Wonder how much do TikTok ads cost in 2025? On average, advertisers pay around $6.16 to $6.21 CPM, with a median CPC of $0.99. Your actual cost depends on the ad format, campaign objective, audience targeting, and creative quality. In this guide, Mega Digital will reveal real benchmarks and budgeting tips to help you plan effectively.
Quick Summary
- Average CPM (June 2025): $6.16 – $6.21
- Average CPC: $0.99
- Average CTR: 1.2–2.0%
- Minimum Budget: $50/day (campaign), $20/day (ad group)
- Conversion Rate: 1.1% – 2.4%
- Lowest CPM Months: Jan–Feb (~$2.80–3.50)
- Ad Formats Affect Cost: TopView > In‑Feed > Spark Ads
- Bonus Tip: Use TikTok Shop or Search Ads for cheaper traffic
How TikTok’s Ad Pricing Works?
If you’re wondering how much TikTok ads cost, it all starts with understanding how the platform charges advertisers. TikTok doesn’t offer a flat fee. Instead, it uses an auction-based pricing model. That means you’re bidding against other advertisers, and the amount you pay depends on your strategy, competition, and how well your ad performs.
TikTok gives you several options to control how you pay:
- CPC (Cost Per Click): You only pay when someone clicks on your ad. Great if your goal is to drive traffic.
- CPM (Cost Per 1,000 Impressions): You pay for every 1,000 views, ideal for boosting brand awareness.
- CPV (Cost Per View): You’re charged when someone watches at least 6 seconds of your video.
- oCPM (Optimized CPM): TikTok automatically shows your ad to people most likely to take action, like making a purchase or installing an app.
In 2025, most advertisers prefer oCPM because it’s optimized for real performance, not just impressions.
What Influences TikTok Ad Pricing?
So, how much do TikTok ads really cost? The truth is, it depends. Several key factors influence how much you’ll end up paying for your campaigns. Understanding these will help you better estimate your budget and optimize your spending.
1. Ad format
The different ad formats available on TikTok can affect the cost of your ad campaign. For instance, In-Feed Ads that show up as users scroll are usually more affordable, costing between $10 to $150 per 1,000 views (CPM). On the other hand, TopView Ads, which are the first thing users see when they open the app, are more expensive, often starting at $65,000 per day.
2. Campaign Objective
What you want to achieve with your ads also matters. For example, if you’re aiming for brand awareness, you might spend $10 to $50 per 1,000 views. If you’re focused on driving sales, costs could be higher, from $0.20 to $2 per click.
3. Target audience
The more specific your targeting is, the higher your ad cost is likely to be. Additionally, the popularity of the target audience segment can also impact the ad cost, with more competitive segments being more expensive.
For example, targeting teens and young adults (18-24) is highly sought after, especially in urban areas, which can lead to higher CPCs (Cost Per Click) ranging from $0.10 to $1.50. Targeting more specific or less competitive groups, like outdoor enthusiasts aged 35-44, might reduce costs, with CPCs ranging from $0.05 to $0.50.
4. Bidding strategy
Advertisers can choose from different TikTok Ads bidding strategies, such as CPC (Cost Per Click), CPM (Cost Per Thousand Impressions), and CPV (Cost Per View). The strategy selected will impact how much you pay for each action.
If you pay per click (CPC), it might cost you between $0.10 $2 per click. If you pay per 1,000 views (CPM), you could spend anywhere from $10 to $150, depending on your goal.
5. Geographical location
Ad costs vary depending on the location of your target audience. For example, if you target a country where TikTok has fewer users, the ad costs may be lower. On the other hand, if you target a country where TikTok is popular, the ad costs may be higher due to increased competition.
Advertising in places like the United States or Western Europe is usually more expensive, with costs ranging from $10 to $50 per 1,000 views. In regions like Southeast Asia, the cost might be lower, around $2 to $10 per 1,000 views.
6. Seasonality
Finally, prices also fluctuate during high-demand periods like holidays, back-to-school season, or big sales events like 11.11. Therefore, if you’re advertising during Q4, plan for a higher budget due to increased competition.
TikTok Ad Cost by Format
So, how much does it cost to advertise on TikTok?
