After Instagram, TikTok is the most popular social media platform, especially among Gen Z and young Millennials, and almost 2 billion users prove that. Considering all that, it’s only natural that so many brands use TikTok advertising and promote their products with natural ads on the platform.
In this blog, we’re reviewing to see if sponsored content on TikTok is a smart move in 2025, if it’s worth the money spent on it, and if there are better alternative ways for brand advertising on TikTok.
What Is TikTok Advertising?
TikTok advertising refers to any paid promotion content on the TikTok platform used to market products, services, or content. They appear in users’ For You page or when the app launches and look like this:
TikTok ads reach users through promoted content, with TikTok Ads Manager serving as the central platform for building and managing campaigns.
Basically, a business sets up a TikTok Business Account and then runs ads (videos, filters, challenges) to reach specific demographics or achieve objectives.
TikTok ads are native and engaging; they appear in the user’s feed without affecting their experience and can include likes, shares, and CTAs just like organic posts. Just like the picture above.
Types of TikTok Ads
- In-Feed Ads: These are short video ads (5–60s) that appear in users’ For You feed just like any other TikTok video.
- Brand Takeover Ads: Full-screen static or dynamic ads that display immediately when a user opens the app. They last 3–5 seconds and can link to internal or external content.
- TopView Ads: An extension of Brand Takeover, TopView ads also show upon launch but allow up to 60 seconds of full-screen video.
- Branded Effects: Custom filters, stickers, and AR effects (just like Instagram filters) that TikTok users can apply in their videos. For example, a beauty brand might release an AR filter that lets users “try on” a lipstick shade.
- Branded Hashtag Challenges (BHC): These campaigns invite TikTokers to create content around a branded hashtag.
- Spark Ads: A type of TikTok ad that lets brands turn regular TikTok videos into ads. They can boost their own posts or use videos from creators (with permission).
Different types of TikTok ads do different things.
- In-Feed and Spark Ads help get likes, comments, and clicks.
- Takeovers and TopView Ads are great for getting lots of people to see your brand.
- Branded Hashtag Challenges (BHC) are used to go viral.
- Effects let users play with your brand in fun, interactive ways.
The best ad campaigns usually mix a few of these together to get better results.
How Much Does TikTok Advertising Cost?
TikTok ads come with a range of costs depending on the ad format, your target audience, and campaign goals.
Based on our research on the latest insights, here’s a clear breakdown of TikTok’s ad formats, their costs, and what you need to know to get started.
Minimum Budget Requirements For TikTok Ads
To launch a TikTok ad campaign, you’ll need a minimum campaign budget of $500, with a daily minimum of $50 per campaign and $20 per ad group.
For better results, most brands spend a few hundred dollars a day, though you can scale up or down based on your goals. TikTok recommends starting with a $50 daily budget and adjusting as you track performance.
| Ad Format | Cost | Why Choose It |
| In-Feed Ads | $10–$30 per CPM; $0.50–$2.00 CPC | Budget-friendly and versatile; ideal for brand awareness, traffic, or app installs |
| Brand Takeover Ads | $20,000–$50,000+ per day | Exclusive visibility and high impressions; great for major launches |
| TopView Ads | $50,000+ per day | Prime placement and longer video; perfect for storytelling and big campaigns |
| Branded Hashtag Challenges (BHC) | ~$150,000 for a 6-day campaign | High engagement (avg. 8.5%); drives viral user-generated content |
| Branded Effects | ~$45,000 for a 30-day campaign | Interactive and memorable; boosts brand recall and engagement |
| Spark Ads | Same as In-Feed: $10–$30 CPM; $0.50–$2.00 CPC | Authentic and cost-effective; amplifies existing content without extra production |
TikTok ads can be pricier per impression than platforms like Facebook or Instagram, where CPMs usually range from $5–$10. However, what you get in return is a highly engaged audience and the chance to go viral.
To see noticeable results, it’s smart to set aside at least a few thousand dollars per month and adjust as you go. Smaller brands can begin with budget-friendly formats, and larger companies might go all-in with premium placements for better exposure.
Keep in mind that costs can change depending on your targeting, the quality of your ads, and even the time of year, so testing and tweaking your strategy is part of the process.
How to Run TikTok Ads: Step-by-Step Guide
1. Access TikTok Ads Manager and Create a New Campaign: Log in to TikTok Ads Manager and navigate to the “Campaign” tab from the dashboard.
Click the ‘+ Create’ button, then select ‘Create new.’ Under the advertising objective section, choose your objective, such as “Video views” from the Awareness category, to maximize video plays and engagement.
