Tiktok Ads: How it works and types of ads

by Moises Hamui May 10, 2024

Tiktok Ads is an advertising platform that allows you to create and manage ad campaigns on Tiktok , the short video social network that has become a global phenomenon.

With Tiktok Ads, you can access a massive, segmented and engaged audience, who consumes and shares content in a constant and fun way.

Tiktok Ads serve several objectives, but above all for:

Increase the recognition of your brand , product or service, through ads that capture attention and generate interest among Tiktok users.
Drive traffic to your website , online store, Tiktok profile or any other destination you want, through ads that include links, tags or calls to action.
Increase conversions, sales or leads , through ads that show the benefits, features or testimonials of your product or service , and that invite users to take a specific action.
Promote interaction, engagement and loyalty, through ads that stimulate participation, opinion, feedback or recommendation from users, and that create a relationship of trust and closeness with your brand.

Tiktok Ads: What types of ads are there?

Tiktok Ads offers a variety of ad formats , suiting different goals, budgets, and styles. These are the main types of ads you can find on Tiktok Ads:

Brand takeover

They are image or video ads that appear when you open the Tiktok application, occupying the entire screen for a few seconds.

They are ideal for generating great impact and visibility, as they are exclusive per category and only displayed once a day per user.

They can include a link to your website, your Tiktok profile, or a hashtag challenge.

In-feed ads

They are video ads that are integrated into users' video feeds, as if they were just another piece of content.

They last up to 60 seconds, and can include sound, text, stickers, filters and effects.

They can also include a call-to-action button, directing users to your website, your Tiktok profile, or a hashtag challenge.

Hashtag challenge

They are ads that invite users to create and share videos with a specific hashtag, which is related to your brand, product or service.

They are a way to generate user-generated content, encourage interaction and engagement, and create a community around your brand.

You can create your own hashtag challenge, or sponsor an existing one, and appear in the TikTok discover tab, where users can watch participating videos and join the challenge.

Branded effects

They are ads that consist of personalized visual effects with your brand, product or service, which users can apply to their videos.

They can be filters, stickers, lenses or effects in 2D, 3D or augmented reality.

They are a way to increase recognition and recall of your brand, and to generate creative and original content with your brand.

Tiktok Ads: How does it work and how to use it?

Tiktok Ads is a fairly simple advertising platform, but it also has many options and tools that you can take advantage of to create successful campaigns.

To use Tiktok Ads, you must follow these steps:

Create a Tiktok Ads Manager account . It is the control panel from where you can create and manage your ad campaigns on Tiktok . To create an account, you must enter the Tiktok Ads website, click on “Create an account” and follow the instructions. You must provide some information about your company, such as name, country, sector, size, and purpose. You must also accept the terms and conditions of Tiktok Ads.
Set up your payment method . Before creating your first campaign, you must set up your payment method , which can be a credit or debit card, or a bank transfer. To do this, you must go to the “Billing” section in your Tiktok Ads Manager, and click on “Add payment method”. You must enter the details of your payment method, and the spending limit you want to establish. You must also choose the currency and type of tax that will be applied to your ads.
Create your first campaign . Once you have your account and payment method set up, you can create your first Tiktok ad campaign. To do this, you must follow a three-level structure: campaign, ad group and ad.

Each level has its own options and configurations, which we explain below:

Campaign : It is the highest level, where you define the objective and budget of your campaign. To create a campaign, you must go to the “Campaigns” section in your Tiktok Ads Manager, and click “Create”. You must choose a name for your campaign, and a goal, which can be brand awareness, traffic, conversions or app installs. You must also choose a budget, which can be daily or total, and which you can modify or pause at any time.

Ad group : It is the intermediate level, where you define the segmentation, positioning, calendar and optimization of your campaign. To create an ad group, you must go to the “Ad Groups” section in your Tiktok Ads Manager, and click “Create”. You must choose a name for your ad group, and a location, which can be Tiktok, or any other platform in the ByteDance group, such as Vigo Video, Helo or BuzzVideo. You must also choose a segmentation, which can be by location, language, age, gender, interests, behaviors, devices or custom audiences. Additionally, you must choose a calendar, which can be continuous or scheduled, and optimization, which can be for impressions, clicks, conversions or installs.

