A beginners guide to TikTok advertising

What are TikTok Ads and why do they matter?

TikTok is everywhere. All at once. People can’t stop talking about it. At Fourth Floor we spend a lot of time watching, thinking, talking and creating campaigns with TikTok and TikTokkers. But what about advertising on TikTok? What is it, how does it work and does it matter?

For advertising, TikTok is an intriguing platform. It relies almost entirely on the ‘For You Page’, which puts an unending list of videos TikTok thinks you’ll like (based on what you’ve watched before) for you to scroll through. The more you scroll, the better the content becomes (for a quick rundown of how this looks you can take a look at this video).

As a result, TikTok audiences are extremely well-engaged, as evidenced by the App Annie State of Mobile report, which concluded that ‘the average monthly time spent by users grows faster than nearly every other app analysed’. To cut through to audiences on TikTok requires a tailored approach. It’s all about natural or ‘native’ content. As the TikTok message to advertisers goes, ‘Don’t make ads. Make TikToks’.

Get this right and people using TikTok are more likely to engage with the ads they come across, which are well-targeted and allow audiences to like, comment, share and reuse sounds from an ad to create their own content. This format has captured the Gen-Z audience, the fastest-growing consumer segment, with 18-24-year-olds making up over 43% of the platform’s entire audience. In fact, TikTok has been so successful that it’s making Instagram, Facebook and YouTube all copy their moves.

This fast growth and increasing ubiquity with young audiences mean understanding how TikTok advertising works is important. Luckily for you, we are more than familiar with the platform (some of us are even a little obsessed with it). So here is our guide to TikTok Ads and what you need to know.

What are the main formats?

In Feed
In-Feed ads are displayed directly on the For You page. They appear ‘natively’, meaning at first glance they don’t necessarily appear to be an advertisement. This makes it possible for users to swipe past, but if the ad is instantly engaging, it can be a great way to reach your audience. The below example from Tiffany & Co features Jay-Z and Beyonce in the backseat of a New York taxi, using a black and white film noir aesthetic to shift focus onto the iconic teal of the Tiffany logo.

Brand Takeover
Brand Takeover ads appear when the app is opened and take over a user’s feed for a few seconds. This format isn’t as easy to scroll past as the skip function only appears as a small button at the top right of the screen. While In-Feed ads are about trying to catch attention, Brand Takeover ads demand it . They rely on the effectiveness of TikTok’s tailored algorithm, allowing brands to get a message across in a quick burst. This can be a perfect way to announce launches for recognisable products or brands, such as this example ad from Fortnite.

Top View Ads
Top View ads provide the benefits of both Brand Takeover and In-Feed, dominating the screen when TikTok is first opened and seamlessly transitioning to an In-Feed format (for up to 60 seconds of content). This format grabs the users’ attention and allows for an ad that can be commented on, liked or shared.

Branded Hashtag Ads
Branded Hashtag ads ask users to create content involving a challenge or trend and post using a unique hashtag. These videos appear at the top of the For You page, encouraging consumer interaction with the trend, challenge or sound. Luxury fashion brand Fendi launched a hashtag campaign “ #FisforFendi”, featuring five separate ads that correspond to five values that define the brand: family, fearless, freedom, friendship and future.

Branded Effect Ads
Branded Effects make use of customisable filters available on the platform. Brands can create filters that reference their branding and may correspond with key dates, seasonal holidays or product launches throughout the year. The filters are available for up to ten days and are a great way to create a personal connection with the audience, who can create their own content featuring the filter.

Are there any other Tik Tok ad types or enhancements?

There are a few and to be honest TikTok is constantly innovating and testing and bringing new ad formats to the platform. They occasionally test new formats in specific territories before rolling out to the wider platfom so you may have access to some things that businesses in other countries don’t. The ad formats that we find perform the best currently are Interactive ad-ons and Spark Ads. The latter aren’t so new but to get the best from them you need to understand creator and content marketing.

What are Interactive Add-Ons, and how do they work?

A key component of TikTok advertising is the ability to like, share and comment on ads. Interactive Add-Ons were launched in April 2022 with the aim of shifting further into this interactive approach. They provide a range of engagement features that allow users to take action in an ad, inviting them into the experience.

On the Ad Manager page, there is an optional button titled “Interactive Add-Ons”. Once enabled, a company can choose to add Voting, Gift Code or Countdown Stickers to their content, there is also a premium level that allows you to create product showcases encouraging viewers to swipe or click on the ads and boosting brand recall. They’re a clever tool, offering a plethora of customisable ways to breathe life into simple in-feed video advertising.

How do Spark Ads work?

Spark Ads enable brands to amplify existing organic videos that fit their campaign objectives, doubling down on the Don’t Make Ads, Make TikToks ethos. These ads appear on the For You page, but rather than showing the logo of the brand/advertiser as the profile picture, they show the original profile of a content creator. The key is to build ads that don’t feel like ads, and Spark Ads raise this potential even higher.

How much should I spend on TikTok Ads?

The all-important question. There is, unfortunately, no simple answer to this. Some will recommend a CPM (cost per 1000 ads) of around $10 but the truth is that if you create great content and remain user focussed you can get good results for budgets as low as $3 - $5 CPM.

So What do I do Next?

TikTok is a community-driven platform and given enough time and knowledge you can build great engagement and get impressive results.