If the above sentence doesn’t make sense to you, then you probably haven’t had the pleasure of using TikTok yet. If it did make sense, then congratulations! You also sit swiping endlessly at hilarious videos, trying to TikTok the night away. It’s nice to know that we’re not the only ones.
But as a business owner or marketing/sales manager, you can’t TikTok all night (unfortunately). You need to be strategic about your TikTok use if you want to see any ROI. And that’s where TikTok for Business comes in.
TikTok for Business and TikTok Ads open up a world of possibilities for businesses, big and small. Not only are you able to target new audiences, increase brand awareness, and boost sales, but you can also do it cost-effectively. It’s the magic trifecta of TikTok marketing!
There’s a lot to learn and consider before you create your first TikTok ad, which is why we’ve created this comprehensive guide. Keep reading to learn everything you need to know about TikTok for Business, from benefits and cost to creating an effective ad.
What is TikTok?
Remember the good old days of Vine? You know, that app where people would post six-second videos of themselves doing silly, random things? TikTok is kind of like that, but with a twist. The videos on TikTok are often set to music, and are usually a little longer than six seconds (anywhere from 15 seconds to one minute).
You’ll find a TikTok video of just about anything and everything. There are videos of people lip-syncing, cooking, holidaying, doing magic tricks… you name it, someone has probably TikTok-ed it. But TikTok isn’t just a platform for funny videos (although those are the ones that tend to go viral). It’s also a powerful tool for businesses.
TikTok for Business Marketing
Whether you’re a small business or a large corporation, TikTok offers a unique opportunity to reach out to new audiences and promote your products or services in a creative way.
We know you may be skeptical, thinking, “I don’t have the budget for a TikTok ad,” or “TikTok is just for kids; my target market would never be on there.” Or, even worse, “TikTok? Isn’t that just for lip-syncing videos?”
But, if any of the above thoughts crossed your mind, we’ve got news for you: TikTok is growing up, and it’s ready to do business.
This undeniably popular app now has over a staggering 1 billion active users, and growing. The average TikTok user spends 52 minutes on the app each day. That’s a lot of potential customers! And TikTok isn’t just for Gen Z-ers either. The platform is quickly gaining popularity with millennials and even older generations.
This explosive growth can be attributed to a number of factors: it’s easy to use, it’s addicting, and it has a low barrier to entry. Besides that, though, it’s just outright fun. Hours will pass by, and you won’t even realize it. TikTok has a way of immersing you in its world and making you laugh, cry, and everything in between.
The above statistics, combined with TikTok’s creative format, make it the perfect platform for businesses of all sizes to market their products or services. Not only can you reach a large number of people, but you can also get creative with your content and really stand out from the competition. Below, we take a deeper dive into the benefits of TikTok for business marketing.
Benefits of TikTok for Business
Reach a New Audience
TikTok offers businesses the unique opportunity to reach out to new audiences that they may not have had access to before. With over one billion active users, this popular app allows you to connect with potential customers in your target audience from all over the world.
Budget European airline Ryanair is a prime example of how the right humor is able to help you reach new audiences in a creative and memorable way. The airline keeps true to its branding and tone as it pokes fun at its cheap fares. It’s a simple, yet highly effective formula.
Ryanair uses images of its plane and a filter to impose human facial features onto its planes. They make fun of the little legroom, the extra baggage charge, and other annoyances that come with flying budget airlines. The TikToks are creative, funny, and on-brand.
The result? Ryanair’s following is at a whopping 1.8M followers as of November 2022. Who knew that making fun of your downfalls could be so successful?
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Think Outside the Box
The app’s creative format allows businesses to really think outside the box when it comes to their marketing strategy. With TikTok, you can be as creative as you want- whether that means filming a funny lip-sync video or creating a tutorial on how to use your product. The sky’s the limit when it comes to TikTok marketing, so don’t be afraid to get creative!
Take Chipotle as an example, which TikTok-ed its way to one of the top brands on the app. When TikTok launched its Ads platform, the Mexican Grill was one of the first brands to jump on board. And TikTokers loved it!
