TikTok Ads in 2025: Strategy, Costs & Best Practices

TikTok is a must-have in your digital marketing strategy in 2025. With 39% of users purchasing products or services they discovered on TikTok, the platform has evolved beyond memes and dance challenges. It’s now a powerful discovery and shopping engine.

If you’re looking to connect with Gen Z and Gen Alpha audiences, TikTok is a smart place to invest your ad budget. In this guide, you’ll learn how to create effective TikTok ads, use the Ads Manager like a pro, and implement best practices to maximize your return on ad spend (ROAS).

What are TikTok ads?

TikTok ads are paid promotional content that seamlessly integrate with the short-form videos in users’ feeds. These ads can take different forms, such as in-feed videos, branded hashtag challenges, or sponsored effects. 

Brands advertising on TikTok can target specific demographics, interests, and behaviors to reach their target audience. TikTok ads allow your business to engage with the platform’s massive and growing user base and drive brand awareness, engagement, and sales.

What brands should use TikTok ads?

Your brand can benefit from TikTok advertising if you sell products or services that appeal to a younger, trend-conscious audience. It’s an especially valuable platform for ecommerce brands, thanks to TikTok Shopping features that turn browsers into buyers—there are more than 8.4 million videos under the hashtag #TikTokMadeMeBuyIt.

Who can advertise on TikTok?

To advertise on TikTok, you must first create a TikTok ads manager account. The platform requires that advertisers adhere to the app’s advertising policies and community guidelines. 

TikTok advertising is available in dozens of countries and regions worldwide. However, there are some geographic limitations and restrictions. For example, TikTok is currently banned in India due to government regulations. Additionally, some countries regulate or restrict the types of products or services that can be advertised on social media platforms. Here are a few examples:

• In the United States, the Food and Drug Administration (FDA) has strict guidelines for advertising health-related products, such as prescription drugs and medical devices. Advertisers must ensure their video content complies with these regulations.
• In the United Kingdom, the Advertising Standards Authority (ASA) has rules governing the advertising of age-restricted products, including alcohol and gambling. Brands must target their ads appropriately and include necessary disclaimers.
• The European Union has strict data privacy laws, such as the General Data Protection Regulation (GDPR), which advertisers must comply with when targeting users in EU countries.
• Australia bans social media access for children under 16. Advertisers must implement age verification systems to ensure they do not target underage users and face substantial fines for noncompliance.

What are the benefits of advertising on TikTok?

• Large, engaged user base
• Creative, interactive ad formats
• Precise targeting options
• Detailed analytics and reporting

Here are the benefits of advertising on TikTok: 

Large, engaged user base

TikTok has quickly become one of the most popular social media platforms, with more than 1.5 billion monthly active users worldwide as of February 2025. 

TikTok statistics show that the app’s user base is highly engaged, spending almost an hour per day on the platform. This level of engagement offers brands the opportunity to reach a vast and attentive audience. Plus, TikTok’s user demographics skew toward younger generations, making it an ideal platform for companies targeting millennials, Gen Z, and Gen Alpha.

Creative, interactive ad formats

The TikTok ads platform offers a range of creative and interactive ad formats, including video shopping ads that help ecommerce companies showcase their products in action. Branded hashtag challenges encourage user participation and can help brands create viral content and increase brand awareness. 

Precise targeting options

TikTok’s targeting capabilities allow you to reach your precise desired audience. The platform’s ad targeting dimensions include demographics, interests, behaviors, device types, and more. 

You can also create custom audiences based on user engagement with similar content or hashtags. For example, if you’re an ecommerce brand that sells eco-friendly beauty products, you could use TikTok ads to target users who have engaged with content related to sustainable living, clean beauty, and self-care.

Detailed analytics and reporting

TikTok’s flexible budgeting options make its ad platform accessible to businesses of all sizes. You can set daily or lifetime budgets for your TikTok ad groups and choose between various bidding strategies based on your campaign goals. 

Plus, TikTok’s detailed analytics and reporting let you track and measure campaign performance in real time so you can optimize for the best ROAS.

How much do TikTok ads cost?

