What started as a simple forum for showcasing short videos for fun has caught on as one of the fastest-growing mainstream social media platforms. Yes, we are talking about Tik Tok, the buzzing movement that has taken the world by storm.
Ever wonder why brands like Netflix, Apple, Skims, even The Washington Post are also joining the race? The reason is obvious, “Potential Engagement.” NBA, Nike, and Disney already have millions of followers on TikTok. So, does this mean that TikTok is the new destination for Brand Marketing and Storytelling? A big “Yes!”
TikTok ads for small businesses are opening doors for the brands to enter a bigger market, connect with broader communities, and, more importantly – be found. So, if you are also a small business trying to maneuver this unique marketing opportunity, you are in here for a treat. So, let’s dive in!
TikTok ads for small businesses- The hottest buzz in the B2B and B2C Communities
Rather than asking, “What is TikTok?” your question should be, “How can I benefit my business from TikTok?” TikTok was launched in September 2016 but gained immense popularity in the last few years. Now it’s available in 155 countries and has evolved as the leading destination for video sharing.
On June 25, 2020, TikTok announced “TikTok for Business,” which became the hottest buzz. TikTok for business is a goldmine of opportunities that helps brands spread awareness, enjoy popularity, and cash the follower engagement.
Who Uses TikTok? Stats every Marketer should know!
With 1 billion monthly active users on average, TikTok is the new sensation in digital marketing. The social media platform observed 1157.76% growth in its user base in the last 2 years. Since its launch, the video platform has become synonymous with Gen Z, like Instagram is with millennials.
In retrospect, a user opens TikTok about 9 times a day and spends over 45 minutes on average. A careful study shows 47% of the users make purchases based on what they see on their TikTok feed. The trend best justifies the popularity of Korean makeup products, TikTok leggings, reusable straws, cute metallic sippers, and so many other products.
Around 80% of Gen Z users influence their parents’ purchases. So, to run successful TikTok ads for small businesses, your main focus should be on building your brand image. A pro tip for small businesses is,
“Success on TikTok is not equal to more ad units. Instead, focus on creativity, curation, and brand loyalty over the long run.”
TikTok Ads- Game Changer for Businesses
For a successful TikTok Marketing Strategy, you should know, “What are TikTok Ads and how they work.” These are actually sponsored short mobile videos that businesses post to target a wide audience. Furthermore, the ads boost your website traffic and generate new leads and enhance brand exposure.
Like other social media platforms, you should know “How long can TikTok ads be?” otherwise you will be blocklisted. So, the answer is a good TikTok ad ranges anywhere between 9 to 60 seconds. Moreover, strictly restrict your ad to short-form video as it’s one of the unwritten but obvious rules of TikTok. Besides, a marketer should also know that the app doesn’t allow still image ads.
How do TikTok Ads work?
Furthermore, the ads are shown on the user's "For You" page and have a bold call to action and text overlays. The best thing about TikTok ads for small businesses is the user hardly recognizes them as ads and is easily influenced.
All the TikTok ads types use advanced targeting features and different levels of creativity. So, it's time to tap into the magic of TikTok ads and enter the most lucrative marketing space. Let's learn how to create the best TikTok ads for small businesses that contribute to the brand's goals. But if you find it time-consuming or complex, You can always Hire a TikTok marketing expert on Legiit.
TikTok Ad Types and Formats
You might be thinking about what do the TikTok Ads look like? What's the best format to do so? Mainly there are 2 types of TikTok ads, i.e., Biddable and Native. For successful TikTok marketing, you have to decide what type best compliments your brand image.
These TikTok ads types serve different purposes and entirely depend on the kind of campaign you want to run.
Biddable Ads
Like it's evident from the name, you have to bid for the ad slot available on the "For You" Page. Furthermore, these ads are open to self-service via Ad Manager. Here, you optimize your ad by customizing your target audience's age, gender, behavior, and location.
For instance: Bumble uses Biddable Ads to generate leads. Gushers also use In-feed ads that are amusing and also boost its organic content.
