TikTok Advertising: The Definitive Guide for Marketers

TikTok has quickly risen as one of the most popular social media platforms used today. It boasts over 1 billion monthly active users worldwide and is a goldmine for reaching your audience. The power of TikTok advertising is not to be underestimated, and in this article, we’ll show you all of the tips and tricks you need to know to master it.

It’s also important to note that TikTok advertising can quickly become a money pit if you don’t know what you’re doing. Like any digital marketing strategy, it needs to be focused in order to provide a return on investment. Luckily, we have created the ultimate guide to help you in achieving success.

Please note: We aim to provide the most up-to-date statistics, we regularly review and edit this article to do so.

Why You Should Be Advertising on TikTok?

Major brands are hopping on the bandwagon of TikTok advertising and you should too. TikTok is increasingly accumulating more and more users on a daily basis, which creates opportunities to promote, advertise and eventually sell products/services through the platform. 

Here are some of the main reasons businesses should consider advertising on TikTok:

• Massive reach – With over 1 billion monthly active users, TikTok provides access to a huge audience, especially among younger demographics.
• Strong engagement – TikTok has one of the highest user engagement rates compared to other social media platforms, keeping people entertained and interacting with content.
• Viral potential – The right TikTok video ad campaign can go viral rapidly, greatly expanding brand awareness and reach.
• Ad creativity – TikTok’s short video format allows for highly creative, fun and memorable video ad content that users love.
• Targeting capabilities – TikTok’s advertising platform allows targeting users by location, demographics, interests, and behaviours for precise ad targeting.
• Shopping features – Brands can add shoppable components to TikTok ads, making purchasing seamless without leaving the app.
• Influencer marketing – Collaborating with TikTok creators allows brands to leverage their follower bases and loyal fans.
• Brand building – Businesses have an opportunity to establish a brand presence and connect with users in an authentic way on a globally influential platform.
• Competitive edge – Given TikTok’s growth, having a strategy on the platform can help brands stay ahead of competitors and at the forefront of new marketing tactics.

Overall, TikTok offers massive commercial potential for brands looking to promote themselves in an engaging, targeted and measurable way to the platform’s diverse user base.

TikTok User Statitics

If you’re thinking about entering the world of TikTok advertising, it will be useful to know some user statistics before implementing your social media advertising strategy. Check out some interesting points below.

• TikTok has over 1 billion monthly active users worldwide as of September 2022. This makes it one of the most popular social media platforms globally.
• Around two-thirds of TikTok’s users are under 30 years old. It’s especially popular among Gen Z (people born between the late 1990s to early 2010s).
• The countries with the largest number of TikTok users are China, India, USA, Indonesia, Brazil and Mexico.
• On average, users spend around 95 minutes per day on TikTok as per 2021 data.
• Roughly 60% of TikTok users access the platform multiple times per day.
• As of Q2 2022, TikTok had 732 million daily active users globally, an increase of nearly 70 million from the previous quarter.
• TikTok was the most downloaded app globally in 2021 with approximately 656 million installs, ahead of Facebook and Instagram.
• Over 1 billion videos are viewed per day on TikTok as of 2022.

TikTok has experienced massive growth in recent years, especially among younger demographics, to become one of the most used social media platforms worldwide. Daily engagement rates are also very high compared to competing apps, so there isn’t much reason as to why you wouldn’t pursue TikTok advertising.

Different Types of TikTok Advertising

Now that there is clarity on why you should be using TikTok advertising in your business strategy, you need to develop a TikTok advertising strategy that works for your business goals and objectives. There are many different ways to advertise on TikTok, we have listed them below.

In-feed ads

These ads appear as regular videos in the user’s For You Page (FYP). They can be up to 60 seconds long and can be customised with different targeting options, such as interests, demographics, and even keywords.

TopView ads

These ads are full-screen, non-skippable videos that appear at the top of the FYP. They are only available for 24 hours and are a great way to reach a large audience quickly.

Brand Takeover ads

These ads are full-screen, non-skippable videos that appear when a user opens the TikTok app. They are the most expensive type of TikTok ad, but they also offer the most visibility.

Branded Effects

These are custom filters or lenses that brands can create for users to use in their videos. They are a great way to create a more interactive and engaging ad experience.

Branded Hashtag Challenges

These are challenges that brands create and promote using a specific hashtag. Users who participate in the challenge can create and share their own videos, which can help to spread awareness of the brand.

Spark Ads

These are a newer type of TikTok ad that allows brands to promote their existing TikTok content or user-generated content. They are a more affordable option than other types of TikTok ads and can be a great way to reach a wider audience.

