Are TikTok Ads Costly?

Feb 10, 2022

We’ll start by covering some of the basic TikTok facts and figures to answer this question. It will help you understand the true value of TikTok ads. There are plenty of reasons to advertise your business on TikTok, so let’s go over them.

TikTok Statistics


Did you know that TikTok has over 1 billion monthly active users (more than Reddit, LinkedIn, and Snapchat)? Also, it’s the sixth-largest social network in the world. This gives you an incredible opportunity to increase brand exposure, grow website traffic, and generate new leads. 

TikTok app has a highly engaged audience, and 90% of its users access it daily. The global average time spent on this popular social media platform per day is 52 minutes. Over one-third of unique visitors to TikTok are from households with a total income of $100K or more. 



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TikTok Ads – Demographics and Costs


The Place for Gen Z and Millenials 


TikTok is an app whose audience mainly consists of younger generations. According to statistics, the users aged 10-29 make up 62% of the total users. In addition, 16.4% of TikTok users are between 30 and 39 years old, and just 7.1% are over 50. But if your business targets an older demographic, don’t let this information discourage you. 

With the app’s increasing popularity, more people join TikTok each day. With time, more people from older demographics will be using the app. Similar to other social media platforms, you have an option to choose to target the older demographic directly on Tiktok.   

Cost Influencing Factors For TikTok Ads  


The main factors are:

  • An objective (conversions, impressions, app installs, etc.) 
  • Bidding method and amount  
  • Audiences (based on age, gender, location, mobile device, interests, language, etc.) 
  • Your industry  
  • Ad formats (In-Feed ads, Branded Takeover, TopView, Branded Hashtag challenge, and Branded effects)  


Once you’re ready to start with TikTok ads, keep in mind all mentioned above and prepare the budget for your advertising strategy. On a campaign level, you’ll need at least $50 as a daily budget. So you will need to invest a minimum of $1.500 on a monthly level (if you have only one campaign). 

We usually recommend starting with at least $3.000 to $4.000. You’ll need to create more ad groups after the learning phase, retarget audiences, and create at least lookalike ones. 


TikTok Ads Formats


There are five different ad formats at your disposal with TikTok advertising, and each offers various options and possibilities for your business goals. 


In-Feed Ads 

If you want to increase engagement with your followers, then In-Feed ads are the right choice for you! This ad format allows your followers to like, comment, share and interact with your video. Your ad will appear as the user scrolls through the For You section on TikTok’s homepage, similar to ads on the Instagram homepage.

In-Feed video ads can be 9 to 15 seconds long. You should also add a CTA to increase your conversions and link it to your website, online shop, or landing page. If you want, you can even include multiple CTAs.

Branded Takeover 

This ad format is more direct than In-Feed ads. Branded Takeover ad appears as a full-screen video immediately as a user opens the app. One more feature of this ad format is that your ads can also appear as videos, GIFs, or still images on the For You page. 

Note: the users see only one Brand Takeover ad a day, which makes the cost of Brand Takeover ads high. 



TopView videos can be as long as 60 seconds, making them the longest ad format on TikTok. They are similar to Branded Takeover. The difference is that with TopView, your ad will be shown to a user 5 seconds upon opening the TikTok app. The ad appears on full screen with sound and autoplay and allows you to add links to internal or external pages. 


Branded Hashtag Challenge

These are sponsored hashtags featured on the TikTok Discovery page. Upon clicking on the sponsored hashtag, the user will be redirected to a landing page containing the brand’s logo, website link, challenge description, and the most popular videos using the hashtag. You can run Branded Hashtag challenges using TikTok’s advertising program, or you can partner up with influencers to promote your hashtag. 


Branded Effects

You can use Branded Effects to customize your ads with the help of AR filters, stickers, lenses, and branded shareable stickers. It’s even possible to create your own filter directly on the app. This ad format can help you grab the customers’ attention by adding uniqueness to your video, making them take action upon seeing it. 


How to Spend Less on TikTok Ads 


You should focus on conducting competitive analysis to get ahead and develop an effective creative strategy. In addition, you’ll need to do extensive creative testing and collaborate with a knowledgeable marketing partner.  

Things to know before running TikTok ads: 

  • Display your message upfront  
  • Add an emotional element  
  • Gain a better watch-through-rate with vertical videos  



With over a billion monthly active users, a highly engaged audience, and increasing popularity across all generations, TikTok is the place to be!

When it comes to costs, it’s often heard from advertisers that TikTok advertising is cheaper than Facebook ads. Plus, with the video format only and ads covering 100% of the screen and being fully visible (unlike on Facebook), TikTok brings a new form of advertising. 

Data shows that many TikTok users don’t utilize YouTube or Facebook, so it’s possible to reach out to them only on TikTok. Any video can go viral on TikTok at any moment, grab attention, increase brand awareness, and significantly contribute to your conversions.

To learn more about advertising your brand on TikTok, follow the link and book our free consultation today!

About the author


Tamara Žeravljev is a Senior PPC Specialist at Sellers Alley. She has been in the PPC business for over three years and has experience in Amazon, TikTok, and Google Ads. She has worked with various clients, from small companies to 8-figure sellers. Tamara is TikTok and Amazon Advertising certified. Learning and sharing her knowledge with other colleagues is her favorite part of the job.




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