Stepping into the world of TikTok ads can feel a bit overwhelming, especially when you’re trying to figure out how your ads measure up against others in your field. Ever found yourself scratching your head over those industry benchmarks, wondering what they mean for your campaigns? Well, you’re not alone. This guide is here to demystify TikTok ad benchmarks, giving you a straightforward roadmap to boost your advertising skills. Whether you’re a seasoned pro or just starting on TikTok, we’ve got tailor-made insights for different industries, helping you unlock the full potential of your TikTok ads.
Table of Contents
What are TikTok ad benchmarks?
TikTok ad benchmarks are standard measurements advertisers use to evaluate how well their advertising campaigns perform on TikTok. These benchmarks include various TikTok Ads metrics that help assess different aspects of ad performance. Some common benchmarks include:
- Click-Through Rate (CTR)
- Cost Per Click (CPC)
- Conversion Rate
- Engagement Rate
- Video View Duration
- Impressions
- Return on Ad Spend (ROAS)
- Cost Per Mille (CPM)
- Conversion Value
Analyzing these benchmarks helps advertisers understand the effectiveness of their TikTok ads, optimize their campaigns, and make informed decisions to achieve better results.
Also, in this article, we’ll offer industry-specific TikTok ad benchmarks, giving businesses and advertisers a comprehensive overview of key indicators within each industry. This valuable information will assist you in optimizing your ad performance based on industry standards and expectations.
Why do you need TikTok ad benchmarks?
TikTok ad benchmarks are like your guidebook to creating successful advertising campaigns on TikTok. It assists you in establishing achievable goals, evaluating how well you’re doing, and finding ways to improve your TikTok ads. By looking at how your results compare to what’s typical in the industry and what works best, you can fine-tune your TikTok ads to connect with your desired audience, boost conversions, and get more value from your ad spending.
For example, you run a TikTok ad campaign for a new beauty product. Using TikTok ad benchmarks, you can compare your campaign’s performance metrics, like engagement and conversion rates, with what’s considered standard in the beauty industry on TikTok. If your ad’s engagement rate is higher than the industry average, it indicates that your content is resonating well with viewers. On the flip side, if your conversion rate is lower than the benchmark, it signals an area where you might want to tweak your strategy to improve results and get more value from your advertising budget.
TikTok ad benchmark for metrics
TikTok ads metrics can be classified into two main groups: gauging campaign budget and evaluating campaign performance. Grasping TikTok ad benchmarks for metrics effectively is crucial to understanding its definition and averages. Armed with these figures, you can effortlessly set your goals and (KPIs). Here are 7 important metrics:
- Click-Through Rate (CTR):
- Definition: CTR signifies the percentage of users clicking an ad after viewing it.
- Average: TikTok ads achieve a CTR of 0.84%, surpassing platforms like Facebook (0.72%) and Instagram (0.59%).
- Cost Per Click (CPC):
- Definition: CPC is the cost incurred per click on an ad.
- Average: TikTok’s CPC averages at $1, notably lower than counterparts like Facebook ($1.72) and Instagram ($3.56).
- Cost Per Mille (CPM):
- Definition: CPM denotes the cost per 1,000 impressions of an ad.
- Average: TikTok’s CPM is $10, slightly higher than Facebook ($7.19) and Instagram ($7.91).
- Conversion Rate (CVR):
- Definition: CVR represents the percentage of users completing a desired action post-ad click.
- Average: TikTok’s CVR averages at 0.46%, trailing behind Facebook (0.9%) and Instagram (0.77%).
- Return on Ad Spend (ROAS):
- Definition: ROAS is the revenue generated per dollar spent on ads.
- Average: TikTok’s ROAS stands at 1.67, outperforming Facebook (1.59) and Instagram (1.61).
- Engagement Rate (ER):
- Definition: ER reflects the percentage of users engaging with an ad through likes, comments, shares, or favorites.
- Average: TikTok ads boast an ER of 5-16%, eclipsing platforms like Facebook (0.09%) and Instagram (1.22%).
>>> Read more: TikTok Engagement Rate: Benchmarks, Formula, and 7 Tips
While these benchmarks offer valuable insights, experimentation and adaptation are key. Advertisers should continually test strategies to uncover the perfect formula for success on TikTok.
TikTok ad benchmark for different industry
Alcohol
Running alcohol ads on TikTok is both tricky and promising. It requires careful planning and following TikTok’s rules.
TikTok has strict policies, like no alcohol promotion for minors and no encouraging irresponsible drinking. Advertisers must understand TikTok’s ad and content rules and follow local laws before launching campaigns.