2. Set Campaign Details: Name your campaign (e.g., “Traffic”) and configure settings. Optionally, enable split testing or campaign budget optimization for better performance insights.
3. Choose Placement: Choose “Select placement” and manually pick targeting options, such as TikTok (including search results) and optional networks like Global App Bundle or Pangle, based on your strategy.
4. Target Audience: Define demographics: location (e.g., United States), age range (e.g., 18-24, 25-34, etc.), gender (e.g., Male), and language (e.g., All). Include or exclude specific audiences and target interests/behaviors (e.g., Tech & Electronics) to refine your reach.
5. Choose Your Audience Niche: Select the niche of audience you want to target on TikTok. The platform chooses users based on the content they’ve been interacting with.
6. Set Up Budget and Schedule: Choose a daily budget (e.g., $20.00 USD, with a range up to $25.00/day, averaging $20.00), set a start time (e.g., 2024-08-08 17:03), and decide to run continuously or add an end date. Turn on dayparting if you want specific hours.
Based on our research, it’s better to publish your post at the same time as when it’s the best time to post on TikTok. After all, Ads show up among normal TikTok videos, so it’s best to schedule them when it’s peak.
7. Choose Your Bidding and Budget: Select an optimization goal (e.g., “Click”) and set a daily budget (e.g., $20.00 USD). Pick a bidding strategy like “Lowest cost with bid cap” to control costs.
8. Select Ad Creative Type: Choose an ad format like ‘Single video’ or ‘Carousel Images’ depending on your content, and proceed to upload your materials.
9. Upload Your Video: Upload a video or image; you can choose from your gallery or create one.
10. Add Call to Action: TikTok gives you many items to choose from for your Ad’s call to action. You can select one or multiple. You can also enter a text that displays as a normal TikTok caption for your Ad.
11. Add URL and Publish: Enter a URL destination for your Ad. This way, you can count clicks and analyse your Ad. In the end, check everything one more time and publish your Ad.
Examples of Successful TikTok Advertising Campaigns
Many big names have used TikTok advertising to promote their new products or services. Let’s take a look at some successful ones:
1. BMW (#BMWeDrive Branded Hashtag Challenge)
Based on our analysis of BMW’s TikTok campaign, the #BMWeDrive challenge in South Korea was a standout example of how a branded hashtag can drive both awareness and engagement.
The campaign featured K-pop star Henry, tapping into his popularity to attract attention from younger audiences.
The challenge invited users to create their own videos with the hashtag, turning participants into active contributors to the campaign.
Even with only 3,400 participants, the challenge generated over 45.9 million video views and 6.3 million engagements. This shows how creative concepts combined with a popular figure can get people to create and share content on a large scale.
2. Nike (#NikeShesBallin BHC)
Based on our review of top TikTok campaigns, Nike’s #NikeShesBallin is a standout example of how brands can support a social cause while driving engagement.
Partnering with TikTok and UEFA, the campaign highlighted women’s football and encouraged participation through the platform. The brand collaborated with 36 TikTok creators and ran formats like TopView and Spark Ads across multiple countries to extend the campaign’s reach.
The results were impressive: videos using the hashtag garnered over 3.6 billion views. From our analysis, it’s clear that combining a timely cultural moment, paid ad formats, and creator-driven content helps a brand message spread widely and resonate with audiences.
3. Chewy (#ChewyChattyPets UGC Challenge)
Chewy’s #ChewyChattyPets challenge is the next campaign that caught our attention. It’s a strong example of how a brand can engage audiences through user-generated content.
The campaign was launched on National Dog Day and invited pet owners to share their pets’ “inner monologues,” joining the popular PetTok trend. Chewy collaborated with TikTok creators and provided a custom audio track to help kickstart the challenge.
From our analysis, the results were impressive: within 24 hours, the campaign generated over 700 million video views. Over the following three days, the hashtag passed more than 1.8 billion impressions. T
The campaign also resulted in a 10% increase in Chewy’s TikTok followers month-over-month, which shows that creative, shareable content can drive both engagement and community growth.
4. Crumbl Cookies (Growth Campaign)
Our research into TikTok brand campaigns shows that Crumbl Cookies executed one of the platform’s most successful bakery campaigns. The brand ran a growth-focused campaign using influencer partnerships and Spark Ads to promote its rotating cookie menu.
