TikTok offers cheaper ad rates than social media rivals as app fights for growth

TikTok is offering cheaper advertising rates than its social media rivals in a bid to attain a bigger share of the digital ads market.

Due to lower costs and higher levels of engagement, an increasing amount of brand ad spend has shifted from Twitter and Meta to TikTok – advertisers, brands and industry bodies told the Financial Times.

The short-form video-sharing app – now boasting 1 billion users worldwide – has been undercutting the likes of Meta’s Instagram and Facebook in a period in which online spending and marketing budgets are reportedly reducing.

According to media agency VaynerMedia, in 2022 the cost to gain 1,000 impressions on TikTok was half the amount of Instagram Reels and a third cheaper than Twitter. The equivalent on Snapchat was also 62% more expensive.

Brands have praised the app in recent times, with 78% of SMEs (small to medium-size enterprises) advertising on TikTok claiming that marketing on the app has yielded ‘overwhelmingly positive’ results, according to Capterra research. Well over half of the small retailers and restaurants that use TikTok to advertise have also said that their organic and advertising content on TikTok is ‘extremely valuable’ to their overall marketing performance and ROIs.

A further 52% of SMEs have declared plans to spend more money on TikTok marketing in 2023.

The research from the software consultant suggests that using the short-form video content app to market brands is undoubtedly powerful, especially with Generation Z.


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The news of TikTok’s triumph only adds to Meta’s negative press as only last week the parent company to Instagram and Facebook was handed a £343 million (€390 million) fine by Ireland’s Data Protection Commission for breaching EU privacy rules. It was believed by regulators that the company forced users of the apps to agree to personalised advertisements.

“Users like TikTok because its seemingly endless content feels authentic and unfussy—videos made by real people, for real people,” Capterra senior retail analyst, Molly Burke, told Internet Retailing. “Creating ads that capture the candid nature of organic TikTok content helps businesses blend in and profit.

“While other platforms’ content suggestion algorithms can feel like an oligarchy dominated by legacy brands and Hollywood celebrities, TikTok’s ‘For You’ page has been characterized as a meritocracy where small businesses can reap rewards from both paid and organic content.”

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