In-feed ads are the best example of TikTok ads for small businesses. Furthermore, these ads blend organically in the target's feed without giving the slightest ad feel. Let's learn more about In-feed ads:
In-Feed Ads
These ads are somewhat similar to Instagram or Snapchat story ads. In addition, these appear on full screen and are skippable. In-feed ads must be less than 60 seconds; the Ideal duration is 15 seconds.
These Ads pop up somewhere in the target audience's feed,' i.e., For You Page. So, the best way to measure your campaign's success is to track the impressions, clicks, CTR, views, and engagement on the video ad.
2. Native Ads
Another important format for TikTok Advertising is Native Ads. Native ads come in different types and are a bit more costly than Biddable ads. So, if you are on a big budget, the native ad is your go-to option. You can manage Native Ads via the TikTok Accounts Manager that we will discuss in the next section.
Your campaign options for Native Ads are:
TopView Ads
These ads show up at the top of the feed when the user opens the app and can be anywhere between 60 seconds in length. TopView Ads are the most popular and widely used TikTok ads for small businesses. So, if you are a startup company trying to grab your customer's attention, TopView Ads are the best TikTok marketing strategy you can opt for.
Brand Takeover Ads
Another effective campaign option is "Brand Takeover Ad." These ads follow the 'A brand- A Day' method, where one brand takes over TikTok for a day. Furthermore, these ads are not skippable and are roughly 3-5 seconds long.
The Brand Takeovers can be anything that best emphasizes your band, i.e., Image, Video, or GIF Ads. Besides, you can also embed links that direct to your landing page within these ads. Though these TikTok ads' cost per click is high, it's well worth it in the end.
For instance: Mercedes Benz uses Brand Takeover ads for marketing its #MBStarChallenge, encouraging users to participate.
Branded Hashtag Challenges
The Branded Hashtag Challenges are a great way to maximize engagement and create viral content. It could be a dance, transition, or some other cool stuff. But these types of TikTok ads are specifically for brands and businesses that are already famous and have a crazy fan-following.
The hashtag challenges increase brand awareness and attract new followers. Creativity, fun factor, and influencer engagement can help your branded hashtag challenge be on top of mind.
For instance, Coca-Cola's #ShareTheMagic and #ShareACoke challenge was a big hit and got millions of views and engagement.
Brand Scan/ Lenses
Just like Snapchat and Instagram, TikTok has introduced "Brand Scan," where brands can offer 2D or 3D filters that the customers can use to make Videos. The brands can design custom reality filters to promote their brand and get more and more customer engagement.
For instance: MAC has launched its brand scan with which the customers can try out different lip tints to see what suits them the most. Similarly, Ray-Ban has also benefited from the feature and has introduced its Brand Scan. The participants can try out different Ray-ban sunglasses without really having to buy them.
Influencer Package
You might have heard a lot about Influencer marketing. It's the most popular form of TikTok ads for small businesses where they pay a niche-specific influencer to create sponsored content endorsing their product. Furthermore, it's the most convenient of all the ad formats and drives maximum results. The best thing is to contact the influencers via the TikTok app and discuss your project details.
For small businesses, the best tip is to collaborate with a local TikTok influencer, as it can give your business a great BOOM and much-needed exposure. But if your business already has a great following, you can always hire a Freelancer to make stunning TikTok reels and short ad videos for your brands.
Here is our absolute favorite Service for TikTok Reels from Legiit. Check out the service to hire now!
Common Misperceptions about TikTok as a Marketing Platform
Well, most often, we are asked, "Is TikTok Marketing worth it?" It sure is. But before explaining the importance of TikTok ads for small businesses, let's uncover some common misperceptions.
First off, it's a misperception that TikTok is specifically for Gen Z users. It's a fact that the majority of the Users belong to the Gen Z generation, but that doesn't eliminate the other age group that makes up almost half of the TikTok community.
Another misconception is that TikTok doesn't support businesses or product marketing and is for fun purposes only. In reality, TikTok is trending as an excellent marketing forum in business communities.
Below are some important points emphasizing how TikTok is an ideal advertising platform. So, let's dive in.
Top 5 Reasons to incorporate TikTok in your Social Media Marketing Strategy?
