How much should you budget for your TikTok Ads campaigns?

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How much do TikTok Ads cost? It is the common question that every newbie always wonders when they first get into the TikTok ads market. With TikTok CPM (cost per mile) charging mechanism, advertisers will have to pay $10 (or £9) for every 1,000 views. But if you want to run an advertising campaign, the minimum budget will be $500.

Nonetheless, that’s just scratching the surface. Advertising on TikTok can set you back more than 500 dollars! So, what is the true cost of TikTok ads? Uncover all the secrets in this blog!

What are the methods for purchasing TikTok ads?

t’s certain that no bloggers or advertisers can provide you with an exact figure for the cost of TikTok Ads. This is because TikTok offers multiple ad types, each with a different pricing range. Therefore, to determine the precise cost of each solution, we must understand all the ad-buying methods that TikTok provides.

At present, advertisers can acquire TikTok ads through three approaches:


  • Involves placing bids for ad space.
  • Commonly used for sales or branding campaigns.
  • Offers flexibility in costs with no upfront fees.
  • Suited for conversion efficiency.
  • TikTok provides five bidding ad types: In-Feed, Collection, Dynamic Showcase, TikTok Shopping solutions, and Deeplink to Marketplace.


  • Applicable due to the limited number of ad placements.
  • Advertisers using this method must book in advance.
  • Ad formats, such as TopView, Branded Effect, and Branded Hashtag Challenge, are available.
  • Higher cost compared to bidding.
  • Requires advance booking and payment through TikTok agencies.
  • Effective for increasing awareness and branding.
  • Exclusive ad solutions unique to TikTok.

Reach & Frequency (R&F):

  • Allows control over the reach of target users and ad frequency within a fixed budget.
  • Two forms of distribution: Standard and Top Feed.
  • Top Feed is an advanced setting that optimizes the display position for the standard distribution.
  • Often used in combination with other types to maximize audience reach and interaction, enhancing brand recognition.

How much are TikTok Ads?

TikTok ads’ minimum budget should be $500. The costs start at $0.50 per mile, or 1000 views, and $0.02 per click. As with brands we’ve worked with, we recommend you set aside at least $20/day on your first campaign.

Additionally, the cost of TikTok Ads in general, and TikTok TopView Ads in particular, varies based on numerous factors such as the target audience, geographic location, and bidding strategies. As TikTok’s most valuable ad format, TopView Ads tend to be relatively more expensive.

Typically, TopView Ads on TikTok can range from $50,000 to $150,000 per day, reflecting their elevated visibility and engagement levels. Brands should, therefore, carefully consider investing in TikTok TopView Ads, given their capacity to deliver remarkable results.

Contrastingly, when running a reservation ad like TopView Ads, a flat rate must be paid in advance to ensure delivery of the ad to a specified number of impressions. This guarantees that your video achieves the planned engagement rate. However, it’s important to note that this pricing structure is often higher than that of auction ads.

How to calculate TikTok ad-bidding types?

Bidding advertising costs are estimated based on four bidding methods, including:

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. However, TikTok CPM rates can vary widely and may be higher or lower than this range.

  • TikTok CPM = (Total cost / Total impressions) * 1,000
  • Charged by impression
  • ​Advertising Object: Reach

oCPM (Optimized Cost per Mille)

This is the price you’re willing to pay to generate 1,000 impressions (similar to CPM). In general, oCPM costs start at $4. However, the system will target users who are likely to convert, become leads, or are following similar products. oCPM is currently the default bidding method for the “Conversions” or “App Installs” ad objective.

  • ​oCPM = (Total cost / Total impressions) * 1,000
  • ​Charged by impression
  • ​Advertising Object: Shop Purchases, Product Sales, Conversions, App Install, Lead Generation, Community Interaction (Follows).

CPV (Cost Per View)

This is the bid you are willing to pay for every 1,000 video views within 2 or 6 seconds till the end of the video. The system will deliver the video to the maximum number of viewers within your budget. TikTok allows you to set a maximum CPV bid for 1,000 with a 6-second or 2-second video view. You can simply choose your own spend per view on TikTok.

  • ​CPV = Total cost / Total video views
  • Charged when a viewer engages with your video, either by watching it for at least 6 seconds or for the complete duration if it’s under 30 seconds.
  • ​Advertising Object: Video Views

CPC (Cost Per Click)

This is the cost you will pay per click, TikTok cost per click is around $1. The system will deliver your ad to users who are most likely to click on the link in the ad at the closest cost to your bid.

Depending on each form of advertising, the cost will be different. For instance, on TikTok Ads Manager, the minimum cost of In-Feed advertising per day is $20.

  • ​CPC = Total cost / Total click
  • ​Charged by click
  • ​Advertising Object: Shop Purchases, Product Sales, Traffic, App Installs, Conversion, Community Interaction (Profile Visits).

Compare TikTok Ads cost with other platforms

It’s difficult to make a comparison of social ad platform costs because there are so many variables. But when it comes to CPCs and CPMS, TikTok is quite comparable to Facebook and Instagram, in which the average CPC of TikTok ads is only $1.

A single TikTok Ads cost may range from $50,000 to $120,000, depending on the type of ad you choose.

Facebook Ad

To advertise on Facebook, you have to compete with a large number of competitors. According to statistics, there are currently over 10 million advertisers on Facebook. Despite the intense competition and higher CPM prices, Facebook Ads also provide you with a more targeted audience based on your criteria.

TikTok Ad

Unlike Facebook, TikTok offers more advantages for advertisers who are new to the platform. The algorithm and business model of TikTok ads allow users to reach a broader customer base, boost traffic, and initiate conversions faster.

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