The best type of TikTok advertising for your business will depend on your specific goals and budget. If you’re looking to reach a large audience quickly, then TopView ads or Brand Takeover ads may be a good option. If you’re looking to create a more interactive and engaging ad experience, then Branded Effects or Branded Hashtag Challenges may be a better choice. And if you’re on a budget, then Spark Ads may be a good way to get started with TikTok advertising.

TikTok Ads Manager

The TikTok Ads Manager is the platform’s free self-serve ad management portal that allows businesses to set up and run their own TikTok advertising campaigns. Here’s an overview:

• Accessible by creating a TikTok for Business account and signing up for TikTok Ads Manager – You can link to existing TikTok personal accounts.
• It provides a dashboard for managing ad accounts, setting up campaign structures, managing creative assets, budgets, billing, and more.
• Campaigns can be structured based on an objective like awareness, traffic, app installs, video views, etc.
• It enables the creation of audience targets based on location, demographics, interests, behaviours, and custom audiences.
• Supports flexible bidding strategies like CPM, CPC, CPA, oCPM bids to optimize costs.
• Offers robust reporting and analytics on campaign performance – impressions, reach, engagement, conversions, etc.
• Allows A/B testing of creative assets and targets to improve ad performance.
• Provides access to TikTok’s creative design tools and templates to build optimized video ad formats.
• Features automation tools for easier campaign management at scale.
• Inventory across TikTok and Douyin (China version) can be accessed for expanded reach.
• Dedicated account management and technical support available for larger advertisers.

The Ads Manager provides a powerful DIY platform for brands to create, deploy, measure and refine a full advertising strategy tailored to a TikTok audience and content formats. The interface is designed to be user-friendly for small businesses who are new to the platform.

Create Your TikTok Ad Account

Before you launch your first ad, you’ll need an account. Click Get Started from the TikTok for Business landing page, and then enter your region, followed by your business type and, finally click next. From here, you can fill out your details and click ‘sign up’. After this, you are ready to start advertising on TikTok. 

Create a Campaign

In TikTok, you follow a hierarchy by first creating a campaign and then an ad group, and finally an ad. Go to the Campaign tab on the top of Ads Manager and click Create. Pick your objective. Depending on what your marketing goal is, you’ll choose awareness, consideration, or conversion. That’s all you need to create a campaign. TikTok will automatically keep you moving to the ad group section.

Create an Ad Group

Now you can choose your ad placement. We recommend that you use auto-placement as it is easiest for your first ad. Choose the promotion type, URL, display name, profile image and how you want users to engage with your ads. Decide if you want to use TikTok’s automated creative optimisation. This is one of the tools TikTok created for small businesses. It basically builds ads using your images, videos, and copy and then continually tests them for you.

Pick your audience targets. You can target audiences based on demographics and interests. You can also create a custom audience from your customer files, website traffic, app activity, or previous ad engagement. To build a custom audience from website traffic, you’ll need to install the TikTok pixel on your website. 

The pixel also helps you optimize ads and tie the success of your ads to customer behaviours on your website. Choose between a daily or lifetime budget which is the total you’ll spend during the life of the ad set or campaign  Set up your bidding plan and then click next and you’re ready to create a new ad. 

Create an Ad

Upload your creative ad. This can be either video or images. TikTok will turn still images into a video. For maximum exposure of your brand using the TikTok algorithm, be sure to follow TikTok’s ad creative guideline.

Now you can fill in your ad text and call to action. Click Submit and your campaign is sent off for review. TikTok will check each ad against their guidelines.

TikTok Pixel

The TikTok pixel is a piece of code that allows advertisers to track conversions and optimize their ad campaigns on TikTok. Here are some key things to know about it:

• It’s a lightweight JavaScript code snippet installed on your website, similar to Facebook’s pixel.
• Enables tracking of on-site conversions like registrations, purchases, sign-ups that originate from TikTok ads.
• Allows creating custom audiences for targeted re-marketing based on users who already completed a conversion.
• Pixel events can be integrated with third-party analytics platforms like Google Analytics for unified reporting.
• Helps inform bid strategies and budget allocation to better optimize spend towards conversions.
• Implementing the pixel is a requirement to unlock certain advanced reporting features in TikTok’s Ads Manager.
• Multiple event triggers can be installed – Purchase, AddToCart, ViewContent, Register, Lead, etc.
• The pixel automatically collects basic site visit data like URLs visited and engagement time.
• Proper pixel implementation requires adding it across website pages, confirming the domain, and testing tracking.
• TikTok’s pixel policies prohibit collecting any sensitive user data like financial information.
• Retention settings allow keeping user data collected for 180 days up to 2 years max.

The TikTok pixel is an essential tracking tool for measuring ad performance and guiding optimization strategies to boost ROAS. Brands should ensure it’s properly implemented to achieve the ultimate success.

