How does TikTok advertising work? (2024)

TikTok is the most recent social media platform to experience exponential growth and as with all other social media platforms, offering advertising solutions to brands will be their main source of revenue. The advertising potential is growing quickly with the recent introduction of TikTok for Business to streamline the process. Here’s all you need to know about how your business can get started…

How does TikTok advertising work? (3)

TikTok for Business

This is a newly launched venture for TikTok, who is growing its advertising potential. Unlike other social media platforms, the idea is not to make ads, but TikTok’s. This philosophy is one that is in line with the expectation of Gen Z’s who want to see content that has an authentic feel and matches the platform's lightheartedness.

Under the label TikTok For Business, brands will be encouraged to join the platform and make use of one of their 4 types of ads. With this comes the opportunity for discovery and connection with newer audiences. The app is formalising its advertising with brands so that the process is straightforward for marketers to follow. With these changes, the app is still heavily centred on the user experience, which is important for brands to keep in mind - creativity is required for your campaigns.

With these advertising opportunities, businesses can become part of pop culture and advertise through storytelling as a means of reaching the youth and growing their digital marketing on the growing digital platform. During its rise, advertising has been limited on the platform, but that is now changing.

Content on TikTok can be created with mini stories and share tidbits of relevant content with your audience. An example of this would be Seventeen magazine. They have garnered a large following and share sneak peaks of the magazine, tutorials and reposts of some of their favourite clips from their followers.

How does TikTok advertising work? (4)

TikTok Advertising

The TikTok platform is used mainly by younger audiences (between sixteen and twenty four year olds), though it is also rising in popularity with other generations who are exploring the app and finding entertaining content. It is available in over one hundred and fifty markets, in more than seventy languages.

There are options available to marketers, from hashtag challenges to working with influencers. The content heavily circulated on the platform includes quick and easy to make video clips with low production costs, offering a more ‘real’ perspective when compared to other more visually refined platforms.

Even if your brand seems a little off centre when considering the above, it is noteworthy to mention that several well known brands have found success when experimenting with TikTok content. The Washington Post, for example, have shown newsroom footage as a means to find their digital footing, while the NBA have shared funny and inspirational messages via the platform.

Ready to create an ad? How to get started with TikTok campaigns

  • Create a TikTok account: After agreeing to the terms of use and verifying your account, you can add in your business information.
  • Sign up: Sign up for TikTok advertising and create an ad campaign. You’ll first need to enter your country information, as it is only available in certain regions at the moment. If it is available, you’ll either be approved through the ads self-serve platform and if it isn’t, you can "Make a Reservation” or opt to be informed of future updates.
  • Selections: At this point, select one of 3 objectives, namely: Awareness, consideration, or conversion. The target audience will also be determined.
  • Budget: There are daily and lifetime budgets, both of which have a minimum spend and can be adjusted at any time.
  • Ad specifics: TikTok can select the ad placement for you, otherwise this can be manually selected and you can also add in visibility on affiliate platforms.

When it comes to budget, the platform caters to both big and small businesses. TikTok advertising for day-to-day business is cost effective in terms of the in-stream videos with a cost-per-click model. The other ad types, like branded takeovers and paid hashtag challenges are where significant budget is required, hence its appeal and high returns to companies like Nike.

How does TikTok advertising work? (5)


In summary

If you’re looking for the best ways to reach youthful audiences and make your mark in pop culture, your brand needs to consider advertising on TikTok, the app which continues to dominate and grow across the world.

We at Nexa are ready to help get you started with campaigns using TikTok!

How does TikTok advertising work? (2024)

FAQs

How does TikTok advertising work? ›

Businesses show ads on TikTok to reach people in creative and meaningful ways. Ads help keep TikTok free for our community to use. You will see different kinds of ads when you use TikTok. All of the ads that TikTok is paid to place in user feeds or the search page are clearly marked with a "Sponsored" or "Ad" icon.

How does TikTok promote work? ›

This means that your video will be displayed as an ad for the time that you promote your video. Promote lets you track basic information on your video as a result of your Promote campaign, such as: The number of your video views. The number of likes, comments, and shares for your video.

How effective is TikTok for marketing? ›

71.2% of TikTok users have said they've shopped when they stumbled upon something on their feed or Stories and 58% of users say they have at least used TikTok for shopping inspiration. If you're wanting to increase sales through your social media marketing, TikTok is a great channel to do so.

How do you answer comments on TikTok ads? ›

You can use the Comment Management Tool to view, manage, edit, and reply to the comments people left on your ads. You can access the tool within TikTok Ads Manager by going to Tools > Comments.

How does TikTok business work? ›

With a TikTok business account, you can design a branded challenge and invite TikTokers to participate. If the challenge is original, fun, and engaging, it will go viral on the platform, generating much-needed publicity for your brand.

Is a TikTok ad 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 well do TikTok ads perform? ›

Definition: CTR signifies the percentage of users clicking an ad after viewing it. Average: TikTok ads achieve a CTR of 0.84%, surpassing platforms like Facebook (0.72%) and Instagram (0.59%).

Is TikTok promote any good? ›

TikTok Promote is a simple tool that gives creators and marketers the power to add a little fuel to their creative fire in TikTok promotions, getting their content working harder for them. Plus, its low minimum spend means it's easy to test out on multiple videos and see which one performs best.

How do you see if your TikTok ad is working? ›

Log in to your TikTok Ads Manager account. Click Campaign in the top menu. Click the Ad group or Ad tab. Go to the Status column and find your ad or ad group to view the status of your ads.

How do you evaluate TikTok ads? ›

Monitor campaign health

The typical campaign metrics on TikTok Ads Manager include total cost, cost per action (CPA), cost per click (CPC), impressions, click through rate (CTR), clicks, conversions, etc. It's good to analyze these metrics to understand how each campaign is performing.

How to manage ads on TikTok? ›

To create an ad:
  1. Go to an existing campaign or ad group.
  2. Turn on/off the Smart Creative Ads toggle.
  3. Enter an ad name. ...
  4. Turn on/off the Identity toggle.
  5. Select your ad format - Single video, Carousel, or Collection Ads. ...
  6. Add your media. ...
  7. Choose a thumbnail for your video.

How much does 1 ad cost on TikTok? ›

The average CPM on TikTok is $9.16 (as of November 2023). TikTok advertising prices start at $0.50 CPM and $0.02 cost per click. A minimum budget of $500 is required to spend on a campaign, with a minimum daily budget of $50 at the campaign level and a minimum of $20 per day at the ad group level.

How much do Tiktokers get paid to advertise? ›

Brand Partnerships/Sponsored Posts
Followers$/Post (Low End)$/Post (High End)
10,000-50,000$30$400
50,000-500,000$80$1,650
500,000-1,000,000$150$3,500
1,000,000+$1,200Unlimited
1 more row
May 28, 2024

Is advertising on TikTok worth it? ›

TikTok ads can be worth it if you have a well-defined target audience, are willing to invest in creative content, and closely monitor and optimise your campaigns. However, success on TikTok requires a deep understanding of the platform and its users, so it's essential to approach it strategically.

How does TikTok decide what ads to show you? ›

On-TikTok activity: TikTok may display ads about things you may be interested in, based on how you view, search, share and like content or interact with creator(s), as well as your previous interactions with similar ads.

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