How Much Do TikTok Ads Cost in 2025?

How Much Do TikTok Ads Cost in 2025?

TikTok’s reach is impossible to ignore, with more than a billion active users spanning generations and continents. For businesses hoping to find fresh audiences and leave a lasting impression, working with a TikTok ads agency for advertising on TikTok is often an enticing option. The question on every marketer’s lips remains constant: What will it actually cost? As we move further into 2025, understanding the true price of TikTok advertising and how it stacks up against other major platforms gives brands an edge in a marketplace that’s showing no signs of slowing down.

What Influences TikTok Ad Costs?

No two ad campaigns are identical, and neither are their costs. TikTok advertising is far from a fixed-rate affair. The final invoice depends on countless factors, which can make budgeting tricky for the unprepared.

Factors impacting TikTok ad pricing include:

• Target audience (such as age group, interests, and location)
• Ad format (are you running a simple in-feed ad, sponsoring a hashtag, or employing TopView?)
• Bidding strategy (manual, automated, cost-per-click, cost-per-mille, etc.)
• Campaign duration and timing
• Level of competition for the chosen audience at that time

In practical terms, advertising to young adults in New York or Auckland during key shopping seasons will generally cost more than targeting a niche hobby group in a quieter period.

 

 

The Numbers: TikTok Ad Pricing in 2025

TikTok uses an auction-based system, which means prices are in constant flux. Yet several reliable benchmarks can help marketers plan their budgets with greater confidence.

Below is a snapshot of current estimated costs for mainstream TikTok ad products.

Ad Format	Estimated Cost (NZD)	Minimum Spend
In-Feed Ads	$0.13 – $0.23 per click	$65 daily, $650 total
TopView	$91,000 – $183,000 per day	Custom by region
Branded Hashtag Challenge	$130,000 – $260,000 for 6 days	Six-day minimum
Branded Effects	$65,000+ (dependent on scale/complexity)	Custom

Please note: All figures are indicative and may vary significantly depending on targeting, duration, and bidding method.

 

How Much Do TikTok Ads Cost? Key Factors and Trends for 2025

If you’re asking, “How much do TikTok ads cost in 2025?” you’re not alone. The answer depends on a range of factors, but understanding the basics will help you set a realistic advertising budget and maximise your marketing results.
TikTok ads operate on a dynamic auction system, with costs influenced by your target demographics, chosen ad formats, and the competitiveness of your industry. CPM (cost per thousand impressions) and CPC (cost per click) are the most common pricing models, with CPMs typically ranging from $1.10 to $1.90 USD and CPCs from $.08 to $.14 USD. Your actual advertising costs will vary based on your campaign objectives, audience targeting, and creative content quality.
When planning your TikTok advertising, consider how different ad formats—such as In-Feed Ads, TopView, Branded Hashtag Challenges, and Branded Effects—align with your brand awareness goals and marketing budget. For brands seeking rapid growth, influencer marketing is a powerful strategy. Partnering with TikTok influencers who resonate with your target audience can boost engagement and drive authentic content creation, often at a lower cost than traditional ads.
Don’t overlook the importance of understanding your audience’s demographics. TikTok’s user base spans teens to adults, and tailoring your campaigns to the right segments can significantly improve your ROI. Ultimately, the true cost of TikTok ads is shaped by your willingness to test, optimise, and invest in both paid and organic content strategies.

 

 

Minimum Campaign Requirements

Understanding how to allocate your advertising budget on TikTok is crucial for campaign success. TikTok sets clear minimums, but recommended budgets often depend on your goals, audience size, and the ad formats you choose.

Minimum and Recommended Budgets

• Campaign Level: TikTok requires a minimum total campaign budget of $400 USD, with a daily minimum of $40 USD. This ensures your ads have enough reach to generate meaningful data and results.
• Ad Group Level: Each ad group within a campaign must meet a minimum daily budget, typically $12–$30 USD, depending on your targeting and bidding strategy.

Real-World Budget Examples

• Entry-Level Campaign: A small business might start with a minimum $650 NZD total budget, running a campaign over 10 days at $65 NZD per day. This approach allows for testing different creatives and targeting options without a large upfront investment.
• Growth Campaign: A mid-sized brand aiming for broader reach might allocate $2,000–$5,000 NZD over a month, supporting multiple ad groups and experimenting with formats like In-Feed Ads and Spark Ads.
• Brand Awareness Blitz: For maximum exposure, a national brand could invest $100,000+ NZD in a TopView or Branded Hashtag Challenge, targeting millions of impressions in a short period.

