• Erica Nagel

How far can you spread your ad spend on TikTok vs. Youtube?



TikTok


If you decide to advertise on TikTok, you can select a daily or lifetime budget that can be adjusted at any point during your campaign. However, at the campaign level, you must have a minimum daily and total budget of $50. For an ad group level, your budget must exceed $20 daily.


It's also important to note that TikTok doesn't use cost-per-click as a metric. Instead, it uses cost-per-mille (CPM), which means cost per 1000 views. TikTok ads start at $10 per CPM, so it's possible to make an impact at a relatively low cost.


YouTube


YouTube follows a cost-per-view pricing model. Each view can cost between $0.10 and $0.30, depending on your industry and target keywords. You only pay when a user takes action — such as watching the entirety of your ad or clicking on a call-to-action.


You can spend as little or as much as you want. However, most businesses invest $10 or more a day to run an advertising campaign on YouTube. If you set a daily budget, Google will only charge you up until that amount, making YouTube ads a relatively safe investment.


Which platform is right for your business?


Ultimately, the answer hinges on several factors.


First, who is your target audience? As you can see, both YouTube and TikTok boast diverse audiences, but TikTok commands a younger, predominantly female audience. YouTube, on the other hand, is popular across multiple age groups. To state the obvious, you should prioritize the platform that will reach your audience.


Second, what type of content do you want to make? Does it lend itself more to lighthearted, snappy videos or longer, more in-depth ones? Is 15 seconds long enough to convey your message, or do you need more time?


Lastly, it's important to consider your budget. YouTube offers more flexibility in choosing a daily budget. And, since it follows a cost-per-view pricing model, you only pay when a user takes action. To run a campaign on TikTok, you must commit to a daily budget of $50, which quickly adds up.


With these questions in mind, you have a better idea of which platform is right for your business. But remember, marketing is all about experimentation. You don't need to commit to one platform right away — in fact, it may be useful to run side experiments on both to see what results you get.


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