The cost of TikTok Ads can vary widely based on several factors, including the ad format, target audience, bidding strategy, geographical location, and the time of year. Here’s a breakdown of the typical costs:
| Ad Type/Factor | Cost Estimate |
|---|---|
| In-Feed Ads | $10 – $150 CPM |
| TopView Ads | $65,000+ per day |
| Branded Hashtag Challenges | $150,000 for six days |
| Branded Effects | $80,000 – $120,000 |
| Brand Takeovers | $50,000+ per day |
| Spark Ads | $20 – $100+ CPM |
| Dynamic Showcase Ads (DSA) | Varies (dependent on product catalog size and targeting) |
| Pangle Ads | Varies (depending on bidding and targeting strategy) |
| Reach and Frequency | Varies (depends on campaign size and duration) |
| Cost Per Click (CPC) | $0.10 – $2 |
| Cost Per Thousand Impressions (CPM) | $10 – $150 |
| Cost Per View (CPV) | $0.01 – $0.15 |
| Geographical Location | $10 – $50 CPM (U.S./Western Europe); $2 – $10 CPM (Southeast Asia) |
| Seasonality | 50%+ increase during high-demand periods (e.g., Black Friday, Christmas) |
TikTok ads’ minimum budget should be $500. The costs start at $0.50 per mile, or 1000 views, and $0.02 per click. As with brands I’ve worked with, I recommend you set aside at least $20/day on your first campaign.
TikTok Ads Costs by Industry
Below is a comprehensive list of average CPM (Cost Per Thousand Impressions) and CPC (Cost Per Click) rates across different industries in 2025. This information can help you gauge what to expect when advertising on TikTok within your specific industry.
| Industry | Average CPM (Cost Per Thousand Impressions) | Average CPC (Cost Per Click) |
|---|---|---|
| Automotive | $7.50 | $2.00 |
| Beauty & Skincare | $8.00 | $2.10 |
| Consumer Electronics | $9.00 | $2.40 |
| E-commerce | $8.00 | $2.00 |
| Education | $10.50 | $2.25 |
| Entertainment | $8.20 | $2.05 |
| Fashion | $7.30 | $2.00 |
| Finance & Insurance | $11.00 | $3.00 |
| Food & Beverage | $7.80 | $1.85 |
| Franchise | $7.00 | $2.50 |
| Gaming | $8.30 | $2.15 |
| Health & Fitness | $6.50 | $2.25 |
| Home & Garden | $7.20 | $1.80 |
| Luxury Goods | $11.50 | $3.20 |
| Non-Profit | $7.50 | $1.25 |
| Pet Care | $8.50 | $1.75 |
| Real Estate | $10.00 | $2.75 |
| Retail | $9.00 | $1.95 |
| Technology & Gadgets | $9.50 | $2.50 |
| Travel & Tourism | $7.70 | $1.90 |
These figures provide an industry-specific look at the costs associated with advertising on TikTok in 2025. As seen, industries like Finance & Insurance, and Luxury Goods tend to have higher CPMs and CPCs, reflecting the competitive nature and high-value products/services in these markets. Conversely, sectors such as Health & Fitness and Non-Profit typically see lower advertising costs.
TikTok Ads Costs in Different Countries
When planning TikTok advertising, understanding ad costs is a top concern, including questions like, “How much do TikTok ads cost in the UK?” and other regions. Let’s explore TikTok Ads costs across different countries, highlighting the average CPM (Cost Per Mille) and CPC (Cost Per Click) for each. Knowing these variations helps you allocate your budget wisely to reach your target audience effectively.
| Country | Average CPM (Cost Per Thousand Impressions) | Average CPC (Cost Per Click) |
|---|---|---|
| United States | $10.00 – $20.00 | $1.50 – $2.50 |
| United Kingdom | $8.00 – $16.00 | $1.30 – $2.00 |
| Canada | $9.00 – $18.00 | $1.40 – $2.20 |
| Australia | $8.50 – $17.00 | $1.35 – $2.10 |
| Germany | $7.00 – $15.00 | $1.20 – $1.90 |
| France | $6.50 – $14.00 | $1.10 – $1.80 |
| Brazil | $3.50 – $7.50 | $0.70 – $1.30 |
| Mexico | $4.00 – $8.50 | $0.75 – $1.40 |
| India | $2.50 – $6.00 | $0.50 – $1.10 |
| Japan | $7.50 – $16.00 | $1.20 – $2.00 |
| South Korea | $6.50 – $14.00 | $1.10 – $1.85 |
| Singapore | $8.00 – $16.50 | $1.30 – $2.10 |
| United Arab Emirates | $6.00 – $13.00 | $1.00 – $1.70 |
| Saudi Arabia | $5.50 – $12.50 | $0.95 – $1.60 |
| South Africa | $4.50 – $9.50 | $0.85 – $1.50 |
| Italy | $7.00 – $15.00 | $1.20 – $1.90 |
| Spain | $6.00 – $13.00 | $1.00 – $1.75 |
The United States is the most expensive country for TikTok advertising, with CPMs ranging from $10 to $20. In contrast, India is the most affordable, with CPMs as low as $2.50 to $6. This reflects varying levels of competition and economic conditions across regions.
