Not inferior to Facebook and Instagram in terms of reaching target customers and brand communication. Tiktok is a channel for promoting products and services that many businesses love and develop their business activities. Calculating advertising costs on Tiktok is very important because it determines the ability to distribute ads and business efficiency. For beginners, this is not simple. How much does it cost to run TikTok ads to reach the right customers and increase sales and profits? Let's find out about this issue with SOC LUA as well as how to optimize advertising costs on Tiktok simply and effectively!
How to determine advertising costs on TikTok?
Advertising costs are the amount of money that advertisers have to pay for content promoting products and services to be displayed on a specific platform, namely Tiktok. When customers click and read the advertising content, they feel convinced and navigate to the website, e-commerce platform or Tiktok Shop to learn more about the product and make a purchase. Before deciding to invest a budget in Tiktok advertising, you need to carefully consider whether advertising will help you achieve your business goals and bring the best results. Tiktok has many forms of advertising and each format will have a different running cost. If you want to know how much it costs to run Tiktok ads, please refer to the following methods:
Bidding
For those who have run Google Ads and Facebook Ads, the method of determining advertising costs is no longer too strange. By setting a bid that you are willing to pay to display in the target location, the ads will compete to win the display. In this bidding method, advertisers set their desired budget and bid, then set specific goals and requirements for the advertising campaign.
Tiktok will automatically select the ads with the highest bids to display to users. However, this does not guarantee that the ads will receive more impressions and attract more interactions. To be effective, you need to optimize your budget, select and optimize your target audience accurately. When implementing bidding ads on Tiktok, you need to carefully consider offering competitive bids and choosing the right target audience.
Pre-order
Unlike the bidding method above, advertisers need to pre-order to reserve a spot because the number of ad positions displayed on Tiktok is limited. This form of advertising is very effective for businesses that want to increase their online presence and create strong virality. If you want to reserve an advertising position, businesses need to contact Tiktok's advertising team or Tiktok's advertising partners. Formats for pre-ordered advertising include: TopView, Branded Effect, Branded Hashtag Challenge. Although this form of advertising is effective in increasing brand awareness, the cost is quite high, has little flexibility and is only suitable for large brands.
Reach and frequency (R&F)
This form of advertising cost determination allows advertisers to measure the scale of reach and frequency of advertising display to the target audience within a specific period of time based on a fixed price. It is often used in combination with other forms to maximize the number of people reached, helping the business's brand to be number 1 in the minds of customers. With this form of charging, it will ensure that the advertisement is displayed to the right audience, the Tiktok Ads campaign achieves the best results, avoiding wasting the budget. When choosing this payment method, there will be 2 distribution forms including Standard and Top Feed. Which, Top Feed helps optimize the display position for reaching and frequency ads to help increase the number of displays and better brand recognition.
Latest Tiktok advertising costs today
When running Tiktok ads, it will start from about 10 USD/CPM and can be up to 300,000 USD depending on the total budget for the campaign. TikTok offers 2 budget options: Total budget and Daily budget. This advertising platform has some regulations on advertising budget as follows:
- The minimum budget at the campaign level is 500,000 VND
- The minimum budget at the ad group level is 400,000 VND
You can customize the budget according to the goals and outreach strategy with the selected ad format. For advertising campaigns that businesses want to achieve business goals, a minimum requirement of 500 USD is required
TikTok bidding advertising costs
With the bidding-based advertising fee calculation method, the advertising price will be calculated in the following ways:
- CPM: Cost per 1,000 impressions
- CPM: Optimized cost per 1,000 impressions
- CPV: Cost per 1,000 views
- CPC: Cost per click
Depending on the characteristics of each advertising form, there will be different ways to calculate the fee. The cost of In-Feed advertising will need a minimum of 400,000 VND/day and the minimum total cost is 5,600,000 VND. The average CPM of advertising on TikTok is 2 USD and advertisers can set the maximum CPV for 1,000 views of the advertising video in 6 seconds or 2 seconds as desired. The average CPC for Tiktok advertising is about 5,000 VND. oCPM represents the bid you're willing to pay to get 1,000 impressions to achieve your Conversions or App Installs advertising goal.
TikTok Pre-order Advertising Costs
For pre-order advertising formats, there will be the following formats: TopView, Branded Effect, and Branded Hashtag Challenge with the following fee calculation:
If the business chooses the Top View advertising format, it will need to spend the following costs: the cost for 1 impression is 1.35 USD. The targeting cost per impression is 1.69 USD and the minimum daily budget is 10,800 USD.
In case the business chooses the Branded Hashtag Challenge advertising format, the minimum cost for 1 campaign is 29.5 USD. The maximum total cost for an advertising campaign is 40,600 USD within 70 days, the first 3-day promotion is 11.1 USD.