That’s why the TikTok ad benchmarks for the alcohol industry are slightly different from the overall averages. Based on the data from Rival IQ4, the alcohol industry has the following benchmarks for TikTok ads:
| Metrics | Alcohol Industry | TikTok Ads Average |
|---|---|---|
| Click-through rate (CTR) | 0.18% | 0.84% |
| Cost per click (CPC) | $0.5 | $1 |
| Cost per mille (CPM) | $8 | $10 |
| Conversion rate (CVR) | 0.8% | 0.46% |
| Return on ad spend (ROAS) | 3.5 | 1.67 |
| Engagement rate (ER) | 18% | 5-16% |
Fashion
Fashion brands found themselves with lower engagement rates on Facebook, Instagram, and Twitter compared to other industries, but TikTok proved to be a more fruitful platform, with engagement rates hovering around the median. For fashion brands seeking improved results, it is advisable to allocate more resources to TikTok, given its current higher engagement returns compared to other channels. Additionally, optimizing content quality by reducing post frequency on TikTok could boost overall performance on the platform.
| Metrics | Fashion Industry | TikTok Ads Average |
|---|---|---|
| Click-through rate (CTR) | 0.25% | 0.84% |
| Cost per click (CPC) | $0.8 | $1 |
| Cost per mille (CPM) | $12 | $10 |
| Conversion rate (CVR) | 0.6% | 0.46% |
| Return on ad spend (ROAS) | 2.5 | 1.67 |
| Engagement rate (ER) | 15% | 5-16% |
Financial service
Financial service brands excelled on TikTok, securing a noteworthy fourth place. Despite achieving below-average engagement rates on Facebook and Instagram and posting less frequently on these platforms compared to other industries, they found success on TikTok. To capitalize on this achievement, Financial service brands can consider repackaging their best-performing video content for use on other channels. Notably, educational hashtags like #FinancialLiteracy and #LearnOnTikTok performed exceptionally well, indicating a strong interest among Financial service followers in educational content.
| Metric | Financial Services Industry | Average TikTok Ads |
|---|---|---|
| Click-through rate (CTR) | 0.1% | 0.84% |
| Cost per click (CPC) | $1.5 | $1 |
| Cost per mille (CPM) | $15 | $10 |
| Conversion rate (CVR) | 0.4% | 0.46% |
| Return on ad spend (ROAS) | 1.2 | 1.67 |
| Engagement rate (ER) | 8% | 5-16% |
Food & Beverage
Food and Beverage brands struggled to generate high engagement rates on Facebook and Instagram but was active well on TikTok. This year, the #viral hashtag worked wonders for Food and beverage brands on TikTok. Followers also relished a #BehindTheScenes glimpse into the activities of their beloved restaurants or chefs.
To improve their online presence, these brands should consider experimenting with how often they post to gauge if more frequent posting boosts fan engagement. Additionally, successful strategies involve incorporating popular hashtags, especially those related to holidays, and offering behind-the-scenes content with chefs and food personalities. These approaches have proven effective across different social media channels, providing actionable ideas for improvement.
| Metrics | Food & Beverage Industry | Average TikTok Ads |
|---|---|---|
| Click-through rate (CTR) | 0.32% | 0.84% |
| Cost per click (CPC) | $0.6 | $1 |
| Cost per mille (CPM) | $9 | $10 |
| Conversion rate (CVR) | 0.7% | 0.46% |
| Return on ad spend (ROAS) | 2.8 | 1.67 |
| Engagement rate (ER) | 16% | 5-16% |
Health and Beauty
Health and beauty brands faced challenges in captivating their audience, lagging behind other industries with engagement rates approximately half of the median across various channels. To enhance their online presence, these brands are encouraged to maintain a strong focus on platforms like TikTok and Instagram, especially TikTok, as they have proven more effective for engagement. Additionally, investing in short videos has shown positive outcomes, suggesting a continued emphasis on this content format.
| Metric | Health & Beauty Industry | Average for TikTok Ads |
|---|---|---|
| Click-through rate (CTR) | 0.32% | 0.84% |
| Cost per click (CPC) | $0.7 | $1 |
| Cost per mille (CPM) | $11 | $10 |
| Conversion rate (CVR) | 0.6% | 0.46% |
| Return on ad spend (ROAS) | 2.5 | 1.67 |
| Engagement rate (ER) | 15% | 5-16% |
Higher education
Higher education institutions excelled on TikTok with impressive engagement rates—5 times the median rate on Instagram and 3 times on Twitter. Institutions are advised to diversify post types beyond photos to further enhance engagement. Incorporating popular hashtags related to campus activities, such as #graduation or #CollegeMoveIn, provides followers with a glimpse into college life, contributing to even higher engagement rates.
