By year’s end, TikTok will be charging a daily rate of $2 million for its prime ad placement — the skippable ‘TopView’ format that fires up fullscreen, with sound, when users open the app.
In the third quarter of this year, the app is asking for $1.4 million daily for TopView ads — and as much as $1.5 million on national holidays — reports Bloomberg, which obtained a rate card detailing pricing plans. This figure will reportedly increase to $1.8 million in the fourth quarter, and will increase to more than $2 million on holidays.
Bloomberg reports that the price increases are due to TikTok’s staggering user growth in recent months — from 11 million monthly active users in the U.S. in early 2018 to 100 million last August, with 45% of its users being under the age of 18. Nevertheless, TikTok isn’t yet making a lof of money on advertising in comparison to the likes of YouTube, Facebook, Instagram, and Snap, and is still building its ad team.
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While the TopView ad is seen by all 100 million monthly active users, Bloomberg reports that in-feed ads cost less than half as much, as TikTok projects that the number of people who see these ads falls below 50 million.
Finally, a Branded Hashtag Challenge — an ad format in which marketers seek to involve the TikTok community to recreate viral trend — costs $500,000 for three days, per Bloomberg, though this doesn’t include music licensing and creator sponsorship costs.