How Much Are TikTok Ads? TikTok Ads Pricing in 2023

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Carolyn Howell

Last Updated: Sep 20, 2023

TikTok Tips

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How much are TikTok ads? This question holds the key to unlocking the vast potential of influencer marketing on TikTok. After sealing that brand partnership deal, what comes next is to create a strategy to reach the brand’s target audience. Interestingly, TikTok ads offer a unique opportunity to reach a broader audience and boost your influence.

Understanding TikTok advertising helps influencers choose the best way to deliver brand messages and promote their personal brand. This guide will discuss TikTok ads pricing in 2023 and how to set up a successful campaign. Let’s dive right in.

The TikTok app icon.

What Are TikTok Ads, and Why Do Influencers Need Them?

TikTok ads are promotional videos that pop up on users’ feeds when they scroll through the app. Brands use them to get their message out to their target audience.

When brands run ad campaigns on TikTok, they usually seek influencers to participate and promote their products. Thus, you play a significant role, and understanding TikTok ads and their cost can position you as a valuable partner. Aside from that, here are some reasons you need TikTok ads:

  1. Additional Income Stream

TikTok ads provide you with an additional income stream. You can create and promote your own content independently, separate from brand partnerships, and earn income directly on the platform.

  1. Gain More Exposure

With over a billion monthly active users in TikTok, ads expose you to a broader audience beyond your followers. More exposure can increase your follower counts and result in higher engagement rates. The brand gets more customers, and you gain more exposure. This is a win-win situation for both you and the brand.

  1. More Collaboration Opportunities

You can promote sponsored content through TikTok ads to maximize the visibility of the brand you partner with. Brands like working with pros and appearing in ads can open new opportunities to work with additional brands.

Overall, understanding how much TikTok ads are and how they work helps influencers get more deals and expand their reach. However, there are different types of ads, and their prices vary. Without further ado, let’s explore how TikTok charges for ad campaigns.

A user is lying on the floor and watching an ad on her TikTok feed.

How Much Are TikTok Ads in 2023: 2 Ways TikTok Charges for Ads Campaigns

Many influencers and brands often ask, “How much are TikTok ads in 2023?”  The answer to this question depends on what angle you are asking from. TikTok offers two primary methods for brands and influencers to pay for ads: Auction Ads Pricing and Reservation Ads Pricing. Let’s break down the two ways TikTok charges for ad campaigns in 2023.

TikTok Auction Ads Pricing

The first way TikTok charges for ads is through an auction pricing system. Here, businesses and influencers bid for TikTok to show their ads to their audience. Five factors determine the TikTok auction ad prices:

  1. Bidding Strategy:

You start by choosing a bidding strategy for your campaign. There are two bidding strategies:

  • Cost Per Click (CPC): You pay when someone clicks on your ad. This usually costs $1.
  • Cost Per Mille (CPM): You pay for every 1,000 times your ad appears on users’ feeds. Even if people don’t click, you pay for the number of times your ad appears. CPM costs $10 per 1,000 views. The one you choose will affect the cost of your TikTok ad. The table below summarizes the two types of bidding strategies and their costs.

Cost Per Click (CPC)$1
Cost Per Mille (CPM)$10
  1. Bid Amount

After choosing a bidding strategy, you set the maximum amount you want to pay for the auction ads. Higher bids usually increase the chances of your ads appearing on users’ feeds. So, if you want to know TikTok ads’ price, you should first consider the amount you want to bid.

  1. Target Audience

Your target audience on TikTok determines the ad’s cost as well. You can choose your target audience based on age, interests, and location. The more specific your target audience is, the more you pay.

  1. Campaign Length and Frequency

The duration and frequency of your ad campaigns can affect the cost. Longer campaigns or more frequent ads can cost you more.

  1. Budget Limit

Your budget limit also plays a role in determining your ads’ cost. You can choose between lifetime or daily budgets to monitor your spending.

Therefore, the cost of TikTok ads depends on many factors.

A TikTok influencer creating a video for his ad campaign.

TikTok Reservation Ads Pricing

TikTok reservation ads are more expensive than auction ads, and brands usually choose them for their effectiveness. Let’s discuss reservation ad pricing, their types, and how it works. 

  1. Brand Takeover Ads

These ads cost about $50,000 daily but are worth every penny. They are exclusive, and TikTok allows only one brand to use them daily per category. These ads can be in the form of images, videos, or GIFs. They are short and sweet, usually lasting a few seconds.

  1. Branded Hashtags Challenges

Branded hashtag challenges are the most expensive ads on TikTok. Here, brands create a trend on a topic, add a hashtag peculiar to the firm, and encourage users to participate. TikTok usually charges $150,000 to feature branded hashtags on its Discovery banner.

  1.  In-Feeds Ads

In-feed ads on TikTok are mini commercials that pop up when users scroll through videos. These ads cost at least $1000 or $10/impression. They are short and catchy, helping brands reach and engage with users creatively and in a fun way.