Ad : It is the lowest level, where you define the format, content and tracking of your ad. To create an ad, you must go to the “Ads” section in your Tiktok Ads Manager, and click “Create”. You must choose a name for your ad, and a format, which can be brand takeover, in-feed ad, hashtag challenge or branded effect. You must also choose content, which can be an image or video that you upload from your computer, or that you create with the Tiktok Video Creation Kit, a tool that allows you to create videos with templates, music and effects. Additionally, you must choose a tracking, which can be a link, a tag or a call to action, and which you can measure with the Tiktok Pixel, a code that allows you to track user actions on your website.

Launch and monitor your campaign . Once you've created your campaign, your ad group, and your ad, you can launch your campaign and start showing your ads on Tiktok. To do this, you must go to the “Campaigns” section in your Tiktok Ads Manager, and click on “Launch”. Your campaign will be reviewed and approved by the Tiktok team, which may take 24-48 hours. Once your campaign is active, you can monitor its performance and make adjustments as needed.

Tiktok Ads: What advantages and disadvantages does it have?

Tiktok Ads is a very attractive and promising advertising platform for your company, but it also has some advantages and disadvantages that you should take into account.

Below we summarize the pros and cons of Tiktok Ads:

Advantages of Tiktok Ads

It allows you to access a massive, young, diverse and committed audience, who consumes and shares content in a constant and fun way.
It offers you a variety of ad formats, which adapt to different objectives, budgets and styles, and allow you to create creative, original and interactive campaigns.
It offers you a simple, intuitive and flexible advertising platform, which allows you to create and manage your campaigns easily and quickly, and which offers you different options and tools to optimize your performance.
It offers you a measurement and analysis platform that allows you to monitor and evaluate the performance of your campaigns, and that offers you different metrics and indicators to make decisions based on data.

Disadvantages of Tiktok Ads

It has high and growing competition, as more and more companies and brands join advertising on Tiktok, and therefore, you must strive to differentiate yourself and stand out from the crowd.
It has limited regulation and security as it is not an official or authorized platform by Tiktok, and therefore may have legality, privacy or copyright issues, which may affect your reputation or business.
It has variable quality and performance as it depends on the quality and performance of the Tiktok application, which may have errors, delays or limitations in its functions or services.

What are the best practices for creating effective ads on Tiktok?

To create effective ads on Tiktok, you need to keep in mind some best practices that will help you capture the attention and interest of your audience. Some of these best practices are:

Know your target audience

Before creating your ad, you must research and define who you want to reach with your message. How old are they? What interests do they have? What type of content do they consume?

This way you can adapt your ad to their preferences and needs, and generate greater connection and relevance.

Create native content

One of the keys to success on Tiktok is creating content that integrates naturally and organically into the platform, without seeming forced or intrusive. To do this, you must follow the style, tone and format of Tiktok videos, which are usually informal, fun and creative.

You should also take advantage of the trends, challenges, songs and effects used on the social network , and adapt them to your brand, product or service.

Be brief and direct

Tiktok users have very limited attention span, and they tend to move quickly from one video to another. Therefore, you must capture their attention from the first second, and convey your message clearly and concisely.

Tiktok ads typically last between 9 and 15 seconds, and must include a hook, benefit, and call to action.

Includes interactive elements

One of the advantages of Tiktok is that it allows for high user interaction and participation, which translates into greater engagement and loyalty.

To do this, you must include interactive elements in your ad, such as surveys, questions, stickers, hashtags or links, that invite users to click, comment, share or create their own content related to your ad.

Measure and optimize your results

To know if your ad is working, you must measure and analyze the results you get, and make any adjustments you need. To do this, you must use the Tiktok Pixel, a code that allows you to track user actions on your website, such as visits, registrations or purchases.

You should also use the Tiktok Ads Manager, a tool that allows you to see the metrics and indicators of your ad, such as impressions, clicks, CTR, CPC, CPA or ROAS.

mha consulting

Written by Moises Hamui Abadi : I am an entrepreneur, founding partner of Viceversa and SoyMacho. After leading several digital businesses and advising several other businesses; I decided to form MHA Consulting, a digital marketing consultancy dedicated to growing and enhancing digital businesses in more than 7 countries and generating more than 1,500 million pesos.