The Ultimate Guide to TikTok Ads in 2024 (2024)

Whether you’re looking to drive traffic to your website or generate revenue for your latest product, a creative and well-targeted TikTok campaign can drive huge results.

So, grab your notepad because we’re sharing all the need-to-knows to optimize your strategy this year with TikTok Ads.

Table of Contents

  • What Are TikTok Ads?
  • Why Use TikTok Ads?
  • How Much Do TikTok Ads Cost?
  • 8 Types of TikTok Ads
  • What Are TikTok Ads Specifications?
  • How to Create a TikTok Ads Campaign
  • 5 Best Practices for TikTok Ads

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What Are TikTok Ads?

TikTok Ads are promoted content (typically full-screen videos) that a brand or creator pays to run on the platform.

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There are three levels of TikTok Ads:

  • TikTok Ad: A single advertisement

  • TikTok Ad Group: A collection of TikTok ads

  • TikTok Campaign: A collection of TikTok ad groups

FYI: Later's in-house team of experts are trusted by leading brands to run their TikTok influencer campaigns — from outreach to analysis. Schedule a call to learn more.

Why Use TikTok Ads?

From well-known beauty brands to emerging tech companies, brands far and wide have found success with TikTok Ads.

The opportunity is two-fold: Showing your products in action and connecting with Gen Z (over half of TikTok’s audience). Win-win.

How Much Do TikTok Ads Cost?

Short answer: TikTok Ads cost as much as you want them to.

The platform uses an auction and bidding model, meaning you decide how much you pay per view, click, or impression.

However, there is a minimum spend — $50 USD/day per ad campaign and $20 USD/day per ad group.

TikTok Bidding Methods

When it comes to TikTok Ads bidding, there are four key methods:

  • CPV: Cost per 1K views

  • CPM: Cost per 1K impressions

  • oCPM: Optimized cost per 1K impressions

  • CPC: Cost per click

TIP: Take advantage of TikTok’s Suggested Bid feature to ensure your price is right.

8 Types of TikTok Ads

Whatever your strategy, there are plenty of TikTok Ads to choose from.

Here are the eight types:

#1: TikTok Video Ads

TikTok Video Ads are one of the most common forms of TikTok advertising.

They look like regular TikToks with a direct link or CTA to what’s being advertised. Simple as that.

#2: TikTok Spark Ads

TikTok Spark Ads is a native TikTok Ads format that lets you leverage organic TikTok posts and their features in your advertising.

This means you can use your own posts or posts made by other creators (with permission).

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The best part? All views, comments, shares, likes, and follows gained from boosting the video are attributed to the organic post — making for authentic ad campaigns. Major win.

Leading brands, like Clif Bar & Company, have used Later's influencer marketing platform to optimize and scale their TikTok campaigns. Schedule a call for more details.

#3: TopView Ads

TopView Ads are TikTok video ads shown to users upon opening the platform.

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They’re full-screen, sound-on, interactions-on — making them a worthwhile option to showcase your brand.

#4: TikTok Image Ads

TikTok Image Ads are just what they sound like: still images that include a brand or app name, and text.

However, the process of getting them live is a little different as they’re only available through the Global App Bundle and Pangle Placements.

#5: Carousel Ads

Need more than one slot to convey your message?

Advertisers can post up to 10 images (each with its own caption) all in one ad with Carousel Ads.

#6: Playable Ads

Inception: TikTok Ads edition.

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Perfect for gaming companies, playable TikTok Ads are interactive videos that let users experience your game in real time before downloading.

#7: Video Shopping Ads

ICYMI: Video Shopping Ads are available to all web advertisers (mobile is currently in closed beta testing with a select group).

From catalogs of shoppable products to selling on TikTok Live, your next sale is truly a scroll away.

#8: Branded Effects

Branded stickers, filters, and special effects are all simple and creative TikTok Ads strategies to build brand awareness.

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How? They encourage UGC (user-generated content) and interaction with your brand.

What Are TikTok Ads Specifications?

Since image and video ads live on TikTok, there are quite a few formatting rules to follow.

Bookmark TikTok's full ad specs guide for all the fine details: Video Ads Specifications.

How to Create a TikTok Ads Campaign

Ready to create your very own TikTok Ads campaign? Follow these simple steps:

Step #1: Log Into TikTok Ads Manager

To get started, log into the TikTok Ads Manager with your TikTok Business Account (if you need to make the switch, follow TikTok’s instructions).

Step #2: Create a New TikTok Ads Campaign

From the TikTok Ads Manager, hit the Campaign button in the top navigation. Then, click Create.