Comparing TikTok’s Budgeting to Other Platforms

TikTok’s minimums are competitive, especially for self-serve ads. For comparison:

• Facebook/Instagram: Minimum daily budgets often start at $1–$5 USD, but effective campaigns typically require $20–$50 USD per day for meaningful results.
• YouTube: Recommended daily budgets are similar, but video production costs can be higher.
• TikTok: While the entry point is slightly higher, the platform’s unique engagement and viral potential can deliver a stronger ROI, especially for brands targeting younger demographics.

Ultimately, TikTok’s budgeting structure is designed to balance accessibility for small businesses with the scale needed for major brands to make a splash.

 

How Do Bidding and Auction Models Work?

TikTok’s advertising platform offers flexible pricing models that allow brands to align their spend with specific marketing objectives. The two most common models are CPM (cost per thousand impressions) and CPC (cost per click), each suited to different campaign goals.

What is CPM?

CPM (Cost Per Mille) is the amount you pay for every 1,000 times your ad is shown, regardless of whether users interact with it. This model is ideal for campaigns focused on brand awareness and maximising reach.

• 2025 Benchmark: On TikTok, average CPMs in New Zealand range from $1.90 to $3.20 NZD, though costs may rise during peak seasons or for highly competitive audiences.

What is CPC?

CPC (Cost Per Click) means you only pay when someone clicks on your ad. This model is best for driving traffic to your website, app, or landing page, and is often used for performance-driven campaigns.

• 2025 Benchmark: TikTok’s average CPC in New Zealand typically falls between $.13 and $.23 NZD, making it highly competitive compared to other platforms.

How TikTok’s Auction-Based Pricing Works

TikTok uses a real-time auction system to determine ad costs. Advertisers set their maximum bid and targeting preferences, then compete for ad placements. The final price you pay depends on your bid, the relevance of your ad, and the level of competition for your chosen audience.

• oCPA (Optimised Cost Per Action): For advertisers focused on conversions (like app installs or purchases), TikTok offers oCPA bidding, which optimises delivery to users most likely to take your desired action.

Why Pricing Models Matter

Choosing the right pricing model is essential for maximising your return on investment. CPM is best for boosting visibility and brand awareness, while CPC and oCPA are ideal for campaigns with clear conversion goals.

 

 

Comparing TikTok to Facebook and Instagram

Marketers naturally want to know how TikTok stacks up against entrenched competitors like Facebook, Instagram, and YouTube. The answer varies wildly depending on audience and industry, but a few patterns have emerged.

Platform	Typical CPC (NZD)	Typical CPM (NZD)
TikTok	$0.13 – $0.23	$1.90 – $3.20
Facebook	$0.44 – $1.17	$5.20 – $9.80
Instagram	$0.65 – $1.43	$4.55 – $12.35
YouTube	$0.32 – $0.98	$2.00 – $5.50

On a per-click or per-impression basis, TikTok’s fees often look friendlier, especially when targeting younger audiences. The platform’s ad creative requirements are different, though, so direct comparisons sometimes miss the impact of video production and influencer partnership costs.

 

 

Diverse Ad Formats: Where Do Costs Land?

TikTok offers a diverse suite of ad formats, each designed to help brands achieve specific marketing objectives and reach different segments of the platform’s vast audience. Understanding the strengths, limitations, and typical costs of each format is essential for building an effective TikTok advertising strategy.

In-Feed Ads

Description: These ads appear natively within the “For You” feed, blending seamlessly with user-generated content.

• Pros: Highly customisable, affordable, and suitable for most budgets. Supports clickable CTAs for website visits, app downloads, or purchases.
• Cons: Competes with organic content for attention; requires strong creative to stand out.
• Typical Cost: $.08–$.14 USD per click; minimum spend $40 daily.

 

TopView

Description: Full-screen video ads that appear as soon as users open the TikTok app, guaranteeing maximum visibility.

• Pros: Unmatched reach and impact; ideal for major launches or brand awareness campaigns.
• Cons: Premium pricing; best suited for large brands or national campaigns.
• Typical Cost: $55,000–$110,000 USD per day; custom by region.

 

Brand Takeover

Description: Exclusive ad format that takes over the app for a day, displaying static or dynamic content to all users.

• Pros: Total share of voice for 24 hours; drives massive impressions.
• Cons: Extremely high cost; limited availability.
• Typical Cost: Starts at $40,000 USD+ per day (varies by market and season).

 

Branded Hashtag Challenge

Description: Encourages users to create and share content around a branded hashtag, often amplified by TikTok influencers.

