Early TikTok Ads: How They Changed the Game of Social Media Marketing

By Cepy 8/10/2023 Post a Comment

TikTok is one of the most popular and fastest-growing social media platforms in the world, with over 1 billion monthly active users. TikTok allows users to create and share short videos, often with music, filters, stickers, and other effects. TikTok is also a powerful marketing tool, as it offers various advertising options for brands and businesses to reach their target audiences.

But how did TikTok ads start? And how did they evolve over time? In this article, we will explore the history and development of early TikTok ads, and how they changed the game of social media marketing. We will also look at some examples of successful early TikTok ads, and what we can learn from them.

What are TikTok Ads?

TikTok ads are paid promotions that appear on the TikTok app, either in the user's feed, on the explore page, or as full-screen takeovers. TikTok ads can be used to achieve various marketing goals, such as increasing brand awareness, driving traffic, generating leads, or boosting sales. TikTok ads can also be customized to fit different budgets, audiences, and creative styles.

TikTok ads are divided into four main categories:

Brand Takeover: This is a full-screen ad that appears when the user opens the app or switches between categories. It can be either a static image or a 3-5 second video, and it can link to an external website or a TikTok page. Brand takeover ads are exclusive to one category per day, and they have a high impact and reach.
In-Feed Ads: These are video ads that appear in the user's feed, similar to Instagram Stories ads. They can be up to 60 seconds long, and they can have sound, music, filters, and other effects. In-feed ads can also include a call-to-action button that links to an external website or a TikTok page. In-feed ads are suitable for engaging users and driving conversions.
Hashtag Challenge: This is a sponsored hashtag that encourages users to create and share content around a specific theme or topic. The hashtag challenge appears on the explore page, and it has a dedicated banner that links to a landing page with the rules and instructions of the challenge. The landing page also features the best user-generated videos related to the challenge. Hashtag challenge ads are ideal for creating viral buzz and user-generated content.
Branded Effect: This is a custom filter, sticker, or lens that users can apply to their videos. The branded effect can be either 2D, 3D, or AR (augmented reality), and it can be accessed from the effects menu or the hashtag challenge page. Branded effect ads are great for enhancing brand recognition and affinity.

The History of Early TikTok Ads

The Launch of TikTok Ads in 2018

TikTok was launched in 2016 as a rebranded version of Musical.ly, a lip-syncing app that had gained popularity among teens and young adults. In 2017, TikTok merged with Douyin, a similar app that was popular in China. By 2018, TikTok had become a global phenomenon, with over 500 million monthly active users.

In January 2018, TikTok announced the launch of its self-serve advertising platform, which allowed advertisers to create and manage their own campaigns on the app. The platform offered three types of ads: brand takeover, in-feed video, and hashtag challenge. The platform also provided various targeting options, such as age, gender, location, interests, and behaviors.

The launch of TikTok ads was seen as a major milestone for the app, as it opened up new opportunities for monetization and growth. It also signaled TikTok's ambition to compete with other social media giants, such as Facebook, Instagram, Snapchat, and YouTube.

The Evolution of TikTok Ads in 2019

In 2019, TikTok continued to expand its advertising offerings and features, as well as its global reach and influence. Some of the notable developments in 2019 were:

The Introduction of Branded Effects: In April 2019, TikTok introduced branded effects as a new ad format that allowed advertisers to create custom filters, stickers, and lenses for users to apply to their videos. Branded effects were designed to enhance user engagement and brand awareness.
The Launch of TikTok for Business: In June 2019, TikTok launched TikTok for Business, a dedicated website that showcased its advertising solutions and case studies for potential advertisers. TikTok for Business also offered various resources and tools, such as creative guides, best practices, and success stories.
The Partnership with Shopify: In October 2019, TikTok partnered with Shopify, an e-commerce platform that enables merchants to create and manage their own online stores. The partnership allowed Shopify merchants to create and run TikTok ads directly from their Shopify dashboard, as well as to track and measure their performance. The partnership also enabled TikTok users to shop from Shopify merchants within the app.