| Metric | Higher Education Industry | Average TikTok Ads |
|---|---|---|
| Click-through rate (CTR) | 0.32% | 0.84% |
| Cost per click (CPC) | $0.6 | $1 |
| Cost per mille (CPM) | $9 | $10 |
| Conversion rate (CVR) | 0.7% | 0.46% |
| Return on ad spend (ROAS) | 2.8 | 1.67 |
| Engagement rate (ER) | 16% | 5-16% |
Home decoration
Home decor brands are struggling to connect with audiences on Facebook, Instagram, and Twitter, earning lower engagement rates. However, they perform better on TikTok, with 59,7B views on #TipsAndTricks and 4,8B views on #HomeInspo. The suggestion is to increase posting and engagement on TikTok, capitalizing on its success. Investing in giveaways on Instagram is also recommended for improved engagement on that platform.
| Metric | Home Decor Industry | Average TikTok Ads |
|---|---|---|
| Click-through rate (CTR) | 0.15% | 0.84% |
| Cost per click (CPC) | $0.4 | $1 |
| Cost per mille (CPM) | $6 | $10 |
| Conversion rate (CVR) | 0.5% | 0.46% |
| Return on ad spend (ROAS) | 2.2 | 1.67 |
| Engagement rate (ER) | 12% | 5-16% |
Retail
Retail brands faced challenges this year as they faded in engagement rates across all four social media channels – TikTok, Facebook, Instagram, and Twitter. To enhance social performance, the suggestion is to focus on TikTok to extend brand awareness, boost engagement, and experiment with videos, particularly short videos on TikTok. Additionally, holiday- or product-themed hashtags are recommended to help fans and followers visualize retail products in their spaces.
| Metric | Retail Industry Benchmark | TikTok Ads Average |
|---|---|---|
| Click-through rate (CTR) | 0.25% | 0.84% |
| Cost per click (CPC) | $0.8 | $1 |
| Cost per mille (CPM) | $12 | $10 |
| Conversion rate (CVR) | 0.6% | 0.46% |
| Return on ad spend (ROAS) | 2.5 | 1.67 |
| Engagement rate (ER) | 15% | 5-16% |
Sports teams
Sports teams have achieved remarkable success in engagement rates across various social media platforms, particularly excelling on Facebook and TikTok. Their consistently high posting frequency provided ample opportunities to engage with followers. Plus, the sports industry is one of the most engaging and creative industries on TikTok, with many sports media, teams, and athletes showcasing their highlights, behind-the-scenes, and challenges on the platform.
To further enhance engagement rates, maintaining the strategy of frequent and early posting is recommended. Additionally, leveraging event-based hashtags, such as #FIFAWorldCup and #SuperBowl, has effectively energized fans and encouraged their active participation during significant sporting events.
| Metric | Sports Industry Benchmarks | TikTok Ads Average |
|---|---|---|
| Click-through rate (CTR) | 0.32% | 0.84% |
| Cost per click (CPC) | $0.6 | $1 |
| Cost per mille (CPM) | $9 | $10 |
| Conversion rate (CVR) | 0.7% | 0.46% |
| Return on ad spend (ROAS) | 2.8 | 1.67 |
| Engagement rate (ER) | 16% | 5-16% |
Tech & Software
In terms of engagement rates, Tech and software brands find themselves in the middle of the pack, facing challenges on TikTok. The challenge lies in the increased competition and saturation within the tech industry on TikTok. Despite this, there’s a silver lining—once they do capture attention, there’s a good chance that the audience will convert into customers or leads, making their TikTok campaigns effective and profitable. So, while they’re navigating through a competitive landscape, their content is still hitting the mark with the TikTok audience.
To enhance engagement, consider diversifying post types beyond just videos. Embracing hashtags, such as #digital, #technology or #AI, has proven successful, so continuing to incorporate these themes into posts can further boost interaction and connection with the audience.
| Metric | Tech & Software Industry | Average for TikTok Ads |
|---|---|---|
| Click-through rate (CTR) | 0.28% | 0.84% |
| Cost per click (CPC) | $0.9 | $1 |
| Cost per mille (CPM) | $11 | $10 |
| Conversion rate (CVR) | 0.5% | 0.46% |
| Return on ad spend (ROAS) | 2.2 | 1.67 |
| Engagement rate (ER) | 14% | 5-16% |
Travel
The travel industry is one of TikTok’s most inspiring and creative industries, with many travel agencies, destinations, and influencers showcasing their experiences and tips on the platform. Travel brands secured the third spot on TikTok, standing out with engagement rates approximately 150% higher than the industry median on Facebook.
