TikTok has redefined how brands connect with audiences, but succeeding on this platform requires more than just creativity—it demands strategy. As a leading TikTok partner agency, House of Marketers specialises in crafting data-driven campaigns that deliver measurable results.
This guide is your entry point to mastering TikTok Ads, whether you’re looking to amplify your brand’s presence, reach new customers, or scale your marketing efforts. From understanding ad formats to launching your first campaign, we’ll provide the tools and insights you need to succeed.
Let’s start by exploring what makes TikTok Ads a powerful tool for modern marketers. In this guide, we will:
- Understand TikTok Ads: Explore how TikTok ads work and the elements involved in creating them.
- Learn TikTok Campaign Strategies: Discover the various campaign strategies and methods TikTok provides to align with your brand goals.
- Launch Your First Ad: Follow a simple, step-by-step guide to create and launch your TikTok ad successfully.
Let’s start with the basics.
How to Advertise Using TikTok: TikTok Ad Strategy Basics
What Are TikTok Ads?
TikTok ads are full-screen, immersive video promotions that allow brands to reach highly targeted audiences. Think of them as your digital billboard.
But what sets TikTok ads apart from Instagram ads or even traditional advertising? it is their ability to blend seamlessly with organic content. This creates an experience that feels less like an ad and more like an invitation to engage.
To understand TikTok ads, it helps to know how they’re structured:
- TikTok Ads: These are individual video ads promoting your product or service.
- Ad Groups: Collections of ads targeting a specific audience or goal.
- Campaigns: Larger strategies combining multiple ad groups under one unified objective.
For example, a beauty brand might create a TikTok ad showcasing a new skincare product in action—like a 15-second video of a morning skincare routine featuring the product. This ad could be part of an ad group that focuses on promoting the entire skincare line, including cleansers and moisturisers. Together, these ads fall under a broader campaign designed to boost brand awareness and drive e-commerce sales by engaging users directly on TikTok’s platform.
Now that you know what TikTok ads are, the next question is the cost.
How Much Do TikTok Ads Cost?
TikTok’s ad pricing operates on a bid model, meaning costs vary depending on factors like audience targeting, ad format, and industry competition. While the platform keeps its algorithm under wraps, it recommends a minimum daily budget of $30 for brands in North America and EMEA and $20 for those in APAC. Learn more about Ad budgeting here.
This flexibility allows advertisers to adjust their strategies to align with their goals and budgets, making TikTok accessible for both small businesses and larger enterprises looking to scale their advertising efforts.
While this might sound intimidating, it’s actually quite flexible—you can adjust your strategy to fit your budget and goals. More on this later.
TikTok’s Minimum Budgets
Campaigns: Start at $50/day.
Whereas, Ad Groups: Require a minimum of $20/day.
Key Cost Factors
- Ad Format: High-impact formats like TopView ads (the first thing users see when opening TikTok) are more expensive than In-Feed ads, which appear as users scroll.
- Targeting: Narrowing your audience to a specific demographic, location, or interest can increase costs, but it often results in better engagement.
- Competition: If you’re in a popular industry—like fashion or tech—you might need to spend more to stand out.
The good news is that TikTok provides ad types and varieties to help you estimate costs and maximise your budget’s impact.
Types of TikTok Ads
TikTok offers a variety of ad formats to suit different marketing objectives. Whether you’re looking to boost brand awareness, drive website traffic, or encourage user participation, there’s an ad type for you.
We will discuss some of the main types below:
1. In-Feed Ads
These ads appear naturally within users’ For You feeds, mimicking organic content. They’re perfect for driving engagement or conversions, as they allow users to click on a call-to-action (CTA) like “Shop Now” or “Learn More.”
Source: TikTok
2. TopView Ads
Want to make a big splash?
TopView ads are the first thing users see when they open TikTok. While they come with a higher price tag, they’re fantastic for high-visibility campaigns like product launches.
Source: TikTok
3. Branded Mission
Engage creators, crowdsource authentic content tailored to your brand, and turn top-performing submissions into impactful ads that amplify your brand equity.
User-generated content not only resonates with TikTok’s audience but also gives your brand a more relatable and human touch.