• Pros: Drives viral engagement and user participation; excellent for brand awareness.
• Cons: Requires significant investment and creative planning.
• Typical Cost: $80,000–$160,000 USD for a six-day campaign.

 

Branded Effects

Description: Custom AR filters, stickers, and effects that users can add to their own videos.

• Pros: Boosts brand interaction and creativity; encourages organic sharing.
• Cons: Production costs can be high; effectiveness depends on creative appeal.
• Typical Cost: $40,000 USD+ depending on complexity and duration.

 

Spark Ads

Description: Allows brands to boost existing organic content, either from their own account or from creators, turning high-performing posts into paid ads.

• Pros: Leverages proven content and creator credibility; builds authenticity and trust.
• Cons: Requires collaboration with creators or existing brand content.
• Typical Cost: Flexible—follows standard in-feed ad pricing.

 

Image Source:Marin software

 

Real-World Factors That Shape Costs

Budgeting for TikTok advertising means keeping one eye on external influences. Some of the prime movers include:

• Seasonal spikes: Costs climb noticeably in the build-up to Christmas, Black Friday, Easter, and other major spending periods.
• Viral trends: Piggybacking on trending sounds, memes, or challenges can yield massive organic reach, slashing paid spend.
• Audience targeting: Narrow, sought-after demographics (teens, young adults, high-income users) will see more competition — and higher bids.
• Creative quality: Eye-catching, authentic video content performs better, lowering the average cost-per-result.

Brands willing to invest in skillful creatives have a measurable edge, as TikTok rewards quality and relevance with better delivery and lower rates.

 

Content Creation and Creative Best Practices for TikTok Ads

Creating high-performing TikTok ad content is both an art and a science. The platform rewards brands that embrace authenticity, creativity, and native storytelling—qualities that not only boost engagement but can also lower your overall advertising costs.

Tips for Effective TikTok Ad Content

• Embrace Native Styles: Use video formats, editing techniques, and trends that feel at home on TikTok. Ads that blend seamlessly with organic content are more likely to capture attention and drive interaction.
• Keep It Short and Punchy: TikTok users scroll quickly, so deliver your message within the first few seconds. Aim for videos between 6–15 seconds for maximum impact.
• Leverage Trends and Sounds: Incorporate popular music, challenges, or effects to tap into existing audience interests and increase the chances of your ad going viral.
• Show Real People and Stories: Authenticity resonates. Feature real customers, employees, or creators using your product in genuine ways.
• Strong Visuals and Clear CTAs: Use bold visuals, text overlays, and a clear call-to-action to guide viewers on what to do next—whether it’s visiting your website, following your account, or making a purchase.
• Test and Optimise: Run A/B tests with different creative elements—such as hooks, captions, and visuals—to discover what resonates best with your target audience.

Why Authentic Content Matters

TikTok’s algorithm favours content that sparks genuine engagement. Ads that feel overly polished or sales-driven often underperform, while those that mirror the platform’s native style can achieve higher watch times, more shares, and lower CPMs and CPCs. Investing in creative experimentation and authenticity is one of the most effective ways to maximise your TikTok advertising ROI.

 

 

Is TikTok Right For Every Budget?

One misconception lingers: that TikTok campaigns demand massive marketing budgets. In reality, the platform has made a conscious effort to attract small businesses and niche brands. With daily minimums of just $40 USD, even modest campaigns can get off the ground and reach thousands of local users.

Testing is straightforward. Smart advertisers often begin with a limited run, refining creatives, tweaking targeting, and measuring performance before scaling up. The platform’s analytics suite, while less mature than Facebook’s, paints a clear enough picture for most needs.

 

The Hidden Costs: Creative and Influencer Partnerships

Raw ad spend is just one piece of the puzzle. Creating scroll-stopping videos takes both time and investment, whether handled in-house or farmed out to an agency.

Additionally, partnering with TikTok creators can supercharge campaigns, but expect to negotiate fees that vary by follower count and engagement rates. Some micro-influencers in the US may work for less than $600 per post, while major celebrities can command tens of thousands of dollars per campaign.

When calculating your true TikTok budget, factor in the following:

• Video production (shooting, editing, sound design)
• Copywriting and scripting
• Graphic design for branded effects or overlays
• Influencer/creator compensation
• Ongoing testing and optimisation

Allocating at least 30-50% of your total spend to creative resources is a smart starting point for smaller brands.