The sheer amount of followers and likes (1.7M followers and 3.8M likes) they’ve gained as a result of their #ChipotleLidFlip Challenge, which was carried out by a devoted Chipotle employee who then inspired over 100K others to try the stunt, is proof enough that TikTok marketing works.
But it didn’t end there. Chipotle proved that they were more than a one-hit-wonder. They persisted with a second Branded Hashtag Challenge in order to keep the momentum going. In July of 2019, they launched the #GuacDance challenge, in which guacamole fans showed off dance moves dedicated to avocados.
What may seem like a silly dance craze to some was actually a very clever marketing move on Chipotle’s part. The #GuacDance challenge resulted in over 250K video submissions, and 430M videos in just six days. In fact, the challenge was so successful, that it resulted in over 800K sales of guac on National Guacamole Day for the restaurant chain.
It’s all about thinking outside the box- and TikTok is the perfect platform for businesses to do just that.
Join the TikTok Business Community
TikTok isn’t just a platform for businesses- it’s also a community. By joining TikTok, you’ll be able to connect with other companies and grow together.
You won’t be the first to do this either. Brands are already live and collaborating on the app. Their undeniably creative TikToks are evidence that TikTok marketing is a unique and effective way to reach out to potential customers.
Duolingo is well-known for its random online material, and Scrub Daddy, the hilarious happy face-shaped dish scrubber, is also getting in on the TikTok action. In a recent collaboration, both brands combined forces to take on the racket together.
Both Duolingo and Scrub Daddy’s offerings could not be more different, but it’s their style of content that really ties them together. By teaming up, they left TikTokers speechless and racked up some incredible views in the process. They jointly posted around 5 videos, which can all be found on both Scrub Daddy’s and Duolingo’s accounts. Together, they racked up over 50M views on the platform.
If there’s one thing to take away from this, it’s that TikTok marketing is all about community. By joining the TikTok community, you’ll be able to collaborate with other businesses and create content that, like Duolingo and Scrub Daddy, will leave users with their jaws on the floor, and a high ROI.
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We can’t talk about the benefits of TikTok for Business without mentioning the almighty algorithm. This beast of an algorithm is always working in the background, promoting content that it thinks you’ll find interesting.
TikTok knows what you like; TikTok knows what you don’t, and will show you more of what it thinks you’ll enjoy. That’s why TikTok videos are so addicting- once you start watching, you can’t stop.
Can You Run Ads on TikTok?
Short answer: Yes! TikTok offers a self-serve Ads Manager platform that businesses can use to create and run their TikTok ads. TikTok Ads Manager is very user-friendly, so even if you’re not an expert, you’ll be able to create an ad campaign with ease.
You will have the option to run multiple different types of TikTok ads, depending on your business goals. You can create:
- Branded AR content – These are TikTok’s newest ad type, allowing businesses to create fun, interactive AR experiences for users. Companies can use stickers, lenses, and any other creative AR effects to make their ad stand out.
- Hashtag Challenges – As we saw earlier on in this article, TikTok is all about challenges. You can use TikTok’s Hashtag Challenge function to create a branded challenge that TikTok users will love. Hashtag ads show up in the “Discovery” section of the app, and users can choose to participate in the challenge or not.
- Image ads – Image ads are TikTok’s version of a traditional display ad. You can use images and videos to create image ads. Video ads from companies can be seen on TikTok’s news feed apps: BuzzVideo, TopBuzz, and Babe.
- Video ads – The traditional TikTok video ad format, where businesses can post full-screen videos of 5 to 60 seconds that appear in a user’s “For You” feed.
- In-feed video – These ads appear on the native news feed of TikTok users on the “For You” page.
- Brand takeover – A brand takeover ad puts you in a position of domination. It takes your message and places it on the screen for a couple of seconds, then turns into an in-feed video ad.
- Spark ads – Spark ads give brands the ability to sponsor organic content that’s been created by TikTok users. It’s an excellent way to get your brand in front of TikTok’s huge user base without having to create any content yourself. And, you can sponsor content that others have put their time and creative energy into, which is always a huge plus.
