TikTok has grown a lot in the last few years. Millions of people now create and share short videos on the platform.
Because of this, TikTok has become a great place for businesses to advertise. They can reach a younger, very active audience here.
Just like other ad platforms, TikTok’s numbers depend on how much competition there is and how many other advertisers are using it.
What We’ll Cover
In this article, we’ll talk about a few key things:
- The current state of TikTok advertising, including ad types, targeting options, and new features.
- TikTok’s typical numbers and best ways to advertise, like average click-through rates (CTRs), cost-per-click (CPC), or cost-per-impression (CPM) for different ad types and industries.
- Tips for making good TikTok ads.
- What we expect to see in the future in TikTok advertising.
The Current State of TikTok Advertising
TikTok advertising is always changing as the platform gets bigger and adds new things.
Lately, TikTok has become a more appealing choice for advertisers.
This is especially true because Facebook has had problems with its ad performance after the iOS 14 update.
So, more and more businesses are trying out TikTok to reach the people they want to.
One big plus for TikTok advertising is the low CPMs that many businesses have seen. These are lower compared to other platforms like Facebook and Google.
However, as more advertisers come to the platform, we expect CPMs to start going up.
TikTok Ads CTR Benchmarks
Let’s start with CTR, or Click-through rate. This is an important way to see how well an ad campaign is doing.
To find CTR, you divide the number of times people click on an ad by how many times it’s seen. Then, you turn that into a percentage.
Now, we’re going to look at the usual CTR for TikTok ads made to get more sales. These campaigns are set up for conversions and aimed at online shoppers, with the goal being a “Complete payment.”
Data shows that the typical CTR for these specific TikTok ads is 0.73%.
This is the average for the industry. This data is updated often (more details can be find here – Tiktok Ads CTR | April 2025)
We can see there is different CTR for female and man.
It’s worth noting that this CTR is similar to Facebook ads that aren’t doing very well.
While TikTok’s CPMs are generally lower than Facebook’s, TikTok’s CTRs might also be a bit lower.
Understanding Conversion Rates (CR) for TikTok Ads
Let’s talk about how effective your ads are at turning interest into action. The Conversion Rate (CR) shows just that.
It tells you how many people who click on your ad actually complete a desired step, like making a purchase. You figure it out by dividing the number of completed actions by the total clicks, then express it as a percentage.
Data suggests that the typical CR for TikTok ads aimed at getting conversions is around 0.46%. However, it’s really important to remember that this number can change a lot.
Factors like your audience targeting, how much you spend on ads, and the quality of your landing page all play a big role. With the right mix of these elements, businesses can often see CRs that are much higher than the average!
What About Cost-Per-Thousand Impressions (CPM) on TikTok?
Another important number is CPM, which stands for Cost-Per-Thousand Impressions. This metric helps us understand how much it costs to show your ad to a thousand people.
You calculate CPM by dividing the total cost of your ad campaign by the number of times your ad is seen, then scale it to a thousand views. Findings indicate that the typical CPM for TikTok ads is about $3.21.
It’s worth noting that this CPM is roughly 30% lower than what you might find for similar ad types and targeting on platforms like Facebook.
While a lower CPM can be appealing for businesses looking to stretch their ad budget, keep in mind that these lower costs might sometimes come with lower click-through rates (CTRs) and conversion rates (CRs).
Making the Most of TikTok’s Lower CPM
A lower CPM on TikTok offers a significant advantage for businesses. It means you can boost your brand’s visibility and get more value for your advertising money.
When the cost per thousand views is low, businesses can get more eyes on their ads for the same budget, especially when compared to platforms like Facebook.
This is particularly helpful for brands aiming to make a mark on TikTok. It’s a smart approach, especially for businesses in competitive fields where advertising can be quite expensive. It allows them to gain more brand exposure without overspending.
Furthermore, if a business can create engaging content and achieve a strong CTR on TikTok, they might even get more clicks for the same ad budget than on other platforms.
This is an excellent way to direct traffic to a business’s website or online store, potentially leading to more sales. While lower CPMs on TikTok might sometimes mean lower CTRs and CRs compared to other platforms, they can still be a powerful asset for businesses.
They help companies increase their brand recognition and get more out of their ad spending. By carefully planning their ad strategy and reaching the right audience, businesses can use TikTok ads effectively to achieve their marketing objectives.
When Is the Right Time to Start Advertising on TikTok?
Just like with any advertising platform, there are specific situations where TikTok ads can be especially beneficial for businesses. Here are a few scenarios where launching a TikTok ad campaign could be a good move:
- If your primary audience is under 40 years old: TikTok is incredibly popular with younger users. So, if your target demographic falls within this age bracket, it could be a great fit for your business.
- If you’re struggling to achieve low CPMs on other platforms: TikTok might be worth exploring as an alternative.
- If you consistently achieve above-average CR and CTR on other platforms: And you understand how to influence those metrics through your ad strategy and targeting, TikTok could be a strong contender for your business.
- If your goal is to increase brand awareness: With its vast and growing user base, TikTok is a potent tool for getting your brand noticed. If this is a key objective for your business, TikTok advertising is definitely worth considering.
To Finalize
In short, TikTok is a very popular social media platform that has seen more ad spending from businesses recently.
The average:
- CPM for TikTok ads is about $3.21.
- The average CTR is 0.73%,
- and the average CR is 0.46%.
There are several times when TikTok advertising can be very useful for businesses. This includes if your target audience is under 40 years old, if you want lower CPM, or if you want to increase brand awareness.
Frequently Asked Questions about TikTok Ads Benchmarks
What is a good CPM for TikTok ads?
A good CPM (cost per 1,000 views) for TikTok ads is usually between $3 and $15. This depends on who you’re trying to reach and your industry.
This range shows that TikTok’s prices are good compared to other platforms. This makes it a good choice for campaigns focused on getting your brand known.
What conversion rate can I expect on my TikTok campaign?
Typical conversion rates for TikTok ads are from 0.5% to 5%. You can get higher rates in industries like online shopping or fashion.
This is especially true with well-made campaigns and good offers.
What is the average CPC on TikTok?
The average cost-per-click (CPC) on TikTok is from $0.20 to $2.00.
This depends on things like your bidding plan, ad quality, and who you’re targeting.
Industries with a lot of competition might see higher CPCs.
Niche markets might have lower costs.
What is the average CTR for TikTok ads?
A good click-through rate (CTR) on TikTok ads is usually between 0.5% and 1.5%. This depends on how good your ad is and how well it fits your audience.
For ads that are very engaging and made for TikTok’s style, CTRs above 2% are possible. These are considered excellent.
Does ad frequency affect TikTok ad performance?
To avoid people getting tired of your ads, aim for an ad frequency of about 5-7 views per person.
Going over this can lead to less engagement and higher costs. This is because people might start ignoring your ads.
How my TikTok campaigns can achieve best performance?
To make your TikTok campaigns work best, you need to set clear goals, like getting sales. You also need to make sure you’re tracking conversions correctly and using automatic ad placements.
