Tiktok Ads are expected to grow 67% in 2023. Get your Beginner TikTok Ad guide.

Rolling back to 2020, when the world faced a dynamic shift. Whether it’s about survival due to COVID-19, risk management, commerce, thought process, or communication, these challenges have set new bars in almost every field of life globally. We’ve observed exponential growth in TikTok’s growth & popularity during the pandemic. Along with the platform’s development, it also expresses audience behavior and content marketing evolution.

How does TikTok bring a dynamic shift to audiences and their behavior globally?


Starting as a Chinese social media application, TikTok conquered a considerable following globally. But still, there’s a lot to achieve where social media giants are ruling the digital world. COVID-19 restricted and challenged a ‘normal lifestyle,’ and adapting to a new normal was the only choice. From there, TikTok snowballed into the most popular app in 2019 and 2020. It gets 693M and 850M new downloads, respectively -more times than any other app in one given quarter.

TikTok Ad Strategy, Why do you need it?

If you’re a performance marketer, media buyer, or hardcore advertiser, TikTok is bleeding your ad spend without a strategic approach. In simpler words, TikTok’s ad strategy includes thorough and objective-focused planning to persuade the target audience to favor your product or service over the competitors. I recommend you pay attention to the objective. Let’s dig into the details!

The stats and the proof!

According to a 2022 social trends survey, 4% of marketers considered TikTok a viable option to reach their marketing goals compared to 3% the previous year. That’s like a 700% increase in less than 24 months. Also, you must have seen the hashtag trend #tiktokmademebuyit never gets dim. Attracts a broader number of users to contribute to this trend. Hence it results in increasing active monthly users and putting up with driving sales and generating views.


TikTok ads are primarily sponsored videos that brands create to reach their audience. Running ads on the video-sharing app is an effective marketing strategy for your business, both audience and algorithm-wise. Therefore, TikTok ads help businesses to

Pros of having a TikTok Ad Strategy

Cons of having a TikTok Ad Strategy

There’s none. Running a seamless ad and lacking strategy is a significant con in itself. How about checking out different TikTok ads so you can figure out the best one to work your ad strategy? Let’s hop on the ad guide.

5 types of TikTok Ads & their performance keynotes.

An effective ad strategy is all objectivity meets creativity; the successful one is about connecting to the target audience rightly. So yes, it is about something other than any video or motion graphic promising a good ROI. TikTok makes it easier for advertisers. There are several TikTok ads type to be used in campaign creation. Each of them serves the campaign objective with its unique purpose. Let’s hop on it.

Top View Ads

Courtesy: TikTok

Capturing full user attention with sight, sound, and narrative, TikTok claims TopViews Ads as the ‘more attention-grabbing, engaging and effective.” They’re full-screen and have up to a 60-second video that offers an immersive viewing experience for users. ​So that audience doesn’t miss anything about your brand and gets hooked when they open the video app. According to TikTok, TopView ads have proven attention-grabbing, with over 70% of users confirming that.

In-feed Ads

Courtesy: TikTok

Make advertisements more enjoyable and instantly connect with the next generation of consumers. It’s time to hit your brand more personalized and effective. Express your brand story and enhance the individual interactive experience with TikTok In-feed Ads. You must have seen a sudden ad, just like other TikTok videos, comes up while scrolling through For You Page. Well, that’s called in-feed ads.

In-feed Ads articulate your brand’s story like a creator by embedding a video ad that plays within a user’s feed through an up to 60-second high-quality video.

Branded Effects

Courtesy: TikTok

Don’t you love experiencing something created for yourself only? Let your target audience feel the same way with TikTok Brand Effects.

Be it just another idea, tool, or hashtag challenge, transforming users into ambassadors and empowering them to share the experience is an advertising magic potion in 2022.

Tailor-made sharable stickers, effects, filters, and much more are there to unleash the creative potential and increase the watch time – that too in an enjoyable way. Inclusivity is what the world celebrates now. It pulls users together worldwide with visual languages that can span time, culture, and place—this promises an exciting fanbase through high-quality content creation.

Branded Hashtag Challenge

Courtesy: TikTok

Ever-ruling engagement format that levels up user passion for creating, contributing, and celebrating. TikTok is a platform that cares only for the most users, and the algorithm is devised to make this ideology in every possible way. Advertisers are having massive success with Branded Hashtag Challenge, a key TikTok advertising format to satisfy the audience and trigger a bombarding UGC through the TikTok community regarding raising awareness and trendsetting. The best part is that it doesn’t need a dime but a strategic emotional connection.

Spark Ads

Courtesy: TikTok

Boost different types of videos to maximize their impact — your own, creator-made, or ones that mention your brand.

The last, but certainly not the least, type of ad I’ll discuss is the spark ad. Spark ads allow your brand to boost organic content from your account or other users.