- Carousel ads – Carousel ads are TikToks’ version of an Instagram carousel ad. They allow businesses to post up to 10 images that appear in TikTok’s news feed apps.
- Sponsored influencer content – Influential TikTok users are the key to TikTok marketing success. You can use TikTok’s sponsored content feature to pay influencers to create and post TikTok videos that promote your brand or product.
Now that we know all of the different types of TikTok ads, let’s move on to the next question: TikTok ads cost.
How Much Do TikTok Ads Cost?
How much do TikTok ads cost? Well, it depends. Although TikTok ad costs have reduced, and you won’t be paying an arm and a leg for your ads, the cost of TikTok promotions will depend on a few factors, including:
- Ad Formats
- The objective of your advertisement (app installs, conversions, traffic, etc.)
- Bidding amount
- Bidding method
- The industry your business is in
- Your target audience (interests, OS versions, gender, age, connection type, language)
The average cost of a TikTok ad is $10 per CPM, but many CPMs under $2 are not uncommon. In 2019, AdAge reported that TikTok ad costs could often range from $50,000 to $120,000, depending on the scope and length of the campaign. While this may seem like a lot, TikTok ads offer businesses a significant return on investment. So it may just be worth it to bite the bullet and invest in a campaign.
It’s essential to remember that TikTok ads cost will also depend on the TikTok ad format you choose. For instance, image ads tend to be cheaper than video ads, and in-feed video ads are often more expensive than TikTok’s other ad types.
If you’re just starting out, we recommend testing TikTok ads with a small budget to see what works best for your business before increasing your ad spend. Keep in mind that you can also take the organic route when it comes to TikTok marketing. By linking up with influencers, participating in TikTok challenges, and creating quality content, you can grow your TikTok following without spending a dime on ads.
You can even reach out to a TikTok marketing agency, like Sargon Creative Media, to help you create an effective TikTok marketing strategy. We’ll work with you to determine the best TikTok ad format for your business and budget, and we’ll even manage your TikTok ad campaign from start to finish. If it means organic TikTok marketing is a better fit for your brand, we’ll let you know. We’re here to help you succeed on TikTok, no matter what.
Benefits of TikTok Ads
We know that we already talked about the benefits of TikTok marketing, but we want to drive the point home. TikTok ads offer businesses a unique opportunity to reach out to potential customers in a fun and engaging way. Not only that, but TikTok ads are also highly effective.
A Facebook, Instagram, and TikTok ads comparison study conducted by social media today found that TikTok ads had a significantly higher impression rate than both Facebook and Instagram ads. TikTok obtained over 11 million impressions, which was 235% more than both Instagram and Facebook. TikTok also had the least spending, $11,000 less than both social media giants.
This TikTok ads comparison study just goes to show that TikTok marketing is not only practical, but also affordable. It’s like the holy grail of marketing.
And the best part? There are even more TikTok ad benefits where that came from! Let’s sum up some of TikTok’s most impressive advertising features:
- Increased brand awareness – As we mentioned, TikTok has a vast user base of over 1 billion users. This presents an excellent opportunity for businesses to increase brand awareness and reach a larger audience.
- More engagement – TikTok users are highly engaged, which means that they’re more likely to interact with your content. If you create quality content and use TikTok’s paid features, you could significantly increase traffic and conversions.
- Improved brand reputation – As we’ve seen in the abovementioned brand examples, TikTok ads can also help improve your brand reputation. They allow you to show your audience that you’re up-to-date with the latest trends and that you’re not afraid to have a little fun. There are endless possibilities when it comes to TikTok marketing.
- Improved ROI – As we just learned from the TikTok ads comparison study, TikTok offers businesses a significantly higher ROI than both Facebook and Instagram.
- Generate leads – TikTok ads can also be used to generate leads. By running TikTok ads and including a call-to-action, businesses can encourage TikTok users to click through to their website or contact page, where they can learn more about the product or service.
- Increased web traffic – When used correctly, TikTok ads can lead to an increase in website traffic. By including a link to your website in your ad, you can drive users to your site. Once they’re there, you have the opportunity to convert them into a customer.