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You’ll then be prompted to enter Simplified Mode or Custom Mode.

NOTE: Since Simplified Mode is a stripped back version of Custom Mode, our remaining steps will apply to Custom Mode.

Step #3: Select an Advertising Objective

To clearly define your TikTok Ads campaign from the start, TikTok has you choose one of three objectives: awareness, consideration, and conversion.

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Choose whichever one best suits your strategy, and a corresponding goal.

Step #4: Name Your TikTok Ads Campaign

Name your campaign and identify if it fits into any special ad categories.

Here, you can also define your individual campaign budget.

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FYI: The minimum spend is $50 USD/day per ad campaign.

Step #5: Create & Name Your Ad Group

Once the campaign settings are settled, it’s time to move on to the ad group settings.

Choose a name for your ad group, then decide whether users will be able to comment, download, or share your TikTok Ads.

Step #6: Determine Targeting

Next, it’s time to choose your target audience.

You can define your target audience by demographics like location and gender, and more advanced targets like interests and behaviors.

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Step #7: Set Your Ad Group Budget & Schedule

Set your Ad Group budget and how long you want your TikTok Ads to run for.

Remember: The minimum spend is $20 USD/day per ad group.

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Step #8: Set Your Bidding & Optimization

The last step in creating a new ad group is deciding how much you’ll pay per metric (i.e. cost per view or cost per click).

To use the lowest cost bidding strategy, leave the Bid control section blank.

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NOTE: Select Accelerated under Delivery type to get TikTok to reach your targets as quickly as possible.

Step #9: Upload Your Ad

Finally, it’s time to upload your TikTok Ads!

Upload your content, write your caption, and choose your identity (selecting your own brand’s TikTok account will create a Spark Ad).

Step #10: Set Your Destination Page

Determine your CTA — aka, where you want your audience to land.

You can also add a legal disclaimer, if necessary.

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Step #11: (Optional) Determine Your Tracking

You can choose to track events on your website, app, or third-party sites.

#Step 12: Submit Your Ad (& Celebrate)

Hit Submit to send your TikTok Ads campaign to TikTok for review.

According to the platform, most submitted ads are reviewed in about 24 hours.

Finally, celebrate — you just submitted your first TikTok Ads campaign!

5 Best Practices for TikTok Ads

Depending on your skill level, creating lead-driven TikTok Ads can be a learning curve.

Here are our top five best practices to help you get the most out of your campaigns:

#1: Make the First Three Seconds Count

With over 1M TikToks viewed everyday, people want to be entertained immediately or they’re on to the next — and this can be tougher to achieve with ads.

By making the first three seconds of your ad engaging, you’ll keep your audience's attention for longer (and reach more eyes too).

#2: Use Music

Capture the attention of users and the essence of your TikTok Ads message with music.

Our advice? Tap into TikTok's "Sounds for Business" — a library of pre-cleared commercial sounds to power organic and paid content.

#3: Optimize for Sound-off

Not only is it a great rule of thumb for accessibility, but adding captions to your TikTok Ads is necessary to keep users engaged.

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Why? 69% of social media users view videos with the sound off in public places and 25% watch with sound off in private places.

PRO TIP: Browse through dozens of captioned templates on CapCut.

#4: Update Your Ads Often

TikTok recommends trying your hand at a bunch of ad types when you first start advertising on the platform, and switching up your ads every 7 days to “avoid ad fatigue.”

Fresh TikTok Ads = fresher leads.

#5: Work With TikTok Creators

The ultimate TikTok Ads tip? Partner with creators!

Where traditional ads can miss their mark with younger audiences, TikTok creators have the selling power to turn your brand into a trusted online name.

TIP: Learn how to leverage the power of TikTok creators: The Ultimate Guide to TikTok Influencer Marketing.

And there you have it, our complete guide to TikTok Ads.

With these tips and steps you’re well equipped to create the best ads that'll deliver results.

The Ultimate Guide to TikTok Ads in 2024 (2024)

FAQs

How to use TikTok for business 2024? ›

10 tips for building your TikTok marketing strategy
  1. Create and brand your TikTok account. ...
  2. Define your TikTok audience. ...
  3. Create quality TikTok videos. ...
  4. Use ads in your TikTok marketing strategy. ...
  5. Tap into TikTok influencer marketing. ...
  6. Monitor TikTok analytics to track performance. ...
  7. Jump on popular TikTok trends.

What is the most important thing with TikTok ads? ›

Hashtags are the most important thing on TikTok, they assist in content discovery and categorization. Including relevant hashtags in your ad campaigns enhances your content's discoverability and effectively targets specific audiences.

