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Are TikTok Ads Worth it? Pros & Cons of TikTok Advertising 

Are TikTok Ads Worth it?

TikTok is expanding rapidly, with 1 billion monthly users active on the platform as recently reported. As more and more brands are adopting TikTok for business, TikTok ads have proved to be especially effective thanks to its user-generated content and huge user base. 

While TikTok ads provide businesses with numerous creative freedom and plenty of opportunities, many small companies are still wondering whether advertising on TikTok is worth it, given the time and money required to run TikTok ads.

So without further ado, let’s explore the world of TikTok ads with its pros and cons to decide whether TikTok ads are worth it.

What are TikTok ads?

TikTok ads are designed exclusively for brands to broaden their reach and drive conversions. 

They provide your business with strong, yet easy-to-use tools for promoting their products to millions of users around the world. Once getting your TikTok Ad account set up, you can gain access to targeting, ad creation, insight reports, and ad management tools.

Moreover, TikTok allows you to create numerous ad formats with many different targeting options. Here is a list of key TikTok ad types:

  • In-feed 
  • Top View
  • Brand Takeover
  • Branded Effect
  • Branded Hashtag
TikTok ad types
Key TikTok ad types

Pros of TikTok advertising 

Today’s businesses have a variety of choices on which platforms they will promote their products like Google, Facebook, Instagram, etc. So why should they choose TikTok Ads? 

If you also have the same concern as above, read on some major benefits below to make more informed decisions.

You can reach a huge and diverse audience on TikTok

Huge and diverse audience on TikTok
Huge and diverse audience on TikTok

It is particularly noteworthy that TikTok has such a large and diverse audience. TikTok is accessible in 155 countries, with 1 billion active users worldwide, and an advertising reach of about 885 million people. Therefore, your TikTok videos have tremendous potential and reach.

The increasing age diversity of TikTok users is also worth noting. 25% of US TikTok users are between the ages of 10 and 19. In fact, users under 30 make up 47.4%. The percentage of US TikTok users over 40, at 31.3%, is surprisingly high. Hence, TikTok is a fantastic platform for distributing content to a global audience.

So, as you can see for yourself, if your business appeals to GenZ, there is a very clear potential to promote to this demographic on TikTok. However, there are also plenty of opportunities for your brands to reach different age groups as stated above.

You can advertise to the most engaged customers 

Engaged customers on TikTok
Engaged customers on TikTok

Backlinko statistics show that users are engaged on TikTok with an average time of 10.85 minutes. That is double the second-place engagement ranking of 5.06 minutes on Pinterest. Even preteens and teens use the app on a daily basis for 105.1 minutes, according to MMGuardian data. That’s a lot!

In addition to having a high engagement rate, TikTok also has better possibilities for encouraging users to act on their engagement to take action, which ultimately results in increased sales. 

On TikTok, there is room for everyone. So you can start right away by aiming for the large reach and engagement by utilizing TikTok’s daily and dynamic trends, popular music, hashtag challenges, trendy dances, and even duets.

You can try many different TikTok ad formats with smart targeting options

Different TikTok ad formats
Different TikTok ad formats

TikTok offers a variety of ad types, including in-feed ads, top-view ads, brand takeover ads, and branded hashtag challenges. To encourage people to like, comment, share, follow and shoot videos within the same TikTok sound, you can use in-feed ads. Alternatively, you may leverage a branded hashtag challenge to capitalize on users’ love for creativity and expression and raise brand awareness. When it comes to TikTok ad types, there are just a ton of excellent options to meet your specific campaign objectives.

What’s more, are intelligent targeting options you can access when running TikTok ad campaigns. There are standard audience targeting tactics on TikTok, such as:

  • Demographic (based on gender, age, location, etc.)
  • Interests (based on content engagement, account follows, etc.)
  • Device (based on operating system, device type, etc.)

Notably, you can create your own powerful Custom Audiences to further enhance the efficiency of your ads. A custom audience includes things like engagement, app activity, website traffic, etc.

You can showcase products in an authentic way on TikTok

TikTok authenticity
Authenticity-driven TikTok videos

TikTok advertising is distinct in the way it prioritizes authenticity. TikTok users are encouraged to be themselves while sharing their style, daily lives, talents, and stories, with the chance to go viral. You can see the huge success of simple TikTok videos in the form of video selfies, “storytime”, how-tos and tutorials.

