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 advertising 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 that consumes and shares content consistently and in a fun way.

Tiktok Ads serves several purposes, but above all to:

Increase 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 showcase the benefits, features or testimonials of your product or service and invite users to take a specific action.
Encourage interaction, engagement and loyalty through ads that stimulate user participation, opinions, feedback or recommendations, 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 , which suit different goals, budgets, and styles. These are the main types of ads you can find on Tiktok Ads:

Brand takeover

These are image or video ads that appear when you open the TikTok app, taking up the entire screen for a few seconds.

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

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

In-feed ads

These are video ads that are integrated into users' video feeds, as if they were 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

These 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 build a community around your brand.

You can create your own hashtag challenge, or sponsor an existing one, and be featured in TikTok's discover tab, where users can view participating videos and join the challenge.

Branded effects

These 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 brand recognition and recall, 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 need to 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 need to go to the Tiktok Ads website, click on “Create an account” and follow the instructions. You need to provide some information about your business, such as name, country, industry, size, and objective. You also need to agree to the Tiktok Ads terms and conditions.
Set up your payment method . Before you create your first campaign, you need to set up your payment method , which can be a credit or debit card, or a bank transfer. To do this, you need to go to the “Billing” section in your Tiktok Ads Manager, and click on “Add payment method.” You need to enter your payment method details, and the spending limit you want to set. You also need to choose the currency and tax rate 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 ad campaign on TikTok. To do this, you need to follow a three-tier structure: campaign, ad group, and ad.

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

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

Ad group : This is the middle level, where you define your campaign's targeting, positioning, schedule, and optimization. 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 from the ByteDance group, such as Vigo Video, Helo, or BuzzVideo. You must also choose a targeting, which can be by location, language, age, gender, interests, behaviors, devices, or custom audiences. In addition, you must choose a schedule, which can be continuous or scheduled, and an optimization, which can be by impressions, clicks, conversions, or installs.

Ad : This 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. In addition, 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, ad group, and ad, you can launch your campaign and start showing your ads on TikTok. To do this, you need to go to the “Campaigns” section in your TikTok Ads Manager, and click “Launch.” Your campaign will be reviewed and approved by the TikTok team, which can take between 24-48 hours. Once your campaign is live, you can monitor its performance and make any adjustments you need.

Tiktok Ads: What are its advantages and disadvantages?

Tiktok Ads is a very attractive and promising advertising platform for your business, but it also has some advantages and disadvantages that you should keep in mind.

Below we summarize the pros and cons of Tiktok Ads:

Advantages of Tiktok Ads

It allows you to access a massive, young, diverse and engaged audience that consumes and shares content constantly and in a fun way.
It offers you a variety of ad formats, which adapt to different objectives, budgets and styles, and which 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 quickly and easily, 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 are joining the advertising market 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 platform or authorized by Tiktok, and therefore, it may have legality, privacy or copyright issues, which can affect your reputation or your 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 TikTok ads?

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 need to do your 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 tailor 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 blends naturally and organically into the platform, without seeming forced or intrusive. To do this, you need to follow the style, tone, and format of TikTok videos, which are typically casual, fun, and creative.

You should also take advantage of 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 a very limited attention span, and they tend to quickly jump from one video to the next. That's why you need to grab their attention from the first second, and get your message across clearly and concisely.

TikTok ads are typically between 9-15 seconds long, and should include a hook, a benefit, and a call to action.

Includes interactive elements

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

To do this, you must include interactive elements in your ad, such as polls, 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 need to measure and analyze the results you get, and make any necessary adjustments. To do this, you need to 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 your ad metrics and indicators, 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 empowering digital businesses in more than 7 countries and generating more than 1,500 million pesos.