Here are the top 5 reasons that justify why you can trust TikTok Ads for your brand marketing. So, let's cut the chase and dive straight into it:
#1 Marketing that doesn't sound like marketing
Almost all of us hate to be bothered by the ads during our favorite shows or clips. Thanks to the ad-blockers, we don't have to bear those frustrating ads anymore. Nonetheless, Marketing on TikTok doesn't look like annoying traditional marketing at all. But at the same time, it poses a serious threat to businesses trying to generate leads online. So, a smart marketer employs less invasive strategies to attract their dream customers. TikTok marketing has revolutionized storytelling and product promotion to the extent that it promises profitable TikTok ads for small businesses.
#2 Targets Diverse Audience
A few years back, Facebook was the only platform to promote your products to a wide range of audiences. With the changing trends and launch of new and amazing platforms, the competition has become fierce. Take it from an expert; your Social Media Marketing will never be effective if you don't include TikTok in your strategy in 2022.
TikTok ads for small businesses allow you to reach a diverse audience as it includes Gen X, Gen Z, Millennials, Baby Boomers, and even Gen A generations. Moreover, another plus point is that you can even target the international audience by optimizing your campaigns according to niche, demographics, interests, etc.
#3 User-generated content
While Millennials value authenticity, Gen Z loves popular trends. In this hyperconnected world, most of the users are well aware of the marketing strategies and don't fall for them. In fact, many popular platforms use fake views and followers to fool the advertiser but fail to deliver value. Therefore, you should be fair and conscious while developing your marketing strategy and choosing the right platform. That's exactly where TikTok ads for small businesses come in. The platform drives traffic organically and strongly encourages user-generated content.
#4 Influence Marketing and Community Support
TikTok officials proudly state that the platform has hungry buyers where products get viral instantly. Rightfully so. In retrospect, 1 out of every 3 TikTok users said that TikTok trends influenced their choice in one way or another. Furthermore, modern users prefer short, smart, and sweet videos over long and boring ones. So, that gives another point to TikTok advertising. So, for creating high-converting TikTok ads for small businesses, all that matters is invoking the interest of your brand's followers.
#5 Authenticity and Trust
Authenticity and Trust are the perks of TikTok marketing. The platform encourages its users to show their most authentic selves in the videos. In addition, the same rule applies to businesses and brands as well. That's why it is said that TikTok gives exposure to businesses that nobody knew existed before.
How to Create a TikTok Ads Account?
To create high-converting TikTok ads, you'll have to sign-up on TikTok for Business. The process of creating TikTok ads for small businesses is pretty simple. Just follow simple steps like 1,2,3, and your TikTok business account is all set in minutes.
Importantly, you can only make a TikTok business account in regions where the platform supports self-service advertisers. Ok, so now you have made up your mind to create a business advertising account; let us help you with that.
Step 1: Create a Login or Sign Up
Open TikTok For Business and Click on "Start Now" at the top right of the page. It will direct you to the Sign-Up page, where you can easily create a Login using your Email or phone number. Now choose a password, check the Terms and Conditions, and "Sign Up."
Step 2: Create Your Account
Step 2 is all about getting your Ads-Account ready. For this, you have to fill out the required sections.
- First off, choose the country/region with respect to your business.
- Secondly, select the "Time Zone" where your business is located. Furthermore, you can't change it once it's done, so be careful while selecting it.
- Now fill in your Business name. Your business name and your Brand's name should match, or else the TikTok team must reject your account upon final review.
- Moreover, if you plan on using this account for promoting products in the creator marketplace or applying for the ad credit programs, make sure that your business name is the same as the one approved on your business license.
- Afterward, select the "Currency" you prefer for billing.
- Finally, Tick the Terms and Conditions Block and click "Register."
Step 3: Access Your TikTok Business Dashboard
To access your ads account, go to the "Account Setting" and click on "Dashboard." It will automatically take you to the Business Dashboard, where you can access your account information.
Step 4: Provide Your Business Information
On the "Account Setup" page, complete all the sections requiring your business information:
- First off, enter your "Website Name" and URL using the format https://www.yourdomain.com/. If you don't follow the right format or skip this part, your Ads account will not be approved during the review. Furthermore, your website must have your correct contact information and evidently promote your service or product. Besides, your websites must have relevant blog posts or information about the service you intend to promote.