What is the success rate of TikTok ads? ›

TikTok's advertising strategy is effective, with 83% of users finding the app's advertisements entertaining, emphasizing the platform's success in creating engaging and enjoyable ad content.

How do I get the most out of TikTok ads? ›

Ready to Dominate TikTok? Follow These 12 Best Practices
  1. Set measurable performance goals. ...
  2. Stay aware of trends and subcultures. ...
  3. Partner with creators. ...
  4. Create videos for full-screen vertical viewing. ...
  5. Keep variety and visual appeal top of mind. ...
  6. Create short and sweet videos. ...
  7. Center your brand and CTA. ...
  8. Always add captions.
Aug 10, 2023

What is TikTok growth strategy 2024? ›

2024's essential TikTok marketing tips from top marketers: Storytelling, niche hashtags, authentic content, and leveraging Spark ads for growth. Make TikToks, not ads.

How much does TikTok pay per 1,000 views? ›

According to reports from top influencers, TikTok pays around $0.02 and $0.04 for every 1,000 views. These are reports based on payments received through the TikTok Creator Fund. This is a program that TikTok introduced in 2021 in a bid to compensate content creators for creating content on the platform.

Are TikTok ads still worth it? ›

Well, the short answer is Yes. With all the great potentials of advertising ranging from its huge, diverse, and hyper-engaged audience, and numerous TikTok ad formats, to its authenticity-driven and user-generated content, we believe TikTok advertising is worth a try. What kind of ads do you run?

Is TikTok ads worth it? ›

Are TikTok Ads Worth it for Your Business? TikTok ads can be worth it if you have a well-defined target audience, are willing to invest in creative content, and closely monitor and optimise your campaigns.

How much should I bid on TikTok ads? ›

​CPM (Cost Per Mille/Cost per Thousand Impressions)

This is a price you're willing to pay for 1,000 impressions. From there, TikTok will deliver your ad to get the most impressions and reach as many customers as possible within your budget. For every 1,000 impressions, the TikTok CPM average ranges from $10 to $30.

How much money can you make from TikTok ads? ›

TikTok influencers with 100,000 followers can expect to earn an estimated between $500 to $2,000 for a branded product placement in a video. Growing and selling an account with the same number of followers can earn you around $1,000 to $2,000.

How much does 1 ad cost on TikTok? ›

The average CPM on TikTok is $9.16 (as of November 2023). TikTok advertising prices start at $0.50 CPM and $0.02 cost per click. A minimum budget of $500 is required to spend on a campaign, with a minimum daily budget of $50 at the campaign level and a minimum of $20 per day at the ad group level.

How long should a TikTok ad be? ›

TikTok recommends 9 to 15-second videos for optimal performance. TikTok ads should be supported with sound and/or music as the app defaults to a sound-on experience.

What are TikTok ads best for? ›

Each TikTok In-feed ad features a clickable CTA button that can be used to drive traffic to external landing pages, app downloads, or your brand's TikTok account. This helps you create engaging content for your target audience and have them purchase your product in just a few clicks.

Why are my TikTok ads not spending at all? ›

One common reason for TikTok ads not spending fully is the TikTok learning phase. During this initial ad delivery stage, TikTok is on a quest to discover the right audience for your ad groups.

How do I use TikTok for business purpose? ›

How to use TikTok for business
  1. Step 1: Get a TikTok Business Account.
  2. Step 2: Create a winning TikTok strategy.
  3. Step 3: Optimize your TikTok profile.
  4. Step 4: Create content that people will want to watch.
  5. Step 5: Master the art of SEO.
  6. Step 6: Post at the right time.
  7. Step 7: Engage your audience and grow your following.

How do I use TikTok for my business? ›

Set up your free Business Account

In the app, click "..." on the top right of the Profile page, go to Settings & Privacy then click Manage account and select Switch to Business Account. Choose the category that best fits your business to receive customized content, events, and solutions.

How do I activate TikTok for business? ›

To switch your account type:
  1. In the TikTok app, tap Profile at the bottom.
  2. Tap the Menu ☰ button at the top, then select Settings and privacy.
  3. Tap Account.
  4. Tap Switch to Business Account, then follow the instructions provided to switch your account type.

How do I enable TikTok for business? ›

On Mobile
  1. Open the TikTok app and log in to your account.
  2. Tap Profile to go to your profile homepage.
  3. On the top right corner, tap the hamburger menu icon to open your Settings and privacy page.
  4. Tap Account.
  5. Under the Account control options, tap Switch to Business Account.

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