TikTok is young, fast-paced, and increasingly popular, including in the Netherlands. Advertising on TikTok is still in its infancy here, but the potential is enormous. Given this, it can be incredibly interesting to start advertising on TikTok, but what exactly are the costs involved? In this blog, we explain what you can expect from TikTok ads so you can get started fully prepared.
Because of its young audience, many brands find it interesting to have a presence on TikTok. By using short, relevant videos to stay visible to your target group, there are clear opportunities to build brand loyalty. One way to do this is through advertisements. These are also in video format, ensuring they fit seamlessly into the platform. For those who don't own a business, it is also possible to earn money on TikTok. Curious about how that works? Read it here!
For those who find a daily budget of €20 too high, manual bidding can be an option. With manual bidding, you manage your bids directly through TikTok, which means you can manually increase or decrease bids based on a number of factors. Please note: you can never truly guarantee that €20 won't be spent in a single day.
Within TikTok, you can set your own budget in two ways. To start, you can choose to set a lifetime budget. In that case, TikTok will distribute the budget over the specified timeframe itself. The other option is to set a daily budget. When you set it to daily, a fixed amount is spent each day. What works best varies per campaign. To get a good picture of how your campaign is performing in relation to the costs, you can look at various pillars:
The abbreviation CPM stands for Cost Per Mille. Facebook calculates this as the cost per 1,000 impressions. The CPM on TikTok is approximately €1 to €2. This is about 5 times cheaper than the cost of advertising on Facebook. So this offers huge opportunities!
The abbreviation CPC stands for Cost Per Click. As the name suggests, this calculates the cost per click. The average CPC on TikTok is about €0.15 to €0.30, but it can be much cheaper, as shown in the screenshot below.
The abbreviation CPL stands for Cost Per Lead. CPL is particularly important for forms of advertising where advertisers pay for every person who submits a quote request or information inquiry.
The abbreviation CPA stands for Cost Per Action. This is a method for determining the cost of online advertising based on a specific action performed by the user.
The abbreviation ROAS stands for Return On Ad Spend. It answers the question, "If I invest €1 in Facebook Ads, what do I get back?". A ROAS of 4 indicates that a company generates €4 in revenue for every euro of advertising budget. Check out our case studies to see the ROAS we achieve on TikTok.
It is notable that while the cost per click on TikTok is very low compared to competitors, the quality of traffic generated from campaigns has sometimes proven to be lower compared to other platforms. On average, traffic from TikTok stays on the website for a shorter time and shows a lower conversion rate than comparable social media channels like Facebook, Instagram and Pinterest. However, we have seen that the quality of traffic in 2023 is much higher compared to 2021, and the gap between Meta (Facebook & Instagram) and TikTok is narrowing, even though the difference in traffic costs remains significant.
It is notable that while the cost per click on TikTok is very low compared to competitors, the quality of traffic generated from campaigns has sometimes proven to be lower compared to other platforms. On average, traffic from TikTok stays on the website for a shorter time and shows a lower conversion rate than comparable social media channels like Facebook, Instagram and Pinterest. However, we have seen that the quality of traffic in 2023 is much higher compared to 2021, and the gap between Meta (Facebook & Instagram) and TikTok is narrowing, even though the difference in traffic costs remains significant.
