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A Guide to TikTok Ads Costs in 2024

Banner of TikTok Ad Costs in 2024

 

In recent years, TikTok has become a dominant social media platform in Singapore. As of 2024, Singaporeans spend more time on TikTok than any other platform, clocking in at an impressive 3 hours and 23 minutes each month. Not only that, its advertising features have also evolved rapidly since its introduction in 2019, offering multiple ad formats and pricing models that suit businesses of varying sizes. This has made it a powerful tool for businesses and marketers alike, allowing them to create engaging, targeted content that resonates.

 

For businesses considering TikTok advertising, a common question is: How much do TikTok ads cost, and what is the recommended minimum budget? In this guide, we’ll walk you through the different TikTok ad types and costs to help you determine the best approach for your brand’s marketing strategy. 

 

Learn more: Tiktok Marketing: How Can TikTok Benefit Your Business In Singapore

 


 

Understanding TikTok Ad Formats and Costs

TikTok offers a variety of paid advertising formats, each designed to deliver specific outcomes, from generating brand awareness to driving conversions. TikTok advertising costs also vary widely depending on the chosen format.

 

1. In-Feed Ads

Example of Sponsored In-Feed Ad on TikTok featuring CHANEL

 

The most commonly used TikTok ad format, In-Feed Ads appear on users’ “For You” page as they scroll through their feed, allowing brands to advertise in a non-intrusive manner. In-feed ads typically feature a short video (9-15 seconds) and include clickable elements like website links or app downloads. Furthermore, these ads offer robust targeting options, enabling brands to reach specific demographics on TikTok for the best results.

 

The average cost per click (CPC) for In-Feed Ads ranges from SGD$0.50 to $1, with a cost-per-thousand-impressions (CPM) starting around SGD$10. According to Sindy, Performance Marketing Lead at OOm, lead generation campaigns tend to be more costly compared to awareness- and consideration-driven ones, with CPCs reaching as high as SGD $3 (USD$2.30). She also recommended a minimum budget of SGD$450 to SGD$600 per month. 

 

As In-Feed ads are still more cost effective compared to the other ad formats below, they may be the best option for smaller businesses with more limited budgets. 

 

2. TopView Ads

TopView Ads occupy the first in-feed post users see when they open TikTok, guaranteeing high visibility and attention from the user. These ads provide guaranteed prime placement for greater visibility, making them ideal for product launches, brand awareness campaigns, or special events. Due to their high-impact exposure, TopView Ads come at a premium cost, typically starting at a minimum of $60,000 per day, making them more suitable for brands with larger advertising budgets. 

 

3. Brand Takeover Ads

Brand Takeover Ads appear immediately when a user opens the app, either as a static image (3 seconds) or a short video (3-5 seconds). These ads occupy the full screen and are designed for maximum exposure within a short time frame. They can also direct users to an external landing page or another part of TikTok, increasing the potential for conversions. 

 

As for costs, Brand Takeover Ads are generally more expensive than In-Feed Ads but less expensive than TopView ones. 

 

4. Brand Hashtag Challenge

Screenshot of a TikTok search results page displaying the 'guccimodelchallenge' hashtag with three featured posts

 

Brands can invite their community to participate in creating content around a specific theme or challenge promoted through Branded Hashtag Challenges. These ads are designed to go viral, promoting user participation under a specific hashtag and generating a substantial amount of user-generated content. 

 

The cost of a Branded Hashtag Challenge varies based on its scope and duration. For instance, exclusive placements on the “Discover” page and extended app exposure can significantly increase the price. This ad format is generally less accessible to smaller businesses due to the high costs. 

 

5. Brand Effects

Branded Effects allow businesses to create custom filters, stickers, and augmented reality (AR) effects that users can apply to their own videos. These effects encourage user interaction with the brand, often resulting in playful and engaging content, and are excellent for businesses looking to foster a deeper connection with their target audience. 

 

6. Spark Ads

Sponsored TikTok Spark Ad featuring a video of a Guardian store

 

Last but not least, Spark Ads allow brands to boost existing organic content by promoting videos that have already been created by either the brand itself or by users. This format leverages the popularity and engagement of organic posts, enhancing their reach through paid promotion. Spark Ads can also be customised with targeting options to increase their visibility among specific audiences.

 


 

How to Budget for TikTok Advertising

Aside from understanding the different types of TikTok ads and their associated costs, it is also important to align spending with your campaign goals to maximise return on investment. 

 

Learn more: Social Media Marketing: How Much Does It Cost?

 

1. Define Your Campaign Objectives

Before allocating your budget, clearly define your campaign objectives. Are you aiming to increase brand awareness, drive website traffic, generate leads, or boost app installs? Your goals will influence the type of ad formats you choose and the budget required. For example, if you have a large advertising budget with more aggressive goals, consider a TopView Ad which can bring high visibility. On the other hand, smaller businesses seeking cost-effective engagement or traffic generation may benefit more from In-Feed Ads.

