You may be wondering: is it worth investing in TikTok ads as part of your eCommerce marketing next year? Or maybe you are thinking of running some Facebook ads to get more customers to visit your eCommerce store. Marketing is more than just running TikTok ads and Facebook ads, your business and products perform much better when viewed by your target customers on channels that align with your values and services. of the brand you offer.
Compare the key metrics of TikTok ads and Facebook ads
The first thing a marketer needs to know about a marketing funnel is the performance metrics listed below. Will this give them the information they need to determine if the TikTok ads and Facebook ads there are the right choice?
CPM is the cost the channel charges for every 1,000 ad impressions. TikTok ads were inexpensive when they launched in 2019 with a CPM of $1, but that number has since grown to an average CPM of $10. Facebook’s CPM depends on your audience and ad settings, ranging from $7 to $20 over the past year.
Every time someone clicks on a TikTok ad, you’ll pay an average cost-per-click (CPC) of $1 depending on the ad format used. Facebook ads are generally less expensive, costing between $0.6 and $1.50 per click.
The average return on ad spend (ROAS) on TikTok is typically around $1.2 to $3 per $1 spent, with ROAS increasing as more ads and formats are used. Facebook ads aren’t as lucrative as other platforms, yielding only an average ROAS of $2 (usually less than $1 for B2C eCommerce ads).
CTR (click-through rate) is the ratio of impressions to clicks. Because TikTok is more exclusive with less ad saturation, its CTR is 1% to 5% for in-feed ads, 7% to 10% for brand takeovers, and 16% for top-view ads. Facebook’s CTR is somewhere between 0.5% and 1.6% depending on your industry, with most eCommerce campaigns having a CTR of around 1%.
Average conversion rate
Average conversion rate (ACR) is the king of advertising metrics, comparing clicks to conversions. It is difficult to find reliable data on the ACR of TikTok ads, but you can expect an ACR of 1.5% to 3%. The ACR of Facebook ads ranges from 2% to 15%, with an average of 4% for e-commerce ads.
Pros and cons of TikTok Ads and Facebook Ads
- Detailed targeting
Facebook has built an advanced advertising algorithm that can target exactly the market you want with the click of a button. After the campaign, Facebook will recommend more demographics to help you hone your Facebook advertising strategy as an e-commerce store.
- Large user base
With more than 3 billion monthly active users (MAUs), Facebook can expose your eCommerce business to more potential customers than any other social media platform. Parent company Meta also owns Instagram, giving you the ability to easily cross-promote to another 2 billion MAU platform.
- Integrated A/B testing
In Meta Ads Manager, you can do A/B testing to see what works and get instant, real-world results.
- Special monitoring and analysis tools
Facebook gives you some of the most powerful tracking and analytics tools available.
- Waste of time when starting out
Facebook is notoriously hard to learn for new marketers. It also requires a lot of manual work to start your advertising campaigns.
- The majority of customers are untapped
Countries, where Facebook and Instagram are generally less popular, are often the birthplace of TikTok users, allowing advertisers to reach untapped audiences.
- The younger and more receptive audience
TikTok is extremely popular among the young generation. If an online business can create ads that are relevant and engaging to this younger audience, they will find them more receptive and responsive than an older audience.
- Influencer marketing opportunities
Like Instagram, TikTok allows you to work with influencers to engage their audience directly.
- Lack of instructions and information
Since TikTok is a relatively new platform, there isn’t much information online to help you get started or if you get stuck.
- Limited format
In-feed ads, brand takeovers, top views, trigger ads, and hashtag challenges are the only ad formats available on TikTok. Other platforms like Facebook offer more ad formats and media types.
- Fundamental analysis
Because its advertising platform is still relatively new and growing, TikTok doesn’t offer the same powerful analytics as Facebook.