Mastering TikTok Ads: Everything You Need to Know for More Revenue

TikTok ads are no joke. The platform has over 2 billion users worldwide, and it’s where trends—and revenue—start.

Eddie Yoon, Senior Director of Paid Media at NP Digital, says, “Businesses ignoring TikTok are missing out on the biggest attention-grabbing platform in digital marketing today.”

But with so many brands competing for attention, how do you make sure your ads stand out and actually drive revenue? I’ll show you exactly how to master TikTok advertising and boost your brand’s visibility right now.

Key Takeaways

• TikTok ads are effective for reaching Millennials and Gen X, not just Gen Z, with over half of these age groups regularly making purchases through the platform.
• Authentic, smartphone-produced videos perform significantly better than expensive, high-production ads on TikTok.
• Sound-driven, trending content, and concise voice-overs are key drivers of viewer engagement and retention.
• Essential TikTok ad formats to test include product demos, user reviews, tutorials, and quick tips.
• Track deeper engagement metrics like hook rate, sound-on engagement, and repeat view rates to rapidly optimize and scale your TikTok campaigns.

Table of Contents

• Key Takeaways
• Who Should Use TikTok Ads?
• Steps For TikTok Advertising Success
  • Get To Know TikTok Ads Manager
  • Creating TikTok Ads
  • Choose the Right Ad Types
  • Use Creative Elements to Stand Out
  • Test Spark Ads
  • Test Different Targeting Ads
  • Use Data To Implement Hashtags Effectively
  • Create High-Quality Graphics
  • Keep Your CTAs Simple
  • Know the Voice-Over Formula
  • Know The Right Metrics to Track
  • Take Advantage of AI Prompts
  • Don’t Play It Safe All the Time
• FAQs
• Conclusion

Who Should Use TikTok Ads?

Anyone can advertise on TikTok, but let’s clear up a common misconception right away: TikTok isn’t a Gen Z-only playground anymore. 

According to Yoon, 36% of Millennials and 23% of Gen X actively make purchases on TikTok. Still think your audience isn’t on TikTok? The numbers say otherwise.

Even industries like finance, SaaS, and higher education are seeing strong performance on TikTok. TikTok stands apart from other social channels because it’s driven by sound, real-time trends, and an algorithm that rewards authenticity and speed. On Facebook or Instagram, polished, professionally produced content might win. On TikTok, it’s the opposite — raw, authentic videos perform better, and users expect brands to embrace this casual style.

If your business wants to tap into younger consumers, Millennials, or even Gen X, TikTok can drive serious revenue. It’s ideal for marketers willing to rapidly experiment, embrace creativity, and leverage sound-driven content. Bottom line: TikTok works for way more industries and demographics than most marketers realize — and if you’re not using it yet, you’re leaving money on the table.

Steps For TikTok Advertising Success

There’s no one-size-fits-all method for running a TikTok ad campaign, but there are proven steps to maximize your chances for success. The platform moves quickly, rewards creativity, and demands constant testing. Here’s everything you need to know to win, from choosing the right ad types to tracking the metrics that matter most. Follow these straightforward tips to boost your visibility, engagement, and revenue with TikTok ads.

Get To Know TikTok Ads Manager

Source: TikTok Ads Manager

TikTok Ads Manager is your command center. From here, you can create, launch, and track the performance of all your ads in one place. Here’s what you can do from this dashboard:

• Create engaging ads using visual templates, video creation tools, and customizable effects.
• Target specific audiences based on demographics, interests, behaviors, and more.
• Track real-time ad performance through detailed analytics and custom reporting dashboards.

TikTok uses a bidding system, letting you set daily and overall campaign budgets. Expect to have to spend at least $50 per day on campaigns and $20 per day at the ad group level as minimums.

To set up your Ads Manager account, head over to the TikTok for Business page, click “Get Started,” and follow the simple prompts to register. You’ll enter basic details like your business information and payment method, then wait for approval before launching your first ad.

Recent additions to Ads Manager include improved analytics dashboards, new interactive ad formats, and AI-driven ad creation tools designed to simplify campaign setup and boost ad effectiveness. These updates make it easier than ever to get results quickly.

Creating TikTok Ads

Creating ads on TikTok is straightforward. Inside Ads Manager, click the “Campaign” button at the top. Then follow these steps:

Select your campaign objective, such as traffic, lead generation, app installs, or brand awareness.

Source: Sprout Social

Name your campaign and set your budget limits. Choose from a “Daily Budget,” “Lifetime Budget,” or “No Limit,” which defers budgeting to the ad group level.

Source: Sprout Social

Define your ad groups, specifying details like audience targeting, placements, and bid amounts.

Source: Sprout Social

Source: Sprout Social

Create your ad by uploading video content, writing engaging captions, and choosing eye-catching visuals or effects.

Source: Sprout Social

After launching your campaign, you can’t adjust the budget limits. Double-check everything before hitting “publish.”