The cost of TikTok ads depends on several factors:

• Ad format: Different ad formats—such as in-feed ads, brand takeovers, and branded hashtag challenges—have varying costs based on placement and visibility.
• Targeting: The more specific your target audience, the higher the costs of reaching them can be.
• Bidding strategy: TikTok uses an auction-based system, where advertisers bid against each other for ad placement. Your bidding strategy, such as cost per click (CPC) or cost per thousand impressions—a.k.a. cost per mille (CPM)—can impact price.
• Competition: The competitiveness of your industry or niche can influence the cost of your ads. If many advertisers are targeting the same audience, expect to pay more.

The reality of TikTok advertising costs

While TikTok’s explosive reach and engaging content format make it a tempting ad channel, it’s not a magic bullet for marketers.

The reality is that TikTok ads can be expensive, especially if you’re not prepared to invest in creative production, testing, and optimization. 

Minimum budget requirements

TikTok technically lets you run campaigns with a minimum daily budget of $50 at the campaign level and $20 per ad group. Realistically, if you’re just getting started, $1,000 to $3,000 per month is the minimum you’ll need to test different creatives, audiences, and offers properly. That gives you enough room to collect valuable data, kill off underperformers, and optimize toward what works.

If you’re launching a new product or brand, expect to spend even more. Consider investing $5,000 to $10,000 per month to build traction quickly, especially in competitive niches such as beauty or fashion.

In short, yes, you can technically start with $20 a day. But to generate profitable results, plan to allocate sufficient time and budget for testing.

Expected ROAS by industry

Return on ad spend (ROAS) on TikTok depends heavily on your creative, audience targeting, product price point, and offer. That said, some industry averages can help set expectations.

Here are some ballpark figures:

• Beauty and skin care: 0.91 
• Fashion and apparel: 2.06
• Home goods and décor: 4.2
• Fitness and wellness: 1.29

Bear in mind these are averages, and many brands don’t break even during their first month or two of testing. But with consistent creative iteration and solid back-end systems (like email/SMS to capture and convert traffic), these numbers are possible.

Hidden costs to consider

One of the biggest mistakes new TikTok advertisers make is only budgeting for media spend.

To run effective campaigns, you should also consider:

• Creative production costs: TikTok is a creative-first platform. Expect to invest in video creators, editing tools, or an in-house content team.
• Influencer or creator fees: Partnering with TikTok creators (even micro-influencers) is one of the best ways to drive engagement, but it’s not free. Rates vary, but budget at least $150 to $1,000 per video, depending on the creator’s following and deliverables.
• Ad testing and optimization: Expect to frequently test your hooks, calls to action (CTAs), angles, audiences, and offers. That means you’ll need to create lots of content—and regularly—which can add up fast.
• Remarketing spend: TikTok is great for top-of-funnel traffic, but you’ll usually need to remarket via email, SMS, or retargeting ads to actually convert. That means extra costs on other platforms (Meta, Klaviyo, Google, etc.).

In total, your TikTok ad budget may only account for 50% to 60% of your total TikTok customer acquisition costs. Ensure that you budget for the entire picture, not just ad spend.

TikTok ad types

• In-feed
• TopView
• Branded hashtag challenge
• Branded effects
• Spark
• Ecommerce

As you gain experience with the platform and better learn how to use TikTok advertising for your brand goals, you can experiment with these ad formats: 

In-feed

In-feed ads appear seamlessly within a user’s content feed and resemble native TikTok videos. These advertisements—either video ads or carousel ads—can be up to 60 seconds long and include a call-to-action button that directs users to a landing page or app store. In-feed ads are ideal for driving engagement, website traffic, and conversions, as they blend naturally with the user experience and can be targeted to specific audiences.

TopView

TopView ads are premium, full-screen placements that ensure your ad is the first video users see upon opening TikTok. TopView starts with a three-second video takeover, then transitions to an interactive in-feed video experience with engagement options, including commenting, sharing, and visiting the brand’s profile.

This format is designed to maximize brand exposure and recall. TopView ads are ideal for launching new products, promoting special events, or creating a strong first impression with a wide audience. However, TopView ads are more expensive than other ad formats.

Branded hashtag challenge

Branded mission ads enable brands to create custom hashtags that encourage user-generated content (UGC) and participation. When users click on a sponsored hashtag, it directs them to a landing page featuring the brand’s videos and UGC. 