Consider leveraging seasonal and destination hashtags, as these performed exceptionally well on Instagram and Twitter. Additionally, since posting frequency was below the median across all platforms, experimenting with more frequent posts could potentially lead to increased engagement rates.
| Metric | Travel Industry TikTok Ads | Average for TikTok Ads |
|---|---|---|
| Click-through rate (CTR) | 0.15% | 0.84% |
| Cost per click (CPC) | $0.4 | $1 |
| Cost per mille (CPM) | $6 | $10 |
| Conversion rate (CVR) | 0.5% | 0.46% |
| Return on ad spend (ROAS) | 2.2 | 1.67 |
| Engagement rate (ER) | 12% | 5-16% |
Mega Digital’s tips and strategies to improve ads performance
Just like any other marketing approach, there isn’t a single definitive method for advertising on TikTok. However, there are proven strategies that can significantly boost the effectiveness of your TikTok ad campaigns.
Maintain authenticity in your TikTok ads
TikTok thrives on creativity, so creating dull ads is not an option. Your ads should be engaging and attention-grabbing. The visuals, videos, or copy you incorporate should align with your brand identity and target audience. Speak in the language and voice that resonates with your audience. Let your ad reflect that identity, whether your brand is cool and trendy or more serious. Even traditionally serious brands, like the Washington Post, effectively infuse humor and playfulness into their TikTok content while staying true to their mission of storytelling and informing.
>>> Read more: Unfold the top 11 TikTok video ad ideas to captivate your audience
Track ad performance regularly
On average, TikTok campaigns see a 50% reduction in CPC and a 30% increase in CTR when advertisers actively monitor and optimize their campaigns daily.
Use the TikTok Ad Manager to monitor your ad performance closely. Analyze crucial TikTok metrics like click-through rates, conversion rates, and cost per acquisition. Leverage this data to pinpoint high-performing ad sets and adjust your budget allocation accordingly.
Optimize with VBO (Value-Based Optimization)
Implement Value-Based Optimization (VBO) to tailor your ad delivery to the value it brings to your business. Clearly define key performance indicators (KPIs) aligned with your business objectives and track them to gauge your ads’ effectiveness. Advertisers leveraging VBO on TikTok have achieved a 25% higher ROAS than those without.
Download our free ebook, “Maximizing CRV: Strategies to Optimize Your TikTok Ads”, for five additional ad optimization methods, including ABO, CBO, VBO, AEO, and SPC. Uncover the top 5 strategies from our TikTok agency partner:
- Multi-Objective Campaign Strategy
- Audience-Centric Approach Strategy
- Seasonal Promotions and Sales Strategy
- User Engagement and Retention Strategy
- Brand Awareness and Reach Strategy
Experiment and refine
According to TikTok, advertisers with multiple ad variations witness a 17% increase in CVR compared to a single ad version. Continuously experiment with different ad creatives, target audiences, and optimization approaches to uncover the most effective strategies for your brand. Explore various TikTok ad formats, visuals, and ad copy to identify winning combinations that yield the highest engagement and conversion rates.
Collaborate with influencers/UGC creators
Research indicates that businesses generate an average of $6.50 for $1 spent on influencer marketing, and such collaborations can boost ROI by up to 11%. Partnering with influencers/UGC creators is an efficient way to increase brand awareness and conversions, as influencers/UGC creators often have a dedicated and trusting audience.
You can visit TikTok Creator Marketplace to have more options. When selecting influencers/UGC creators, prioritize those with strong engagement numbers rather than just a high follower count or a verified account.
Final word
As we wrap up our journey through TikTok ad benchmarks, think of this guide as your trusty assistant in the world of marketing. By diving into the nitty-gritty of various industries, we give you insights that directly address your challenges, whether it’s boosting engagement, improving conversion rates, or finding your unique TikTok advertising style. With these insights and strategies in hand, you’re not just deciphering benchmarks; you’re transforming the way you approach TikTok ads. So, jump in, embrace your creativity, and let your brand sparkle in the vast landscape of TikTok advertising.
Want to let the experts do their job? Then, Mega Digital is here to help! Let’s level up your advertising game!
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