TikTok Ad Costs and Starting Budgets
What TikTok requires you to spend, what a useful test costs and why creative belongs in the budget.
Key Takeaways
- TikTok's minimums are a daily budget above $50 at the campaign level, when a campaign budget is set, and above $20 per ad group.
- Those minimums let ads run. A useful test usually needs a daily ad group budget of several times your target cost per result.
- Creative production is part of the cost. Plan for several new videos a month.
- Judge TikTok over 30 to 60 days against your own sales, since it often influences purchases that finish on other channels.
On This Page
TikTok ads require a daily budget above $50 at the campaign level when you set a campaign budget, and above $20 for each ad group, according to TikTok's budget documentation. A test that can teach you something usually costs more: a daily ad group budget of several times your target cost per result, held for at least four weeks, plus the cost of producing several videos a month.
This guide covers how TikTok charges, what moves costs and a 60-day test plan.
How TikTok Charges
TikTok sells most ads through an auction, charging per thousand impressions, per click or per optimized result depending on the goal and bid strategy. Premium formats such as TopView, which appears when someone opens the app, are bought at fixed prices through TikTok's sales team and cost far more than self-serve campaigns.
Budget Minimums
| Level | Daily budget | Lifetime budget |
|---|---|---|
| Campaign (when set) | Must exceed $50 | Must exceed $50 |
| Ad group | Must exceed $20 | $20 multiplied by the number of scheduled days |
TikTok also notes that a campaign budget should not be lower than the ad group budgets inside it, and that budget type cannot be switched after launch.
What Drives Cost
- Creative. Videos that hold attention in the first two seconds earn cheaper results. Tired creative grows more expensive.
- Optimization goal. Clicks cost less than leads, and leads cost less than purchases.
- Audience and season. Narrow audiences and busy retail periods raise costs.
- Landing experience. A slow page or a long form lowers conversion rates and raises cost per result.
Creative Production Costs
Videos are the fuel for TikTok ads, and most accounts need three to five new ones a month. Options include filming in-house on a phone, paying creators for videos the business owns and promoting creators' own posts as Spark Ads. Set a creative budget alongside media spend, since a strong media budget with two videos usually stalls within weeks.
A 60-Day Test Plan
- Before launch. Install the TikTok Pixel and Events API, confirm events in Events Manager and prepare six to eight videos built on at least three different concepts.
- Days 1 to 30. Run one campaign with one or two ad groups. Set the ad group budget to several times your target cost per result and avoid frequent edits.
- Day 30 review. Keep the videos with the lowest cost per result, add three to five new ones and compare TikTok's reported results with your own orders or leads.
- Days 31 to 60. Scale budget gradually on what works and test one new concept each week.
- Day 60 decision. Look at blended results, including branded search volume and direct sales during the test, before deciding to scale, adjust or stop.
Frequently Asked Questions
What is the minimum budget for TikTok ads?
A daily budget above $50 at the campaign level when a campaign budget is set, and above $20 per ad group.
Is there a $500 minimum to start TikTok ads?
TikTok's current budget documentation lists daily and lifetime minimums at the campaign and ad group levels. Check it before relying on older figures.
Are TikTok ads cheaper than Facebook ads?
It depends on the audience, goal and creative. Test both against the same goal and compare cost per customer.
How long should a TikTok test run?
At least four weeks, and ideally 60 days with fresh creative.