- Secondly, carefully select the "Industry" in which your product or service best fits.
- Now, complete the address section that includes your "Street address" followed by the "State/Province" along with the applicable "Postal Code." This section suggests the address of your business location and not your personal residence.
- Finally, you have to upload your "Business Verification Proof." You can upload the registration number or certificate issued by your Government in this section. However, filling this section is not mandatory, and you can skip it if you want.
Step 5: Choose Your Payment Method
Next, you have to choose the payment option that best suits your business. You can choose between Manual and Automatic payment options. However, some markets don't support automatic payment, so manual payment is better.
Step 6: Submit Your Account Information
Once you've filled out all the fields, click "Submit." It will automatically open an account review request. Now, the TikTok team will verify all the information in the form to make sure that everything complies with their policies. After 24 hours, you will receive the confirmation message that your Ads account has been approved, and you are all set to market your business on TikTok.
How to Use the TikTok Ads Manager?
Once you have created your TikTok for Business account, it's time to start using TikTok ads for small businesses. So, to advertise on TikTok, you have to create an ad campaign, after that an ad group, and finally, you can process your first TikTok ad. Sounds easy? Let's start!
Step 1: Create your TikTok Ad Campaign
First off, open your Ads Manager account, go to the Campaign Tab on the top and click "Create."
The next step is choosing the Campaign objective. In addition, it entirely depends on your marketing goals. You can tick 1 of the 3 options, i.e., Conversion, consideration, or awareness.
After completing this step, your campaign will be automatically redirected to the "Ads Group" section.
Step 2: Create an Ad Group
- For creating an ad group, you have to choose your ad placement. A pro-tip is to use auto-placement for your first ad campaign.
- Secondly, select the URL, promotion type, display name, profile image, and ad format.
- Interestingly, TikTok offers automated creative optimization features. In addition, this feature is beneficial for TikTok ads for small businesses. It automatically creates TikTok ads for you using your copy, Video, and images. Using this feature, you can create ads in seconds without any extra effort and "Split Test" it to see which ads perform the best for your campaign.
- The next step is optimizing the campaign for your target audience. You can select the users using demographics and interests.
- Now click "Budget and Schedule" and choose the budget option, i.e., Daily or Lifetime budget.
- Next is to set up your "Bidding method," choosing from the bidding strategies that TikTok suggests.
- Finally, click "Next," and you will be redirected to "Create your first TikTok Ad."
Step 3: Create a TikTok Ad
Finally, it's time to create your first TikTok ad. Upload your video content and make sure that the content you are using follows TikTok's ad creative guidelines. Furthermore, you can also use Images as the Ads Manager will automatically convert these still images into Video.
Add your text and CTA.
Click "Submit," and your TikTok ad campaign will be automatically submitted for review.
How To Measure the Performance of your TikTok Ad Campaigns?
So, now you know all about creating the best TikTok Ads for small businesses and using Ads manager and Pixels the right way. Here comes the most important part about TikTok advertising, i.e., measuring your campaign performance.
Well, to measure your Campaign efficiency, you need to switch your account to TikTok Pro. Furthermore, the pro account is absolutely free and will give you access to the Analytics feature. Here's how you can measure your campaign performance:
- Open the "Privacy and Settings" tab on the Business profile page.
- Click "Manage My Account"
- Click "Switch to Pro Account" and follow the proceeding steps.
- Select your business industry
- Click "Done"
Key Metrics To Focus
The TikTok Analytics tool is a goldmine of features that show you your campaign's required data and metrics. Let's jump into the details to see how it works:
Video Views: Tracking your Video views helps you better understand if the strategy you are using is working or not. Besides, it helps you get a better idea of how many users watch your video till the end and engage with the CTA.
Profile Views: Keeping an eye on profile views help you understand how much traffic you get daily. It also enables you to know which Video or ad brings the most visitors and what content the users like the most. A careful analysis of these metrics helps create successful TikTok ads for small businesses.
