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5 Fundamentals of Planning an Effective TikTok Budget

By Luis Velez Torres
Kelly Hendrickse - Editor for BeProfit
Edited by Kelly Hendrickse

Published April 24, 2023.

Identify your intention and budget limits for Tiktok ads.

TikTok has exploded in popularity over the past few years. With 246.96 million app downloads in the first quarter of 2023, TikTok is a booming platform businesses can leverage to spread their reach and boost conversions. However, with so much competition and businesses having varying budgets or ad spend, managing KPIs can help ensure your TikTok ads are efficient.

What To Consider For Your TikTok Budget

When planning a budget for your TikTok ads, you'll need to consider the minimum budget: more than $50 for campaigns and more than $20 for ad groups.

And optimizing the budget to meet your business goals can help boost conversion rates. For instance, 67% of TikTok users say that the platform inspired them to make purchases even when they weren't looking to shop.

So, what should you factor into your planning?


TikTok ads can have the following business intentions:

  • Increasing brand awareness
  • Driving traffic to your website or store
  • Boosting sales

By understanding your ultimate goal, you can better allocate your budget and choose the most effective ad types.

For instance, if you're looking to drive sales, allocating more of your budget toward product listing ads will be more beneficial than just focusing on brand awareness campaigns.

Bid and Budget Types

Depending on your campaign's objectives, you can choose your budgeting and bidding types accordingly. Let's start with budgeting types on TikTok:

  • Daily budget - ideal for short-term or immediate campaigns
  • Lifetime budget - suited for long-term campaigns

Additionally, you can choose between two types of bidding.

  • Manual bidding allows you to set the maximum price you're willing to pay for a specific action.
  • Automatic bidding will automatically adjust your bids based on the competition.

» Worried about CPC? See if you're spending too much per these industry benchmarks

Ad Types

TikTok offers several ad formats. And choosing the best for your business depends on your budget and intention. Some ad types include:

  • In-feed ads - ads appear in users' feeds as they scroll in the app.
  • Branded effects and hashtags - sponsored effects and hashtags that users can include in their videos.
  • Topview ads - the first ad users see when opening the app.

If you have a lower budget, branded ads are less of an option as they are typically used by big corporations with high ad spend.

For a more budget-friendly route, you can try in-feed ads, which can grab users' attention creatively with clear CTAs and engaging videos.

User-Generated Content

Encouraging user-generated content (UGC) in your advertising campaigns can help amplify your brand message. UGC can optimize your budget because it leverages users or e-commerce influencers as a way to help boost reach and buzz around your product or service.

For example, a brand could create a TikTok hashtag challenge that asks users to showcase how they use a particular product in their daily lives.

The brand can then share the best UGC on its channel or website. This can be powerful because it can:

  • Foster a larger sense of community and engagement around the brand.
  • Boost sales and revenue through collaboration.
  • Improve customer loyalty and reach for improved conversions.

» Check out the ultimate guide to effective e-commerce ads


Engaging with your audience can help build a successful advertising campaign on TikTok. Using interactive elements in your ads can allow you to gather feedback and better understand your potential customers. These interactive elements include:

  • Polls
  • Branded stickers
  • Hashtag challenges

Additionally, factoring in your audience's feedback in future campaigns can help you adjust your budget and tactics more efficiently. Therefore, interactivity can create more value from your budget and achieve greater results.

For instance, if you invest some of your budget into branded stickers for a limited product, you could see a positive ROAS if the content is engaging and promotes UGC. Plus, it could spread faster on the platform because of the urgency associated with limited content.

Keep Your Budget In Check With Ease

Save time and effort with a fully integrated view of your store's ad performance, profits, and expenses.

  • Uses cohort analysis for in-depth insight into marketing performance.
  • Can highlight ROAS per platform.
  • Auto-syncs with TikTok and other platforms seamlessly.

BeProfit offers an intuitive dashboard for easy data access and customizable reports to help you monitor your budget and profits in real time.

BeProfit: Profit Analysis Dashboard

4.8/5(320 reviews)

Why Should Businesses Use A Budget Planner?

By having a budget planner in place, you can easily track your business expenses and optimize your ad spend for maximum ROI.

You can better plan your TikTok budget through the following tracking methods:

  • A/B testing - By running different TikTok ads and testing bid amounts, you can identify which amounts and ads garner the best results, whether it's high conversions, more impressions, or increased sales.
  • Demographic monitoring - With TikTok ads and personalization AI, you can target audiences based on age, location, gender, household income, and more. Analyzing which groups respond most to your ads can help you adjust your budget allocation to marketing for groups more likely to convert.
  • Ad performance - You can check impressions, click-through rate, conversion rate, and other metrics. This can help you identify whether your budget has been spent wisely or if you need to rework your ad strategy.
  • Behavior trends - You can identify which user behavior most commonly occurs with your ads, like category searches, devices used, and more. Then, you can use this to optimize your budget for remarketed ads that are more likely to reach your ideal audience.

» Check out more about TikTok ad metrics e-commerce sellers should keep an eye on

Maximize Your Profits With Strategic TikTok Budgeting

Launching a successful advertising campaign on TikTok requires a well-planned budget. By utilizing ad types and engagement tools that align with your intentions, you can initiate campaigns effectively that resonate with users and maximize profitability. With BeProfit's help, you can easily keep track of your expenses and your ad efficiency all from one integrative dashboard.

BeProfit: Profit Analysis Dashboard

4.8/5(320 reviews)