- Get more app downloads – If you have an app, TikTok ads are a great way to increase downloads. TikTok’s app install ads are designed to increase app downloads, and they’re very effective.
TikTok offers many business opportunities, and we’re just beginning to scratch the surface. This versatile platform can be used in various ways; we’re excited to see what the future holds!
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TikTok Ads VS Facebook Ads
“Give everyone the power to share anything with anyone.” Can you guess who it was that said this? It was Mark Zuckerberg, the man behind Facebook.
Facebook has run the social media world for a long, long time. It’s a platform that has given businesses of all shapes and sizes the opportunity to grow and reach new audiences. But TikTok is quickly changing the social media landscape, and brands need to take notice.
In the UK, TikTok surged past Facebook in average monthly time spent per user. According to App Annie’s 2021 state of mobile report, UK TikTok users doubled their time spent on the app, from 10.8 hours per month to 19.6. This not only surpassed Facebook’s 16.6 monthly hours per user, but also grew TikTok’s lead compared to the social media giant – a considerable achievement.
Now, we’re not saying that TikTok is better than Facebook, or that businesses should abandon Facebook altogether. On the contrary, Facebook is a powerful platform that may never be dethroned. It boasts a mighty 2.89 billion monthly users, and offers a very clean, sophisticated ad platform.
TikTok, on the other hand, has a much more casual vibe. It’s all about fun and entertainment, which is reflected in the content that TikTok users consume.
TikTok Ads VS Facebook Ads: The Difference
At first glance, you may not even notice huge differences between the two ad venues. For instance, both platforms offer similar interest segments, like travel, fashion, and food. But if you’re looking to take a deeper dive, there are some notable distinctions.
Let’s use technology as an example. TikTok offers a ‘Tech and Electronics’ category, but Facebook goes a step further, allowing advertisers to target users based on their interests in particular gadgets, like cameras and laptops, and even computer processors.
While this may not be a massive problem for those looking to reach generic and broader audiences, it could be a slight annoyance for businesses with more specific products. However, TikTok is quickly closing the gap. We predict that, in the near future, TikTok will begin to offer similar capabilities to Facebook.
You heard it here first; businesses must be prepared for the TikTok takeover.
Custom Audiences can be built in similar ways on TikTok as they are on Facebook: using first-party data and pixel tracking. This means that you may fine-tune your ads by adding custom audiences to improve your targeting, even if typical audience segments aren’t precise enough.
All in all, TikTok is a robust tool that businesses should be utilizing to reach new audiences. The video app just has something that Facebook doesn’t: a vast and engaged user base that’s hungry for content.
While Facebook is able to deliver some awe-inspiring results, TikTok’s exciting new platform is quickly becoming a force to be reckoned with. Especially when you tie in the unique demographic and TikTok’s algorithm, there is serious potential for businesses on TikTok.
Instagram or TikTok for Business?
Like Facebook, Instagram has been a powerhouse in the social media world for years. It’s the go-to platform for many businesses, and for good reason – Instagram boasts over one billion monthly users, and it continues to grow every single day.
But, as we mentioned before, TikTok is quickly on the rise. It’s a platform that’s filled with engaged users who are open to new content, products, and services. And while TikTok doesn’t have quite as large of a user base as Instagram – yet – TikTok users are much more engaged than their Instagram counterparts.
TikTok users spend an average of 52 minutes per day on the platform. And that’s just the older TikTok demographic; TikTok’s users aged four to fifteen spend an impressive 90 minutes per day on the app. Users also open TikTok an average of eight times per day.
In comparison, Instagram users spend an average of 29 minutes on the app daily. Although, it makes sense when you think about it – TikTok is a video-based app, and videos are just more engaging than photos.
In addition to the engagement TikTok boasts, TikTok is also great for businesses because it’s a level playing field. Unlike Instagram, TikTok doesn’t give preferential treatment to big brands with huge followings and budgets. Instead, TikTok offers opportunities for businesses of all sizes to be discovered by new audiences.