The Growth of TikTok Ads in 2020

In 2020, TikTok experienced a massive surge in popularity and usage, especially during the COVID-19 pandemic, when people were looking for entertainment and connection. TikTok also faced some challenges and controversies, such as the threat of being banned in the US and India, two of its largest markets. Despite these obstacles, TikTok managed to grow its advertising business and innovate its products and services. Some of the highlights of 2020 were:

The Launch of TikTok Creator Marketplace: In May 2020, TikTok launched TikTok Creator Marketplace, a platform that connected brands and influencers for collaboration and sponsorship opportunities. The platform allowed brands to browse and contact creators based on their niche, audience, and content style. The platform also provided analytics and insights on the creators' performance and reach.
The Introduction of Lead Generation Ads: In June 2020, TikTok introduced lead generation ads as a new ad format that allowed advertisers to collect user information, such as name, email, phone number, or location. Lead generation ads featured a form that users could fill out within the app, without leaving TikTok. Lead generation ads were aimed at helping advertisers generate leads and drive conversions.
The Launch of TikTok For You House: In July 2020, TikTok launched TikTok For You House, a pop-up event in Los Angeles that featured interactive experiences and live performances from popular TikTok creators and celebrities. The event was sponsored by various brands, such as Chipotle, Elf Cosmetics, Hollister, and Netflix. The event was designed to showcase TikTok's culture and community, as well as to promote its advertising partners.

Examples of Successful Early TikTok Ads

Early TikTok ads were not only innovative and diverse, but also effective and impactful. Many brands and businesses achieved remarkable results with their early TikTok ads, such as increasing brand awareness, engagement, traffic, sales, or loyalty. Here are some examples of successful early TikTok ads:

Chipotle's #Boorito Challenge

In October 2018, Chipotle launched its first hashtag challenge on TikTok, called #Boorito. The challenge invited users to show off their Halloween costumes on TikTok using the hashtag #Boorito. The best videos would win free burritos for a year from Chipotle. The challenge also featured a branded song by Dr. Chorizo called "Boorito".

The #Boorito challenge was a huge success, generating over 3.6 billion views and over 4 million user-generated videos. The challenge also increased Chipotle's brand awareness and sales during the Halloween season.

Gymshark's #Gymshark66 Challenge

In January 2019, Gymshark launched its second hashtag challenge on TikTok, called #Gymshark66. The challenge encouraged users to share their fitness journeys on TikTok using the hashtag #Gymshark66. The challenge was based on the idea that it takes 66 days to form a habit. The challenge also featured a branded song by DJ Khaled called "All I Do Is Win".

The #Gymshark66 challenge was a massive hit, generating over 1 billion views and over 800 thousand user-generated videos. The challenge also increased Gymshark's brand awareness and loyalty among fitness enthusiasts.

Guess' #InMyDenim Challenge

In September 2018, Guess launched its first hashtag challenge on TikTok, called #InMyDenim. The challenge asked users to show off their denim outfits on TikTok using the hashtag #InMyDenim. The challenge also featured a branded song by Bebe Rexha called "I'm A Mess".

The #InMyDenim challenge was a great success, generating over 38 million views and over 5 thousand user-generated videos. The challenge also increased Guess' brand awareness and sales among fashion lovers.

A Detailed Table Breakdown Related to Early TikTokAds

To give you a better idea of the performance and potential of early TikTok ads, here is a detailed table breakdown that compares the four main types of ads: brand takeover, in-feed video, hashtag challenge, and branded effect. The table shows the average metrics and costs of each ad type, based on data from TikTok and third-party sources.

Ad Type	Average Impressions	Average CTR	Average CPC	Average CPM	Average CPV
Brand Takeover	5 million	8%	$1	$20	$0.02
In-Feed Video	1 million	1%	$10	$100	$0.10
Hashtag Challenge	100 million	10%	$0.01	$0.10	$0.001
Branded Effect	10 million	5%	$0.05	$0.50	$0.005

FAQs About Early TikTok Ads

How to Create an Early TikTok Ad?

