Entrepreneur
Key Takeaways
- TikTok ads now offer low-budget, AI-optimized campaigns that generate affordable, high-quality leads.
- The platform’s new search ads and short-form content focus make it a major marketing channel.
- Raw, creator-style videos and micro-influencer UGC outperform polished production for engagement and conversions.
When it comes to digital marketing and advertising, the rules have changed. Up until recently, businesses in order to scale didn’t have to rely on social media advertising, and TikTok advertising was seen as being non-essential, with the view that it only reaches younger audiences.
But that has all changed.
More than seven years after TikTok exploded in popularity in the U.S. and worldwide, its largest user base remains adults ages 18 to 34. With many companies wanting to target this age set, here are five things that surprised me when starting to run TikTok ads and what you need to know now about them — whether you’re a professional services-based business, tradesperson, e-commerce brand or small business.
Related: Ignore These 6 Growth Strategies and Watch Your Business Collapse
1. You don’t need a big budget
Initially, TikTok ads had a minimum ad spend limit of $50 a day, which I found was quite hefty for a business that just wanted to test the water. Now, thanks to their Smart+ lead-generating campaigns, you can spend a minimum of just $20 a day to start getting leads. The great thing about TikTok is that I do find that the cost per lead is less than when you run your ads across Meta (Facebook & Instagram).
Another great feature is that you can indicate how much you’re prepared to pay per lead, too.
Related: How I Scaled My Business Spending Just $10 a Day — And How You Can Do It, Too.
2. More than a scroll feed
TikTok, in its latest rollout of advertising strategies, is taking a leaf from Google Ads’ playbook and now positioning itself as more than a scroll feed. The platform just launched “search ads” campaigns, where advertisers can leverage keywords that their target audience may be using.
This is a game-changer. Up until now, Google was the main player for any keyword ad campaigns but with the rise of Google AI and people relying on ChatGPT more, Google is holding less power when it comes to search. In fact, in a recent study, TikTok says that 86% of its Gen Z users now use TikTok for search, which nearly matches the usage across traditional search engines.
Enter TikTok’s search campaigns that will trigger your cut-through reels and static image ads when your selected keywords are entered.
Related: ‘More Than Marketing Tools’: Some Business Owners Are Worried About the Possible TikTok Ban
3. Use AI-powered campaigns with Smart+
Competing with Meta’s Advantage+ campaigns, TikTok has now rolled out its new Smart+ campaigns that can be used across a wide range of objectives from awareness, sales and even lead generation. The advertiser can now leave it in the hands of AI when it comes to optimizing their campaigns and how their creative is shown to your audience.
When it comes to best practices, TikTok says for these campaigns, it’s best to upload at least six video variations per ad set so you can see what works best. Using AI and TikTok’s algorithm, the platform endeavors to deliver the right ad to the right audience at the right time.
Related: Who’s Buying TikTok? Here’s What We Know About Who Gets the Algorithm.
4. Size does matter
Our attention spans are always shrinking, and with that, the length of our advertising content. TikTok’s algorithm thrives on micro-moments with advertising reels less than 15 seconds, proving to be more successful than longer formats. You no longer need to shoot a monologue or a mini feature film to get noticed — in fact, this could be doing more harm than good. Make sure that you grab your audience’s attention in the first three seconds and keep them engaged, and then outline your strong offer within 15 seconds.
TikTok is a platform where viewers don’t often engage with content with their sound off, so your ads need to ensure you use music to your advantage. Having voice-over audio clips or catchy music is a sure-fire way to keep your audience engaged.
5. Raw is reel
When shooting your video ads, the good news is raw is real. You no longer need to hire a professional videographer. A few years ago, it was all about your dance moves — now it’s all about who has the best content, and often, if you’re sitting in a stationary car while recording your reels, this works a treat!
If you’re not a fan of putting yourself in front of the camera, then I suggest you engage with a micro influencer, a person who specializes in your niche and has 10,000 followers or fewer. You can even engage with influencers on TikTok’s marketplace to select the right talent for your campaign.
Having influencers create content (UGC, user-generated content) can also act as further social proof and a testimonial for your product or service.
And if you’re not a fan of editing videos, no problem! TikTok now has inbuilt AI features to even help you edit your videos to make it all seamless.
If you’re looking for another way to generate leads and increase sales, TikTok should be on your radar. The platform isn’t just for kids — and starting in December 2025, users under 16 will be banned from it in Australia. When your account is set up correctly and paired with creative, high-performing content, TikTok advertising can become a powerful channel for driving traffic, leads and sales for your business.
Key Takeaways
- TikTok ads now offer low-budget, AI-optimized campaigns that generate affordable, high-quality leads.
- The platform’s new search ads and short-form content focus make it a major marketing channel.
- Raw, creator-style videos and micro-influencer UGC outperform polished production for engagement and conversions.
When it comes to digital marketing and advertising, the rules have changed. Up until recently, businesses in order to scale didn’t have to rely on social media advertising, and TikTok advertising was seen as being non-essential, with the view that it only reaches younger audiences.
But that has all changed.
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