Beyond Organic Reach: A Look at the Pros and Cons of Tiktok’s PPC Ads
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.
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.
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.
PPC advertising on TikTok
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.
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.
Pros of PPC Ads on TikTok
Good Ad support
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
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
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.
Cons of PPC Ads on TikTok
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
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
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.