TikTok research shows Spark Ads have a 24% higher completion rate and 142% higher engagement rate than standard In-Feed ads. It’s a straightforward collaborative approach where you can reach out to creators and get their permission to use the relevant content as a Spark Ad. Hence instead of posting it on your page, you boost or run spark ads directly from the creator’s page.

Step 1: Choose your objective

Courtesy: TikTok

To kick start, log into TikTok Ads Manager and select the Campaign button. TikTok comes up with seven ad objectives, divided into three categories:



Step 2: Set campaign name and budget

Courtesy: TikTok

Sort your campaigns with a distinctive title of up to 512 characters so it becomes easily recognizable to your team. For bottomless pockets or setting budget limits for specific ad groups, it is optimal to set No Limit on your campaign budget. Else, choose whether you want to set a Lifetime or Daily budget for your campaign (more on that below). CBO, aka Campaign Budget Optimization, can be used with the Lowest Cost bidding strategy for App Installs and Conversions objectives. TikTok beta tests a feature to provide a suggested bid for optimized Cost Per Click objectives.

Step 3: Title your ad group and select placements

Courtesy: TikTok

Up to 999 ad groups can be made for each campaign. Each ad group name has a limit of up to 512 characters.
You can opt for different placements for each ad group with regional limitations, i.e., placement availability varies by location.

TikTok placement:
In-feed ads in the For You feed.

News Feed App placement: Ads within TikTok’s other apps, BuzzVideo, TopBuzz, NewsRepublic, and more.
Pangle placement: The TikTok audience network.
Also, the automatic placement allows TikTok to optimize ad delivery automatically.

Step 4: Select whether to use Automated Creative Optimization

You will only upload your creative once you get to creating personal ads. You can let TikTok automatically generate your media combinations, including videos, images, and ad text. The ad system will then only display the high-performing ones.
TikTok recommends that fresh advertisers turn on this setting.

Step 5: Target the right audience

Courtesy: TikTok

Like most social ads, TikTok lets advertisers show ads to your target market, focused. Hence, it’s easy to go for a custom audience or lookalike or target your ads based on the following demographics along with interests and behavior:

Step 6: Manage your ad group budget and timelines

Once the campaign budget is set, it’s time to put the ad group’s budget and active schedule. After choosing a daily or lifetime budget for your ad group, it’s vital to lock in the start and end times. Under Dayparting, running your ad at specific times – based on your account time zone – is also optimal throughout the day.

Step 7: Devise your bidding strategy and optimization

Courtesy: TikTok

After choosing from conversion, clicks, or reach, your campaign objective may automatically achieve this goal. The latter important part is to select a goal-oriented bidding strategy. But first, let’s understand a few crucial terminologies:

Bid Cap & Cost Cap.

Bid Cap is the maximum amount per view (CPV), per click (CPC), or 1,000 impressions (CPM). While cost cap is an average CPR for optimized CPM, which will fluctuate above and below the bid amount but should average the set bid.

Standard vs. Accelerated Delivery Type:

It is crucial to choose a delivery type to propel your bidding strategy. Standard Delivery evenly divides your budget over the scheduled dates of the campaign. In contrast, Accelerated Delivery uses your budget as fast as possible.

Step: 8 Create your ad(s)

Courtesy: TikTok

Each ad group limits up to 20 ads with a title of 512 characters and is for internal use only. Starting with selecting your image, video, or Spark ad format, you can only use video or Spark ads if you’re sticking to TikTok itself -rather than the family of TikTok apps. Add your media within Ads Manager using the video template or creation tools. However, according to TikTok research, using a TikTok video editor can decrease Per Action Cost by up to 46%. It’s time to upload a catchy thumbnail or choose one of the default thumbnails, followed by entering your text and link. Remember to check out your ad preview on the right of the screen. You can add any relevant tracking links and click Submit. TikTok will review your ad before getting it live.

How much do TikTok ads cost?

Minimum budget

TikTok ads are bidding model-centric. Hence you can control costs through daily and lifetime budgets for campaigns and ad groups. The minimum budgets are:

Campaign budget optimization

Ad budget optimization

In fact,

TikTok hasn’t said much about specific ad costs, but they’ve revealed the following tips and insights:

To sum it up,

TikTok has become the favorite media for Gen Z and befriended businesses and brands by acquiring a significant chunk of power purchasers and independent decision-makers. TikTok advertising has proven itself substantial for all essential business segments. Be it a product-based business, service-based business, or brand positioning – TikTok advertising has served the purpose rightly for each segment.

Let me know what other advertising aspects you’re looking forward to. Stay tuned for my upcoming case studies for TikTok Ads that have thrived ROI of more than 50%.

Asher Mirza
Asher Mirza