TikTok has surpassed 1 billion monthly active users globally. The platform's ad system has matured significantly, and for brands targeting the 18-45 age group, TikTok Ads can deliver CPMs that are 40-60% lower than Meta.
Competition on TikTok Ads is still significantly lower than on Meta or Google, which means lower costs and higher organic reach potential. The algorithm's ability to find the right audience for your content is arguably the best in the industry.
In this complete guide, we walk you through how to set up your first TikTok Ad campaign, which formats work best, how to target effectively, and what budget you need for real results.
Why TikTok Ads in 2026?
If you still think TikTok is just for teenagers, the numbers tell a different story. The average engagement rate on TikTok is 6%, compared to 1-2% on Instagram. That means your content has 3-6x higher chances of being seen and generating interaction.
- ✓Lower competition than Meta or Google across most markets
- ✓Significantly lower CPMs (€3-8 vs. €8-15 on Meta)
- ✓6% engagement rate — 3-6x higher than Instagram
- ✓Authentic content outperforms polished ads
- ✓Excellent for product discovery — users actively explore new products
- ✓Algorithm distributes content to non-followers organically
TikTok doesn't replace Meta or Google — but it adds a low-cost, high-reach channel that can complement any paid ads strategy.
TikTok Ad Formats
TikTok offers several ad formats, each optimized for a different objective. Here's a complete comparison:
| Format | Best For | Specs | Avg CPM |
|---|---|---|---|
| In-Feed Ads | Conversions, traffic | 9:16 video, 5-60s | €3 – 8 |
| TopView | Brand awareness | First ad user sees, 60s | €15 – 30 |
| Spark Ads | Engagement, authenticity | Boost organic posts | €2 – 6 |
| Shopping Ads | E-commerce sales | Product catalog | €4 – 10 |
| Branded Effects | Brand interaction | AR filters, stickers | Custom |
For most businesses, we recommend starting with Spark Ads (boosting high-performing organic content) or In-Feed Ads with a conversion objective. They're the most budget-friendly and easiest to test.
How to set up your first TikTok Ads campaign
Setting up a TikTok Ads campaign is simpler than you think. Follow these 8 steps:
1. Create a TikTok Business Account
Go to ads.tiktok.com and register with a business email. Fill in your company details and wait for account verification (usually takes 24-48 hours).
2. Install the TikTok Pixel on your website
The TikTok Pixel works similarly to the Meta Pixel. You can install it manually or via Google Tag Manager. Without the pixel, you cannot measure conversions and the algorithm cannot optimize.
3. Set up Events
Configure key events: ViewContent (product view), AddToCart, InitiateCheckout, and Purchase. These signals help the algorithm find buyers.
4. Create a campaign with a conversion objective
Choose the 'Conversions' objective and select Purchase or AddToCart as your primary optimization event. Avoid traffic objectives — they're cheaper but don't drive conversions.
5. Set broad targeting
Start with just country and age (18-45). Don't add interests or behaviors — let TikTok's algorithm find the optimal audience. It's surprisingly good at this.
6. Budget: minimum €20/day per ad group
Below this threshold, the algorithm doesn't have enough data to optimize. Set a daily budget of €20-50 per ad group and a total campaign budget covering at least 7 days.
7. Upload 3-5 creative variations
TikTok automatically tests multiple variations and allocates budget to top performers. Prepare 3-5 different videos varying in hook, angle, and format — diversity is key.
8. Launch and wait 3-5 days
Don't change anything in the first 3-5 days. The algorithm is in its learning phase and any changes reset the process. Only evaluate performance after you have at least 50 conversions per ad group.
Creative best practices: what works on TikTok
TikTok is fundamentally different from Meta or Google. Content that works looks like an organic TikTok, not a TV commercial. Here are the golden rules:
What WORKS:
- ✓Native content — looks organic, not like an ad
- ✓Hook in the first 2 seconds — capture attention instantly
- ✓UGC-style (user-generated content) — testimonials, unboxing, reviews
- ✓Trending sounds — the algorithm favors content with popular audio
- ✓Text overlays — many users watch without sound
- ✓15-30 second duration — the sweet spot for engagement
- ✓Show the product in use — not just static images
What DOESN'T work:
- ✗Polished, TV-style ads — users scroll past them instantly
- ✗Generic stock footage — looks fake and irrelevant
- ✗Video without sound — TikTok is an audio-first platform
- ✗Corporate messaging — the tone needs to be conversational
- ✗Static creatives (images) — video is king on TikTok
The number one rule on TikTok: “Don't make ads, make TikToks.” The more naturally your content blends into the feed, the better it performs and the less it costs.
Targeting tips: let the algorithm do the work
One of the biggest mistakes on TikTok Ads is over-targeting. Unlike Meta, where interests and behaviors help, on TikTok broad targeting works best. Here's the recommended strategy:
- ✓Start broad: age + country only. TikTok's algorithm is exceptionally good at finding buyers
- ✓Use Custom Audiences for retargeting: site visitors, add-to-cart, TikTok engagers
- ✓Create Lookalike Audiences based on the Purchase event — not traffic or engagement
- ✓Don't narrow interests in the initial phases — let the algorithm collect data
- ✓After 2-4 weeks, analyze converting audiences and make minimal adjustments
TikTok's algorithm analyzes user behavior at a depth that manual targeting simply cannot replicate. Trusting the algorithm is the key to strong results on this platform.
Budgets and realistic expectations
TikTok Ads isn't a magic solution — it requires investment and patience. Here's what to expect in terms of budget and timeline:
- Minimum testing budget€600/month
- Recommended budget€1,500 – 3,000/month
- Learning phase2 – 4 weeks
- CPA vs. Meta (once optimized)20 – 40% lower
- Minimum number of creatives3 – 5 variations
- Recommended creative refreshEvery 2 – 3 weeks
- Time to stable results6 – 8 weeks
Important: the first 2-4 weeks are the learning phase. Don't judge performance during this period. The algorithm is collecting data and optimizing distribution. Real results come after you've accumulated enough conversions for the algorithm to understand your ideal buyer profile.
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Our team manages TikTok Ads campaigns for brands across Europe. Strategy, creatives, targeting and optimization — all included.
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