For the best results, partner with creators who can join your Branded hashtag challenge and encourage their audience to do the same. This ad format is great for driving engagement, fostering community interaction, and increasing brand awareness through viral challenges and trends.

Branded effects

Branded effects ads let brands create custom filters, lenses, and stickers that users can incorporate into their own TikTok videos. These ads can be promoted through other ad formats, such as in-feed ads or branded hashtag challenge ads, to boost visibility and encourage more engagement. 

For instance, a cosmetics brand could create a branded effects ad that allows users to virtually try on different lipstick shades using augmented reality, encouraging them to share their favorite looks. By providing users with creative tools, brands can leverage the platform’s participatory nature and foster stronger connections.

Spark

Spark ads allow brands to amplify existing organic content from their own TikTok account or from other users who have granted permission to promote their videos. By boosting top-performing content, brands can leverage the authenticity and social proof of UGC while maintaining control over their advertising messaging and targeting. For example, a fitness micro-influencer might post a viral workout video showcasing a brand’s yoga pants. The company might secure rights to promote the video as a Spark ad, expanding its reach to a broader, targeted audience.

Spark ads are displayed as in-feed ads and can drive traffic to a brand’s TikTok profile, website, or app store. This ad format is particularly effective for brands seeking to showcase real user experiences, build trust, and drive conversions.

Ecommerce

TikTok ecommerce ads drive product discovery and sales directly within the platform, enabling seamless shopping experiences. There are several types of ecommerce ads available:

• Video shopping: Video shopping ads feature products in action, complete with product tags, descriptions, and pricing information so that users can buy with just a few taps.
• Video shopping with TikTok Shop: Video shopping ads with TikTok Shop integrate with TikTok’s native ecommerce platform, enabling brands to create immersive and shoppable video experiences complete with product catalogs, customer reviews, and streamlined checkout. 
• LIVE shopping: LIVE shopping ads are real-time, interactive livestreams that help brands showcase products, answer questions, and engage with viewers in real time. 

TikTok ad specs

TikTok Ads Manager supports image and video ad formats. Here are the details: 

Video ads specifications

Video ad specifications vary by placement but generally require video creative, an ad display image, a brand or app name, an ad description, and a call-to-action (CTA) button. The key specifications for TikTok video ads are:

• Aspect ratio: 9:16, 1:1, or 16:9
• Video resolution: Minimum of 540 pixels x 960 pixels, 640 pixels x 640 pixels, or 960 pixels x 540 pixels
• File type: .mp4, .mov, .mpeg, .3gp, or .avi
• Video duration: 5 to 60 seconds (9 to15 seconds suggested)
• Bitrate: >516 kbps
• File size: <500 MB

Image ad specifications

Specs for image ads also vary by placement, generally requiring an image creative, brand or app name, ad description, and a call-to-action (CTA) button. 

The key specifications for TikTok image ads are:

• File type: JPG, JPEG, PNG
• Image resolution: 720 pixels x 1280 pixels (Global App Bundle), 1200 pixels x 628 pixels / 640 pixels x 960 pixels / 720 pixels x 1280 pixels (Pangle)
• File size: Within 100MB

TikTok also advises: 

• Placing key creative elements mid-screen to prevent them from being covered or cropped.
• Localizing ad creative and ensuring ads use local languages as much as possible.

TikTok ads vs. other platforms

Deciding where to invest your ecommerce ad dollars depends on your goals. Are you chasing discovery, capturing intent, or re‑engaging past visitors? Here’s how TikTok compares to big players like Meta, Google, and Pinterest.

Cost comparison

Here’s a snapshot of average CPM (cost per 1,000 impressions) and CPC (cost per click) across platforms:

Platform	CPM	CPC
TikTok	$3.21	2¢–$2
Meta	$10.96	$1.72
Google	$18.75	$1.06

Conversion rates

Conversion rates heavily depend on ad creative, funnel stage, and product fit. Here’s what that looks like across platforms: 

• TikTok: Conversion rates range from 0.5% to 5%, with typical averages around 0.46%.
• Meta: Conversion rates around 9.21%. 
• Google: Average conversion rate is 7.52%.

