How much does it cost to run TikTok ads? Is it worth the investment?

Is TikTok advertising expensive compared to other platforms like Facebook and Google? How can you optimize the cost of running TikTok ads? If you’re wondering about TikTok ad expenses, this article will help you find the answers!

1. TikTok Advertising Buying Methods

TikTok offers various advertising formats, each with different pricing structures. Advertisers can purchase TikTok ads through three main methods:

1. Bidding
2. Booking
3. Reach & Frequency (R&F)

1.1 Bidding Ads

If you’ve advertised on Facebook or Google before, you’re likely familiar with this method. Currently, TikTok provides five bidding ad solutions:

• In-Feed Ads
• Collection Ads
• Dynamic Showcase Ads
• TikTok Shop Ads
• Deeplink Ads

Key Features of Bidding Ads:

✅ Campaigns can be created via TikTok Ads Manager.
✅ Flexible budget – no upfront payment required.
✅ No need to purchase ad space in advance.
✅ Focuses on conversion efficiency.

1.2 Booking Ads

Since TikTok limits available ad placements, advertisers must reserve space in advance for certain ad formats. Unlike bidding ads, booking ads cannot be managed directly by advertisers. Popular booking ad formats include:

• TopView Ads
• Branded Effect Ads
• Branded Hashtag Challenge Ads

Key Features of Booking Ads:

✅ You must contact TikTok partners to book ad space.
✅ Ideal for brand awareness and audience reach.
✅ Higher costs with mandatory upfront payment.

1.3 Reach & Frequency (R&F) Ads

Reach & Frequency (R&F) allows advertisers to control ad reach and display frequency at a fixed price. This method is often combined with other ad types to maximize audience exposure, helping brands become “top-of-mind” among users.

There are two R&F ad placements:

1. Standard (default placement)
2. Top Feed (premium placement for better visibility and brand awareness)

See more products: Buy advertising accounts

2. How Much Does TikTok Advertising Cost?

TikTok advertising costs start at a minimum of 200,000 VND (~$8.50). TikTok offers two budget options:

🔹 Total Budget
🔹 Daily Budget

Minimum Budget Requirements:

• Campaign level: 500,000 VND (~$21)
• Ad group level: 400,000 VND (~$17)

Note: Ad costs vary depending on the format chosen, which affects the overall campaign budget.

2.1 TikTok Booking Ad Costs

TopView Ad Pricing

TopView Ads appear immediately when users open the TikTok app. This premium ad format guarantees a full-day display, generating millions of views and high engagement.

💰 TopView Ad Costs:

• Base cost per impression: $1.35
• Targeted impression cost: $1.69
• Minimum daily budget: $10,800 for 8 million impressions (Vietnam market)

Branded Effect Ad Pricing

Branded Effect Ads use stickers, filters, and motion effects to highlight brand campaigns and product promotions. Users can create content using these branded effects in TikTok’s video editor.

💰 Branded Effect Ad Costs:

• Standard (2D/2D Pro effects): $37,350
• Advanced (3D/GBE effects): $67,350

TikTok Branded Hashtag Challenge Advertising Costs

The Branded Hashtag Challenge is an advertising format where brands create a unique hashtag (e.g., #InMyDenim, #Maybeli) and encourage users to include it in videos related to a specific theme. The costs for Branded Hashtag Challenge advertising are:

• First 3-day promotion: $11,100
• Minimum cost for a basic campaign: $29,500
• Maximum total cost for a campaign: $40,600 (over 70 days)

2.2 TikTok Auction-Based Advertising Costs

Auction-based ad costs are determined by four bidding methods:

• CPM – Cost per 1,000 impressions
• oCPM – Optimized cost per 1,000 impressions
• CPV – Cost per 1,000 video views
• CPC – Cost per click

The cost structure varies depending on the ad format.

On TikTok Ads Manager, the minimum In-Feed ad budget per day is 400,000 VND, with a total minimum budget of 5,600,000 VND.

How much does 1,000 impressions (CPM) cost?

The average CPM cost on TikTok is approximately $2 (~50,000 VND).

Under the CPM (Cost Per Mille/Cost per 1,000 Impressions) model, the bid represents the amount you’re willing to pay for 1,000 ad impressions. TikTok’s system will then distribute your ads to maximize impressions and reach the largest number of users within your budget.

How is the cost per view (CPV) calculated on TikTok?

On YouTube, it typically costs $10,000 – $30,000 to reach 100,000 viewers. In contrast, TikTok’s ad platform allows you to bid on CPV for 1,000 views of either a 6-second or 2-second video. In simple terms, you can set a custom budget per view on TikTok.

The CPV (Cost Per View) bidding model lets you bid on 1,000 views within 2 or 6 seconds or until the video finishes. TikTok’s system will maximize video views within your budget.

See more products: Buy advertising accounts

How much does cost per click (CPC) cost?

The average CPC (Cost Per Click) on TikTok is around 5,000 VND per click.

Under the CPC model, you bid on the cost per click for your ads. TikTok’s system will prioritize showing ads to users most likely to click on your link, ensuring that the cost stays as close to your bid as possible.

