- In-feed ads: Place this ad right after the TikTok video. Ad videos can be from 5 to 15 seconds, and after 9 seconds of playing the ad video, there will be an action button. Users can tap the button to redirect to your website or app, or skip over the ad if they’re not interested. This type of advertising is suitable for small businesses and has the lowest cost.
- Hashtag Challenges: This is a popular form of advertising, users create and share videos based on the theme of the challenge available in the form of hashtags. Hashtag Challenge stimulates interaction and spread on TikTok, especially suitable for industries such as fashion, cosmetics, beverages, travel, online education, and online documents.
With more than 800 million monthly users, TikTok Ads is an important tool for businesses to reach young and dynamic customers quickly and effectively.
Why do most businesses run ads on TikTok?
TikTok has gradually changed the way we consume and produce content online. What is especially noteworthy is that this platform is not only a unique source of entertainment but also brings outstanding advantages to users and businesses. TikTok has become a unique creative space where new talent can shine and build their reputation quickly. One of the most important components of TikTok is its ability to reach a younger customer base. Especially Gen Z, this group stands out with its impressive spending ability and high priority on digital experiences. They often choose new social networking platforms that offer higher privacy features, like TikTok, instead of traditional social networks. TikTok attracts 62% of users under 30 years old, creating an ideal environment for creativity and direct connection between brands and consumers.
With this reality, if your target audience is Gen Z and young Millennials, investing in advertising on TikTok becomes more attractive than ever. This is not just a marketing strategy but an opportunity to increase engagement and insight into the world of your target audience. TikTok provides a unique space for businesses to reach a rising generation of young consumers. Besides, TikTok is also open for small businesses to join the platform. Previously, only major brands had the opportunity to advertise on TikTok through special deals. However, with growth and positive market feedback, TikTok has reduced barriers and provided a self-service advertising platform. This not only allows small businesses to participate but also creates a flexible testing environment and provides financial support for small businesses in the difficult context of the COVID-19 pandemic.
By setting a minimum ad campaign budget threshold of $500 and offering up to $300 in free ad credits to small businesses, TikTok is truly playing an important role in supporting innovation and growing businesses. All creates new opportunities for small businesses to expand their reach and succeed on a powerful digital platform like TikTok.
Some disadvantages of advertising on TikTok
Although TikTok has attracted billions of users globally, this popularity does not come with issues related to online privacy and safety. These crises pose significant challenges for platform managers as well as great concerns for the user community about protecting personal information and preventing inappropriate content. TikTok, although criticized over data and privacy issues, its self-serve advertising platform is still in its early stages of development. This creates certain challenges for advertisers compared to large competitors like Facebook. Building a large advertising network on TikTok can make it difficult to reach the right target audience due to the limited nature of the platform.
Even so, nothing denies TikTok’s potential to expand its narrower targeting options in the future. This could create new opportunities for more flexible and unique advertising strategies, helping advertisers take full advantage of the platform’s potential. However, innovation always comes with challenges, and TikTok is on track to build a strong advertising infrastructure to prove its potential. Another important aspect to consider when choosing an advertising platform is user engagement with the ad. TikTok stands out for its uniqueness and creativity in its content, however, this is not necessarily reflected in the advertising experience on the platform. Compared to competitors like Snapchat or Facebook, TikTok has a different user model, where users often only watch and move quickly through content without deeply interacting with ads. This poses a challenge for those who want to attract attention and redirect users to their website or app.
Therefore, when making advertising decisions on TikTok or other platforms, understanding user characteristics and trends is extremely important. This will help you build the most effective advertising strategy, consistent with your business goals, and improve your ability to interact with your target audience.
In the article above, we have listed for you the detailed content in the most accurate way. We hope that the information we have shared can help you learn about the benefits of running ads on TikTok and some of the limitations of setting up promotional campaigns on this platform.
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FAQ
The cost of running ads on TikTok each month can vary depending on many factors such as the popularity of each ad type, business field, target customer audience, and level of competition on the platform. For average advertising campaigns, costs can range from a few thousand USD for small, retail campaigns to tens of thousands of USD and even hundreds of thousands of USD for large, complex advertising campaigns. Determining a suitable budget and reasonable advertising strategy is very important to ensure efficiency and profitability for businesses on the TikTok platform.
Running TikTok Shop ads is an effective strategy to reach a young and dynamic customer base. TikTok Shop allows brands and businesses to advertise and sell their products directly on the TikTok platform, capitalizing on the popularity of short videos to attract attention and increase sales opportunities. The combination of creative content and live shopping helps increase engagement and convert viewers into potential customers for businesses.