 

Maximising Impact With Influencer Marketing

Influencer marketing has become a cornerstone of successful TikTok campaigns, offering brands a unique way to reach engaged audiences through trusted voices. By partnering with creators who align with your brand values and target demographics, you can amplify your message and drive authentic engagement that often outperforms traditional paid ads.

Typical Influencer Costs

• Micro-influencers (10,000–100,000 followers): $300–$1,200 USD per post or campaign
• Mid-tier influencers (100,000–500,000 followers): $1,200–$6,000 USD per campaign
• Top-tier influencers (500,000+ followers): $6,000+ USD per campaign

Rates vary based on follower count, engagement rates, content quality, and niche relevance. Many US brands find the best value in the “magic middle”—influencers with highly engaged, loyal audiences.

How to Select the Right Influencers

• Audience Alignment: Choose influencers whose followers closely match your target demographics and brand values.
• Engagement Over Follower Count: Prioritise creators with high engagement rates, as this often translates to more impactful campaigns.
• Content Authenticity: Review past collaborations to ensure the influencer’s style feels genuine and aligns with your brand’s tone.
• Performance Metrics: Ask for case studies or analytics from previous campaigns to gauge potential ROI.

Influencer Marketing vs. Paid Ads

While paid TikTok ads offer precise targeting and scalability, influencer marketing delivers credibility and organic reach. Influencers can spark trends, create viral moments, and foster trust in ways that traditional ads often cannot. Many brands see the strongest results by combining both approaches—using paid ads to amplify influencer content or retarget engaged viewers.

Ultimately, influencer partnerships can be a cost-effective way to boost brand awareness, drive conversions, and build lasting relationships with your audience on TikTok.

 

 

Analytics and Optimisation: Making the Most of Your TikTok Ad Spend

Success on TikTok isn’t just about launching ads—it’s about learning, adapting, and optimising every step of the way. TikTok’s analytics tools empower brands to track performance, understand audience behaviour, and make data-driven decisions that maximise return on investment.

TikTok Analytics Tools

• TikTok Ads Manager Dashboard: Provides real-time data on impressions, clicks, conversions, CPM, CPC, and more for each campaign and ad group.
• Audience Insights: Reveals demographic breakdowns, interests, and behaviours of users engaging with your ads.
• Creative Analytics: Tracks which videos, sounds, and formats drive the highest engagement and conversion rates.

How to Optimise Your TikTok Campaigns

• Monitor Key Metrics: Regularly review metrics like CTR, CPM, CPC, and conversion rates to identify what’s working and where improvements are needed.
• A/B Testing: Experiment with different creatives, targeting options, and bidding strategies to find the most effective combinations.
• Refine Targeting: Use analytics to narrow your audience to the segments that deliver the best results, improving efficiency and lowering costs.
• Adjust Budgets Dynamically: Allocate more budget to high-performing ads and pause or revise underperforming ones.
• Leverage Retargeting: Use TikTok’s pixel and audience tools to retarget users who have engaged with your content or visited your website, increasing the likelihood of conversion.

By consistently analysing performance and optimising your approach, you can ensure every advertising dollar on TikTok works harder for your brand.

 

TikTok’s Ongoing Ad Platform Improvements

The landscape on TikTok never stands still. The platform’s recent investments in automated optimisation and AI-driven targeting tools have made it even easier for newcomers to achieve professional results. These advancements have helped reduce costs for advertisers who use Smart Bidding and allow TikTok to serve ads to the right users more efficiently.

Brands tapping into TikTok Shop and other commerce tools are seeing new opportunities for conversion tracking and retargeting, allowing for stronger ROI shaping.

 

 

Potential Pitfalls and Unexpected Fees

While TikTok’s ad prices appear competitive, marketers should avoid a few common traps:

• Rushing creative production and using tired, formulaic content
• Ignoring campaign analytics and failing to optimise targeting
• Over-relying on paid spend without supporting organic channel growth
• Underestimating the resources needed to handle community engagement and user comments

The most successful brands plan for ongoing learning and flexibility, not a set-and-forget approach.

 

Where Do You Go From Here?

TikTok advertising isn’t one-size-fits-all. From start-ups testing the waters with $65 daily spends to global brands splashing out on TopView takeovers, every marketer will find a different sweet spot. The keys are careful testing, creative agility, understanding your audience, and being willing to try fresh approaches as trends shift and new ad products appear.

What’s clear is that TikTok is no longer the playground of teenagers alone. With costs that compare favourably to traditional channels, and a potential for genuine engagement and viral results, TikTok gives New Zealand brands a valuable toolkit for marketing in 2025 and beyond.