TikTok has exploded in popularity over the past few years, with millions of users creating and sharing short-form videos on the platform. As a result, TikTok has become an attractive platform for businesses looking to advertise to this younger, highly-engaged audience. TikTok benchmarks, like in other advertising platforms depend on competition and the number of advertisers.
In this blog post we’ll discuss:
- the current state of TikTok advertising, including ad formats, targeting options, and any new ad features.
- TikTok benchmarks and best practices for TikTok advertising, including average click-through rates (CTRs), cost-per-click (CPC) or cost-per-impression (CPM) for different ad formats and industries
- tips for creating effective TikTok ads.
- future developments or trends that we expect to see in TikTok advertising.
The current state of TikTok advertising is constantly evolving as the platform continues to grow and introduce new features. In recent months, TikTok has become an increasingly attractive option for advertisers, particularly in light of the challenges that Facebook has faced with its ad performance following the iOS 14 update. As a result, more and more businesses are testing out TikTok as a way to reach their target audience.
One key advantage of TikTok advertising is the low CPMs that many businesses have experienced compared to other platforms like Facebook and Google. However, as more and more advertisers flock to the platform, we expect to see CPMs begin to rise. In this blog post, we’ll delve into the benchmarks and best practices for TikTok advertising and discuss how businesses can get the most out of their TikTok ad campaigns, even with the current low CPMs on the platform.
TikTok ads CTR benchmarks
Click-through rate (CTR) is a key metric for measuring the effectiveness of an ad campaign. It’s calculated by dividing the number of clicks on an ad by the number of impressions, and it’s expressed as a percentage. In this section, we’ll take a closer look at the average CTR for TikTok ads optimized for conversions and targeted at ecommerce customers, with the event being a “Complete payment.”
According to our data, the industry average CTR for these types of TikTok ads is 0.58%. This data is updated in real-time, so the latest CTR benchmarks can always be found within the Lebesgue software.
It’s worth noting that this CTR is comparable to underperforming Facebook ads CTR. While it’s true that CPMs on TikTok are generally lower than on Facebook, the CTRs on TikTok may also be slightly lower.
TikTok ads CR benchmarks
Conversion rate (CR) is a key metric for measuring the effectiveness of an ad campaign in terms of driving conversions. It’s calculated by dividing the number of conversions by the number of clicks on an ad, and it’s expressed as a percentage.
According to our data, the average CR for conversion-optimized TikTok ads (with conversion event being “Complete payment”) is around 1.1%. However, it’s important to note that averages can be significantly different depending on various factors such as targeting, ad budget, and landing page experience. With the right combination of these factors, businesses have the potential to achieve CRs that are significantly higher than the average!
To optimize your CR and follow best practices for creating effective TikTok ads, consider using Lebesgue: Marketing & LTV. It analyzes huge datasets to help businesses figure out the best-performing marketing strategies and make data-driven decisions. Instead of spending hours reading through blog posts and trying to decipher the latest industry trends, businesses can use Lebesgue to streamline their ad campaigns and achieve their marketing goals.
Alternatively, check our blog post on how to optimize your landing page experience for TikTok ads.
Average TikTok ads CPM
Cost-per-thousand impressions (CPM) is a key metric for measuring the cost efficiency of an ad campaign. It’s calculated by dividing the cost of an ad campaign by the number of impressions, and it’s expressed in terms of cost per thousand impressions. In this section, we’ll take a closer look at the average CPM for TikTok ads optimized for conversions and targeted at eCommerce customers, with the event being a “Complete payment.”
According to our data, the average CPM for these types of TikTok ads in the US market is around $9.5.
It’s worth noting that this CPM is approximately 30% lower than similar ad types and targeting on Facebook ads. While this lower CPM can be attractive for businesses looking to stretch their ad budget, it’s important to keep in mind that lower CPMs may also be accompanied by lower CTRs and CRs (as we discussed in the previous section).
How to benefit from low TikTok ads CPM
Low CPMs on TikTok can be a major advantage for businesses looking to increase their brand awareness and get more value out of their ad budget. With a lower CPM, businesses can get more impressions for the same ad spend compared to platforms like Facebook, which can be particularly beneficial for those looking to increase their visibility on the platform. This can be especially useful for businesses in competitive industries where ad costs can be high, as it allows them to get more exposure for their brand without breaking the bank.
Additionally, if a business is able to create high-quality content and achieve a high CTR on TikTok, they may be able to get even more clicks for the same ad budget compared to other platforms. This is a great way to drive traffic to a business’s website or online store and potentially lead to more conversions.
While it’s true that low CPMs on TikTok may be accompanied by lower CTRs and CRs compared to other platforms, they can still be a valuable tool for businesses looking to increase their brand awareness and get more value out of their ad spend. By carefully considering their ad strategy and targeting the right audience, businesses can effectively use TikTok ads to achieve their marketing goals.
When to start testing TikTok ads
As with any ad platform, there are certain circumstances in which TikTok ads may be particularly useful for businesses. Here are a few scenarios where starting a TikTok ad campaign may be a good idea:
- If your target audience is under 40 years old: TikTok is a platform that is particularly popular with younger users, so if your target audience falls within this age range, it may be a good fit for your business.
- If you’re having trouble getting low CPMs on other platforms, TikTok may be worth considering.
- If you’re able to achieve higher than average CR and CTR on other platforms, and you know how to impact those metrics through your ad strategy and targeting, TikTok may be a good fit for your business.
- If you’re looking to increase brand awareness: With its large and growing user base, TikTok can be a powerful tool for increasing brand awareness. If this is a major goal for your business, TikTok advertising may be worth considering.
In summary, TikTok is a popular social media platform that has seen an increase in ad spend from businesses in recent years. The average CPM for TikTok ads is around $9.5. The average CTR is 0.58% and the average CR is 1.1%. There are several situations in which TikTok advertising may be particularly useful for businesses, including if the target audience is under 40 years old, if you’re looking to lower CPM, or increasing brand awareness.
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