Once creators submit their content, you can identify the top-performing videos and boost them as ads. This approach taps into the power of influencer marketing by leveraging the credibility and reach of creators to enhance your brand equity.
Source: TikTok
4. Branded Effects
This format gets creative with filters, stickers, or augmented reality (AR) tools that users can apply to their own videos. For example, a makeup brand might offer a filter that lets users “try on” different lipstick shades.
Source: TikTok
The ad specs for this type of ad are varied. Hence, for more information head over to TikTok.
5. Spark Ads
Spark ads are all about authenticity. They allow brands to boost existing organic content, from their account or other TikTok creators. If you’ve ever wondered how to use TikTok for advertising without it feeling too promotional, Spark ads are the answer.
Source: TikTok
6. E-commerce Ads
Designed for direct sales, these ads include:
- Video Shopping Ads: Showcase products in action with clickable tags.
- LIVE Shopping Ads: Interactive livestreams where viewers can shop in real time.
Source: TikTok
Create content that complements your ad strategy. Ensure that your TikTok content engages your audience and seamlessly aligns with your campaign goals.
7. Carousel Ads
TikTok Carousel Ads allow you to showcase between 2 to 35 images in a single post, giving users the ability to swipe through at their own pace. This format is perfect for highlighting multiple products or telling a story.
Source: TikTok
8. Image Ads
Image Ads on TikTok are static visuals that include your brand or app name along with a short text description. These ads are available in specific placements and are ideal for simple, direct messaging.
Here’s a list of all the aspects and details that you will need to create your TikTok ad according to TikTok guidelines.
Now that you’ve explored TikTok’s diverse ad formats and selected the one that best suits your goals, the next step is equally important: choosing the right type of ad campaign.
The success of your advertising efforts depends on aligning your campaign strategy with your objectives.
Now, let’s dive into how to determine which TikTok ad campaign strategy is best for your brand.
Understanding TikTok Ad Campaigns: A Simple Guide to Bidding
TikTok campaigns are tailored to align with your varying goals at different stages of the marketing funnel. To achieve this TikTok uses the “bidding” concept.
If you’re new to TikTok advertising, the idea of “bidding” might sound a little intimidating—but it’s really not!
Bidding is just how TikTok decides which ads to show and to whom, based on how much advertisers are willing to pay and how relevant the ads are to users. Think of it like an auction: you’re competing with other advertisers to get your ad seen by your target audience.
but…why does bidding matter?
Bidding helps TikTok match your ads with the right audience while balancing two things:
- Your Budget: How much you’re willing to spend.
- Your Goals: What you want your ad to achieve, like clicks, views, or conversions.
The better your bid and the more relevant your ad is, the more likely TikTok will show it to your target audience.
The Basics of TikTok Bidding Strategies
Now TikTok offers two main bidding strategies to help you manage costs and results:
- Cost Cap
This strategy helps you keep your costs predictable. You set a target cost per action (like a purchase or sign-up), and TikTok works to keep the average cost close to that number.
- Best for: Advertisers focused on efficiency, like keeping costs steady. This is helpful for TikTok businesses during the holiday season.
- Example: You set a $5 target for every app install. TikTok will aim to stay close to that cost while maximising installs.
- Maximum Delivery
If your main goal is getting as many results as possible within a set budget, this is the strategy for you. TikTok focuses on maximising conversions without worrying about the cost per action.
- Best for: Advertisers who prioritise volume over cost control.
- Example: You have $500 to spend on a campaign and want as many website visits as possible. TikTok will use the entire budget to get you results, even if costs fluctuate.
Beyond strategies, TikTok offers four bidding methods to suit different goals.
TikTok Bidding Methods
Now that you understand bidding strategies, TikTok offers 4 methods to execute them.
- CPM (Cost Per Mille) – for building brand awareness
Pay for every 1,000 impressions (times your ad is shown).
- oCPM (Optimised Cost Per Mille) – for driving conversions
Pay for 1,000 impressions targeted to people most likely to take an action, like clicking or buying.
- CPV (Cost Per View) – for promoting content
Pay when someone watches your ad for at least 6 seconds or interacts with it.