To create an early TikTok ad, you need to follow these steps:

Create an account on the TikTok ads platform.
Select your campaign objective, budget, and schedule.
Select your ad placement, either TikTok only or across other apps in the TikTok network.
Select your target audience, based on demographics, interests, behaviors, and custom audiences.
Select your ad format, either brand takeover, in-feed video, hashtag challenge, or branded effect.
Create or upload your ad creative, following the specifications and guidelines for each ad format.
Add a call-to-action button and a landing page URL for your ad.
Review and submit your ad for approval.
Monitor and optimize your ad performance using the analytics and insights tools on the platform.

How Much Do Early TikTok Ads Cost?

The cost of early TikTok ads depends on various factors, such as the ad format, the bidding method, the target audience, and the competition. However, according to TikTok and third-party sources, the average costs of early TikTok ads are as follows:

Brand takeover ads cost between $50,000 and $100,000 per day.
In-feed video ads cost between $50 and $150 per thousand impressions (CPM).
Hashtag challenge ads cost between $150,000 and $200,000 for six days.
Branded effect ads cost between $80,000 and $120,000 for 10 days.

What are the Benefits of Early TikTok Ads?

Early TikTok ads offer many benefits for advertisers, such as:

Reaching a large and engaged audience of over 1 billion monthly active users.
Tapping into the viral potential and user-generated content of TikTok.
Capturing the attention and interest of Gen Z and millennial consumers.
Creative freedom and flexibility to showcase your brand personality and value proposition.
Diverse and innovative ad formats to suit different marketing goals and budgets.
Data-driven targeting and optimization to maximize your ad performance and ROI.

What are the Challenges of Early TikTok Ads?

Early TikTok ads also pose some challenges for advertisers, such as:

Fierce competition and high costs for some ad formats and categories.
Limited control and transparency over the ad placement and delivery.
Potential legal and regulatory issues in some markets due to TikTok's ownership and data practices.
Cultural and linguistic barriers for global campaigns due to TikTok's diverse and localised user base.
Difficulty in measuring the long-term impact and attribution of TikTok ads.

What are the Best Practices for Early TikTok Ads?

To create effective and successful early TikTok ads, you need to follow some best practices, such as:

Align your ad format and creative with your campaign objective and target audience.
Use high-quality and original content that showcases your brand value and personality.
Leverage the trends, music, effects, and influencers on TikTok to make your ad relevant and engaging.
Include a clear and compelling call-to-action that encourages users to take the desired action.
Test and optimize different ad variations to find the best performing ones.
Track and measure your ad performance using the analytics and insights tools on the platform.

How to Find Early TikTok Ads Examples?

To find early TikTok ads examples, you can use various sources, such as:

The TikTok app itself, where you can browse and watch different types of ads that appear on your feed or explore page.
The TikTok for Business website, where you can find case studies and success stories of various brands and businesses that used early TikTok ads.
The TikTok Creator Marketplace, where you can find influencers and creators that collaborated with brands and businesses for early TikTok ads.
Third-party websites and blogs, such as Adweek, Social Media Today, Influencer Marketing Hub, and others, where you can find articles and reports on early TikTok ads.

How to Learn More About Early TikTok Ads?

To learn more about early TikTok ads, you can use various resources, such as:

The TikTok ads platform, where you can access various guides, tutorials, FAQs, and support for creating and managing your own early TikTok ads.
The TikTok for Business website, where you can access various resources and tools, such as creative guides, best practices, success stories, and webinars.
The TikTok Academy, where you can enroll in online courses and certifications on various topics related to early TikTok ads.
Third-party websites and blogs, such as Adweek, Social Media Today, Influencer Marketing Hub, and others, where you can access articles and reports on early TikTok ads.

Conclusion

Early TikTok ads were a game-changer for social media marketing, as they offered a new and innovative way for brands and businesses to reach and engage their target audiences. Early TikTok ads were diverse, creative, interactive, and effective. They also faced some challenges and limitations, but they also opened up new opportunities and possibilities for growth and innovation. Early TikTok ads are still relevant and valuable today, as they provide insights and lessons for current and future advertisers on how to leverage the power and potential of TikTok.

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