Best use cases for each platform

Here’s a simple guide for when to lean into each platform: 

When to use what:

• Launching a new product? Use TikTok to generate awareness and push warm leads to Meta retargeting.
• Want guaranteed sales? Use Google Search or Shopping for competitive keywords.
• Need to re-engage visitors? Meta’s retargeting tools shine here.

How to create your first TikTok ad in 7 steps

1. Get a business account
2. Integrate TikTok with your Shopify store
3. Open the TikTok Ads Manager
4. Set your advertising goal
5. Select your audience
6. Set your budget and schedule
7. Create and submit your ad

Want to learn how to advertise your small business on TikTok? 

There are two ways to create campaigns for your business on the TikTok Ads Manager: a simplified version and a custom version. The custom version is designed for large companies and has more options, like creating an ad group or using a bidding strategy. But for a small to medium-sized business, this simplified version is straightforward, easy to use, and doesn’t require technical expertise:

1. Get a business account

Any TikTok Ads Manager tutorial will tell you that you need a business account for the platform. Switching over from a personal account is both free and easy.

In the app, simply go to Settings and Privacy, then Manage Account, and tap Switch to Business Account. Using TikTok for business will give you access to analytics that can tell you the best time to post on the app, as well as other features, such as a link in your bio. You don’t need a verified TikTok account to run ads. 

2. Integrate TikTok with your Shopify store

If you have a Shopify store, install the TikTok app. This offers other options for automated ad creation, and if you’re located in select countries, you’ll be able to launch a shopping tab on your TikTok profile.

3. Open the TikTok Ads Manager

The TikTok app is built for mobile, but using your TikTok ads manager account is something you’ll want to do on a desktop. Navigate to ads.tiktok.com and log in with your TikTok business account.

4. Set your advertising goal

Select Simplified Mode within the TikTok ads manager, and it will ask you to choose from four campaign objectives:

• Increase traffic: For driving prospective customers to your website.
• Drive community interaction: For building community and growing your TikTok presence.
• Improve lead generation: To capture viewer information you will use to retarget prospects and nurture existing fans via a contact form.
• Generate website conversions: For driving more conversions (defined as taking specific actions, as opposed to merely arriving at a website, which would be considered traffic).
• Encourage app installs: For driving visitors to your app store page. 

5. Select your audience

The next screen in your TikTok ads manager lets you decide who will see your TikTok ads. You have the option to select “Automatic audience,” but it’s easy to customize your audience with parameters of your own.

Select your target audience by gender, age group, language, and location. Based on your selections, a handy slider in the top right corner of the page will tell you the size of your audience. 

You can also drill down into areas of interest, such as clothing, cooking, or pets. For example, if you sell coffee online, you can target “coffee” as an interest. If you run a skin care business, you can target “beauty.” You can also target users who interact with TikTok content by liking and commenting.

6. Set your budget and schedule

Next, determine your daily budget, starting at a minimum of $5 per day or $70 for the campaign lifetime. Then, decide how long to run your campaign. For an indefinite run, select “No end date.”

7. Create and submit your ad

Now you’ve made it to the fun part of creating TikTok ads. On the next screen, select from existing TikTok content to run as a video ad or upload a new video that won’t appear on your regular TikTok feed. 

At this point, you can also enter your ad caption and call to action—such as Shop Now—with a link to your website.

After hitting Submit, your TikTok ad will go into a review process that averages about 24 hours.

If your ad is flagged, you will be notified via Ad Group on the TikTok Ads Manager platform. 

Be sure to monitor results throughout your ad’s run so you can learn what works and optimize your next campaign.

Best practices for creating engaging TikTok ads

• Start with an attention-grabbing hook
• Opt for a TikTok-native feel
• Use trending sounds and hashtags
• Leverage user-generated content
• Partner with influencers
• Provide a compelling offer

Here are some other best practices to consider for advertising on TikTok:

Start with an attention-grabbing hook

Savannah Sanchez runs The Social Savannah, a Meta and TikTok creative agency. As a TikTok marketing partner, she has shaped TikTok ad creative for notable companies like Topicals, ASICS, BYLT Basics, and BlendJet.

“Think about how to make someone stop the scroll in the first two seconds and not keep scrolling away,” says Savannah. “I always tell brands they should focus 90% of their attention on optimizing the hook and making sure it’s very thumb-stopping, and 10% of their attention on the rest of the ad. The first two seconds, the hook, is incredibly important.”