TikTok Advertising Prices

TikTok does not have a fixed advertising pricing structure, as costs can vary significantly based on factors like target audience, ad placement, engagement bidding strategy and more. However, here are some estimated price ranges for TikTok ads in Sterling Pounds (£):

• In-Feed Video Ads – Cost Per Thousand (CPM) rates of £6 – £12
• TopView (full screen video ad): £10 – £20 CPM
• Brand Takeovers: £8 – £16 CPM
• Branded Lenses/Filters: £20 – £50 CPM
• Branded Hashtag Challenges: £100,000 – £250,000 fixed cost
• Influencer Marketing: Varies, but ~£20 – £100 per post for smaller/mid-tier creators
• TikTok For Business (ad management) Service Fee: £1,500 – £2,500 per month

When running performance-based campaigns focused on conversions, typical Cost Per Action (CPA) can range from £5 – £30+ based on the type of conversion goal. It’s also worth noting that factors like targeting a smaller, niche audience vs a broader one, premium ad placements, and competitive bidding strategies can drive CPM and CPA costs higher.

TikTok also offers advertising bundles that include a fixed number of ad units at discounted rates. Overall, brands can expect to invest anywhere from a few hundred pounds per day up to £10,000+ per day depending on the campaign’s scale. Testing on a smaller budget first is recommended.

TikTok Advertising Guidelines

Here are some key advertising guidelines and policies that brands should be aware of when advertising on TikTok:

• Video Length – TikTok video ads can be up to 60 seconds long. Shorter ads (6-15 secs) tend to perform better.
• Ad Labeling – Advertisements must be clearly labelled with ‘Sponsored’ or ‘Ad’ in the video.
• Landing Pages – Landing pages for ads should be mobile-optimized given most of TikTok’s traffic is mobile.
• Content Guidelines – Ads must be appropriate for all audiences. No adult content, offensive, misleading, sensational, or politically charged messaging.
• Music Use – Brands must have proper rights to any music used in video ads. TikTok also provides royalty-free music.
• Influencer Ads – If using influencers, disclosures must clearly indicate it’s paid sponsorship. Both parties are responsible for adhering to FTC guidelines.
• Branded Effects – Cannot contain pop-ups or disrupt natural TikTok experience. Brand logos in effects should be minimal.
• Call-to-Action – Strong, clear CTA at the end is recommended. Can include Shop Now, Get it Here, Sign Up links.
• Ad Relevance – Ads should feel cohesive and natural on the platform. Appeal to TikTok’s young user base.
• Frequency Capping – Brands are expected to implement frequency caps (max number of views per user) to avoid oversaturating users.
• Metrics Tracking – Impression/conversion pixels should be implemented properly for accurate analytics and measurement.

Following TikTok’s ad policies creates a better user experience and improves campaign performance. Brands should consult their guidelines thoroughly.

Tips for TikTok Advertising Strategy

Here are some useful tips for developing an effective advertising strategy on TikTok:

• Define clear campaign objectives and KPIs – Is the goal of your campaign to drive awareness, site traffic, app installs, sales? Be specific so you can optimize towards it.
• Understand your target audience – Research the demographics, interests, and behaviours of your ideal TikTok audience so you can create relevant messaging and visuals.
• Focus on vertical video ads – TikTok’s platform is built for mobile, so vertical videos tend to perform much better than landscape ones.
• Leverage influencer marketing – Partnering with TikTok creators that appeal to your target audience can help grow reach and engagement.
• Use fun, engaging ad formats – TikTok users respond well to entertaining, interactive ads like branded lenses and hashtag challenges.
• Test different content styles – Try different tones (humorous, informative, emotional) and visuals to see what your audience best responds to.
• Retarget engaged users – Create custom audiences to repeatedly target users who have already shown interest or converted.
• Optimize for the full customer journey – Use a mix of video view objectives for awareness and traffic objectives for conversions.
• Analyze and refine – Check campaign analytics regularly and tweak elements like targeting, creatives, bidding to improve performance.
• Promote your TikTok account – Run ads driving followers to your TikTok profile to grow your organic presence.
• Develop campaigns for both TikTok and Douyin – Expand your reach in Mainland China via the Douyin platform.

TikTok Advertising and Your Audience

Using TikTok is a great way to create meaningful content and connections with a larger audience of all ages. Blending your organic TikTok with a steady stream of PPC can help engage your audience and push them to convert. Fill your channel with content that your users come to the app to see and watch as you generate interest in your brand. 

Not everyone is @DanielMac and getting started in the TikTok world can be difficult. If you’d like more information or help in advertising your brand to potential customers using social media platforms, get in touch with ProfileTree. We have a team of social media experts who can help you develop your social accounts and create strategies to successfully secure sales.

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