ECONOMY & WORK
MONEY 101
NEWS
PERSONAL FINANCE
NET WORTH
About Us Contact Us Privacy Policy Terms of Use DMCA Opt-out of personalized ads
© Copyright 2023 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.
MARKETREALIST.COM / NEWS

Beyond Organic Reach: A Look at the Pros and Cons of Tiktok’s PPC Ads

PPC has become a powerful part of every digital marketing strategy and they are everywhere from search engines to social media platforms.
PUBLISHED DEC 13, 2023
Photo illustration of the ownload page for the TikTok app | Getty Images | Photo Illustration by Drew Angerer
Photo illustration of the ownload page for the TikTok app | Getty Images | Photo Illustration by Drew Angerer

Pay-per-click, or PPC advertising, is a cornerstone in today’s digital landscape. Business and companies get their ads in front of potential customers online through the format. PPC has become a powerful part of every digital marketing strategy and they are everywhere from search engines to social media platforms.

Image Source: Pexels | Photo by Mikael Blomkvist
Digital marketing strategies | Pexels | Photo by Mikael Blomkvist

In the pay-per-click ads model, businesses pay a fee each time their ad is clicked on a platform. In this, advertisers bid for ad placements on various platforms. The ad placement also depends on the target audience set by the business and the amount they are willing to spend.

Image Source: Pexels | Photo by Mikael Blomkvist
Image Source: Pexels | Photo by Mikael Blomkvist

While Google Ads and Facebook ads have become powerful tools for businesses, new platforms are also coming up with the service allowing advertisers to reach a wider audience.

With over a billion users worldwide, TikTok has become a powerful social media platform with a diverse audience. Initially, for marketers, the platform’s organic content was the only way to reach out to their audience and potential customers. However, TikTok made a huge shift by introducing PPC ads which opened new opportunities for marketers.

Photo illustration the logo of TikTok | Getty Images | Photo by Chesnot
Photo illustration of the logo of TikTok | Getty Images | Photo by Chesnot

In a Forbes report, Kelly Samuel, a social media expert and founder of Snack Toronto, shared her insights into using PPC ads on TikTok. Here are some of the pros and cons shared by Samuel.

Good Ad support 

Representative Image | Pexels | Photo by MART PRODUCTION
Representatve Image | Pexels 

As per Samuel, TikTok assigns an Ad Specialist to advertisers to help them out with campaigns. The specialist helps people with several operations including setting up ad accounts. Samuel, further notes that other PPC platforms typically require a lot more spending before they provide a rep. Further, since TikTok is still relatively new to the PPC space, their processes aren’t complicated yet.

User experience

Representative Image | Pexels | Photo by picjumbo.com
Representatve Image | Pexels 

The user experience of using TikTok ads is fairly easy. Advertisers can swiftly add the TikTok account to their Business Center using a QR code. The platform’s Business Center/Ads Manager appears similar to Meta's Business Manager and Ads Manager. Thus, people using Meta will feel familiar.

Providing significant reach

Representatve Image | Pexels | Photo by Samson Katt
Representatve Image | Pexels | Photo by Samson Katt

As per Samuel, TikTok’s cost per result or CPR is the main advantage of using the platform for advertising. As per Samuel, their campaign with a sole video and $150 of investment resulted in a gain of 1200 new followers. According to her, the chances of getting this type of conversion with Instagram are relatively low. However, simply advertising on TikTok doesn’t automatically result in a good CPR and advertisers need to test and learn what works for them.

Despite having several advantages, TikTok’s PPC ad model does come with a few disadvantages. Here are some of the cons that Samuel shared.

Payment method

Representative Image | Pexels | Photo by Anna Shvets
Representative Image | Pexels | Photo by Anna Shvets

Unlike other platforms, TikTok requests a "payment upfront" method instead of a post-campaign bill. Further, card verification is needed every time a new payment is processed. This makes the billing process for card users too cumbersome, as they need to input a code every time. However, TikTok has rolled out automatic billing, which may solve the issue.

Spending of Ad budget

Representative Image | Pexels | Photo by Tima Miroshnichenko
Representative Image | Pexels | Photo by Tima Miroshnichenko

TikTok has a feature that may be a pro and a con at the same time. As per Samuel, the platform doesn’t spend the entire allocated budget for an ad if the ad is not performing well. Thus, if TikTok observes that an ad is not getting the same watch time as other ads, it automatically restricts budget spending. This may be a con for ads like holiday promotions being run for a specific time when the budget needs to be spent. For this, advertisers must keep a close watch on their ads and turn on “higher spending power” to utilize their entire budget.

MORE ON MARKET REALIST
While the player, Kristin Cook was happy to take home over $26,000, fans were disappointed.
2 hours ago
The contestant, Erwin Paminiano, was stumped by the Bonus Round puzzle, but took the loss in stride.
4 hours ago
The host put his arm around the player, Daryl, and said he was 'shocked' when he got the correct answer.
5 hours ago
Once again, Ken Jennings proved that players can have a lot of fun on the serious game show.
1 day ago
While Harvey was expecting to hear some funny responses, the ladies blew his mind with their powerful answers.
1 day ago
The player, Clint Ingalls' disastrous choice of letters gave him no chance in the end.
2 days ago
The show's expert, Alan Fausel, was astonished by the fabulous Richard Cosway drawing.
2 days ago
The high school teacher could barely contain her excitement after cracking the Bonus Round puzzle.
2 days ago
The founders of Vade Nutrition couldn't the refuse the offer from Mark Cuban and Alex Rodriguez.
3 days ago
The creator claimed that the Costco avocado didn't feel or taste real, especially when compared to a ripe, organic one.
3 days ago
The player, Kenneth Blount-Hames, was stumped by a simple, everyday phrase in the final round.
3 days ago
The painting had been with the guest for 30 years, and she was curious about it.
4 days ago
It was hard for Harvey to digest what he was hearing from the senior players.
4 days ago
The best friends, Hanna Chung and Laura Tarpley, got tricked by just one word in the end.
5 days ago
The player, Shannon Hunt got the host excited before missing the puzzle by a few letters.
5 days ago
The founder of Hairfin managed to make it through the heckling to get a deal.
5 days ago
The player, Jeff Richardson put up a stunning performance to drive home a new car.
6 days ago
Since Kevin O'Leary made the offer just to mess with Corcoran, the deal hit the Shark where it hurts.
6 days ago
Harrison chose to pass on the most important item of the collection for a strange reason.
6 days ago
The contestant, Alexa Kalanz was doing well throughout the game despite a rough start.
6 days ago