TikTok CPM and Advertising: Our Latest Tests and Results
TikTok is quite popular and offers a lot of advertising possibilities for new and older apps. Now, what is the TikTok CPM, and how much does advertising on the app cost?
Table of Contents
- TikTok’s Sudden Rise
- TikTok’s CPM Compared to Other Platforms
- The Differences Between Standard In-Feed Ads and Spark Ads
- Our Latest Test: Traditional TikTok Ads vs TikTok Spark Ads CPM
- Conclusion on Spark Ads CPM and Costs
The platform has had a lot of success with TikTok Ads, and in this post, we’ll go over the Spark Ads option, which is an ad display style that allows marketers to enhance native, organic, and successful content.
Moreover, we will focus on REPLUG’s recent TikTok Spark Ads campaign and the overall results so that you can see what to expect in terms of KPIs and cost.
TikTok’s Sudden Rise
TikTok has swiftly become one of the most widely used social media apps of all time, thanks to its simple video production tools that allow anybody to become an instant creator. TikTok users may record and share videos, photos, as well as other user-generated content (UGC).
TikTok’s appeal stems from its frequently shifting trends, keeping users engaged and generating new content. TikTok trends include dancing, challenges, pranks, and other activities.
TikTok started in 2016, but its popularity exploded in 2019 and 2020, with the app installed 3.5 billion times and reaching over 1 billion users globally.
TikTok’s short-form films have inspired competitors on other platforms, including Instagram Reels and YouTube Shorts. Moreover, TikTok is accessible in 75 languages and 155 countries, giving it an excellent option for reaching many people all around the world.
TikTok’s CPM Compared to Other Platforms
Since the beginning of TikTok ads, the CPM has been considerably lower than other platforms such as Facebook and Snapchat. TikTok ads have an average CPM of roughly $9.5. Moreover, the CTR is 0.58% on average, while CR is 1.1% on average.
Related: Facebook Campaign Optimization in a Post-IDFA World
What is more, TikTok advertising may be very effective for app marketing in numerous instances, including if the target audience is under 40 years old, lowering CPM, or improving brand recognition.
TikTok’s costs are rising since the platform is becoming more popular among marketers—nevertheless, even with these changes, TikTok is still quite a bit less expensive than competing platforms.
For our clients, for example, we find that the cost-per-mille (CPM) on TikTok is up to 40% less expensive than the CPM on Facebook across a variety of apps, verticals, and countries.
What is TikTok’s CPM?
TikTok charges for In-Feed Ads using a metric known as CPM, or cost-per-mille. Simply put, the cost per 1,000 views is referred to as the CPM. Moreover, TikTok’s general average CPM is $10. To begin with, the lowest CPM is $0.50 per mile, which means marketers pay 50 cents for every 1,000 views of their ad. In addition, the minimum CPC is $0.02 per click.
For instance, TuffGrowth states that the cost of 1,000 TikTok ad views is $6.06, JungleTopp believes TikTok CPM is as little as $1.82, and according to Digiday, the CPM in 2020 was only $1,00.
|As we can see, TikTok advertisements are not free. However, you can establish your ads with your schedule and budget using a free TikTok ads account. TikTok’s base campaign spend varies from $500 to $50 per different ad group.|
TikTok CPM is most often used by eCommerce brands and apps that want to increase brand recognition for their products and services through Paid UA efforts.
However, it is not strictly limited to just that industry. That is why we conducted a TikTok Spark Ads campaign for one of our partners, and below, you will see the complete methodology and the results we obtained.
How Much Do Spark Ads Cost on TikTok?
You may adjust the amount you wish to spend on marketing using a similar strategy to other social ad networks. You can also bid on ads using TikTok, making reasonable pricing. As a result, TikTok advertising varies in price from campaign to campaign.
As mentioned, the general TikTok CPM for traditional ads is around $9.5-$10.
Regarding TikTok CPM for Spark Ads, marketers usually pay an average of $1.00 per click and a CPM (cost per 1,000 impressions) of $6.06. This figure is obtained from a combined study of all marketers. Thus, it will not apply to every brand on TikTok.
TikTok also demands a minimum expenditure of $50 per day for campaigns and $20 per day for ads. The TikTok campaign aim, budget and bid quantity, audience segmentation, and CTR significantly influence the cost of your TikTok ads.
How to Get Even Cheaper TikTok CPM
Since day one, the main TikTok Ads motto has been “Don’t Make Ads. Make TikToks”, which was a clear invitation to pursue authenticity and creativity.
