Everything You Need to Know About TikTok Ads (2024)

Thinking about using TikTok Ads for your brand or business?

As one of the mostdownloaded apps of 2020with over800 million monthly users— now is the time to start.

Whether you’re looking to make sales, drive traffic to your website, or launch a new product, a creative and well-targeted TikTok campaign can drive great (and huge!) results.

In this guide, discover everything you need to know about the different creative TikTok Ads options.

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Introducing TikTok Ads

From targeting, ad creation, insight reports, and ad management tools, TikTok Ads offer a powerful, yet easy-to-use platform to help businesses and brands advertise to millions of users across the globe.

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While TikTok Ads aren’t as popular as Facebook or Instagram ads (yet!), they’re an incredible opportunity for brands looking to widen their reach. And now is the perfect time to start using TikTok ads — since not many brands and businesses have caught on to their potential.

Whether you’re a small business with a limited budget or you’re running a 10-day campaign, TikTok Ads offers a number of unique tools to help brands and businesses excel.

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Similar to Instagram Ad Manager, TikTok’s advertising platform-tools automate the process of creating, delivering, and optimizing your ads.

TikTok Adscurrently has two budgeting options: daily or lifetime. With both options, your budget isn’t set in stone — you can adjust your budget anytime throughout your campaign.

You can also target your audience by gender, location, age, interests, and other unique variables.

And similar toFacebookandInstagram’s Ad Manager, you can also create “Custom Audiences” and “Lookalike Audiences” to reach new audiences that are similar to your existing ones.

Let’s get into what TikTok Ads actually look like.TikTok offers a variety of different creative ad formats for brands and businesses to explore. You’ve likely seen most of the different types on your daily TikTok scroll.

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Here are the five types of TikTok Ads:

  • In-Feed Ads

  • Brand Takeover

  • TopView

  • Branded Hashtag Challenge

  • Branded Effects

With a variety of different options to choose from, it’s hard to know which ad format is best for your brand — which is why we dive into the different types of TikTok ads and how they can work for your business below.

Ready to take your TikTok strategy up a notch? Watch ourfree 30-minute videoon how to use TikTok to grow your brand!

TikTok Ads: In-Feed Ads

In-Feed Ads are the video ads that appear in between user videos as you scroll through your For You page. If you’re unfamiliar with TikTok and the For You page, In-Feed Ads are very similar to the ads you’d see while tapping throughInstagram Stories.

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You can get super creative with In-Feed Ads. You can include multiple call-to-actions and make your video anywhere between 9 to 15 seconds.

Having the opportunity to include a call-to-action is a huge advantage. For example, you can encourage users to shop now, download your app, or visit your website right from TikTok.

See howAdobeuses a clear CTA in their In-Feed Ad below.

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One thing to keep in mind is that like any other video on your For You Page, In-Feed Ads can be scrolled past or skipped pretty quickly. You only have about 2-3 seconds to catch your audience’s eye before they keep scrolling.

In-Feed Ads should be full screen and should be enticing enough to stop users from scrolling past your content.

When it comes to stopping the scroll,Sawyer Hartman, the CEO of Cameras on TikTok, gave some sound advice on our “Talk the Tok” Workshop:

“The text on TikTok videos should establish a problem or grab attention right away. Imagine your perfect viewer is sitting and watching your video with the sound off, what text can you put and what story can you tell that will convince them to turn their sound on?”

SAWYER HARTMAN

Hear more tips and tricks from Sawyer and our other TikTok experts in the full TikTok Workshop here:

Another positive to In-Feed Ads? TikTok users can like, comment, share, and interact with your video just like any other video on the For You page.

TIP: Work with influencers for your In-Feed ads!Take Levi’s for example.

Levi’sworked with several TikTok creators — sending each of them their Future Finish 3D denim customization technology, giving them full creative control over their jeans.

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The creators’ videos appeared on TikTok as In-Feed Ads where users could click on the “Shop Now” button to buy the same design on Levi’s website.

TikTok Ads: Brand Takeover

Have you ever opened up TikTok and received an ad right away? If so, those are Brand Takeover Ads.