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TikTok Ads VS Instagram Ads: The Difference
So we know that TikTok is on the rise, and that it offers engagement that Instagram can’t even come close to. But what about when you compare TikTok ads to Instagram ads? What is the technical difference between the two?
Well, the first thing that stands out is TikTok’s ‘skip ad’ button. TikTok is the only social media platform that offers users the ability to skip ads, which may seem like a negative at first. However, TikTok’s ‘skip ad’ button actually works in businesses’ favor.
You see, on TikTok, an ad is only considered successful if it’s watched until the end. TikTok doesn’t charge businesses for ads that are skipped; companies only pay if an ad is watched in its entirety. So, in a way, the ‘skip ad’ button weeds out users who wouldn’t have been interested in your product or service anyway.
The second big difference between TikTok and Instagram ads is that TikTok offers businesses vertical video space. This may not seem like a big deal, but it’s actually a huge advantage for businesses.
You see, humans are hardwired to pay more attention to vertical videos. It’s a fact – our eyes are naturally drawn to things that take up more space on a screen. And since TikTok offers businesses vertical video space, companies are able to take advantage of our natural tendencies and grab users’ attention more effectively.
The precise targeting on Instagram, we must say, is still better. TikTok is working on it, but right now, businesses can only target users based on geographical regions. So it’s slightly less precise than being able to target users based on interests, demographics, and behaviors – but we’re sure TikTok will catch up soon.
The last thing to note is probably the most significant difference of all: TikTok’s extensive creative freedom. The editing tools, music library, and AR effects TikTok offer businesses are unrivaled by any other social media platform. This creative freedom allows companies to really let their imaginations run wild and produce ads that are truly one-of-a-kind.
Best Practices for an Effective 2022/2023 TikTok Ad Strategy
Now comes the time you’ve all been waiting for – the best practices for an effective TikTok ad strategy in 2022/23! Here is what you need to know in order to produce TikTok ads that are sure to grab users’ attention and leave a lasting impression.
Define your target audience
The first step to creating an effective TikTok ad strategy is to define your target audience. Who are you trying to reach with your TikTok ads? What are their interests? Where do they live?
Once you’ve answered these questions, you’ll have a much better idea of what kind of content to produce and how to build it. From there, you can start to get creative and really hone in on what makes your target audience tick.
Invest in high-quality visuals
TikTok is a visual platform, so it’s crucial that your TikTok ads are visually appealing. Invest in high-quality visuals and make sure your ads are well-lit and clear.
You can also use TikTok’s editing tools to really make your ads pop. TikTok offers a variety of filters, effects, and music that you can use to add some pizzazz to your ads. Get creative and have fun with it—the more natural, the better. You want your TikTok ads to look like they’re not even ads – you want them to look like you’re just sharing a snippet of your everyday life.
Set specific ad objectives
When creating your TikTok ad strategy, setting specific objectives is essential. What do you want your TikTok ads to achieve?
Do you want to increase brand awareness? Drive website traffic? Generate leads? Once you’ve decided what you desire your TikTok ads to achieve, you can start thinking about how to produce content that will help you attain those objectives.
Whether that means adding a call-to-action (CTA) at the end of your TikTok ads or including a link to your website, make sure you’re clear about what you want your TikTok ads to achieve before you start producing them.
Hire creators in your niche
If you really want your TikTok ads to stand out, consider hiring creators in your niche. These are the people who already have a following on TikTok and produce content that’s relevant to your brand.
They know what works on TikTok and how to grab users’ attention. By hiring creators in your niche, you can tap into their pre-existing following and get your TikTok ads in front of even more people.
Hiring TikTok creators can be a bit pricey, but it’s definitely worth it if you want to produce high-quality TikTok ads that are sure to leave a lasting impression.
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How to Run an Ad on TikTok
So you know the ins and outs of TikTok ads, and you’re ready to get started. But wait, how do you actually run an ad on TikTok?
Well, we’ve come this far. We can’t leave you hanging now. Here’s a step-by-step guide on how to run an ad on TikTok!
