TikTok advertising, TikTok advertising display format

02. How much does TikTok advertising cost?

Getting started with TikTok advertising is a bit expensive. Its premium costs are higher compared to most social media platforms. While you can create in-feed ads based on your budget and schedule, you’ll need a minimum campaign budget of $500 to get started. The minimum budget for an ad group is $50. Unlike Facebook, where you can launch an ad campaign for as little as $1, TikTok can be a bit pricey.

TikTok ads start at $10 CPM. Adage's report suggests that TikTok advertising costs can range from $50,000 to $120,000, depending on the ad format and length.

These advertising costs may be too high for a small business or entrepreneur. The good news is that in addition to TikTok’s native paid ad program, there are other ways to advertise on the platform.

TikTok Ad Formats

TikTok has 5 ad formats. Let’s look at how each type works.

##Internal Advertising##

In-feed ads are similar to the ads you see when you scroll through Instagram. In-feed ads appear when users scroll through the "For You" section on TikTok's homepage.

In-feed video ads can be between 9 and 15 seconds long. You can also add a call to action to increase conversions.

A call to action can be a link to your website (to help you increase website traffic), a link to your online store (to boost sales), or a link to a landing page (to help increase subscriptions to your service). Calls to action are the limit. You can even add as many calls to action as you want.

Another feature of TikTok’s built-in ads is that users can like, comment, share and interact with videos. Therefore, if you want to increase engagement with your followers, Feed-Feed Ads are a suitable option.

##Brand Takeover##

Brand takeover ads are TikTok ads that appear as soon as a user opens the app. The ad will appear as a full-screen video on the user's device.

This ad format is more direct than inline ads because your ad is the first thing users see when they open your app. Another feature of this ad format is that your ad can also appear in the For You page as a video, GIF, or static image.

You can also include a clickable link that directs users to the Hashtag Challenge within the app, or as an external link to the destination page.

This is an example of how Guess the Jeans used the clickable link feature to redirect users to their viral #InMyDenim challenge.

Source: TikTok

Guess Jeans launched a brand takeover ad featuring a clickable link to raise awareness for the hashtag challenge campaign. The challenge involves consumers showing off their fashion style with denim.

Six days after running the brand acquisition campaign, 5,500 users created videos using the hashtag #InMyDenim. The videos have over 10.5 million views, a 14.3% engagement rate, and over 12,000 users follow Guess’ TikTok account.

Please note that brand takeover ads are exclusive. This means users will only see one brand takeover ad per day. This factor makes it costly for brands to take over advertising.

##Top view##

TopView ads are very similar to brand takeover ads. The only difference is that the TopView ad appears 5 seconds after the user opens the app.

This is also TikTok’s longest video ad format. TopView videos can be up to 60 seconds long. The video plays full screen with sound and autoplay. This ad allows you to add links to internal or external pages.

Balenciaga uses the TopView ad format to drive traffic to their shopping page.

Source: TikTok

The ad features a beautiful full-screen video of their product, overlaid with bold text to draw attention. They added a call to action to drive people to their shopping page.

The ad received more than 23 million impressions in the UK, France and Italy. The average click-through rate for ads is about 18%.

##Brand Label##

Branded hashtags are sponsored hashtag ads in TikTok’s Discover Page.

When users click on a sponsor's tag, they will be redirected to a landing page with the sponsor's logo, website link, challenge instructions, and the most popular videos using that tag.

The only downside to this ad format is its high cost. To advertise on TikTok’s Discovery banner, you might have to pay up to $150,000.

The good news is that you don’t have to spend a lot of money to run a branded hashtag challenge. Instead of using TikTok’s advertising program, you can work with influencers to promote your branded hashtag.

##Brand Effect##

With this ad format, brands can customize their ads with AR filters, stickers, lenses, and branded shareable stickers. You can also create custom filters directly on the app.

Source: TikTok

Branding can help add personality to your ads. Your goal is to get the user's attention and get them to take a specific action.

Branded effects like stickers and augmented reality can help you increase engagement with your ads.