How much do TikTok advertisements cost?

NEARLY six years since its initial release, TikTok has taken over the world.

Advertising on social media is now the norm as more people spend hours on their digital screens.

The popular social media app TikTok was first launched in September of 2016Getty Images – Getty

How much do TikTok advertisements cost?

With advertisers seeking to buy ad space on the popular app prices are skyrocketing.

Measured reports that 2021 CPM prices were up by 185% year-over-year.

Advertising prices are increasing across many platforms such as Meta (formerly Facebook), Google, and Amazon.

Business Insider reports that TikTok’s ads are at an average CPM of $9.40.

Using Measured’s data, the outlet reported that this price for TikTok is more than double Snapchat’s average CPM of $3.40.

Business Insider also reported that advertisers are seeking to gain the attention of the Gen Z audience.

What exactly is a CPM?

When it comes to online advertising the ad spaces are typically charged at what is known as a CPM.

Oxford Languages defines a CPM as a cost per mile.

TikTok is owned by the Bejing company BysteDance which was founded in 2012Getty Images – Getty

They break it down even further by explaining that a cost per mile is “the amount an advertiser pays a website per one thousand visitors who see its advertisements.”

Who owns the app TikTok?

The owner of the popular app is the Beijing-based company ByteDance.

Chinese billionaire entrepreneur, Zhang Yiming founded the company back in 2012.

The 38-year-old was named one of Time Magazine’s 100 most influential people in 2019, who described him as “the top entrepreneur in the world.”

Zhang Yiming has a net worth of $59.4billion, making him China’s second richest man, according to his Forbes profile.

ByteDance is also the most valuable start-up in the world.

In 2018 it surpassed Uber and is now valued at nearly $400billion.

Yiming officially stepped down from his role as chairman of the Chinese technology giant on November 3, 2021, according to Reuters.

TikTok is listed on Apple’s “Must-Have Apps.”