TikTok continues to be a top platform for marketers aiming to engage audiences with short-form video content. From AI-powered creative tools to upcoming U.S. app changes, understanding TikTok ads and their performance is essential for 2025 campaigns.
What Are TikTok Ads?
TikTok ads are paid video placements that appear naturally in users’ feeds, including influencer content, branded hashtag challenges, Spark ads that promote organic posts, and standard in-feed videos. TikTok’s algorithm targets ads based on user interests, behaviour, and demographics.
Why it matters: TikTok ads let brands reach highly engaged audiences while tracking measurable outcomes like views, clicks, and purchases.
AI-Powered Creative Tools
TikTok’s AI tools can turn simple images or text prompts into short, branded videos, including digital avatars. These tools integrate with TikTok itself, Adobe Express, and WPP Open.
Why it matters: Brands can quickly create multiple ad variations, react to trends, and maximize budget efficiency without costly video production.
Key Metrics for TikTok Ads Explained
Tracking TikTok ad performance is essential. Here’s what the key metrics mean:
- Conversion Rate: Measures the percentage of viewers who complete a desired action, like buying a product. TikTok conversion rates average between 1.1% and 2.4%, meaning roughly 1 to 2 out of every 100 viewers make a purchase.
- Click-Through Rate (CTR): The percentage of users who click an ad after seeing it. TikTok’s average CTR is about 0.84%, showing strong audience engagement.
- Cost per Thousand Impressions (CPM): The cost to reach 1,000 people. TikTok’s average CPM is $7, lower than many competitors, making it cost-effective for broad reach.
Why it matters: These metrics help marketers understand ROI, adjust campaigns, and improve targeting and creative strategy.
Choosing the Right TikTok Ad Format
- In-feed ads: Appear in the For You Page for native engagement.
- TopView ads: Premium placements when users first open the app.
- Branded hashtag challenges: Encourage user-generated content.
- Spark ads: Amplify organic content with paid promotion.
What Marketers Should Do Next
- Test AI creative tools for new ad formats.
- Monitor TikTok app changes in the U.S. for targeting continuity.
- Track metrics and refresh content to maintain engagement.
- Use the right mix of ad formats to maximize reach and ROI.
At Foundery, we help brands craft TikTok campaigns that deliver engagement, conversions, and measurable results.
Ready to explore TikTok ads for your business?