 

2. Determine and Allocate Your Budget

Decide on the total amount you are willing to spend on your ad campaign. This should be based on your overall marketing budget, campaign goals, and the expected return on investment. 

 

Once you have your total budget, allocate funds across the different ad formats based on their effectiveness in achieving your objectives. Businesses prioritising brand awareness should allocate more budget to premium formats like TopView Ads or Brand Takeovers. Conversely, if the focus is on driving traffic or conversions, In-Feed Ads or Spark Ads are a better investment option. 

 

3. Consider Bidding Strategies

TikTok offers various bidding strategies, including Cost Per Click (CPC), Cost Per Mille (CPM), and Cost Per View (CPV). 

  • Cost Per Click (CPC): Ideal for campaigns focused on driving traffic to your website or app. You pay each time a user clicks on your ad, making it a good choice for direct response objectives.
  • Cost Per Mille (CPM): Best for brand awareness campaigns where the goal is to maximise exposure. You pay for every 1,000 impressions your ad receives, allowing you to reach a large audience.
  • Cost Per View (CPV): Suitable for video campaigns where you want to measure engagement based on views. You pay for each view, making it effective for increasing video engagement.

 

Selecting the appropriate bidding strategy will optimise spending and help your brand achieve the best results based on campaign objectives.

 

 


 

Exploring the TikTok Ads Manager

Businesses can also further maximise their budget by utilising TikTok Ads Manager, the platform’s self-service advertising tool. 

 

1. Campaign Creation and Management

The Ads Manager allows you to set up, manage, and monitor your campaigns from a central dashboard. You can define your target audience based on demographics, interests, and behaviours, ensuring your ads reach the right people. You can even set and adjust budgets, schedule ad delivery, and manage multiple campaigns simultaneously.

 

2. Performance Analytics

Utilise the analytics tools within the Ads Manager to track and evaluate key performance indicators such as click-through rates (CTR), impressions, conversions, and engagement metrics. This provides real-time data and reports to help you assess the effectiveness of your ads and refine them for better results.

 

3. Campaign Optimisation

TikTok Ads Manager also offers features for continuous campaign optimisation. Implement automated rules to adjust bids, budgets, or ad placements based on predefined performance criteria. The Ads Manager even offers A/B testing features that enable you to experiment with different ad creatives, formats, and targeting options. 

 


 

TikTok’s Advertising Policy

Aside from considering TikTok ad costs, it is just as important to comply with the platform’s specific advertising policies. This will help you avoid potential issues and ensure your ads run smoothly with maximum effectiveness.

 

Some of their key guidelines include:

 

  • Avoid sexually suggestive, violent, discriminatory, or harmful content.
  • Ads must be truthful and accurate.
  • Avoid restricted categories, which include adult content and dangerous products and services.
  • Adhere to local laws and regulations when advertising certain types of products, such as alcohol, financial services, and weight management services. 
  • Be transparent about data collection practices and align your ad targeting with TikTok’s data protection standards.

 


 

Conclusion

With its massive and engaged user base, particularly among younger generations, TikTok presents a valuable opportunity for businesses to connect with their target audience in unique and engaging ways. Whether you’re looking to boost brand awareness, drive engagement, or generate leads, the platform’s diverse ad offerings provide solutions for businesses of all sizes.

 

TikTok ads and digital advertising generally is a complex undertaking that requires significant knowledge, experience. When handled without expertise, advertising efforts can simply blow through your budget and result in a negative ROI. 

 

At OOm, we have a team of experts to take care of your advertising campaigns to bring you peak returns.  As one of the top performance marketing agencies in Singapore, OOm has won multiple awards in performance marketing. Learn more about our social media advertising service

 

If you are an SME in Singapore, you may qualify to receive up to 50% subsidy under the PSG Digital Marketing Grant

 

Schedule your free consultation with us. 

 


 

About OOm

OOm has been a leading digital marketing agency in Singapore since 2006, with expertise in Search Engine Optimisation (SEO), search engine marketing (SEM), social media marketing to website design and development. Our clientele comprises small and medium businesses (SMEs) to enterprises.  

 

OOm has won over 30+ marketing awards for the results we have delivered to clients over the years, including ‘Agency of the Year’, ‘Lead Generation Agency of the Year’, ‘Independent Agency of the Year’, ‘E-Commerce Marketing Agency of the Year’, ‘Excellence in Search Marketing, ‘Excellence in Performance Marketing’ to ‘Excellence in Data-driven Marketing’ among others. OOm is also a Google Premier Partner (reserved for the top 3% agency partners in Singapore), as well as an official Meta Business Partner. 

 

Ready to boost your brand’s online presence and revenue? Book a free digital marketing strategy consultation with us today. Our experts will dissect your business, uncover hidden growth opportunities, and share tailored marketing recommendations to propel your business.