Brand Takeover Ads appear upon opening the app — presenting a full-screen video to your targeted audience.

They’re one of TikTok Ad’s best options for delivering mass awareness and driving direct sales since you can place your messaging right in front of your target audience.

Not only do these ads show up as soon as users open TikTok, but they can also appear on the For You page as still images, GIFs or videos — including a clickable link driving users to a landing page or aHashtag Challengewithin TikTok.

See how Guess Jeans had their#InMyDenimChallenge advertised all across TikTok. The photo below on the far left is an example of a Brand Takeover.

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Brand Takeover Ads are exclusive to their category, which means that TikTok makes sure users don’t see more than one Brand Takeover per day. With Brand Takeover Ads you can expect a lot of eyes on your content with little competition.

If you’re just starting out with TikTok Ads, Brand Takeovers may not be your first choice. Because, while super effective, Brand Takeovers do come at a high cost.

If you’re a bigger brand with a large marketing budget, they are a great option for fast growth and reaching a large group of TikTok users.

TikTok Ads: TopView

TopView Ads are a new advertising option that builds on Brand Takeovers.

What makes TopView Ads different is that unlike Branded Takeover Ads, TikTok users aren’t bombarded with an ad as soon as they open the app — TopView Ads are the first in-feed post after 3 seconds.

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It shows up at the top of the For You page, TikTok’s most premium real estate, with up to 60-seconds of full-screen video with auto-play and sound.

TikTok Ads: Branded Hashtag Challenge

Branded Hashtag Challengesare a one-of-a-kind advertising opportunity exclusively to TikTok. You’ve probably seen branded hashtag challenges displayed on TikTok’s Discovery page.

Similar to regular hashtag trends and challenges on TikTok, Branded Hashtags Challenges offer both organic and sponsored opportunities for brands.

They’re a great way to encourage user-generated content and build brand awareness.

The best part about Branded Hashtag Challenges? You can have a ton of fun with them! They are an awesome way for brands to collaborate and seamlessly integrate themselves into the TikTok culture and community.

It’s important to have concrete objectives when you’re creating a Branded Hashtag Challenge. Are you looking to create awareness for a new product? Generate new leads? Or increase general brand awareness?

When a user clicks on a sponsored hashtag, they’re taken to a landing page on TikTok with the brand logo, link to their website, brief description of the challenge, and popular videos using the hashtag.

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If you’re looking for maximum exposure, you can pay up to ahefty $150,000 per dayto show up on TikTok’s Discover banner. That’s huge real estate but it’s not the only way to get users engaged with your branded hashtag.

TIP:If you’re looking for a less costly alternative, partner with popular creators on TikTok, like Houseparty and Freal Milkshakes below, to help your challenge take off!

Check out how the popular video messaging app,Houseparty, uses branded hashtags in a recent campaign on TikTok.

See howHousepartypartnered with Gen-Z heartthrob Chase Stokes (or better known as “John B” from Outer Banks) to help push their hashtag even further.

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ICYMI:TikTok now offers an e-commerce feature called theHashtag Challenge Plus— a feature that lets users shop for products right in the app.

TheHashtag Challenge Plusfeature — which has only started rolling out on select accounts — offers a separate “Discover” tab on the hashtag’s landing page where TikTok users can browse products from the campaign and purchase them right within TikTok.

TikTok Ads: Branded Effects

TikTok now offers branded shareable stickers, AR filters, and lenses in their advertising mix.

Similar to Snapchat’s branded lenses,TikTok’s branded effectsallow brands to design their own custom filter on the app.

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Branded Effects can be live for up to 10 days at a time and are an awesome way to encourage users to directly interact with your brand (in a fun way!).

How Much do TikTok Ads Cost?

TikTok Ads are new to the scene — brands and businesses are still experimenting with the platform — so understanding the average spend or return on investment (ROI) is difficult.

So, if you’re a small business and want to give TikTok ads a try, don’t let the unknown scare you off right away — spending big bucks on TikTok isn’t the only way to advertise on the popular app.

