TikTok advertising budgets confuse most new advertisers. You’ve probably seen conflicting advice – some say start with $50, others demand $500 minimum just to get noticed.
Here’s the truth: TikTok ad budgets don’t need to break your bank. The platform’s minimum daily budget is actually just $20 per ad group, not scary numbers floating online.
Setting your campaign budget right from day one makes the difference between burning cash and getting results. Most beginners mess up their ad spend because they don’t understand TikTok’s budget structure.
We’ll show exactly how much you need for your first TikTok advertising campaign without wasting.
Why TikTok Ads are a Smart Move
First off, why should you even bother with TikTok ads? The platform has a massive reach, with over one billion active users around the globe. But it’s not just about eyeballs. TikTok campaigns have been shown to generate twice the sales compared to standard social ads. That’s a huge deal.
A whopping 67% of users say TikTok inspired them to shop, even when they weren’t planning to. This makes it a goldmine for e-commerce brands, affiliate marketers, and anyone looking to drive sales.
Here are a few quick stats to chew on for 2025:
The best part? It’s not just for the big players with huge marketing departments. Small businesses are seeing fantastic results, with many reporting their first sales within 30 days of starting.
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Understanding TikTok’s Budget Structure
Before you can set a budget, you need to understand how TikTok organises its ad spending. It’s pretty straightforward and gives you a good amount of control.
Budget Levels
You can set budgets at two different levels:
Budget Types
You also have two choices for how you want your budget to be spent over time:
A quick tip from the pros: For most campaigns, especially when you’re starting out, using a Daily Budget at the Ad Group Level is the way to go. It gives you the most control and flexibility to see what’s working without burning through your cash too quickly.
The Truth About Minimum Ad Spends
Now for the big question: how much do you really have to spend? You might have heard scary numbers like $500 or more just to get started. Let’s clear that up right now.
The official minimum spend requirements from TikTok are actually very reasonable:
So, where does the $500 figure come from? Many experienced advertisers recommend a starting campaign budget of around $500 because it gives the TikTok algorithm enough data to learn who your ideal customer is and how to best deliver your ads.
Think of it as a best-practice recommendation for getting good results, not a strict rule enforced by the platform. You absolutely can start with the bare minimums.
What Really Affects Your TikTok Ad Costs?
Setting a budget is one thing, but the actual cost per click or impression can vary wildly. Several things can push your costs up or down.
A Step-by-Step Guide to Setting Your First Budget
Ready to set up your first campaign? Let’s walk through it.
Step 1: Define Your Goal: What do you want to achieve? Be specific. Are you trying to get more website visits, increase app installs, or drive direct sales? Your goal will determine your campaign objective and bidding strategy.
Step 2: Start with the Right Structure: In TikTok Ads Manager, it’s often best to leave the campaign budget setting open (or set it to the $50 minimum) and focus on setting a Daily Budget at the Ad Group level.
Step 3: Decide on a Starting Amount: While you can start with the $20 daily minimum for an ad group, consider a slightly higher budget if you can afford it.
- For general campaigns: A daily budget of $50 per ad group is a solid starting point to gather data quickly.
- For web conversion campaigns: TikTok’s own advice is to aim for a minimum daily ad group budget of $30 if you’re targeting North America or Europe.
Step 4: Choose Your Bidding Strategy: This tells TikTok how you want to pay for results.
- Cost Per Mille (CPM): You pay per 1,000 impressions. Good for brand awareness. Average CPM is around $3.48 to $10
- Cost Per Click (CPC): You pay when someone clicks your ad. Great for driving traffic. The average CPC is a very competitive $0.19
- Cost Per Action (CPA): You pay when a user completes a specific action, like a purchase. Ideal for sales-focused campaigns.
Step 5: Monitor, Learn, and Adjust: Your budget is not set in stone. Check your campaign performance daily. If an ad group is performing well, consider increasing its budget. If another isn’t delivering, pause it and move the budget elsewhere. However, try to wait at least two days before making big changes to give the algorithm time to adjust.
Slash Your Ad Spend with These Pro Tips
Want to make your money go further? Of course you do. Here are some proven ways to lower your TikTok ad costs without hurting your results.
Grab Some Free Ad Money with TikTok Coupons
Before you finalize your budget, there’s one more thing you should know about: ad coupons. TikTok is very generous to new advertisers and frequently offers ad credits to help them get started.
These offers are usually some variation of a “spend and get” deal. For example:
- Spend $200, get $200 in free ad credits.
- Spend $500, get $500 in free ad credits.
- Spend $1,000, get $1,000 in free ad credits.
Effectively, you can double your initial advertising budget. You usually don’t need a special code; you just need to sign up through a partner link. These offers are typically for new accounts and must be claimed within the first 30 days of signing up.
Wrapping It Up
Setting your first TikTok ad budget doesn’t have to be intimidating. The platform’s minimum spends are low, making it accessible for businesses and marketers of all sizes.
The key to success is to start smart. Begin with a modest budget, focus on creating authentic and engaging content, and pay close attention to your performance metrics. Use the platform’s flexible budgeting tools to your advantage, and don’t be afraid to experiment to find out what resonates with your audience.
By following this guide, you can confidently launch your first campaign, control your costs, and tap into the immense power of TikTok to grow your brand. Now go on, it’s time to make some killer ads.
About the author
Jordan Blake
A digital advertising specialist with years of experience in optimizing ad spend and leveraging promotional credits across platforms like Google Ads, Meta Ads, and more.
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