How Much Does TikTok Advertising Cost?

If you've spent over five minutes on TikTok, you know it's more than just dance trends and memes. It's where people discover everything from skincare brands to local events. Around 28% of marketers use TikTok as a social media advertising strategy.

TikTok ads blend into the content people are already watching. That's part of the magic — and the challenge. 

As Anna Chiang, paid marketing manager at Clutch, puts it, "It can be a powerful ad platform if ads are executed correctly, and for businesses considering TikTok, take a mindful approach. Users will be quick to either love or hate your content!"

TikTok advertisement uses a mix of video formats to help businesses promote their offerings or simply spread their message. These ads may be promoted posts in the “For You” feed, search ads that show up when people look for something specific, or other ad formats the platform supports.

However, the big question is: How much does it cost to advertise on TikTok? We break it down in the guide below.

How To Make a TikTok Ad

Before we get into TikTok advertising cost estimates, let's first explain how to make an ad on the platform.

• Create a Business Account: First, you need to sign up for a TikTok Business Account. It's free and gives you access to analytics, audience insights, and ad tools you won't get with a personal profile. Head to TikTok for Business and follow the prompts to register.
• Set up Ads Manager Mode: Next, go to TikTok Ads Manager. You can set campaign goals (like generating conversions) and define your target audience here. You also select your budget and the location for your ads.
• Build and Submit Your Ad: To create the ad, upload your video and write a catchy caption. If you want to add a call-to-action (CTA), do so in this step. TikTok will review your ad to make sure it meets its guidelines. 

Once it's approved, it can start running almost immediately.

What Determines TikTok Advertising Cost?

TikTok doesn't have a set price for each ad type. Instead, different factors determine the cost of an ad.

• Ad creative
• Bidding & budgeting
• Competition & demand
• Audience segmentation

Ad Creative

TikTok supports two types of ad creatives: images and videos. Typically, video ads cost more than their image counterparts due to their potential for higher engagement.

Bidding and Budgeting

The cost of an ad is determined by how much you're willing to spend and how you spend it. TikTok Ads Manager lets you choose between different bidding strategies, including cost-per-click (CPC), cost-per-mille (CPM), or cost-per-view (CPV).

You can also set daily or total campaign budgets. This way, you will stay within your desired ad spending budget.

Competition and Demand

TikTok ad pricing works like an auction. When more advertisers are simultaneously targeting the same audience (such as holidays or trending moments), costs increase.

Niches like fashion and fitness usually have a lot of competition. If you're a brand in such a niche, you'll likely pay more than a company in a less saturated category since there's a lower demand.

Audience Segmentation

When you target a broad demographic, like college-going students, your ads may not cost as much. However, the advertisement cost increases as you make your audience selection more specific, such as women of color attending Ivy League colleges. Simply put, the more specific the targeting, the higher the cost because there are fewer people who meet the criteria.

How Does TikTok Advertising Cost Compare to Ads on Other Social Media?

TikTok advertising costs differ from other social media platforms, especially Meta's Facebook and Instagram. The CPC across these platforms is as follows, as reported by WebFX:

As for the CPM:

Engagement rates also differ across these social media platforms. Buffer reports the following figures:

Types of TikTok Ads

There are three main types of TikTok Ads:

• In-Feed Ads: These appear in users' For You feeds, blending with organic content. They can include website links and app downloads.
• Spark Ads: The format allows brands to boost existing organic posts, either on their own or from creators, for extra engagement.
• TopView Ads: These premium placements appear when users open the app and offer maximum visibility.

See which ad type fits best for the content your company is looking to produce. 

Best Practices for TikTok Advertising

TikTok advertising can be expensive, especially if you have a highly targeted audience or want to use multiple ad formats. Here's how to make the most of your money.

Know Your Demographics

Before you launch a single ad, be clear on who you're targeting. TikTok's audience leans young, but it's not just Gen Z anymore, as other demographics are now on the platform.

Match the visuals and messaging of your ad to the people you're trying to reach. A well-placed ad that hits the right vibe will always perform better than a generic message blasted to everyone.

Create Engaging Content

TikTok users don't look for polished, corporate ads. They want relatable advertisements sprinkled within their regular content.

Chiang explains, "One of the most important parts of advertising on TikTok is to naturally blend promoted content into your audience's day-to-day feed. Prioritizing authentic and genuine messaging is the key to engagement, which requires businesses to step away from typical strategies and get creative."

Translation? Ditch the traditional sales pitch and tell a story, or tap into a trend instead.

Use Clear CTAs

Even if your video is fun and engaging, viewers need to know what to do next. So, use an obvious and easy-to-follow CTA in your ad's caption or in the overlay text.

Leverage Influencer Marketing

TikTok has over 100,000 influencers, which means there's ample opportunity for you to work with creators of different audience sizes. TikTok influencers already know what works with their audience and can amplify your message to an audience who trusts them and follows their recommendations.

Additional Reading: 'How Much Do Google Ads Cost?'

Common Mistakes With TikTok Advertising

Even with all the right tools, fumbling the ball on TikTok is easy. Avoid the following mistakes to save your time and ad spend.

Audience Targeting

Know who your buyer is and speak to them directly. Some advertisers assume the platform is only for B2C brands and teenage audiences. However, that's not true. Chiang shares that "while the majority of advertisers on TikTok are B2C, it doesn't mean B2B organizations have to be left out. Not every B2B company will be a good fit for TikTok — your success on this platform will greatly depend on your campaign goals, positioning, and relevancy to audiences."

It comes down to whether your end user is present on TikTok or not. If yes, test different audience segments and adjust your ad based on what works.

Poor Ad Content

TikTok users quickly skip or scroll from ads that are too scripted or just out of touch. Common red flags include:

• Ignoring trends
• Failing to hook the viewers in the first few seconds
• Not being creative
• Using an overly professional-seeming visual or voiceover

You're better off shooting a lo-fi video with a compelling message than dropping a big-budget spot that doesn't connect.

Overestimating Competitiveness

If you think you'll automatically outperform smaller creators or brands just because you've run Facebook Ads before, you might be in for a surprise. The platform can be very competitive, especially in the retail and beauty sectors.

Understanding TikTok's culture can help you carve out a place for yourself. Relate to your audience, and you have a better chance of outperforming other businesses, even with smaller budgets.

How Much Do TikTok Ads Cost in 2025?

The cost of TikTok advertising depends on your budget and ad objective. For example, ads run to increase conversions will likely cost more than those focused on boosting engagement.

Here are some baseline numbers to keep in mind:

• If you're running ads at the ad group level, expect a minimum daily spend of around $20.
• If you're setting your budget at the campaign level, TikTok currently requires a minimum of $50 per day.

TikTok can be just the platform you need to connect with your audience, but as with anything in marketing, success comes down to how you approach it. If you're new to the platform, start small. Test different ad formats and keep your eye on numbers.

Then, use what you have learned to refine your ad strategy. Your business can adapt to the platform and maximize your ROI as you experiment. 

About the Author

Anna Peck Content Marketing Manager at Clutch

Anna Peck is a content marketing manager at Clutch, where she crafts content on digital marketing, SEO, and public relations. In addition to editing and producing engaging B2B content, she plays a key role in Clutch’s awards program and contributed content efforts. Originally joining Clutch as part of the reviews team, she now focuses on developing SEO-driven content strategies that offer valuable insights to B2B buyers seeking the best service providers.

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