Source: Sprout Social

Choose the Right Ad Types

Many brands get stuck running one ad format over and over. This limits your performance. Yoon recommends every brand consistently tests these essential TikTok ad types:

• Product Demos: Short videos showcasing your product’s features, benefits, or use cases in action.
• Real User Reviews: Ads featuring real customers authentically sharing their positive experiences.
• Tutorials: Helpful step-by-step videos showing viewers exactly how your product solves their problems.
• Hacks/Tips: Quick, valuable insights or tricks your audience can immediately benefit from.

Mixing up your formats prevents ad fatigue and keeps your brand fresh in viewers’ minds. Regular testing shows you exactly which types resonate best with your audience, so you can double down on what drives results.

Use Creative Elements to Stand Out

Your TikTok ads need to immediately grab attention. Short ads under 15 seconds usually perform best, so make every second count. TikTok is uniquely driven by sound, visual trends, and interactive effects. As Yoon explains, “TikTok acts like Spotify as much as it does Instagram — audio trends significantly influence engagement.”

To tap into this sound-driven culture:

• Regularly test trending audio clips and music tracks relevant to your niche.
• Use voiceovers strategically to tell your brand’s story or highlight key benefits.
• Experiment with Branded Effects like stickers, filters, and augmented reality elements that boost viewer interaction.

In-feed ads that blend naturally into the TikTok experience typically generate higher engagement than overtly promotional placements. For example, Korean skincare brand Laneige boosted engagement dramatically by leveraging Branded Effects combined with trending audio clips.

The result was over 419,000 engagements and thousands of coupon downloads.

Unsure of what elements to use? Keep a close eye on trending videos in your niche. Adapt these insights to create ads that feel authentic, engaging, and timely. Remember, on TikTok, the most authentic ads win.

Test Spark Ads

Have you seen someone using your product on TikTok and thought, “I wish I could use that video in my ads”? Well, Spark Ads let you turn genuine, user-generated content (UGC) into powerful TikTok ad campaigns.

Here’s why you should try Spark Ads right away:

• They’re simple. You take an existing TikTok video from your brand or another creator (with their permission) and promote it directly.
• Engagement stays connected to the original post, meaning likes, shares, and comments add credibility and organic reach.
• Users trust real people. UGC feels authentic, driving more conversions than traditional branded ads.

A great example is digital bank Up partnering with Australian influencer @TashInvests. 

Their Spark Ads campaign hit over 1.5 million impressions and surpassed expectations for app downloads.

A few quick tips for success with Spark Ads:

• Choose positive, engaging content that reflects well on your brand.
• Add short, impactful text overlays to highlight your product features.
• Run A/B tests frequently to pinpoint your best-performing ads.
• Always get creators’ permission before promoting their content.

Test Different Targeting Ads

Successful ads need precise targeting. TikTok gives you complete control over who sees your ads and who doesn’t.

You can zero in on audiences based on:

• Age
• Interests
• Location
• Device types
• Behaviors and interaction history

Let’s say you’re promoting soccer gear. You might target men aged 18-30 in Canada who follow sports creators. In your TikTok Ads Manager, click “Ad Group,” select “Targeting,” and customize exactly who sees your ads.

TikTok continuously optimizes your campaign’s visibility, showing your content to the audience most likely to engage. Precise targeting saves money, boosts performance, and increases your chance of success. If you’re serious about revenue, dial in your targeting right from the start.

Use Data To Implement Hashtags Effectively

Hashtags make your content discoverable on TikTok, but randomly tagging won’t cut it. You need data-driven hashtags that match your goals.

Start by analyzing hashtags your top competitors use. These hashtags already have proven engagement, so they’re a great starting point.

Next, monitor hashtag trends daily. TikTok’s Discover page highlights what’s popular right now. Pick trending hashtags relevant to your niche, then rapidly test their performance. According to Yoon, “brands seeing explosive TikTok growth rely on quick experimentation — try different hashtags weekly to find the best-performing ones.”

Keep an eye on “engagement velocity.” If a hashtag drives immediate likes, shares, and comments, double down quickly. If engagement stalls, move on.

Mountain Dew, for example, successfully tapped into #nationalpetday to promote their “Code Red” drink. Smart hashtag selection amplified reach and made their campaign memorable.

Use this approach: Analyze, test quickly, measure engagement velocity, and adjust. This strategy boosts your content’s visibility and delivers measurable results. 

Create High-Quality Graphics

TikTok ads perform best when they look real and relatable, not like expensive commercials. Here’s something surprising: low-fi content shot on smartphones beats professionally produced ads almost every time.

In fact, across 3,000 TikTok business accounts, we found lo-fi ads earned 34% more likes, 18.5% more comments, and converted 11.4% better in A/B tests.

Forget fancy equipment. Use your smartphone to capture clear, authentic visuals quickly. Before you post, always enable the “Upload HD” setting in TikTok to improve visual clarity instantly.

Another quick tip: TikTok’s own data shows that videos highlighting their main product within the first three seconds drive higher click-through rates. Don’t waste those opening moments — immediately show viewers exactly what they’ll get.

Bottom line: Skip expensive productions. Shoot simple, clear, smartphone-based videos that focus on your product from the very first frame. That’s how you win on TikTok.

