Are TikTok Ads Worth It in 2023? 5 Benefits for Businesses!

Reading time: 5 min read
Muninder Adavelli
Written by
Muninder Adavelli

Updated · Aug 14, 2023

Muninder Adavelli
Digital Growth Strategist | Joined October 2021 | Twitter LinkedIn
Muninder Adavelli

Muninder Adavelli is a core team member and Digital Growth Strategist at Techjury. With a strong bac... | See full bio

Edited by
Dushko Talevski


Azzam Sheikh
Reviewed by
Azzam Sheikh


Azzam Sheikh
Digital Strategist at Carifex | Joined August 2023 | LinkedIn
Azzam Sheikh

Bootstrapping an e-commerce brand to a $4M exit: recording the process. Also building Lead Generatio... | See full bio

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Since the global attention span is reducing at an alarming rate, as we are constantly bombarded by digital media from screens around us, TikTok has exploded in popularity in recent years with its short-form videos, most of which can be consumed in 15 seconds.

Because of that, marketers looking to reach a broader and younger audience have begun conducting their social media campaigns on TikTok. 

But are TikTok ads worth it in 2023? Definitely, as they provide excellent reach, engagement, and conversion rates without breaking the bank.

Keep on reading as we look at five specific benefits of TikTok ads!

Why Advertise on TikTok?

The reason to advertise on TikTok becomes evident once you learn that the platform has almost 1 billion active users per month and has been installed almost 3 billion times!

Social reach like that in over 150 countries makes for a fertile hunting ground for marketers, advertisers, and all sorts of businesspeople. Not to mention that all age groups are represented, despite TikTok being popular among teenagers at first.

So the sooner you jump on the bandwagon, the better for your sales, customers, and long-term brand stability, as these mind-blowing stats will only increase further. The right video will even go viral since TikTok reaches the largest audience out of all social media.

Also, TikTok is the sort of app that does not restrict creativity, and you can use any number of video formats for your personal and business purposes. For instance, comedy skits, lip-syncing, tutorials, and dancing videos are popular nowadays!

Before starting, consider the above and check out the following five reasons why you should do a TikTok marketing campaign as soon as possible.

1. TikTok Ads Can Offer Great Value

Depending on your needs, means, and the scope of your TikTok campaign, you can expect to spend anywhere from $1000 to over $100,000 on advertising costs.

As of 2022, TikTok ads also have a $10 CPM (cost per thousand impressions), a $1 CPC (cost per click), and you must spend at least $500 for a single campaign.

Compared to other social media platforms, TikTok is not an expensive advertising platform, but not the cheapest one either. For instance, only Twitter offers a significantly lower CPC, while Facebook costs more or less the same, and the rest are more expensive.

However, remember that TikTok’s reach is somewhat greater than the reach of other social media platforms. Because of that, the CPM is slightly higher than the rest.

Large companies who choose to pay for hashtag challenges also need to cover a flat fee of $150,000 for the first six days—an expense that may even double afterwards.

However, the more you spend on your advertising, the higher your ROAS (return of ad spend)—the average is around $2.50, but it can go up to $5.

2. TikTok Has a Global Reach

Tutorial ads on TikTok

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As mentioned above, with a presence in 80% of the world’s countries and almost a seventh of the world’s population using it, TikTok has become a global phenomenon.

With such a ubiquitous reach, any business can see one of its videos going viral, potentially turning small businesses into overnight successes. Your brand awareness would explode with an insignificant ad investment in such cases.

Also, while teenagers were the initial factor in TikTok’s success, the platform registers users of all ages and walks of life nowadays. Therefore, advertising with TikTok helps you reach a vast and diverse public. But you can still focus on specific demographic groups based on location, language, gender, and age with TikTok’s demographic targeting feature.

3. TikTok’s CTR and Conversion Rate Are Satisfactory

Video content with ring lights

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As for TikTok’s click-through and conversion rates, while the average CTR is slightly above 1% for non-paid videos, the CR is typically 3.4%. Both of these numbers are promising, but they have also been steadily increasing in recent years.

However, paid ad services offer significantly higher CTRs. For instance, top-view ads average a 12%–16% CTR, brand takeover ads—7%–10%, and in-feed ads—3%–5%.

Therefore, to maximize TikTok’s advertising potential, consider publishing different types of ads, from collections of videos to branded effects and hashtags.

4. TikTok Successfully Engages Its Audience

Compared to other social media platforms, TikTok is a very engaging app that encourages creativity and innovation. Short videos have become very effective at grabbing and maintaining users’ attention, despite the reduced attention span worldwide.

This continuous engagement cycle suggests that TikTok’s users are immersed in the app and more likely to view an ad since they naturally fit in their video feeds. The latest data also suggests that TikTok’s screen time is three times that of Instagram.

Since consumers are so engrossed when using the app that they retain 23% more detail when viewing TikTok ads than what they see on TV. 

Such engagement also increases the advertisement’s chances of landing on people’s “For You” page, which further boosts brand awareness.

For a further increase in sales, brands can also partner with proven TikTokers, who can drive a much higher ad engagement since they have a huge following behind them.

5. TikTok’s Content Feels Authentic & Creative

Video Creators for TikTok

Image Source

The most effective TikTok ads do not look like ads at all but resemble genuine videos created by other TikTok users. The upside of these formats is that marketing teams do not need expensive equipment and post-production professionals to create an effective ad.

After all, raw and relatable videos fit in well among other user-created content, which is necessary as your brand’s ads will be placed in-between genuine videos.

To create organic content, businesses should set up smart yet cheap lightning, record with a good phone camera phone, and focus on the product in question.

This approach also allows creatives to shine since they don’t have to work within formal confines when creating an ad, which is why branded content performs so well and is an excellent opportunity for both the creator and the brand.

Ultimately, the most successful businesses on TikTok are those that are not afraid to embrace the platform’s relaxed, innovative, exciting, and popular trends.

In Conclusion

As you can see, conducting your social media campaign via TikTok is perhaps your best choice since the cost, reach, engagement and conversions you get with TikTok are perhaps the best among all social media platforms out there. Therefore, as a brand, you should definitely give TikTok a try, especially if you have a younger and varied audience.


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