Particularly with TikTok, you don’t require a huge production budget to produce advertising that appeals to your target audience. All you need to start with maybe just include a high-quality phone camera and good lighting. Just try to concentrate on your products and emphasize your unique selling points that resonate with your target audience.

Cons of TikTok advertising 

TikTok time commitment
A substantial time and resource investment

Running social ads is not a passive process; you must actively participate in creating and upgrading the ad creatives. The process of optimizing ad campaigns is still ongoing even after you have finished creating ads and have learned what aspects of your creatives are good and need improvement. So as TikTok ads demand a substantial time investment.

You still need to update, test, and optimize your ads on a regular basis. This entails creating fresh content, crafting new captions, and overseeing more resources. As a result, in order to get the most out of TikTok ads, you really need to get ready and be willing to put in a lot of time and work.

However, there’s always an alternative that helps you work around this problem. NestAds is a simple yet powerful TikTok advertising management software that helps you with all the stages of TikTok ads, from setting up your first campaign to optimizing ads that convert. This way, you could save an enormous amount of time and allocate your ad budget effectively. 

Being tailor-made to the TRR funnel (targeting – retargeting – retention), NestAds can drive great and tremendous results with winning TikTok ad campaigns:

  • Create TikTok ad campaigns in minutes, with no prior experience required.
  • Monitor the performance of your TikTok ads for key metrics.
  • Reach more potential customers with smart audience target options.

Is it worth to run TikTok ads for your business?

Is it worth to run TikTok ads for your business?
Are TikTok ads worth your investment?

Here are the essential questions to ask yourself whether it is worth running TikTok ads. 

Are you selling a visual product? 

Visual products predominate on TikTok in all industries ranging from food, and fashion, to fitness. Due to the simplicity of promoting these products in videos, they are perfect for TikTok ads. For instance, makeup can be advertised via organic material in a seamless manner via tutorials, how-tos, reviews, or before-after transitions that are super popular on TikTok. 

Is your target audience present on TikTok? 

As you might know, Gen Z and other young consumers below 30 years old prefer TikTok as their social media platform of choice. However, as we mentioned above, TikTok users are getting increasingly diverse, with more than 30% aged over 40, which makes it especially ideal for you to target your specific target audience. So if you are hesitant to join TikTok advertising, just remember you can target a wide range of people there and try testing out TikTok ads first to see if it’s worth your investment.

Do you have enough funds and resources? 

This is a critical question. You could start by testing out TikTok ads with a minimum daily budget of $50. Also, be aware of the considerable time and resource commitment that you need to make in order to get good results out of TikTok ads due to the constant update and optimization of ad creatives. 

Have you established goals for the platform? 

It’s vital to clearly define your advertising goals on TikTok. Try to link your TikTok ad campaigns to concrete business results, such as brand awareness, sign-ups, and sales, and see if TikTok really suits your specific goals.

How much do TikTok ads cost?

TikTok ads cost
TikTok ads cost

With TikTok Ads, you can choose between a daily and lifetime budget which can be modified anytime throughout your ad campaign.

  • Daily budget: You need to pay at least $20 per day.
  • Lifetime budget: The cost is calculated by multiplying $20 by the total number of days you run the ad.

TikTok’s CPM (cost per thousand views) and its CPC (cost per click) for advertising starts at $0.50 and $0.02 respectively. Notably, you need to pay at least $500 for a whole campaign and no less than $50 for the daily budget.

Furthermore, according to the latest analytics from PiPiAds in 2022, TikTok’s average ad cost per 1,000 plays and the average ad cost per conversion or click for TikTok are estimated at $3.90 and $16 respectively.
However, keep in mind that there are 5 major factors that affect the cost of your TikTok ads, including ad objective, bidding method and amount, audiences, your industry, and ad formats.

Let’s decide whether to run TikTok ads

So, back to the original question: Are TikTok ads worth it? Well, the short answer is yes, they are. With all the great potentials of TikTok advertising ranging from its huge, diverse, and hyper-engaged audience, and numerous powerful ad formats, to its authenticity-driven and user-generated content, we believe TikTok advertising is totally worth a try. 

But it’s highly recommended to draw up a detailed TikTok advertising plan with clear goals in mind and brace for its considerable time and resource commitment. Also, consider using our free software NestAds to save time and maximize sales with winning TikTok ads. 

As always, we are here to support your TikTok commerce journey and are happy to answer all your questions. Please feel free to contact us via live chat or comment down below.

Daisy

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Daisy

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