TikTok is the new big name in the social media game, and virtually everyone is jumping on the TikTok hype train. With over 1 billion active users reported at the beginning of February, TikTok is becoming one of the world's fastest-growing platforms.
The format of the content on the platform is actually extremely advertiser-friendly for a few reasons. The first one being the fact that it's all about videos, which are way more memorable than a random photo you see on Facebook. The second reason is that the video length on TikTok is anywhere between 6 and sixty seconds, so advertisements are not that difficult to produce and post on the platform. However, there is still the matter of going viral and getting onto someone's feed. But don't worry, that's why we're here to help you out.
How Advertising on TikTok Works and Is It a Good Idea?
Considering the number of users on the platform, advertising on TikTok can be an excellent opportunity for any business. Plus, the platform is relatively new, it came out only three years ago, so it's not as jam-packed with ads as some other popular platforms.
The next few months might be your last chance to jump on this TikTok advertising train, as the amount of sponsored content is rapidly growing, and the prices for putting it up are growing as well.
Some reports showed that big-name brands like Nike and Disney are paying upwards of $20,000 for TikTok ads. Don't let these numbers discourage you, as the platform has multiple ad options that can suit even the smallest businesses.
If it's the demographic of TikTok users that worries you, we are happy to inform you that tides are turning in that area as well. While TikTok was initially considered to be a platform reserved for mostly Gen Z and a few straying millennials, recent reports show that over 39% of all users are over 30 years old. So, no matter what your product is, you're very likely to find your target audience on the platform.
Not to mention that the average TikTok user spends approximately 52 minutes per day on the app, while some more hardcore users use it for up to 3 hours every day. This works very well in your favor, as you can be sure there's always going to be someone scrolling and seeing your ad.
How to Get Started?
In 2019 TikTok came up with a special platform for business aptly named TikTok For Business.
The platform offers quite a few ad formats, but you will be required to create a TikTok business account in order to use it.
It is worth mentioning that TikTok ads are not very cheap. They are usually very entertaining and tend to be rather successful, but as we all know, you get what you pay for. A popular social media platform plus a very good ad turnover rate equals hefty prices.
Ad Formats TikTok Offers:
There are four main types of ads you can create on TikTok, plus the new Auction Model that's more suitable for smaller businesses.
The four basic ad formats:
- Brand Takeover: This is one of the most effective ways of advertising on TikTok. It's a large-format ad that almost completely covers the scene and shows up when you first open the app. This is limited to one company per day.
- Brand Lenses: This is a bit of a weird one for traditional advertisers. This format allows brands to create AR (augmented reality) filters that users can try out when filming. Very similar to filters on Snapchat if you're familiar with those.
- Hashtag Challenge: The basic idea behind this is to go viral by taking full advantage of user-generated content. What you do is, upload a video with a dance or a unique concept and tag other people to do it as well.
- Influencer Package: You probably know how this works already, as it's pretty much the same concept as on YouTube or Instagram. You partner with a creator in your niche, and they create a sponsored video featuring your product or service.
The Auction Model
In case you're not exactly swimming in money, this might be a better starting point when it comes to advertising on this particular platform. With this format, you can bid on a free ad or in-feed slots. The required minimal budget for this is $50, and there is a $20 minimum for ad groups.
There are three different pricing models:
- CPV – cost per view
- CPM – cost per mile
- CPC – cost per click
How to Create a TikTok Ad?
1. Create an Account on TikTok Ads
The first thing you'll do is go to the TikTok For Business site and click on Get Started. This will take you to a registration page where you'll have to create an account.
2. Create a Campaign
Once you complete your account, the process of starting your ad campaign is relatively simple. Just find the Campaign tab and then click on the Create button. When you start with ad creation, you'll be asked to choose between 3 different objectives.
The three main objectives are traffic, conversions, and application installation. After that, you'll decide on a budget, and here, you can choose between a Daily Budget or a Total Budget.
3. Setting Up the Ad Group
This is where you'll be deciding on placement and targeting. You can also choose to advertise on related apps that work worldwide or to limit your ads to TikTok only.
Once you have chosen your ad placement, just follow along with the menu and decide on aspects like URLs, displays name, categories, etc. We recommend you pay special attention to the keywords section, as that's something that can greatly impact your reach, and ultimately, your ad campaign's success. You can choose up to 20 keywords on TikTok.
Moving on to targeting. This section is where you'll decide which audience you wish to target with your campaign. You'll be presented with a series of parameters such as age, location, gender, etc.
In this step, it's important to keep in mind that you shouldn't try to advertise to absolutely everyone as you're likely to just end up spending a lot of money on a minimal result. But, it's also worth noting that you shouldn't narrow your targeting down too much either, as you'll be missing out on some great opportunities.
4. Details (Budget, Optimizing, and Scheduling)
Budget and Scheduling is a joint tab where you can set a cap on how much money you're willing to spend on your ad campaign overall, as well as daily. The Scheduling option allows you to choose when you want the ad to be broadcasted.
The Optimization tool is a bit more in-depth and allows you to choose between 3 optimization goals, conversions, clicks, and impressions.
5. Designing the Ad
In order to make advertising as simple as possible, TikTok Ads features a video creation tool that's very simple to manage and use.
It's really rather self-explanatory and straightforward, so there's not much for us to discuss here. Enjoy a little bit of creative time and design the perfect ad.
Want Some Extra Guidance?
Everything we listed above makes up a very narrow and simple guide, but if you truly want to expand your brand and think TikTok is the way to go, you should take a look at TikTok Marketing, Ultimate Guide.
This is a very useful free e-book that acts as a step-by-step guide to setting up everything on the platform. It will also help you distinguish between different types of ads and realize which ones would work the best for you and why. The best thing about it is that it teaches you how to analyze the market and take advantage of the platform's best opportunities.
You'll learn how to grow an audience with the help of a few studies based on actual successful influencers, as well as how to maximize the potential of this new platform.
To advertise or not to advertise, that is the question. Our answer would definitely be to advertise, regardless of if you have to start with cheaper ads first.
The market is huge, and the possibilities endless. New fresh markets are often the most fruitful as people in them are not as desensitized to ads. So, take advantage of TikTok while it's still fresh and advance your brand even further. Best of luck!