Optimized Cost Per Mille (oCPM)

The oCPM (Optimized Cost Per 1,000 Impressions) model is similar to CPM, but TikTok’s system targets users more likely to convert, generating leads or engaging with similar products.

Currently, oCPM is the default bidding model for campaigns focused on Conversions or App Installations.

2.3 TikTok R&F (Reach & Frequency) Advertising Costs

With R&F (Reach & Frequency) campaigns, advertisers can control the number of users reached and the frequency of ad impressions at a fixed price. After setting audience parameters, objectives, and budget, TikTok estimates the following key metrics:

• Reach: Total number of users who will see the ad
• Impressions: Total number of ad views
• Average CPM cost: Estimated cost per 1,000 impressions

Since R&F pricing varies based on advertiser goals, the cost is flexible and customized.

For example, in Vietnam, a one-week R&F campaign requires a minimum budget of approximately $53.69 (~1,200,000 VND), which can deliver:

• Reach: 100,000 users
• Frequency: 1.28 (meaning for every 128 users reached, 28 will see the ad at least twice)

3. Comparing TikTok Advertising Costs with Facebook

Comparing social media advertising costs is complex, as many variables depend on advertisers’ goals and campaigns. TikTok and Facebook are the two most widely used social networks in Vietnam, making their advertising costs a frequent topic of comparison.

As of early 2022, Facebook remained the world’s largest social network, with over 2.91 billion monthly active users, while TikTok had over 1 billion monthly active users, according to its parent company, ByteDance. With more than a decade of dominance, Facebook has a larger user base and more advertisers, making its ad costs significantly higher than TikTok’s, which has only recently gained traction.

Note: These figures are based on data from 1,000 advertising campaigns and are for reference only.

Read more: Facebook Ads vs. TikTok Ads: Which is the Best Choice?

4. Should You Advertise on TikTok?

As a newer platform with affordable costs, TikTok is a great place to start advertising.

• TikTok is highly popular among young users, with a rapid annual growth rate in Vietnam. According to a Q&Me report in early 2022, TikTok had the highest growth rate, with user penetration rising from 49% to 62%, and 74% of users engaging daily.
• Diverse ad formats with short, engaging, and visually dynamic videos make TikTok ads trendy and unique compared to Facebook and Instagram.
• Lower advertising costs with flexible budgeting based on campaign goals.
• Easier collaboration with influencers (KOLs/KOCs) to boost campaign effectiveness.

5. How to Optimize TikTok Advertising Costs

New TikTok advertisers often encounter issues like ads not spending or accounts getting disabled. To maximize efficiency, optimizing ad spend from the start is crucial.

See more products: Buy advertising accounts

5.1 Budget Optimization During Initial Ad Setup

• Campaign budget: Set an open budget.
• Ad group budget: Choose a daily budget.

For Conversion Ads:

• If using Lowest Cost bidding strategy and Conversions as the optimization goal, set the initial budget to be at least 20 times the CPA (Cost Per Action) and at least $100.
• Reference previous ad group spending to determine a suitable budget.
• Use App Event Optimization (AOE) to drive specific user actions.

5.2 Tips for Optimizing TikTok Conversion Ads

TikTok Conversion Ads focus on encouraging users to take valuable actions, such as app downloads, purchases, or lead submissions.

• Do not change your bid, targeting, or budget during the learning phase of a Conversion campaign.
• Wait until 50 conversions are achieved before making adjustments.
• Maintain at least 50% of the budget before exiting the learning phase.
• Wait at least 2 days before adjusting bids, targeting, or budget again.

5.3 Using a TikTok Agency Account

A TikTok Agency Account is a verified account provided by TikTok to its official advertising partners.

If you use a regular TikTok ad account, you must pay:
✅ Ad costs
✅ Taxes
✅ International payment processing fees

💰 Tax rate: 10.8% (automatically deducted from your ad balance).

📌 Benefits of a TikTok Agency Account:
✅ No extra tax charges (ad payments go through the agency).
✅ Faster ad spending and more flexible budget adjustments.
✅ No spending limits on ad campaigns.

5.4 Using a TikTok Advertising Partner in Vietnam

Here are four reasons to consider using a TikTok Vietnam advertising partner like buybm365:

1. Experienced in TikTok Advertising:

   • Official TikTok Vietnam partners with thousands of ad campaigns completed.
   • Deep understanding of market trends, TikTok algorithms, and policies.
   • Expertise in building high-converting ad strategies.

2. Trial Campaigns (2–4 Weeks):

   • Receive personalized ad consultations for the best performance.
   • 100% refund on unused budget if you decide to stop the campaign.

3. Stable and Effective Ad Performance:

   • As a TikTok Agency Partner, buybm365 has access to Agency Accounts, ensuring higher ad effectiveness and priority support from TikTok.

4. Fast Issue Resolution:

   • If any ad issues arise, the team can quickly resolve them to keep your campaigns running smoothly.

If you need the most reputable payment method and advertising account provider, you can message the fanpage buybm365.com-Ads to receive advice from HT Media. In addition, you can follow the articles. Latest articles related to our Digital Marketing.