You can set up a free TikTok Ads account and create In-Feed ads with your own set budget and schedule. Currently, TikTok’s minimumcampaign budgetis $500 and the minimumad group budgetis $50.

However, it has also beenreportedthat the cost of advertising on TikTok can be anywhere from$50,000 to $120,000,depending on the type and duration.

If these reported numbers are true, it would make sense as to why we haven’t really seen smaller businesses advertising on TikTok just yet.

As more brands begin to engage and use TikTok Ads, it will become more clear whether TikTok will follow a similar model to Instagram and Facebook ads where (no budget is too small), or if they will continue to keep certain ad types, like branded hashtag challenges, as elite spends.

Watch this space!

How to Create a TikTok Ad

Now that you’re familiar with TikTok’s creative advertising options, it’s time to talk about the tools that help get your ads into action.

Before you can go ahead and create ads on TikTok, even In-Feed ads, you have to be approved by TikTok. It’s not a difficult process, just an extra step to keep in mind.

Here is how to request a TikTok Ads account:

#1:Head to theTikTok Ads homepage.

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#2:Enter your country and account type and press “Next”.

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#3: TikTok Ads is currently only available in certain regions.Fill out all of your contact information and depending on if TikTok Ads self-serve is available in your region, either press “Make a Reservation” or “Inform me of Future Updates”.

Note:TikTok Ads Managerself-serve platformis now available in the United States for businesses of all sizes.

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#4:Now it’s time to wait for TikTok to send more information. Make sure to double-check all your email folders (promotions, social, junk, etc).

Follow these stepsif you don’t receive verification.

TIP:If you know you want to start advertising on TikTok in the future (even if it’s not for a while!) create an account sooner than later to be sure you have it there when you’re ready.

Once you get the verification email, TikTok asks a number of questions about your business and advertising goals. After you submit the questionnaire, a TikTok representative will be in touch with you over email to help you complete the process.

Following that, you’ll be able to enter and officially set up your account.

On TikTok’s self-serve platform, you can create and run campaigns, easily define your target audience, select bidding methods, and design your ad creative.

Note:As of right now, it’sunclear whether you can login to the platform and create a Branded Hashtag Challenge campaign or if you need to work directly with a TikTok sales rep to do so.According to Digiday, some advertising campaigns are managed and monitored by TikTok’s own team.

And there you have it, our quick guide to TikTok Ads.

By now, you should have a clear understanding of TikTok’s creative advertising options and the early steps on how you can put them into practice for your business.

If you’re looking for even more TikTok tips and tricks, watch our free 30-minute TikTok workshop below.

Everything You Need to Know About TikTok Ads (2024)

FAQs

What do you need for TikTok ads? ›

TikTok ad specs

The video ad specifications vary slightly depending on the placement, but they generally require a video creative, ad display image, brand or app name, ad description, and a call-to-action (CTA) button. The key specifications for TikTok video ads are: Aspect ratio: 9:16, 1:1, or 16:9.

How do I become successful with TikTok ads? ›

Best practices for creating engaging TikTok ads
  1. Start with an attention-grabbing hook.
  2. Opt for a TikTok-native feel.
  3. Use trending sounds and hashtags.
  4. Leverage user-generated content.
  5. Partner with influencers.
  6. Provide a compelling offer.
Aug 22, 2024

Is TikTok paid ads worth it? ›

Whether TikTok ads are worth it depends on various factors such as your target audience, advertising goals, budget, and creative strategy. TikTok ads can completely transform a business, but it may not be the best option to commit your time to if you do not have a big budget or a marketing strategy.

How do TikTok paid ads work? ›

Short answer: TikTok Ads cost as much as you want them to. The platform uses an auction and bidding model, meaning you decide how much you pay per view, click, or impression. However, there is a minimum spend — $50 USD/day per ad campaign and $20 USD/day per ad group.

