TikTok Ads: How much does an advertising campaign cost?

Before the end of 2018, the social network TikTok did not implement a formal advertising program. For this reason, brands have had to use other methods to advertise on TikTok.

So it was only in 2019, that the platform unveiled its advertising tool : TikTok for Business. The latter provides brands and advertisers with several marketing solutions. At that time, the cost of broadcasting an advertising campaign on TikTok was very high, and businesses still had many questions about the budgets to plan to optimize their ads.

However, now that the platform has introduced short native video ads, advertising on TikTok has become significantly more affordable.

TikTok ads are even very popular with users. In fact, 91% ofthe Generation Z prefer video ads to traditional ad formats. TikTok is therefore an acquisition channel of choice for all brands that want to reach this target. If you are considering using it, here are our tips for properly estimating the cost of a TikTok ads campaign.

The cost of a TikTok advertising campaign

The cost of an advertising campaign on TikTok, as for any type of advertising campaign, will depend on two main envelopes:

• A creative envelope, intended to pay for the advertising video content that will be used for the campaign.
• A media envelope, intended for the media coverage of advertising content.

In the case of television, for example, the creative envelope will allow the production of the video TV spot. The media envelope will correspond to the remuneration of the advertising agencies that will allow the spot to be broadcast on TV channels.

This logic also applies in the context of a TikTok Ads campaign.

The creative cost of advertising

On TikTok, brands have the advantage of having a lot of flexibility on their creative envelope to create advertising video content.

Creative content can be produced cheaply in-house, with a simple iPhone. Brands can alsoPartner with TikTok content creators for a few hundred euros.

However, it is necessary for the brand to have a Good understanding of TikTok, formats and tone to adopt. An ad that does not use TikTok codes is unlikely to perform.

If the content is bad, it's really all the A campaign that is likely to fail. Because 80% of advertising performances on TikTok come from the relevance of the creations.

Creative agencies, like Sleeq, can step in to help brands produce creative content relevant, and enable the campaign to reach its performance goals. The price of creative agencies varies greatly, but it is on average a few thousand euros for the production of several creative contents as well as all the strategic thinking around their performance.

Whatever happens, a Tiktok ad represents a certain cost. For the return on investment Be good, don't overlook this creative part: the ad should look like a native TikTok video.

The media cost of an advertisement

As for the media envelope, it goes a long way depend on the product and the audience targeted by the brand.

As with all digital media buying platforms, TikTok Ads sells advertising space to advertisers at CPM (cost per thousand impressions). This CPM depends on the objective of the campaign, and the size of the targeted audience.

It varies between 0.7 for reach campaigns, on a large audience, to more than €4 for conversion campaigns on a very specific audience.

If a product is inexpensive, for example 10€, The TikTok budget will be able to be lower, because it will be easier to generate a sale than for a €200 product.

🤔 But how much should you budget for your ads on TikTok?

TikTok recommendations are to plan a daily budget of 50x your target CPA (the cost per action). That is to say, for our product worth €10 and a campaign whose objective is to generate a purchase of at least 10 euros (and therefore be Break Even), you will have to invest €500 per day.

If we follow the same reasoning for a €200 product and a CPA of at least €200, the budget for the advertising campaign on TikTok will be €10k/day (which can be difficult to maintain in the long term).

At Sleeq, we recommend TikTok Ads budgets around €10k per month for a first launch. This will allow you to reach your e-commerce goals without taking too much risk and engaging large amounts of money.

What advertising strategy on TikTok?

Once we have a general idea of the distribution of the budget and the orders of magnitude, you will need think about the TikTok advertising strategy to be set up.

There are two main ways to launch an advertising campaign on TikTok:

• A campaign with creations made in the studio.
• A campaign in collaboration with creators.

As part of an advertising operation with studio creations, the videos are produced either by the advertiser internally, or in collaboration with an agency (without influence). Afterwards, they can be directly imported to TikTok Ads in order to launch advertising on the platform.

As part of a campaign in collaboration with content creators, the videos are directly produced by them. The advertiser or his agency will therefore choose influencers who will produce a video to broadcast on their account.

These videos will then be sponsored on TikTok Ads in order to boost their reach, refine their targeting and redirect engaged users to the brand's website via a call to action (CTA).

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CCreate ads that convert

If you want to be able measure the immediate ROI of your campaign, ads with a conversion objective are the best option.

Generally, this type of operation is preferred by brands that want to generate downloads of their application, purchases on their e-commerce site or registrations on a landing page. So the video has to be very persuasive.e, because the aim is not to “entertain” (which is usually the aim of a regular TikTok video).

The creative challenge is therefore all the more important, but conversion campaigns allow you to directly measure the profitability of your TikTok advertising.

For optimize advertising videos and to ensure maximum conversion, there are several things to put in place in the video:

• Capture attention from the first few seconds.
• Point out a problem.
• Provide a solution.
• Put a relevant call to action.

This video structure significantly increases your conversion rate and thus the immediate profitability of your TikTok advertising. Your objective is in fact to support TikTok users until the desired action without them feeling that it is a commercial transaction. Your marketing strategy must be as subtle as possible so as not to increase the natural distrust that TikTok users have towards video ads.

Beyond the content of the video, it is also important to Know well The different ad formats available on TikTok. Each has its own characteristics that will impact your performance. The idea is therefore to choose the right format for your advertising campaigns according to the objectives set.

Master TikTok ads

As you will have understood, there is a lot of elements that can impact the performance of your TikTok ads. Influencers are not necessarily a miracle solution. What is important is to have a good strategy, in line with your goals. Be inspired, for example, by its many brands that knew how to use TikTok to their advantage and set up effective campaigns.

All brands have their place on TikTok and the ability to perform with TikTok ads. But as with organic content, it is essential to master the culture of the platform well as well as its codes, even before mastering TikTok for Business.

Si you want to launch your first TikTok Ads campaign, do not hesitate to be accompanied by an agency. Our team will be happy to put its expertise at your service.