Savannah recommends leveraging TikTok trends and transitions to create scroll-stopping content. She also suggests saying something surprising within the first two seconds to grab viewers’ attention. Alternatively, featuring something “weird” or “oddly satisfying” can also be an effective way to make your TikTok ads stand out in users’ feeds.

Opt for a TikTok-native feel

To create ads that resonate with the TikTok community, aim for content that feels like it was created by a user, not a brand. This means shooting vertical videos on your mobile phone instead of relying on high-end production value. Incorporate popular TikTok fonts, sounds, and editing techniques to make your ads feel more authentic and engaging. 

“We see ads that are around 30 seconds long that do the best on TikTok. We also see ads that are utilizing native TikTok fonts, doing the best,” says Savannah. “They should look like they’re filmed on an iPhone and edited in CapCut with native TikTok text treatments. They shouldn’t look like it’s from the studio or too overproduced. Looking like it’s actually made from a creator is really important.” 

Use trending sounds and hashtags

Leveraging trending TikTok sounds and hashtags is one of the most effective ways to boost visibility and engagement. Stay up to date on the latest trends by regularly browsing the For You page and monitoring trends in your niche.

Leverage user-generated content

User-generated content (UGC) can be a powerful tool for boosting authenticity. 

“People want to buy from people who are relatable to them and who are genuine. They don’t want to listen to a TV commercial or just a boring photo with value propositions over it,” says Savannah. “TikTok is all about getting genuine feedback from the community and sharing products that people genuinely love. So that’s how your ads have to come across, it can’t look like an ad.”

Encourage your customers to create TikTok videos featuring your products, and consider running a branded hashtag challenge to inspire a wave of UGC that you can repurpose in your ad campaigns.

“One of the main things that we see across all of our best-performing ads is that there is a creator testimonial. That means having an on-screen talent talking to the camera, giving a genuine testimonial about why they love the product,” says Savannah. “That is a formula that works time and time again.”

Partner with influencers

Collaborating with TikTok influencers can help you reach new audiences and add credibility to your ad campaigns. When working with influencers, you need to strike a balance between providing creative freedom and ensuring effective on-brand messaging. 

“One of the biggest mistakes I see brands make when working with TikTok creators is that they don’t provide them with a very specific brief. When I work with a creator, I send them a detailed shortlist of every angle, unboxing, and testimonial that I’m going to need,” says Savannah. “I send them visual ad examples so that they can have a reference to what I am looking for, what a great ad looks like, what great lighting looks like, and then scripts.”

Provide influencers with a clear brief that outlines your campaign goals, key talking points, and any specific guidelines they should follow. While you should trust that an influencer knows what resonates with their audience best, providing 100% creative control is rarely the answer. 

“Just because a TikTok influencer is a great creator, it doesn’t mean that they’re necessarily a great ad creative strategist. They don’t always know what’s going to work for ecommerce marketing,” says Savannah. “They may be really great at talking to the camera, being engaging, and having great lighting. But that doesn’t always mean that they’re going to know what it means to have a great hook, or a strong call to action, or the best value props to mention in the ad.”

Provide a compelling offer

TikTok users, who are often younger, tend to be more price-conscious than users on other social media platforms. To grab their attention and drive sales, feature a discount or offer in your TikTok ads. 

“To get a good click-through rate on your ad, consider having a very strong offer or deal or a limited-time special,” says Savannah. “I’ve used strategies like offering a 15% discount in the caption or mentioning in the ad script that there’s a crazy sale that viewers need to check out before it ends. Having a high sense of urgency paired with an offer is what works well on TikTok since they are so price-conscious.” 

These tactics can also help boost overall ROAS. Experiment with offer strategies that provide your audience value, such as a free trial or a gift with purchase. 

