TikTok is more than just a “viral platform” full of memes and dance challenges. It offers shopping options, e-commerce opportunities, and digital marketing avenues.
Given the platform’s popularity, it is no surprise that the influx of active users makes it a suitable discovery and powerful shopping engine. Making it a top choice for advertisers.
When advertising on TikTok, you can reach 1.59 billion adults every month, which is huge!
In fact, 39% of users purchase products and services they discover on TikTok, making it the perfect platform for advertising your business and its products.
Yielding success while running TikTok ads requires a solid advertising strategy and a deep understanding of its complexities.
This blog delves into what TikTok ads are, how to run them, the types of ads, cost, location targeting, TikTok pixel, and more.
Table of Contents
What are TikTok Ads?
TikTok ads offer paid promotional placements that allow brands or creators to reach TikTok’s massive audience through short-form video content. These ads typically appear within a user’s “For You” feed, story, and other surfaces.
TikTok offers a variety of ad formats: from in-feed videos and Spark Ads (boosts organic posts) to TopView, Collection, and Shopping Ads. Each of these drives engagement, sales, awareness, or direct sales.
There are three levels of TikTok ads that advertisers should know:
- TikTok Ad: A single advertisement running on the platform.
- TikTok Ad Group: A group of ads within a campaign that share the exact targeting, budget, placement, and scheduling settings.
- TikTok Campaign: A TikTok campaign contains one or more ad groups (or even a single ad) that share the same objective but may have different targeting, budgets, or creatives.
How to Sell on TikTok?
Before running TikTok ads, you must familiarize yourself with different ways to sell on TikTok, so you know other alternatives to TikTok Ads.
Let’s explore the different ways you can sell on TikTok:
- TikTok Shop: TikTok Shop is an e-commerce feature within the app that allows users to shop directly from their feed or through a dedicated Shop tab. Sellers can also connect their e-commerce platforms, such as Shopify, to sync their catalog from there.
- Shoppable Videos: Shoppable videos are short-form videos with product links that allow viewers to buy items without leaving the TikTok app. Users must have a TikTok Business account, a connected TikTok Shop, and products uploaded to their shop.
- TikTok Ads: Run TikTok ads (Spark Ads, In-feed Ads, Collection Ads, etc.) to promote your products to targeted audiences.
- Livestream Shopping: Showcase products live during livestreams and allow viewers to make purchases during the stream.
- Influencers or Creators: Collaborate with influencers or creators with a significant following to promote your products.
Types of TikTok Ads Explained
TikTok offers various ad formats, each serving a different goal. Choose the following ad types depending on the size of your catalog and your budget.
In-Feed Ads
In-feed ads are TikTok’s default advertisement format. Like any organic video, this ad format appears on the “For You” feed. The ad can be 5 to 60 seconds long; however, TikTok recommends a duration between 21 and 34 seconds. Users can like, comment, and share the ad as if it were another post on TikTok.
In-feed ads drive traffic towards external landing pages, app downloads, or the brand’s channel. These ads effectively catch users’ attention because of their personalized nature. The ads use user data such as the videos you watch, interests, and demographics to strategically insert ads into your personalized “For you” feed.
Spark Ads
Spark Ads are boosted organic TikTok posts. You promote an existing video from your own account or a creator’s account. Unlike standard ads, Spark Ads keep the original post’s appearance, engagement (likes, comments, shares), the creator’s username, and profile picture. The only giveaway is a small “Sponsored” or “Paid Partnership” tag on the post.
Spark Ads are the most popular with brands and advertisers leveraging influencer whitelisting or User Generated Content (UGC). They are also great for micro-influencers and content creators to grow their impact (or if they are selling a product or service).
Spark Ads can last up to 10 minutes, ad captions can be blank, account tagging, emojis, and hashtags are allowed. The ad Display Name and Text will be the same as the existing organic post and cannot be edited during the ad creation process.
TopView Ads
TopView Ads appear to users when they first open the TikTok app. The ad appears at the very top of a user’s feed and is shown before any TikTok video. It is a full-screen, sound-on video ad between 5 and 60 seconds long. It captures the user’s attention and drives brand awareness immediately.
Users can skip this ad after a few seconds by clicking on the “Skip the ad” button. TopView Ads do not appear to the same user more than 5 times to avoid ad fatigue.
This format is ideal for increasing high-impact brand visibility, seasonal promotions, significant sales events, product launches, and reinforcing brand image.
