Planning your TikTok advertising budget can feel overwhelming when costs vary so widely. Whether you're a small business testing the waters or an established brand ready to scale, understanding what your monthly TikTok ad spend will actually buy you is essential for setting realistic expectations.
In 2026, TikTok remains one of the most cost-effective advertising platforms available, with CPMs averaging $3.20-$10.00—significantly lower than Meta's average of $8.19+. But raw cost metrics only tell part of the story. What matters is what you can achieve at each budget level.
This guide breaks down monthly TikTok advertising costs into practical tiers, showing you exactly what your investment will get you.
TikTok requires minimum daily budgets of $50 at the campaign level and $20 at the ad group level. This means your absolute minimum monthly spend is around $600 if you want consistent delivery. However, most businesses need more budget to generate meaningful data and results.
Here's how monthly budgets typically break down by business size:
| Budget Tier | Monthly Spend | Best For |
|---|---|---|
| Starter | $500-$1,000 | Testing viability, small local businesses |
| Growth | $1,500-$3,000 | Small businesses, initial scaling |
| Scale | $5,000-$10,000 | Established brands, aggressive growth |
| Enterprise | $10,000+ | Large brands, multi-campaign strategies |
Your ideal tier depends on your goals, industry, and how quickly you need results. Let's examine what each budget level can realistically deliver.
At $500 per month, you're operating at TikTok's minimum viable threshold. This budget works for businesses that want to test whether TikTok can work for them before committing more resources.
What to expect:
Best use cases:
Limitations:
At this budget, TikTok's algorithm has limited data to optimize your campaigns. You'll likely see inconsistent results day-to-day, and you won't have enough budget to test multiple audiences or creative approaches simultaneously.
According to Shopify's TikTok advertising guide, "although you can run a campaign for as little as $500, you probably won't be able to test different formats at this price point."
The $1,500-$3,000 monthly range represents what most experts recommend for businesses seriously testing TikTok ads. Shopify recommends a starting budget of $1,500 to $3,000 for a 30-day test.
What to expect:
Best use cases:
What this budget enables:
At $2,000/month, you can run a proper testing phase. A recommended approach from industry experts suggests:
This budget gives TikTok's algorithm enough conversion data to optimize effectively, leading to better cost efficiency over time.
At $10,000 or more per month, you're in scaling territory. This budget allows for sophisticated multi-campaign strategies and aggressive growth.
What to expect:
What this budget enables:
Expected performance:
Brands at this level typically see ROAS of 4-12x in the short term and 3-5x long term. However, results vary significantly by industry, product, and creative quality.
Enterprise brands spending $10,000+ monthly should also budget for:
When budgeting for TikTok advertising, don't forget to account for management costs. You have three main options:
Cost: $0 in fees, but significant time investment
Best for: Small businesses with marketing experience and time to learn TikTok's platform
Trade-off: Learning curve can lead to wasted ad spend during the optimization period
Cost: $500-$2,000/month
Best for: Businesses spending $2,000-$5,000/month on ads who need expertise but not full-service support
What's included: Campaign setup, optimization, basic reporting
Cost: $1,000-$15,000/month depending on ad spend, creative volume, and campaign complexity
Best for: Brands spending $5,000+/month who want comprehensive management
What's included: Strategy, creative production, campaign management, detailed reporting, ongoing optimization
Budget allocation rule of thumb:
For businesses working with agencies, expect to allocate 15-25% of your total TikTok budget to management fees. So if you have $5,000 total monthly budget:
Here's a practical framework for determining your monthly TikTok advertising budget:
Different objectives require different budget levels:
Work backward from your unit economics:
TikTok's algorithm needs data to optimize. Budget for at least 50 conversions during the learning phase, which typically takes 2-4 weeks. If your target CPA is $25, that means $1,250 minimum just for initial learning.
TikTok CPMs can increase 20-40% during Q4 (Black Friday, holidays) and drop 15-30% in Q1. Plan your budget accordingly:
A proven approach:
TikTok requires a minimum of $50/day at the campaign level, making $1,500/month the practical minimum for a full month of advertising. However, you can run campaigns for as low as $500 total—you just won't have budget to test multiple approaches.
$500/month can work for local businesses or as a proof-of-concept test, but it's too limited for most e-commerce or lead generation goals. Experts recommend $1,500-$3,000 for a proper 30-day test that generates enough data for optimization.
Most businesses allocate 75-85% of their total budget to ad spend and 15-25% to management. If you're spending less than $3,000/month on ads, consider DIY management or a freelancer rather than a full-service agency to maximize your ad dollars.
Yes, generally. TikTok's average CPM of $3.50 compares favorably to Meta's $6.59. However, costs vary by industry, targeting, and competition. TikTok offers particularly good value in Tier 2 and Tier 3 markets where CPMs can fall below $1.00.
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