Step 1. Create a TikTok For Business account
The first step is to create a TikTok For Business account. This is where you’ll upload and manage your TikTok ads, and track your results.
If you don’t already have a TikTok For Business account, you can sign up for one here. TikTok for Business differs from a personal TikTok account in that it gives you access to TikTok’s suite of business tools, including the Business Center, Ad Account, and Store Manager.
Creating a TikTok For Business account is quick and easy, and it’s the first step to running TikTok ads.
Step 2. Set up your ad account
Once you’re all signed up and ready to go, it’s time to set up your TikTok ad account. You can do this by filling out your business information, such as your business name, email, phone number, and time zone.
You will also have to decide on a budget, but the TikTok for Business help article makes it easy. Click here to learn more about deciding on a budget for your TikTok for Business ad account. It may be a good idea to also check out TikTok Advertising Policies; you don’t want to get your account banned because you broke the rules.
Step 3. Select your advertising goal
Depending on your business objectives, you’ll want to select an advertising goal that best suits your needs. TikTok offers five different ad objectives: reach, traffic, video views, conversions, and lead generation.
- Reach – Allows you to show your ad to the maximum number of people in your target audience.
- Traffic – Sends users to your website, app, or TikTok profile after they see your ad.
- Video Views – Encourages people to watch your video and is best suited for brand awareness or interest campaigns.
- Conversions – Aims to get people to take a specific action, such as making a purchase or signing up for your email list.
- Lead Generator – Generates leads by collecting information from TikTok users, such as their names, email addresses, and phone number.
Once you’ve selected your advertising goal, you can move on to the next step: setting up a campaign.
Step 4. Set up campaign
Now it’s time to set up your TikTok ad campaign! First, you’ll need to provide some basic information, such as your campaign name, start and end dates, bid type, and budget, along with a bunch of other settings.
But the campaign is where it really starts to get fun. It’s the deciding factor of what TikTok users will see and how they will see it. You’ll need to come up with a catchy name, attention-grabbing imagery, and compelling copy to go along with your ad.
Start by heading over to your Ads Manager and clicking on the ‘Campaign’ button in the navigation bar at the top of the page. Then, all you have to do is fill out the required information and click ‘Create Campaign.’
To ensure you’re getting the most out of your TikTok ads, be sure to check out this TikTok for Business help article, “set up and optimize campaigns in Ads Manager” it has all the tips and tricks you need to create an effective TikTok ad campaign.
TikTok Ads Agency
If you really want to take your TikTok ads to the next level, you should consider working with a TikTok Ads Agency, like Sargon Creative Media.
TikTok ad agencies like us are experts in all things digital marketing, ensuring your TikTok ads are just as effective as they can be. We’ll work with you to create a campaign that is tailored to your specific business goals and target audience, and we’ll even manage your ad account for you.
We align with your business goals and objectives, target the TikTok user most likely to convert, and deliver your message through creativity that cuts through the TikTok noise.
Not only that, but we can also help you track and measure your results, so that you can see how well your ad is performing. If you’re not happy with the outcome, we’re always happy to make changes and tweaks until you are.
A TikTok Ads Agency is an excellent resource for businesses of all sizes, but especially for small businesses that don’t have the manpower or resources to create an effective ad campaign on their own.
If you’re interested in working with a digital marketing agency that specializes in TikTok ads, contact Sargon Media today. We would be happy to discuss your specific needs and create a tailor-made ad campaign that is sure to get results.
TikTok is quickly becoming one of the most popular social media platforms, and it’s no surprise that businesses are starting to take notice. The raw power TikTok has to reach and engage users is undeniable, and TikTok ads are an effective way to tap into the platform’s full potential.
When done right, TikTok ads can be a powerful tool for driving traffic to your website, increasing brand awareness, and generating leads. But as with any form of advertising, there is a learning curve.
If you’re unsure where to start, contact us, and let’s chat! You can send inquiries to email@example.com, or schedule a video call with the Sargon team.
We hope this guide has given you a better understanding of how TikTok ads work and how they can benefit your business. Happy TikToking!