Branded Mission & Hashtag
A Branded Mission is an inbuilt TikTok Ads feature that allows brands to invite creators to make videos for them–the best ones can be turned into paid ads. This focuses more on authentic UGC and performance marketing rather than viral trends. Branded Mission can be used with Branded Effects and Hashtags as add-on features.
A Branded Hashtag Challenge is a paid ad format that promotes a hashtag to encourage UGC participation. It appears on the Discover/Explore page and has its own hashtag landing page. It is best for large-scale brand awareness and viral campaigns. The ad includes additional placements like TopView + In-Feed ads to boost visibility.
Branded Effects
Branded Effects are custom AR filters, effects, and stickers sponsored by brands for their TikTok Ads. Users can shoot, play, and interact with Branded Effects.
The effects often integrate brand logos and elements, so when TikTok users use them, they increase engagement, brand awareness, products, and ad campaigns.
Brands can promote Branded Effects with other ad products, such as Branded Mission and TopView, to increase campaign impact.
Collection & Shopping Ads
TikTok Collection Ads are ecommerce-focused ads designed to make product discovery and shopping seamless, without leaving the app. When users click on the ad, it redirects them to an Instant Gallery Page (or collections of products), where they can browse curated collections tailored to their interests. Users don’t have to leave the app to make a purchase–the whole shopping experience is built into the ad.
Shopping Ads include LIVE Shopping Ads and Video Shopping Ads.
Video Shopping Ads appear in the TikTok feed as shoppable videos. Users can browse the products in your TikTok Shop or your website by clicking the product card or pinned link. This ad format is especially useful for running TikTok Ads for Shopify. Shopify merchants can highlight products, link them to their TikTok Shop or website, and let users complete purchases without leaving the app.
LIVE Shopping Ads promote your live stream event through a prerecorded video, OR direct users to an ongoing live stream via the ad. The stream showcases products, and users can purchase them through product pin pop-ups that allow users to complete the purchase within the TikTok app. The entire shopping journey can take place during the live stream.
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How to Create TikTok Ads That Convert?
Now that you know the types of TikTok ads, let’s learn how to create them.
To accommodate the length of this blog, we will be learning how to create a Video Shopping Ad.
Prerequisites for Creating TikTok Ads
- TikTok Business account
- TikTok Ads Manager account
- TikTok Pixel
- TikTok Shop (optional)
- E-commerce platform integration to connect your catalog to TikTok (optional)
How to Create TikTok Ads?
This section outlines the steps for creating Video Shopping Ads.
Step 1: Link your TikTok Ads account to your TikTok Shop (or a Showcase product source) and ensure your product catalog is ready.
Step 2: In TikTok Ads Manager, click “Create.”
Step 3: Choose the Sales objective and select TikTok Shop (or Showcase/Website Catalog for e-commerce platform integrations) as your product source.
Step 4: Go to the Ad Group settings and select ‘Video Shopping Ads’ as the Ad type. In the Product section, add the products you want to run ads for. The product source you choose in step 3 will become available in this step.
Step 5: Next, in the Video section, upload your ad video(s) or select existing posts from your TikTok account.
Step 6: Set targeting, budget, schedule, and optimization goal (typically Purchase or Gross Revenue).
Step 7: Review, submit your campaign, and wait for approval.
TikTok Ad Examples
We’ve explored the different types of TikTok Ads and how to create them. But what does a successful and profitable campaign actually look like?
In this section, we’ll look at a few TikTok Ads examples to understand what makes them effective.
Example #1
The Farmer’s Dog is a dog food e-commerce business. The company wanted to find new customers on TikTok that would convert into subscribers at a lower CPA (cost per acquisition). The Farmer’s Dog collaborated with creators who created TikToks, which they then turned into Spark Ads targeting adults aged 25 and above in the United States who showed interest in the pets category.
This is just one example of the kind of ads they ran. Most followed a similar style, primarily creator-driven content that kept the style consistent across campaigns.
Their ad campaign was a success because the ads felt real, relatable, and native to the platform (unlike traditional advertising). When users saw creator-made content, the message came across as authentic and trustworthy, since users already connect with creators on a personal level.
Additionally, the tactic of answering a question from the comments is effective because it boosts engagement and builds trust. Replying to comments showcases how a product works in a natural and authentic way that does not feel like an ad. Ads are highly impersonal in nature.