Troubleshooting TikTok ads

TikTok’s ad platform is powerful, but it comes with a learning curve. Here are some common issues and how to deal with them:

Common ad rejection reasons

TikTok’s ad review process can be surprisingly strict and vague. If your ads are getting rejected, chances are it’s one of the following:

• Prohibited or restricted content: TikTok bans certain industries (like adult products, tobacco, or weight loss) and restricts others (like supplements or finance). Double-check TikTok’s ad policies to see if you’re crossing a line.
• Inappropriate or misleading language: Including phrases like “before and after,” exaggerated claims (“Lose 10 kg in a week!”), or using “you” in a way that feels personal (e.g., “Are you insecure?”) can trigger rejection.
• Low-quality visuals or formatting issues: TikTok expects vertical, high-resolution video (9:16). Blurry or watermarked content (e.g., from Instagram) may be rejected.
• Broken or irrelevant landing pages: If your ad links to a slow-loading site, has poor mobile UX, or doesn’t match the product in the ad, TikTok might flag it.

Why your ads aren’t converting

If you’re getting views and clicks but no sales, here’s what might be going wrong (and what you can do about it):

• The creative isn’t hooking people: TikTok is all about thumb-stopping content. If your ad doesn’t grab attention in the first three seconds, people scroll past. Test new hooks, trending audio, or UGC-style videos that feel native to the platform.
• Your offer isn’t strong enough: A great video won’t save a mediocre offer. Is your pricing competitive? Do you offer social proof, bundles, or time-sensitive deals? A/B test your offers.
• You’re targeting too broadly or too narrowly: If you’re getting low reach, loosen up your targeting. If you’re getting reach but no clicks, try refining it to better match buyer intent. Use these methods to make TikTok’s algorithm work for you.
• The landing page isn’t doing its job: Sending people to a cluttered product page or slow site or presenting them with unclear CTAs can kill conversions. Use A/B testing to generate simple and effective messaging and mobile-first layouts.

When to pivot your strategy

Sometimes, you’ve got to know when to walk away.

If your click-through rate (CTR) is lower than 0.5%, your creative probably isn’t attention-grabbing. Try a new hook or concept. On the flip side, if you have a high CTR but aren’t generating conversions, you’re probably attracting the wrong traffic. To fix this, audit your landing page, review your offer, and test a new audience.

If your ROAS is less than one time for more than two weeks and you’ve tested five or more creatives, it might be time to pause and regroup. And, if your CPM is unusually high ($15+), it might mean your ad is low quality. Try again with fresh, visually appealing creative with native TikTok energy. 

When you pivot, don’t scrap everything. Instead, pinpoint the weakness (creative, offer, audience, landing page) and test one element at a time.

Examples of great TikTok ads

• Medik8
• MVST
• MERIT

Here’s some TikTok inspiration from successful brands across different industries:

Medik8

Medik8, a British dermatological skincare brand, partnered with a creator to advertise two of its products: Liquid Peptides and Crystal Retinal 6. The ad strikes a familiar feel; the creator speaks to the camera and uses the recognizable “get ready with me” format often seen on TikTok. 

The creator features the products prominently and hits several key talking points. Finally, they offer viewers a 20% discount.

MVST

MVST, a premium luggage company, takes a unique approach to its ad—without saying a word. It combines two recognizable video formats: unboxing and autonomous sensory meridian response (ASMR). ASMR videos feature soft sounds or gentle visuals that trigger relaxation, appealing to those seeking a calming sensory experience.

The video focuses squarely on the product, showing viewers a hand opening the luggage, spinning the wheels, and unzipping the compartments. 

MERIT

MERIT, a vegan and cruelty-free cosmetics company, opens its TikTok ad with a compelling offer. For every first order, the company will ship new customers a free signature bag loaded with products. The ad showcases each of the items, creating excitement around the offer. The ad is paired with a popular trending song that users on the platform will recognize.

By aligning with current TikTok trends, MERIT increases the likelihood its ad will resonate.

Start advertising on TikTok today

Whether you’re a content creator making merch for TikTok or a brand exploring new ways to connect with customers, TikTok advertising can help you reach a massive, engaged audience and drive growth for your business. With TikTok’s creative ad formats and precise targeting options, you can showcase your products and connect with potential customers authentically. 

If you’re a Shopify store owner based in the United States, the TikTok app on Shopify makes it easy to get started with TikTok advertising and TikTok Shop, allowing you to manage your campaigns directly from your Shopify dashboard. Take advantage of seamless pixel installation, streamlined ad creation, and powerful reporting insights to improve your TikTok marketing efforts and boost your sales on one of the world’s fastest-growing social media platforms.