CPM on TikTok – How to Get the Most Out of Your Ad Budget

cpm on tiktok

When marketers set their advertising budget, TikTok will suggest a CPM (cost per thousand) that maximizes the number of people who see your ad. The exact amount will depend on the ad type and your audience. But it’s important to understand that a cpm on tiktok is typically much lower than on other platforms, like Instagram and Facebook.

Using a CPM, TikTok charges for in-feed ads based on the number of views of your sponsored video. This metric gives you an idea of how much you can reach with your budget and allows you to evaluate the effectiveness of your campaign. While Meta and Google hold a vice-like grip on digital ad spend, TikTok is gaining traction and forcing advertisers to reconsider their marketing strategy.

Deciphering CPM on TikTok: How Much Should You Budget

This is especially true for businesses targeting young consumers. Many businesses have seen a significant increase in online sales and traffic to their websites or online store as a result of their TikTok campaigns. With a low CPM on tiktok, you can achieve your business goals while getting the most out of your ad budget.

However, it’s important to keep in mind that a low CPM on TikTok may be accompanied by lower CR and CTR benchmarks. As such, it’s crucial to review your ad metrics and industry benchmarks in order to optimize your CPM and ensure that it aligns with your ad performance objectives. With documented CPM data and industry benchmarks at hand, you’ll be able to negotiate ad rates that are both cost-effective and allow you to reach your target audience.