Ultimately, they saw a reduced CPA by 62% and an increased conversion rate by 5% in just 2 months.
Example #2
American Eagle ran Video Shopping Ads for their new arrivals. The ad included a product catalog pop-up in the call-to-action card so viewers could browse and instantly purchase items. The ad linked all the displayed products.
The ad has a clear demonstration of how the product looks in real life, and a strong call to action prompting viewers to act.
This approach blends entertainment with a seamless and quick shopping experience.
The result? 40% increased ROAS and 32% better CPA.
Targeting the Right Audience on TikTok
While TikTok Ads are effective due to their large user base, advertisers must have a solid targeting strategy for this very reason. Within TikTok ads, numerous targeting options are available based on demographics, country, device, interests, and behavior.
Beyond the standard targeting options, TikTok also offers Lookalike Audiences and Advanced Matching.
TikTok Lookalike Audiences
TikTok Lookalike Audiences allows you to find new customers who share similar characteristics to your existing customers or other source audiences.
The feature works by providing TikTok with a source audience (Custom Audience) based on data such as website visitors, customer lists, or app users. TikTok’s smart algorithm then scans the platform for people with similar interests, traits, and behaviors to those in the source audience.
The purpose of using this targeting strategy is to efficiently find and reach new high-quality prospects who are more likely to convert. This is because they resemble your current customers.
Advanced Matching
Advanced Matching improves ad performance by securely matching customer information, such as hashed email addresses and phone numbers, with events on your website.
With this accurate data, advertisers can track their ads effectively and retarget audiences. This feature pairs with the TikTok Pixel for conversion tracking.
While Advanced Matching is not a direct targeting feature, it can help build more precise audiences for retargeting campaigns. You can also use the data to build a custom audience of high-value users (e.g., repeat customers). Then build a Lookalike Audience to scale using your matched user seed.
TikTok Pixel & Conversion Tracking
The TikTok Pixel is a piece of JavaScript code that you add to your website to track what users do after clicking on your TikTok Ads. It tracks events such as viewing a product, adding to the cart, or making a purchase. Beyond this, it also collects key data points like page views, ad clicks, user devices, and more. The system sends the information back to TikTok for analysis and ad targeting.
As we previously mentioned, the data collected by the Pixel can be helpful to properly attribute conversions, create retargeting campaigns, and measure campaign performance.
Another way to track conversions is through the TikTok Conversion API (CAPI) or Events API. The TikTok CAPI is a server-side tracking solution that sends conversion events (purchases, sign-ups, etc) directly from your website, app, or backend systems to TikTok’s servers.
The TikTok Pixel, in contrast, relies on browser-based tracking. Ad blockers, browser privacy settings, or cookie loss can limit conversion tracking data.
So it is better to use both of them for better TikTok conversion tracking. There are several apps that offer both functionalities.
| Also Read: How to install TikTok Pixel on Shopify? |
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TikTok Ads Cost & Budgeting
TikTok Ads cost and budgeting vary depending on the ad format and campaign goal. Advertisers should also understand the different bidding models used on the platform.
TikTok ads use CPM (per 1,000 views), CPC (per click), and CPA (per action). Premium formats such as TopView or Branded Hashtag Challenges use fixed package pricing because they are reservation ads, i.e., you need to book your spot in advance.
Budgets start at around $20 to $50 per day and scale up based on campaign goals and ad type.
| Ad Type / Format | Typical Cost Structure | Minimum Budget Requirement | Best For |
| In-Feed Ads | CPM ($1–$4) | Daily: $20 Lifetime: $50 | Small to mid-size businesses |
| Spark Ads | CPC / CPM ($0.10–$1 per click) | Daily: $20 | UGC & creator-based brands |
| TopView Ads | Flat premium / CPM ($65k–$150k+ per day) | Negotiated with TikTok rep | Large brands/product launches |
| Branded Hashtag Challenge | Fixed package ($100k–$200k+ for 6 days) | Managed service only | Awareness & UGC campaigns |
| Branded Effects | Flat creative fee ($50k–$120k per effect) | Managed service only | Interactive & AR campaigns |
| Video Shopping / Collection Ads | CPM / CPC ($1–$3) | Daily: $50 | E-commerce & Shopify stores |
| Branded Mission | Performance-based (creator incentives + media spend) | Flexible (~$10k min) | UGC + creator collaborations |
| Influencer Collabs (Spark) | Negotiated with creator ($100–$10k+/video) | No minimum | Brand awareness & UGC |
TikTok Trending Products & Niches
So you have a solid understanding of how to run TikTok Ads. But now the question arises, “What should I sell on the platform?” and “What actually sells on TikTok?”