Creators made fun videos reviewing Crumbl’s cookies, while paid amplification helped the content reach a broader audience
From our analysis, the campaign reached 22 million accounts and drove 2 million new followers. The hashtag #CrumblReview also gained over 231 million views and gained a huge EMV.
This case clearly shows that by mixing UGC campaigns, influencer creativity, and platform-specific ad tools, brands can achieve both massive reach and active community engagement on TikTok.
Although these were all successful campaigns, you need to pay attention to something: All of the brands above used either influencers, celebrities, or famous stars for a successful campaign, which brings us to this question: Is TikTok advertising really practical on its own? Is it really a smart choice for brand advertising, especially for small to mid-sized businesses?
Advantages and Disadvantages of Advertising on TikTok
Advantages of Advertising on TikTok
- Lots of Interaction: TikTok’s short videos and algorithm make ads feel like regular content, so people engage with them more.
- Targeted Ads: You can choose exactly who sees your ads based on age, interests, or what they like on TikTok.
- Chance to Go Viral: Ads can spread fast on TikTok if they catch on with trends, giving your brand a big boost for less money.
- Fun and Creative: TikTok lets brands make fun, creative videos with music and effects that connect with younger users.
Disadvantages of Advertising on TikTok
- Stuck on TikTok: TikTok ads only show up on TikTok, unlike influencer posts that can pop up on Google or other platforms like Instagram.
- People Skip Ads: Many users scroll past ads quickly and don’t pay attention to them anymore.
- Mostly Young Users: TikTok is mainly for younger people, so it’s not great for brands trying to reach older audiences.
- Hard to Make Good Ads: You need trendy, high-quality videos for TikTok, which takes time and effort to create.
- Privacy Issues: Some worry about TikTok’s data use, and rules or bans in some places could mess up your ad plans.
- Short Attention: TikTok users move fast, so ads need to grab them in seconds or they won’t stick.
If you’re still planning on running ads on TikTok, here are some tips that can help you:
Is TikTok Advertising Worth It?
The answer to this question depends deeply on your business and budget. As you read our case studies, most of the successful advertisements on TikTok belong to big names like BMW, Crumbl Cookies, etc.
So, for small to mid-size businesses, TikTok might not be the best choice for a couple of reasons:
- You need a high budget for TikTok ads.
- Your brand needs to be recognized for users to pay attention to it, or else they will scroll past it in a heartbeat.
- Old-style advertisements don’t really work on users anymore, especially on TikTok, where the majority of its users are Gen Z, and they already have a short attention span.
Overall, in this day and age, successful brands aren’t the ones that pay social media platforms for ads; they’re the ones who are marketing geniuses and can create an aesthetic for their brand that feels special and unique.
Take Hailey Bieber as an example. She launched her skincare brand, Rhode, in 2022, and in just three years, it reached a $1 billion valuation.
Hailey Bieber didn’t run any ads on TikTok or Instagram; she was creative, smart, and most importantly, she worked with influencers of all sizes. Even the ones with 20K followers.
She knew that the marketing game is all in the hands of influencers, not ads that get scrolled in a second. As Gary Vaynerchuk, entrepreneur and digital marketing expert, says:
“Influencer marketing is the most organic way to build trust and authority with an audience.”
TikTok Ads vs. TikTok Influencer Marketing
Yes, TikTok ads might be a good strategy, but not for everyone. To be honest, TikTok advertising only works for brands that are already known to a wide range of people.
That way, when users see a familiar brand’s name on the ad, they might pay attention to it. If your target audience is Gen Z, and you have a small to mid-size brand, you need to forget about TikTok ads and save your budget for influencer marketing. Let’s get into the details.
Why Influencer Marketing Is a Better Choice?
Unlike TikTok ads that seem out of context and disruptive, influencers usually use storytelling and blend the product or service naturally within their content. As Samira Farivar, assistant professor at Sprott School of Business, says:
“Storytelling is so influential because it goes back to why people follow influencers. They find their lives interesting and want to know more. Personal connection is very important.”
We’re not saying what influencers do is not a type of advertisement, no. At its core, influencer marketing is a kind of ad, too, but it’s way more natural and drives much more ROI.
Influencer marketing usually brings in way more ROI than regular ads, often 3 to 5 times higher. One good post from an influencer can reach tons of people and actually hold their attention, while paid ads need constant money just to stay in front of people.
You don’t need to spend a fortune or sign complex TikTok influencer marketing contracts with agencies to run influencer marketing. For example, Ainfluencer is a popular smart tool that lets you connect with influencers at little to no cost.