The cost of Branded Effect advertising in standard form (2D/2D pro effect) is 37,350 USD. With advanced advertising (3D/GBE effects), the cost is $67,350.
R&F TikTok advertising costs
With R&F, advertisers can control the number of people reaching the ad and the frequency of display at a fixed price. After collecting information about the audience, purpose and budget, the system will give estimated results for the indicators: the number of advertising audiences reached, the number of ads displayed and CPM. The cost for a 1-week R&F advertising campaign is $53.69, earning 100,000 reach and a frequency of 1.28 (for every 128 people reached, 28 people will see the ad at least twice).
How to optimize advertising costs on Tiktok effectively
Once you know how much Tiktok advertising costs, you need to find ways to improve the effectiveness of the campaign and optimize costs. Here are some methods to help optimize Tiktok advertising budgets shared by experts for your reference:
Comply with policies and create attractive advertising content
Similar to Facebook and Google, Tiktok has policies and regulations when implementing advertising campaigns. Therefore, advertisers need to comply with these principles so that ads are quickly approved and displayed to the right audience and avoid wasting budget. If you want your Tiktok advertising videos to attract the attention of potential customers, advertising content is a prerequisite.
Tiktok highly values and prioritizes displaying creative, unique and original content and videos. Therefore, you need to ensure that you create appropriate advertising content that attracts your target audience. Give a clear direction to the content on the channel and refer to some hot topics, learn about new trends or Tiktok channels with the same topic, and related fields.
Use a Tiktok Agency account
Unlike personal advertising accounts, Agency accounts are accounts granted exclusively to advertising agencies, and advertising partners of Tiktok. When having this type of account, businesses can deploy many advertising campaigns with large budgets without any abnormalities, and fully experience different features and advertising formats. Besides, you will receive many attractive incentives and dedicated support when using this account to deploy campaigns to help achieve the best efficiency and optimize costs. If you want to use this type of account, please contact and cooperate with Soc Lua today. We are proud to be an official partner of Tiktok with a strong, quality account system. Coming to us, you will not only be provided with a high-trust, stable Tiktok Agency account with the best fee on the market, but also professional and dedicated technical support. For more information about the service and to receive the best quote, please contact the hotline: +84868133882
Optimize the budget at the initial stage of advertising installation
This is one of the methods to help optimize Tiktok advertising costs effectively. Start with a small budget, then conduct A/B testing on different advertising campaigns and track the results to adjust. Through monitoring and evaluation, you will know which campaigns are working effectively to increase the budget and stop poorly performing campaigns. This not only helps improve the performance of the Tiktok Ads campaign but also helps optimize the advertising budget.
When setting up an ad group when running conversions, choose the Bidding Strategy as Lowest Cost and the Performance Objective as Conversion. You should set a minimum initial budget of 20 times the cost to achieve a conversion result of 100 USD or more. To determine the budget you should set, you can refer to the average daily spending on advertising in previous ad groups in the same account.
Perform other communication activities on Tiktok
In the process of implementing an advertising campaign on Tiktok, to achieve the best efficiency and optimize costs, businesses need to combine with cooperation with influencers on the platform to help the advertising video go viral and reach more customers. In addition, you can share advertising videos on many other platforms or call on people to do it by giving gifts or offering incentives when buying. Not only that, you can create hot trends on Tiktok, which will greatly support the advertising campaign.
Now, you have a better understanding of how much it costs to run Tiktok ads in 2025 to prepare your budget and plan your advertising accordingly. Hopefully, you can apply this useful knowledge to the process of implementing an advertising campaign on Tiktok to maximize business efficiency!
Frequently Asked Questions
According to information from AdEspresso, the average cost for each ad impression on Facebook is from 5 - 10 USD/CPM while the average CPC of advertising on Tiktok is 0.50 - 2 USD. This comparison is quite lame because Tiktok and Facebook have different advertising fee mechanisms and target different audiences. Therefore, the cost of advertising on Tiktok and Facebook will vary depending on the goals and characteristics of each platform. Tiktok appeared later with a low level of competition, so the advertising cost will usually be cheaper. However, depending on the campaign goals and target audience, the advertising cost between these two platforms is different.
Determining the Tiktok advertising budget will depend on many factors including the financial resources of the business, products and services, and target market. You need to ensure that the investment in advertising costs is profitable and must be calculated on the cost of sales. Moreover, the Tiktok Ads budget changes depending on each stage of business development. When deciding whether to increase the advertising budget on Tiktok, you should monitor and measure the results of previous campaigns, research competitors, determine goals, etc.