  1. Branded Lenses

Branded lenses are like Snapchat’s branded filters. This feature allows users to use special effects to create fun and interesting videos with special effects. They cost about $80,000 daily and are great for improving brand visibility and user-generated content campaigns.

The table below summarizes different reservation ad types and their respective costs.

Reservation Ad TypeCost
Brand Takeover $50,000
Branded Hashtags Challenges$150,000
In-Feed Ads$1000 or $10/impression
Branded Lenses$80,000

Overall, TikTok auction and reservation ads help brands and influencers reach their audience. Now that you know the different prices of TikTok ads, it’s your chance to get those TikTok brand deals and make cool money.

A TikTok user setting up an ad campaign.

How To Set up an Ad Campaign on TikTok

Understanding ‘how much are TikTok ads’ and how to set up an ad campaign is vital for every influencer. This will help you manage personal or brand advertising campaigns. Here’s how to set up an ad campaign on TikTok:

  • Step 1: Firstly, you need to switch to a business account. Log on to your app, go to “Settings and Privacy,” then “Manage Account,” and click “Switch to Business Account.”  
  • Step 2: Open the TikTok Ads Manager on your desktop for easy navigation and log in to your business account.
  • Step 3: Click the “Campaign” button at the top of the page. Then, tap the “Create” button to start your campaign level. The campaign level is the first step to creating your TikTok ads.  
  • Step 4: Choose your campaign objective according to your goals or the business goals.  For instance, you can choose to increase traffic or get more conversions.
  • Step 5: Name your campaign to help you identify it quickly.
  • Step 6: Select your target audience. Choose “Automatic audience” if you want TikTok to decide for you or “Custom audience” to choose for yourself.
  • Step 7: Set your campaign budget and schedule. You can start with a minimum budget of $500 or more and choose how long to run your campaign. 
  • Step 8: Create a captivating video for the ad. You can also choose from your existing videos. Just make sure you choose the best video to resonate with your audience.
  • Step 9: Choose your ad placement. This is where you choose if your ad is a branded challenge ad, an in-feeds ad, and so on.  Then, click “Submit.”

That’s it! You now know “how much are TikTok ads” and how to set up an ad campaign. But are there alternatives to paid TikTok ads? Let’s find out!

2 Alternatives To Paid TikTok Ads

When considering the price of TikTok ads, many influencers usually ponder if there are alternatives to TikTok ads. This is because TikTok Ads are expensive, and aspiring influencers may be unable to afford it or understand its complexities. Interestingly, there are two alternatives to paid TikTok ads. Let’s briefly discuss them.

  1. Promote on TikTok for Free

Yes, you read that right: promote on TikTok for free. As a budding influencer, promoting on TikTok for free allows you to connect with your audience without paying a dime. Here are some tips to guide you:

  • Create engaging, organic content and participate in trending TikTok challenges. 
  • Collaborate with other creators and use top TikTok hashtags. This will expose you to their audiences and help you gain more visibility. 
  • Cross-promote your TikTok videos on other social media platforms like Instagram, YouTube, and Facebook.
  • Engage actively with your audience and encourage them to like, comment, and share your content.

While paid ads offer precise targeting, free promotion lets you build genuine connections with your audience and boost your presence.

  1. Partner with an Organic growth agency

Partnering with an organic growth agency is another excellent alternative to TikTok ads. These agencies use organic strategies like content optimization, hashtag targeting, and engagement to boost your TikTok presence. Although you pay for their services, they charge less than TikTok ads and give quicker results.  Moreover,  you get a loyal and active fan base that is more valuable in the long run than paid ads. 

Overall, these two options are good alternatives to paying for TikTok ads. Therefore, instead of worrying about how much TikTok ads are, invest in creating quality content and growing your audience organically.

A user waiting for his TikTok app to load on his mobile phone to create engaging content for his fans.

Reach Your Target Audience and Grow Your Influence With High Social

Usually, influencers like to know the price of TikTok ads when seeking to expand their reach and influence. TikTok ads are a powerful tool for connecting with a brand’s target audience and boosting personal brands. They offer many benefits, including additional income, exposure, and brand collaboration opportunities.

Remember that TikTok ads come in various types and pricing structures. It ranges from auction ads to reservation ads like brand takeovers, branded hashtag challenges, and in-feed ads. Also, it is noteworthy that you must switch to a business account to run your ad campaign on TikTok. Afterward, set campaign goals, choose a budget, create engaging ads, and decide where your ads appear. It’s as simple as that!

While TikTok ads offer valuable advantages, there are cost-effective alternative strategies. The first option is to promote TikTok for free by creating engaging content and cross-promoting on other social media platforms. Another alternative is to partner with growth agencies, like High Social, which specializes in organic strategies for your TikTok growth.

High Social helps brands and influencers reach their target audience using advanced AI targeting tools and audience demographics. They help to expand your TikTok followers and boost your presence on TikTok without you needing to break the bank. So, stop pondering about the question, “How much are TikTok ads?” Instead, let High Social take charge of your TikTok growth. Start growing your audience today!

TikTok Tips