How to Maximize TikTok Ads for Business Success
Runix TikTok offers a unique opportunity for brands to showcase their products and services in creative, authentic, and engaging ways. However, to truly maximize TikTok ads for business success, you need a well-thought-out strategy. In this blog, we will share the unique information about TikTok ads to help you get succeed.
Why You Should Use TikTok Ads for Business
TikTok ads offer unique opportunities for businesses to grow and engage with a highly active audience. Here are 3 key advantages of using TikTok ads for your business:
1. Access to a Massive, Engaged Audience
TikTok has over 1 billion active users worldwide, with a large portion being Gen Z and Millennials. These users are highly engaged, spending an average of 95 minutes per day on the platform. By advertising on TikTok, you can tap into this vast audience and build brand awareness among younger, trend-savvy consumers.
2. Creative and Viral Ad Formats
TikTok provides a range of innovative advertising formats, including In-Feed Ads, Branded Hashtag Challenges, and Branded Effects. These options enable businesses to craft authentic and engaging content that truly connects with users. The platform’s algorithm also favors creative and entertaining content, increasing the chances of your ads going viral and reaching a wider audience.
3. High ROI and Cost-Effective Advertising
Compared to other social media platforms, TikTok ads are often more cost-effective, with lower CPM and CPC rates. Additionally, TikTok’s advanced targeting options allow you to reach the right audience, ensuring higher engagement and better ROI for your campaigns.
By leveraging TikTok ads, businesses can drive brand awareness, boost engagement, and achieve measurable results in a fun and creative way.
Introduction to TikTok Advertising Benchmarks
First, you should know TikTok advertising benchmarks, which provide a standard for evaluating key metrics such as engagement, click-through rates (CTR), and conversion rates. By comparing your campaign results to these benchmarks, you can identify areas for improvement, optimize your strategy, and maximize your ROI.
We list common metrics for evaluating TikTok ads performance as below:
Click-Through Rate (CTR)
For tracking the percentage of each user who clicks on your ad.
Benchmark: 1-2% (varies by industry and ad format).
Engagement Rate
Tracks likes, comments, shares, and video completions.
Benchmark: 5-10% for organic content, slightly lower for ads.
Conversion Rate
Measures the percentage of users who have the final action on your site (e.g., purchase, sign-up).
Benchmark: 1-3% (depends on campaign goals and targeting).
Cost Per Click (CPC)
The average cost of each click on your ad.
Benchmark: $0.20-$1.00 (varies by region and competition).
Cost Per Mille (CPM)
The cost of 1,000 ad impressions.
Benchmark: $10-$20 (varies by ad format and targeting).
Video Completion Rate
The percentage of users who watch your entire video ad.
Benchmark: 50-70% for skippable ads, higher for non-skippable ads.
Return on Ad Spend (ROAS)
Measures revenue generated for every dollar spent on ads.
Benchmark: 2x-5x (varies by industry and campaign objectives).
By tracking these benchmarks and tailoring your campaigns accordingly, you can ensure your TikTok ads deliver maximum impact and drive meaningful results for your business.
Different Types of TikTok Ads
Then you should know the basic and most popular ad types, and the suitable ad placement situation:
1. In-Feed Ads
In-Feed Ads appear natively in users’ feeds as they scroll. These short, engaging videos (9:16 aspect ratio) can include CTAs like “Shop Now” or “Learn More.” They’re ideal for driving traffic, conversions, or brand awareness while blending seamlessly with organic content.
2. Branded Hashtag Challenges
Branded Hashtag Challenges inspire users to generate content using a specific hashtag. These campaigns enhance engagement, drive user-generated content, and increase brand visibility.They often appear on TikTok’s Discover page, driving massive participation and virality.
3. Branded Effects
Branded Effects are custom filters, stickers, or AR tools users can add to their videos. These interactive elements increase brand engagement and recognition. They’re perfect for creating a fun, memorable experience that aligns with your brand identity.
4. TopView Ads
TopView Ads are full-screen, auto-playing videos that appear when users open the app. With high visibility and impact, they’re ideal for grabbing attention and delivering a strong brand message within the first few seconds.