- CPC (Cost Per Click) – for driving traffic
- Pay for each click on your ad
How to Choose the Right Strategy
Not sure which strategy or bidding method to pick? Here’s a quick guide,
- Focus on awareness? Use CPM to reach the largest audience.
- Need conversions? Go for oCPM to target actions like app installs or purchases.
- Want clicks or traffic? Choose CPC to pay for every click.
- Promoting video views? CPV is your best bet.
Want help deciding which metrics to track to measure campaign success? Read our guide to understand which option is best for you.
Pro Tips for Success
- Match your bid strategy to your goal: Cost Cap is great for keeping costs predictable, while Maximum Delivery works for high-volume campaigns.
- Be flexible: You can switch strategies as your campaign needs change, like using Maximum Delivery during sales seasons and Cost Cap during quieter times.
- Experiment and learn: Test different strategies and methods to find what works best for your business.
Bidding on TikTok might seem complicated at first, but once you break it down, it’s just about making smart choices that align with your budget and goals. With the right approach, you can ensure your ads reach the right people, drive results, and maximise your investment!
Now that you understand how TikTok’s bidding system works and how it aligns with your campaign goals, it’s time to put that knowledge into action.
Let’s dive into the step-by-step process of launching your first TikTok ad and bringing your campaign to life.
How to Create Your First TikTok Ad- Step-by-Step Guide
To learn how to advertise using TikTok follow these simple steps to launch your first campaign:
1. Get a Business Account
Switching to a business TikTok account is a crucial first step in learning how to use TikTok for advertising. It is free and unlocks useful analytics and advertising tools.
2. Integrate TikTok with Shopify
If you run an online store, connecting TikTok to Shopify simplifies ad creation and allows you to showcase products directly on your profile.
3. Open the TikTok Ads Manager
Head to TikTok Ads Manager on your desktop to start building your campaign.
4. Set Your Advertising Goal
Choose from objectives like increasing website traffic, generating leads, or encouraging app installs. Each goal aligns with different stages of the customer journey.
5. Select Your Audience
TikTok lets you create highly specific audience profiles based on demographics, interests, and behaviors. You can also let TikTok’s AI handle the targeting for you with “Automatic Audience.” Knowing TikTok user statistics is helpful in this stage.
6. Set Your Budget and Schedule
Decide on a daily or total budget, starting at just $5/day. You can run your campaign for a set period or indefinitely.
7. Create and Submit Your Ad
Upload a video, add a catchy caption, and select a CTA like “Shop Now.” Once you hit submit, TikTok will review your ad, usually within 24 hours.
8. Monitor and Optimise
Launching your ad is just the beginning. Use TikTok’s analytics tools to track performance and target your tiktok campaign as needed. This is where you’ll see which formats, audiences, and creatives work best for your goals.
Conclusion
Getting started with TikTok Ads may feel like stepping into uncharted territory, but as you’ve seen, it’s all about understanding the tools at your disposal and aligning them with your goals.
From choosing the right ad format to mastering TikTok’s bidding strategies, every step plays a role in helping you connect with your audience in a way that feels authentic and impactful.
Check out our other guides on TikTok:
- TikTok Ads vs. Instagram Ads: Which Platform Delivers Better Results
- How to Choose The Right Metrics for Social Media Campaign Success
Remember, the key to success is staying flexible, experimenting with different formats and approaches, and learning as you go.
Now it’s time to take what you’ve learned and put it into action. If you need expert guidance, House of Marketers is here to help. We also offer a TikTok account rental service that provides you with access to target any region, and access to higher levels of customer support.
Our experts set up these accounts, ensuring they’re tailored to your brand’s goals, so you can focus on achieving the best results for your marketing strategy. Contact us today to keep your campaigns on the cutting edge.
House of Marketers (HOM) is a leading TikTok Marketing Agency. Our global agency was built by early TikTok Employees & TikTok Partners, which gives us the insider knowledge to help leading brands, like Redbull, Playtika, Badoo, and HelloFresh win on TikTok. Want us to convert more of Gen Z and Millennials with TikTok? Get in touch with our friendly team, here.