Followers: Carefully study the graph of how many followers you are getting or losing on average in 7 days. If the analytics show a positive trend, it means your strategy is successful, but if it's vice versa, you need to reconsider your strategy.
Gender: As an avid marketer, you should be well-aware of the breakdown of your followers' genders. Not only does it help you curate high-converting content, but it also understands the interests of your audience.
Follower's Activity: Carefully studying analytics, you can have a better idea at:
- What time are your followers active the most?
- The type of music they like in videos!
- What videos do they watch the most?
- What are the top territories or regions your followers live in? And so much more!
Likes, Shares, and Comments
Keep an eye on the likes, shares, and comments of your videos as it's not only a validation that your content is engaging but also helps you create high converting TikTok Ads for small businesses.
How Much Does It Cost Advertising on TikTok?
An important question that almost every marketer asks is, "How much do TikTok ads cost per click?" So, the answer is it directly depends on the budget you set for your TikTok marketing campaign. Setting up a budget for TikTok ads for small businesses is a pretty easy process.
The TikTok ads manager two budget options, i.e.,
- Daily Budget Option
- Lifetime Budget Option
Here the good news is you can change the daily limit anytime during your ad campaign, and the ad cost will not exceed the budget you set. In addition, the cost of the ad depends on the ad format and the campaign you are following.
However, a good rule of thumb for TikTok ads for small businesses is to set your budget to a minimum of $50 in the first half of the campaign. After that, you can expand the budget up to $500 when you start observing good results and better conversions. Your Ads budget also depends on the audience you are targeting and the product you are trying to promote.
According to a reputable TikTok Ads Agency, the following are the different pricing packages for TikTok ads for small businesses:
- CPM- Cost Per Mille/ Per 1000 impressions: $1.82
- CPV- Cost Per View: $0.010
- CPC- Cost Per Click: $0.19
TikTok Ads for Small Businesses- Do's and Don'ts
It makes no difference if you are a startup or already an authoritative brand; the policies and rules of the platform are the same. So, for creating successful ad campaigns and establishing a strong digital presence, a marketer should be well-aware of the Do's and Don'ts of TikTok.
Important Do's you must know!
- First off, keep your content light, fun, and utmost relatable. Try to show a humorous, inspiring, and creative image of your brand in ads and content as well. Give your desired customers a reason to follow you.
- Do be candid, informal, informative, and direct. In retrospect, TikTok ads that are fun and no more than 30 seconds long perform 65% better than boring 60-second ads.
- Furthermore, use music to increase the content engagement and make it more interesting. A pro tip to excel at creating the best ads is to use lively and viral music. For instance, Despacito, Dynamite, Baby Shark, and so many other trending songs are available on TikTok.
- Be conscious about your Ad Visuals as they play the most important part in converting. In addition, always shoot your video at a vertical angle with bright light.
- As already said, TikTok ads for small businesses perform better when accompanied by a challenge. Use brand-specific hashtags for better performance. Another important point is interacting more with the community and participating in other brands' challenges.
- That said, it's always wise to go with the flow and mimic the trending content but don't do it at the cost of losing your brand voice. Studies reveal that TikTok ads are 300 times more converting than Instagram or Snapchat ads. So, why not make a little effort to benefit from the magic of this fastest-growing platform.
- Do collaborate with TikTok stars and influencers that have a crazy fan-following.
Don'ts for TikTok Ads for Small Businesses
Don't make too obvious or hard-sell ads. A great tip for succeeding in TikTok advertising is to show your product in the ad organically. For instance, you have a startup company that sells Hot Sauce. The best TikTok ad should show a top-down shot of ingredients or maybe a fun way of cooking Pasta and showing your Hot sauce with the label naturally in the video.
Closing Thoughts
And that's all. Now you know everything about creating top-notch TikTok ads for small businesses. Following the above-discussed expert tips and strategies can help you fist-pump your business in days. TikTok is a fast-growing platform that can help you take your business to the next level.
Only businesses willing to create entertaining, informative, and fun content can get quick traction on this fantastic platform. There you have it. Save this article and share it with friends who have just started their businesses; After all, the article is all about the biggest brands' best-kept TikTok marketing secrets.
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