This section briefly explores TikTok’s trending products and niches (as of 2025).
What’s selling best on TikTok right now?
- Perfume
- Casual dresses
- Shampoo and conditioner
- Lipstick and lip gloss
- Bodysuits
- Cases, screen protectors, and stickers
- Hair and scalp treatments
- Necklaces
- Hoodies and jumpers
- Tshirts
- Serums and essences
- Beauty supplements
To view trending products on a weekly or monthly basis, visit TikTok’s Creative Center to discover trends.
Optimizing TikTok Ads for ROI
- Testing creatives, hooks, and CTAs:TikTok ad fatigue is a widespread occurrence. So ensure you are continuously experimenting with different visuals, opening hooks, and CTAs to find out what drives the highest engagement.
- Using performance metrics (CTR, CVR, CPA): Track key metrics such as CTR, CVR, and CPA to identify which ads are attracting clicks, converting effectively, and delivering the best cost efficiency.
- Refreshing ad content to fight fatigue: Regularly rotate creatives to prevent audience fatigue and keep engagement rates high.
- Leveraging analytics to refine audiences: Use TikTok’s analytics insights to adjust targeting and focus on the audiences most likely to convert.
Conclusion
Whether you are a content creator or a brand expanding your marketing efforts, TikTok Ads can help you reach a massive audience and attract success. The platform’s mix of storytelling, trends, and personalization makes it easier to build real connections that inspire discovery and drive sales.
Key Takeaways:
- TikTok offers multiple ways to sell, through TikTok Shop, shoppable videos, livestream shopping, ads, and creator collaborations.
- The platform supports various ad formats: In-Feed, Spark, TopView, Branded Hashtag, Branded Effects, Collection, and Video Shopping Ads.
- Video Shopping Ads help users shop directly from videos. This is especially useful for Shopify merchants.
- Use TikTok Pixel, Conversion API, Advanced Matching, and Lookalike Audiences to improve targeting and measure performance.
- Ad costs vary by format; smaller budgets work best for In-Feed and Spark Ads; premium formats like TopView or Hashtag Challenges cost more.
- Optimize ROI by testing creatives, hooks, and CTAs, tracking CTR, CVR, CPA, and refreshing ads to avoid fatigue.
- Creator-driven, authentic ads perform best, blending seamlessly with organic content and building trust with audiences.
Ready to kickstart your TikTok Ads journey? Good luck!
FAQs
How much does TikTok ad cost?
TikTok Ads typically require a minimum budget of $5 per day for ad groups and $50 per day for campaigns. Costs vary depending on your audience, bidding strategy, and competition. Most brands use either CPC (cost per click) or CPM (cost per 1,000 views).
How do I make TikTok Ads perform better?
Create an organic-feeling video with strong hooks, use trending sounds and hashtags, and add effective CTAs. Partner with influencers, leverage UGC, and run A/B tests to test different creatives and offers. Use TikTok analytics to optimize your campaigns.
How much is 1000 views on TikTok ads?
There is no fixed price for 1000 views on a TikTok Ad. However, this is typically based on the cost per mile (CPM) model, with an average range of $4.29 to $9.
Do I need a TikTok Shop to run ads?
No, you do not need a TikTok Shop to run ads on the platform. You require a TikTok Business account to use TikTok Ads Manager. However, if you want to run Video Shopping Ads that link directly to a product in your TikTok Shop, then you will need it.
What is a TikTok Spark Ad?
A TikTok Spark Ad is an ad format that allows brands to boost existing organic posts (turning them into ads). They can do it from their own TikTok account or from creators (with permission).
What types of TikTok Ads can I run?
You can run Spark Ads, Video Shopping Ads, In-feed Ads, TopView Ads, Branded Hashtags, Branded Effects, Live Shopping Ads, and Collection Ads.
How do I track conversions from TikTok Ads?
To track conversions from TikTok Ads, you need to use a TikTok Pixel and TikTok Events API. You can solely use the Pixel. However, using both together is strongly recommended as it minimizes data loss. The Pixel provides browser-based tracking, and the Events API provides server-side tracking. Several apps automate this dual setup for businesses, integrating both the Pixel and the Events API for seamless tracking.
