When you run a campaign on TikTok, you’re charged based on the number of impressions that your ad receives. This is known as a CPM rate, or cost per mille (or cost per thousand)—and it’s important to understand how this model works to make sure that your advertising dollars are going where they’re most effective.
In general, TikTok CPM rates are much lower than those on YouTube or Facebook, with CPMs generally between $9.5 and $10. This reflects the platform’s low advertising cost and high engagement rates, making it a great choice for marketers looking to grow their audience and raise brand awareness.
Understanding Costs: Unveiling TikTok CPM Rates
Depending on your advertising goals, you can choose between a CPM or a CPC bidding strategy. The latter model charges you only when someone clicks on your ad, while the former model optimizes delivery based on the maximum bid you set—again, based on the CPM rate.
TikTok offers a wide range of sponsored ad formats, including top view video, which has a CTR of 12% to 16%; takeover video, which generates 7% to 10% CTR; and in-feed ads, with a CTR of 1.5% to 3%.
With documented CPM rates and industry benchmarks in hand, you can negotiate ad rates that are fair and aligned with the visibility you’re looking for. And with an in-depth, real-time reporting tool, you can get a complete overview of your performance and make smart decisions that maximize the value of every dollar you spend on advertising.
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