It’s a free influencer marketplace with over 5M influencers on Instagram, TikTok, and YouTube that connects brands with influencers. Using this tool, you can use 20+ filters like age, gender, audience, location, etc, to find the perfect influencer for your brand.
Even if you couldn’t decide which influencer is suitable for your business, Ainfluencer uses its AI-powered system to recommend the best choices for you based on your criteria.
You can send unlimited invitations and collaborate with influencers of all sizes (from nano to mega influencers) for free, all within the platform (influencers have to pay a 20% commission for each campaign they participate in).
During the campaign, the platform provides detailed analytics, including growth trends, to help you make informed decisions. Also, your money will be safe in the Escrow system and will only be released when the influencer publishes the content. So everything is safe and sound.
Overall, with the same amount of money that you spend on TikTok advertising, you can organize an influencer marketing campaign and get a much higher ROI. Just like smart brands, you can collaborate with nano and micro influencers to build brand awareness and get the most out of your budget.
You can try Ainfluencer to explore more features for free!
Top Tips for Effective TikTok Advertising
- Use Eye-Catching Visuals & Sound: TikTok is a visually rich platform. Make your ads pop with bright colors, good editing, and catchy audio.
- Trends & Music: Use trending songs, memes, or challenges.
- Include Relevant Hashtags: Hashtags help users discover content. Include your branded hashtag challenge or relevant trending hashtags to extend reach.
- Experiment with Ad Formats: Don’t stick to one format. Test multiple ad types (In-Feed vs. Spark vs. TopView).
- Promote User-Generated Content: Try to use user-generated content in your ads; it feels more natural.
- Optimize and Iterate: Constantly track metrics (views, completion rate, click-through, conversions) and refine.
Wrapping Up
TikTok advertising has come a long way since its early experiments with branded effects and in-feed videos. In 2025, the platform generates $33.1 billion in ad revenue, which shows its popularity.
But while traditional TikTok ads, like TopView and Spark Ads, still play a role, the real game-changer is influencer marketing. Nearly 8 out of 10 TikTok users say they’ve bought something after seeing it in a creator’s video. That’s not advertising. That’s influence.
So instead of pouring money into ads that disappear after a few scrolls, why not shift toward creator partnerships that last much longer and have better results?
FAQs
Let’s review some frequently asked questions about TikTok advertising:
Q1. How Much Does TikTok Advertising Cost?
TikTok ads require a minimum campaign budget of $500, with daily minimums of $50 per campaign and $20 per ad group. CPM averages around $10 and CPC about $1. Premium formats like Brand Takeovers can cost tens of thousands per day. Expect to spend several hundred dollars weekly for effective reach.
Q2. How To Run TikTok Ads Step-by-Step?
Start by creating a TikTok Ads Manager account. Choose your campaign objective, define your audience, set your budget and schedule, then upload your ad creative. Follow the flow: account setup → campaign → ad group → creative → launch.
Q3. Is TikTok Advertising Worth It?
Yes, especially for brands targeting younger audiences. TikTok’s massive reach and engagement can drive billions of views. Brands like BMW and Amazon have seen strong results. Success depends on creative content and a flexible budget.
Q4. What About TikTok Political Advertising?
TikTok prohibits paid political ads. Content supporting or opposing candidates, parties, or elections is not allowed. Only approved government entities can advertise under strict guidelines. Always follow TikTok’s ad policies to stay compliant.
Q5. What Is TikTok Ads Manager vs. Creator Marketplace?
Ads Manager is for creating and managing paid ad campaigns. Creator Marketplace connects brands with influencers for sponsored content. Use Ads Manager for direct ads and Marketplace for influencer partnerships. Many brands use both for full-funnel marketing.
Q6. What Are the Benefits of TikTok Advertising?
TikTok ads offer high engagement, viral potential, and strong CTRs (often 5–8%). The platform’s algorithm helps small brands gain visibility. Advanced targeting and creative formats make it ideal for reaching younger audiences with dynamic content.
Q7. Can I Run Ads on TikTok With a Small Budget?
Yes, but options are limited. Focus on In-Feed ads and niche targeting. Micro-influencers can be hired for as little as $5–$25 per post, offering cost-effective exposure. Creative UGC and influencer content can stretch small budgets further.
Q8. How Do I Measure TikTok Ad Performance?
Use TikTok’s analytics to track impressions, CTR, CPA, and conversions. TikTok’s average CTR is ~0.84%, so higher rates are strong. Monitor video completion and engagement. Compare results to goals and consider ROI, especially for influencer campaigns.
