With a rapidly expanding user base and a return on ad spend that’s typically high versus other platforms, Tiktok advertising makes sense for eCommerce businesses targeting Gen Z and Millennials. However, many brands wonder if paid ads on the platform are worth it vs focusing on organic reach.

How much is advertising on tiktok depends on the ad type and business goals. Advertisers can choose from several ad buying methods including cost per click (CPC) and cost per thousand impressions (CPM). CPC pricing is most often used to drive traffic and conversions, while CPM is best for increasing brand awareness and visibility.

Breaking Down the Cost: How Much Is Advertising on TikTok

There are a variety of Tiktok ad formats, including in-feed ads, TopView Ads, Branded Hashtag Challenges and Branded Effects. Each ad format has its own pricing structure and minimum spending amounts. In-feed ads, for example, cost less than brand takeovers because they are displayed within the app’s natural content feed. TopView Ads, on the other hand, display for a minute and auto-play with sound on, providing an immersive experience that increases brand recall, awareness, and desire.

Branded Hashtag Challenges entail influencers posting videos of themselves using a specific hashtag on their Tiktok profile that links back to the brand’s YouTube page. These ads are usually highly engaging and generate strong social proof, but they can also be costly depending on the size of the audience and the number of influencers involved. Similarly, Branded Effects involve the production of unique and engaging visual effects that are seen by a captive audience on Tiktok’s Discover banner and boost social proof, desire and recall.