5. Spark Ads
Spark Ads allow brands to amplify organic content, including their own posts or influencer collaborations. These ads appear in users’ feeds and leverage authentic, engaging content to drive higher engagement and trust.
6. Carousel Ads
Carousel Ads allow users to swipe through multiple images or videos within a single ad. These are great for showcasing multiple products, features, or storytelling elements in a single campaign.
Top 5 Industry TikTok Ads Benchmarks
If you want to run ads on TikTok, the different fields TikTok benchmarks you should get a basic understanding. Check the top 5 industry benchmarks sheet:
| Industry | CTR | CPC | CPM | Engagement Rate | Conversion Rate | Video Completion Rate |
| e-commerce | 1.0% - 2.5% | 0.50−0.50−1.50 | 10−20 USD | 5% - 10% | 2% - 5% | 60% - 80% |
| Fashion & Apparel | 1.2% - 3.0% | 0.40−0.40−1.20 | 8−18 USD | 6% - 12% | 2.5% - 6% | 65% - 85% |
| Beauty & Cosmetics | 1.5% - 3.5% | 0.30−0.30−1.00 | 7−15 USD | 7% - 15% | 3% - 7% | 70% - 90% |
| Gaming | 1.5% - 3.0% | 0.20−0.20−0.80 | 5−15 USD | 8% - 15% | 3% - 6% | 70% - 90% |
5 Practical Methods to Boost Your Tiktok Ads ROI
1. Maintain Authenticity in TikTok Ads
TikTok users value genuine, relatable content over overly polished or sales-driven ads. To effectively engage your audience, design ads that feel natural and align with TikTok’s creative and trend-driven culture. Use storytelling, humor, or trending challenges to make your brand feel approachable. Avoid hard-selling; instead, focus on entertaining or inspiring your audience while subtly showcasing your product or service. Authenticity builds trust and encourages engagement, making your ads more effective.
2. Actively Track Competitors' Ad Performance
Regularly monitoring your competitors' TikTok ad campaigns is important. Ads are dynamic, appearing and disappearing frequently, so keeping a close eye on the types of ads your competitors are running is crucial throughout your work. Here we recommend a useful tool Runix, which is a powerful AI intelligence tool designed to revolutionize your digital marketing strategy. With its AI Competitor Analysis function, it allows you to dive deep into your competitors' Tiktok advertising campaigns on TikTok. It not only identifies high-performing ads but also provides actionable insights and data-driven suggestions to optimize your own campaigns.
3. Use VBO (Video Business Outcomes) for Optimization
VBO (Video Business Outcomes) is a TikTok tool that helps businesses measure and optimize ad performance based on specific goals, such as conversions or sales. By leveraging VBO, you can align your campaigns with measurable outcomes and refine your strategy to drive better results. This data-driven approach ensures your ads are not just creative but also effective in achieving your business objectives.
4. Test and Improve Repeatedly
TikTok’s dynamic environment requires constant experimentation. Test different ad formats, creatives, captions, and CTAs to see what resonates with your audience. Use A/B testing to compare variables and identify winning combinations. You should monitor your data performance and refine the strategy Continuously. Iterative testing ensures your campaigns stay fresh, relevant, and effective in capturing attention and driving results.
5. Collaborate with Influencers or UGC Content Creators
Partnering with TikTok influencers or UGC (User-Generated Content) creators can amplify your brand’s reach and credibility. Influencers bring authenticity and a loyal following, while UGC creators can showcase your product in a relatable way. Encourage them to create content that aligns with their style and your brand message. These collaborations not only boost engagement but also foster trust and authenticity, making your ads more impactful.
Final Thoughts
TikTok ads offer a unique opportunity for businesses to connect with a highly engaged audience in creative and meaningful ways. By understanding your audience, leveraging the right ad formats, and creating authentic content, you can maximize the potential of TikTok ads for business success. Remember to stay agile, test new strategies, and keep up with the latest trends to stay ahead of the competition.