How Much Should You Budget to Advertise on TikTok?
One of the biggest questions we hear from advertisers is: “How much do I really need to spend on TikTok Ads?” And the honest answer is—it depends. But don’t worry, we’ll walk you through what’s essential so you can budget smarter, not harder.
If you’re just getting started, TikTok does have minimum requirements to run campaigns:
- At the campaign level, you need at least $50 per day.
- For each ad group, you’ll need to commit at least $20 per day.
So, even for a small test campaign with one campaign and one ad group, you’re looking at around $150–$350 per week. This gives you just enough room to collect meaningful data, but keep in mind—it’s the floor, not the sweet spot.
What do we recommend for real results?
If you want to see consistent performance (think: real traffic, leads, installs, or purchases), you’ll need to go beyond the minimum. Here’s what we’ve found works best, depending on your campaign goal:
| Your Objective | Suggested Daily Budget | Why This Range Works? |
|---|---|---|
| Drive Website Traffic | $50–$100 | Enough to get consistent clicks and A/B test hooks |
| Generate Conversions | $100–$200 | TikTok needs data to optimize and exit learning fast |
| App Installs | $100+ | Helps trigger install signals for better delivery |
| Retarget Existing Users | $30–$70 | Smaller audience, but still needs time to convert |
| Build Brand Awareness | $200+ | Especially with TopView or Reach campaigns |
How to Lower TikTok Ad Spend Without Losing Performance?
Now that you know TikTok Ads prices, it’s time to optimize your ad costs.
TikTok’s auction ads system will optimize its algorithm to keep your spending under your daily budget limit or utilize cost per result, depending on your chosen bidding approach. However, you must remember that TikTok ad space between you and your competitors will be decided in this period.
- Bid cap: This is the particular bid amount you’re willing to pay per optimization target (click, conversions, impressions, views, etc.). Using this method, your daily budget will fluctuate depending on how much your rival bids. If your competition outbids you, your money may not be used up. This also implies your ad will not perform effectively.
- Cost cap: The cost per result ranges between lower and higher than the bid amount with this option. This strategy serves the following advertising goals: app installs, conversions, and lead generation.
- Lowest cap: This technique takes into account your everyday budget. The ad system automatically adapts to maximize the number of conversions based on the budget, while the budget is always spent at the end of the day/campaign. Therefore, this ad model is built for traffic, reach, views, app installs, conversions, lead generation, and catalog sales.
>>> Read more: TikTok Ad Budget and Campaign Budget Optimization
FAQs About TikTok Ads Cost
It depends on your niche, creativity, and targeting. On average:
– TikTok CPC (Cost Per Click): $0.50–$1.00
– Facebook CPC: $0.70–$1.20
– TikTok CPM (Cost Per 1,000 Impressions): $6–$10
– Facebook CPM: $8–$14
Several factors can drive up your costs:
– Weak creative or low engagement rates
– Poor audience targeting or overlap
– Inconsistent optimization settings
– Limited budget (not enough data for TikTok to optimize)
– Overcrowded industry (high competition)
Not exactly, but you can reduce costs significantly by:
– Claiming TikTok ad credits (often offered via TikTok Partners)
– Using Spark Ads to promote organic posts (cheaper than In-Feed Ads)
– Working with a TikTok Agency Partner for better rates and support
– Leveraging creator collaborations (affiliate/sponsored content)
Start with:
– In-Feed Ads using the Lowest Cost bid strategy
– A small budget ($20–$50/day)
– 2–3 creatives with native TikTok style
– Broad audience for better delivery
Conclusion
Through this article, I’ve shown you exactly “how much does it cost to promote on TikTok?”
In 2025, TikTok Ads remain a strong and affordable choice for businesses looking to reach a wide audience. Although ad costs have gone up, they are still generally lower than those on other platforms like Facebook and Instagram. With its growing user base and variety of ad options, TikTok continues to be a great platform for digital marketing, offering good value for businesses wanting to make the most of their advertising budget.
>>> Read more: How to Get Free TikTok Ads? 5 Best Budget-Free Strategies