In a nutshell, this means focusing on authentic content from creators rather than traditional video ads. In one scenario, there is UGC or user-generated content, which is essential for lowering CPMs.
Moreover, the most significant impact TikTok has had on content is that it provides everyone with the tools to create, and the entry barrier is small. That implies that marketers don’t have to spend a fortune to develop meaningful content that will resonate with their target audience.
In addition, the TikTok community values impulse and sincerity and is more interested in the quality of the content rather than the creation value and costs.
Many posts and articles on TikTok’s page have demonstrated how helpful, appropriate UGC material can be in terms of costs, but there’s more to it. There is another approach to reduce TikTok CPMs even further, and that is to use TikTok Spark Ads.
|TikTok Spark Ads are a native type of ads that enables brands to construct campaigns that use posts from their TikTok profiles and organic posts generated by other creators with their consent. As a result, Spark Ads enable marketers to employ user-generated content.|
The Differences Between Standard In-Feed Ads and Spark Ads
In simple terms, TikTok Spark Ads are aligned better with TikTok’s mantra and standard feed (scrolling and stopping content). When it comes to traditional In-Feed Ads, they are not so engaging since it is clear to the audience that it’s an ad (still less clear than other platforms, though).
Moreover, traditional In-Feed Ads are not linked to an organic account and usually have a higher CTR (because of the number of touch points that route to the landing page). Conversely, TikTok Spark Ads are linked to an organic profile, both the brand’s primary account and a creator’s.
In this case, the CTR is crucial since there is an increase in intentional clicks to the landing page, improved engagement, and a growth in followers and exposure with its use.
In addition, these one-of-a-kind ads will be branded “Sponsored content” and have a CTA of your choosing, caption, account name, and audio. These ads are unique because they include all standard engagement factors, such as commenting, sharing, and liking.
As a conclusion, we can see why TikTok Spark Ads are a better option. They appear more natural in the standard feed and are likelier to do well than regular TikTok Ads.
Examples of TikTok Spark Ads
At first glance, traditional In-Feed and Spark Ads look similar, but we can see that the spark ad (on the right side) shows the influencer profile picture rather than the brand logo.
Also, the textual part is quite different. The Spark Ad has the TikToker creator’s name, and the original post text is displayed entirely and with the original hashtags. You can also see if some specific filter or effect has been used for Spark Ads.
When the CTA button appears (which for TikTok ads happens after a few seconds from the beginning of the video), we could notice – besides the already mentioned differences – a different color for the buttons used in Spark Ads and Traditional in-feed ads.
Lastly, when the video is over, and there is the final screen with CTA, the differences are notable: here, you can see for the Spark Ad all the information related to the influencer, the original ad text, and the CTA in a different color.
Related: Trying TikTok Spark Ads: Our Experiment and Insights
Our Latest Test: Traditional TikTok Ads vs TikTok Spark Ads CPM
In one of our latest tests, we’ve compared (at an extensive scale of budget) the performances of the same video when used as a standard TikTok Ad—meaning promoting the video from the client’s TikTok account—and when used instead as a Spark Ad. The results (performance metrics) were surprising.
We saw that the costs of Spark Ads were not always lower for CPC and CPM. In the specific, in terms of CPC, only one concept had a lower CPC with Spark Ads (-25%), while the other concepts had lower CPC (up to 20%) when used with regular ads.
We saw a similar trend for CPMs, where on two occasions, the Spark Ads had lower CPMs (up to 17% cheaper).
The “good news” started with CTR (Click Thorugh Rates). For three out of four concepts, the CTR was considerably higher for Spark Ads than typical ads (up to 40%).
The bright side of Spark Ads came out with the conversion rate from click to install, which was always higher than the videos used with normal ads (up to 72% higher install rates).
All those figures resulted in a lower final cost per acquisition through Spark Ads, both for the CPI (up to 57% lower), but also for the CPA, which was, in the same cases, 61% lower for Spark Ads.
One last interesting finding was that comparing the results of Spark Ads with the all-time best-performing non-Spark Ads, the conversion rate from install to install to conversion event was sometimes doubled.
Conclusion on Spark Ads CPM and Costs
We’ve come to the end of the article, and you are probably wondering if the TikTok Spark Ads approach is effective for your app marketing efforts. We have a few thoughts we would like to share with you.
As we can see from our comprehensive testing, TikTok CPMs and CPCs are not always cheaper when it comes to Spark Ads. Nevertheless, the final CPIs and CPA are—therefore, we are confident that you should definitely give Spark Ads a chance.
Interested in trying TikTok advertising to grow your audience and get results based on performance? Get in touch with us.
Writers: Jovana & Lorenzo