What is a good daily budget for TikTok ads? ›

TikTok Ad Costs

Minimum Spend: TikTok requires a $500 minimum ad spend, with a minimum campaign level daily budget of $50, a minimum AdGroup level daily budget of $20. A Brand Takeover: TikTok will guarantee five million impressions with this advertising strategy.

How much do I need to run TikTok ads? ›

The average CPC on TikTok is approximately $1. To advertise on TikTok, there is a minimum campaign budget requirement of $500. TikTok also imposes daily budget requirements, with a minimum of $50 per day at the campaign level and $20 per day at the ad group level.

How profitable are TikTok ads? ›

Among the 168 retail and restaurant brands surveyed, 78% of them reported that they have realized a positive ROI on their TikTok ads. And more than half of them reported that the positive ROI came within six months, according to Capterra.

How do I monetize my TikTok ads? ›

How to Monetize TikTok
  1. Design in-feed ads using the TikTok ads manager. ...
  2. Join the TikTok Creator Next program. ...
  3. Participate in the TikTok Creator Fund. ...
  4. Create videos that drive sales. ...
  5. Use your videos to collect gifts and tips. ...
  6. Discover partnerships in the TikTok Creator Marketplace. ...
  7. Add affiliate links to your profile.
Feb 3, 2022

How long do TikTok ads take to work? ›

While some TikTok Ads might take longer than usual for the review process to complete, most TikTok Ads are reviewed within 24 hours. You will receive a notification once your TikTok Ads have been approved and published.

What are the disadvantages of advertising on TikTok? ›

One of the main drawbacks of TikTok for businesses is the lack of sophisticated analytics and measurement tools. This can make it challenging to track ROI and assess the effectiveness of marketing efforts.

What happens if you don't pay TikTok ads? ›

TikTok reserves all rights to cease any ongoing Ad campaign or reject any new Ad campaign if your Account Balance is insufficient. ii. if your Billing Threshold has not been met, on a weekly basis (“Billing Cycle”).

What is the success rate of TikTok ads? ›

According to TikTok, 83% of users find the app's advertisem*nts entertaining, and 1 in 4 users worldwide have bought or looked into a product after seeing it on the app (source: TikTok).

Can you run TikTok ads on a personal account? ›

You need a TikTok for Business account to access TikTok Ads Manager.

How does TikTok pick ads for you? ›

༚ Topics: TikTok infers topics you're interested in for ad-serving purposes. To manage these topics, tap a topic then choose your preference: Interested, Not interested, or No preference.

What is the payment method for TikTok ads? ›

TikTok Billing Options
  1. ​You will make a 100% advance deposit into the bank account designated by us before you can run your ads. ...
  2. ​Payment may be made via bank transfer, credit card, or other payment methods accepted by us from time to time.

What do you need to run TikTok ads? ›

What are the requirements for TikTok ad?
  • Aspect ratio: 9:16, 1:1, or 16:9.
  • Resolution: minimum of 540 x 960 pixels; 640 x 640 pixels; or 960 x 540 pixels.
  • File type: .mp4, .mov, .mpeg, .3gp, .avi, .jpg, .jpeg, or .png.
  • Length: 5–60 seconds; TikTok recommends 9–15 seconds.
  • Bitrate: ≥516 kbps.
  • File size: less than 500 MB.

What are the requirements to promote a TikTok video? ›

To use Promote, you must: Be 18 years of age or older. Agree to our Promote Terms of Service and acknowledge having read our TikTok Privacy Policy. Be a creator or business account.

Do I need a business license for TikTok ads? ›

Can you sell on TikTok without a business license? No, you need to have a business license to join TikTok shop. If you're making money by selling anything, you need to establish a business with your state. The state will send you your business license when you establish your LLC.

How to set up ads on TikTok? ›

To create an ad:
  1. Log in to your TikTok Ads Manager account.
  2. Go to an existing campaign or ad group.
  3. Click Create.
  4. On your ad creation page, turn on/off the Smart creative ads toggle.
  5. Enter an ad name. ...
  6. Turn on/off the Identity toggle.
  7. Select your ad format - Single video, Carousel, or Collection Ads. ...
  8. Add your media.

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