Keep Your CTAs Simple

You only have seconds to grab attention on TikTok, so your call-to-action (CTA) needs to be clear, concise, and immediate. A strong CTA directly tells viewers what to do next — visit your website, use a promo code, or download an app.

Take Sour Patch Kids as an example. They ran a TikTok campaign promoting their custom candy mixes with the simple CTA “Make Your Mix.” It was short, fun, and effective.

When creating your TikTok ads:

• Use as few words as possible — be direct.
• Match your CTA color with your overall ad design.
• Create urgency to motivate clicks: use words like “today,” “now,” or “limited time.”
• Test multiple CTA versions. Run A/B tests regularly to determine the best performer.

Clear and straightforward CTAs lead directly to higher engagement and better ROI.

Know the Voice-Over Formula

Voice-over is critical on TikTok because the platform thrives on sound-driven content. Many viewers scroll with sound on, meaning your voice-over can significantly boost engagement. The right voice-over grabs attention instantly, boosts hook rates, and encourages viewers to stick around longer.

Pairing voice-over with concise, clear on-screen text is especially powerful. Your voice narration should complement — not repeat — the text displayed. For instance, your voice-over could ask an intriguing question, while your text immediately shows the solution or product benefit.

Quick tips for an effective voice-over formula:

• Keep voice-over direct and conversational. Avoid long sentences.
• Make sure your voice tone fits your brand identity — casual, authoritative, or playful.
• Balance voice and text. Neither should overwhelm the other.
• Test frequently to discover which combinations drive highest engagement.

Get this balance right, and you’ll instantly improve your TikTok ad performance.

Know The Right Metrics to Track

Tracking clicks and conversions matters, but on TikTok, they don’t show the full picture. According to Yoon, you need to track deeper metrics to rapidly scale your TikTok success. Here are the metrics I recommend you prioritize:

• Hook Rate: How many viewers stay past the critical first three seconds.
• Repeat View Rate: How many people watch your ad multiple times.
• Sound-on Engagement: The percentage of viewers watching with sound enabled.
• Engagement Velocity: How quickly your ad gets likes, comments, and shares.
• Share Rate: How often your content gets shared to new viewers.

These metrics give you immediate insight into whether your content resonates. Weekly or bi-weekly checks are ideal. If your hook rate is low, change the opening scene. If your sound-on rate is poor, rethink your audio strategy. Rapid adjustments based on these metrics will dramatically boost your ad performance.

Take Advantage of AI Prompts

TikTok is heavily investing in AI-powered ad personalization. You can start using AI prompts to rapidly improve your ad creatives, messaging, and overall strategy. Here’s how you can leverage AI prompts with TikTok Symphony right now:

• Ask: “Show me what’s trending on TikTok” to quickly discover popular trends in real-time.
• Try: “I’m new to TikTok, what are best practices?” for foundational guidance.
• Request: “Show top-performing TikTok ads in my industry” to benchmark your ideas.
• Prompt creativity: “Come up with ideas for promoting [your product/service].”
• Refine your content: “Write an ad script targeting [specific audience or market].”

These AI prompts speed up your creative process, improve targeting accuracy, and help you iterate faster. AI gives your TikTok ads a competitive edge — use it.

Don’t Play It Safe All the Time

TikTok rewards creativity and experimentation more than any other platform. Yoon puts it perfectly: “TikTok is where you can take big creative risks without penalty. If your content flops, no harm done — almost no one sees it. If it succeeds, your ad could go viral overnight.”

Here are a few quick ways to stop playing it safe on TikTok:

• Regularly test new concepts and creative directions.
• Create your own trends — give popular ideas a unique twist.
• Study pop culture and explore conversations happening outside your immediate industry.
• Experiment with different formats, from videos to interactive carousels.
• Embrace memes and relatable humor. Memes boost shareability and brand connection.

Brands stuck on polished, predictable ads stall quickly. Break free by prioritizing bold, fresh content ideas and rapid experimentation. Your ads will stand out — and your results will improve fast.

FAQs

How much do TikTok ads cost?

TikTok ads require a minimum daily budget of $50 at campaign level and $20 at ad group level. Your actual spend varies based on targeting, ad format, and competition.

Which TikTok ad formats are best for beginners?

Start with In-feed ads or Spark Ads because they’re easy to create, effective, and blend naturally with user-generated content.

Can non-e-commerce brands succeed on TikTok?

Absolutely. Finance, SaaS, higher education, and even B2B companies are all seeing strong results. TikTok is broader than e-commerce alone.

Conclusion

TikTok marketing is essential if you’re serious about growing your brand online. This platform has transformed social media marketing, giving businesses massive opportunities to reach new audiences and drive real revenue. 

To succeed, stay authentic, quickly test new ideas, and closely track performance metrics that matter, like hook rates and engagement velocity. The brands winning at TikTok marketing aren’t afraid to take creative risks, leverage AI-driven tools, and constantly refine their strategy. 

Follow these guidelines, and you’ll quickly turn TikTok ads into one of your most profitable marketing channels.