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Paid Ads on TikTok

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Paid ads on the boom video platform.

In recent years, no other social network has made such a name for itself and experienced such steep growth as TikTok. While the app was initially used a lot by young people, it now has a broad and diverse target group, and the creators on the platform also represent (almost) all age groups. 

A development that is not so easy to imitate - with implications for all other networks: Videos dominate as a format also on Instagram, Facebook and Co. and the basic idea of continuing to wipe for the next video now also exists in modified form on YouTube with the "YouTube Shorts". 

It was only a matter of time, because what was not possible at TikTok in the beginning is now everyday life: promotional videos and paid ads on TikTok.


What are TikTok Ads?

So now there are ads on TikTok - they've been around for a while, but their spread in Germany in particular has only increased more strongly since the end of 2022. 

If you want to find out more about the trendy app, you can read our article on it: How videos captivate us.

TikTok Ads or TikTok Advertising refers to advertising measures that are placed on the social media platform for the respective target group. And there is a whole bunch of such measures that you can try out for yourself and your company: 

  • In-Feed Ads: ads in the users' main feed. They resemble regular videos and pop up as you scroll.

  • Branded Hashtag Challenges: brands can launch hashtag challenges where they ask users to create videos related to a specific hashtag. 

  • Branded Effects: companies can create their own special effects, filters, and stickers that users can use in their videos. This allows for a closer connection between the brand and users. 

  • TopView Ads: video ads that are displayed immediately when the TikTok app is opened. They have high visibility as they take up the entire screen.

  • In-App Purchase Ads: this is a feature where users can purchase products directly from the TikTok app after seeing an ad.

  • Dynamic Ads: Dynamic ads automatically pull information from a company's product catalog to create personalized ads that target user behavior and interests.

In addition to these display options, there are also targeting options to precisely address the desired target group. Targeting here is based on factors such as location, age, interests and behaviors, among others. Currently, the "landscape" of paid ads on TikTok is still evolving - let's stay excited about what's in store for us in the next few years.

For whom are paid TikTok ads suitable?

Basically, it should be said here that a target group should be addressed for paid ads that is between 15 and 35 years old, because we already know that this target group has already made a purchase via TikTok. So if you also want to measure how your own conversion rate turns out, you should make sure that your own products tend to appeal to a younger target group.

In addition, experience has also shown that products that can be physically touched have better sales opportunities than services, for example. 

If the company has an online store, all the better, because then it can be linked directly to the app and the ads and a seamless buying process is made possible. The industry or size of a company plays a less important role compared to the age and type of product.

Advantages over other platforms 

Well, that makes you wonder: Why advertise on TikTok? What advantages does it have compared to Facebook & Co. Absolutely legitimate question - and also important to consider when deciding whether TikTok is the right choice. 

One advantage is addressing a younger target group, if that's part of the marketing strategy. To reach Generation Z and younger millennials, the platform is wonderfully suited and the distribution of selected messages via video format is well possible via TikTok for this target group. 

In addition, TikTok has a strong focus on creative and entertaining content. This gives companies the opportunity to interact with their target audience in an original and fun way, which can lead to higher engagement rates.

More good news: Videos in TikTok's main feed often have high viewability because users frequently scroll through them. This increases the likelihood that your ads will be seen. Add to that the potential to go viral: No platform offers such great potential for viral content and achieving a large reach in a short period of time. A creative and engaging video can spread quickly and lead to widespread brand awareness.

The platform emphasizes authenticity and genuineness. Companies can benefit from this orientation by creating natural and unadorned content that resonates better with users. And the opportunity for direct interaction with just such genuine and authentic content, should not be neglected. 

Moreover, the saturation compared to other platforms in terms of advertising is probably not yet that high on TikTok. This means that ads are (still) placed in an environment that is not so crowded with advertising, which means that they can be perceived more strongly if necessary.

More about TikTok Ads 

Like the other paid ads platforms like Google Ads and Facebook Ads, there are 3 levels of design on TikTok: campaign, ad group and ads. If you want to look into this in more detail, here's a good guide.

How to place ads, what costs to expect, and which best practice examples you can pick up a bit of inspiration from can all be read here.

Hootsuite also offers a complete TikTok Guide for 2023, which can definitely help with the implementation. There's examples and FAQs there, too. If you are looking for numbers why it is worthwhile to advertise on TiKTok - you will find them in the article from Swat.io.


Summary

The platform is booming and growing, and so are the opportunities for marketers, businesses and the like. TikTok Ads are another way for businesses in online marketing to build a reach for their brand, while also taking advantage of the content trend format "video". While not suitable for every business, TikTok offers some benefits with its paid ads that should not be forgotten in an online marketing strategy. 


More exciting articles can be found on the Flanke 7 blog.

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