517With the rise of TikTok, overseas enterprises have regarded it as an important platform for placing influential advertisements.
So, specifically in the Malaysian region, how much does it cost to place TikTok ads in ringgit?
Next, TuKe will give you a detailed explanation!
Let's talk first: Why should we run TikTok ads in Malaysia?
Reason: TikTok's user base in Malaysia is growing exponentially.
According to the latest statistics, as of 2024, the number of TikTok users in Malaysia has reached26.76 million. Although this figure ranks only 14th globally, Malaysia's total population is just 33.7 million (as of Q4 2023).
In other words, about80% of Malaysians are using TikTok.
Moreover, TikTok is not only a place for Malaysian users to watch videos, but also a place for them to make purchases. In addition, TikTok offers a variety of personalized ad formats, which can help overseas enterprises better promote their brands and expand their influence. Therefore, running TikTok ads in Malaysia has become a "must choose" option.
What metrics should you pay attention to when placing TikTok ads in Malaysia?
1. CPC--Cost Per Click: In this pricing model, you pay for each click on your ad. The effectiveness of the ad depends on targeting and engagement, with the ultimate goal of converting users into customers.
2. CPM--Cost Per Mille (Thousand Impressions): This pricing model involves paying for every thousand ad impressions. This option is ideal for building brand awareness and increasing audience visibility.
3. Campaign Budget: The campaign budget is the amount you are willing to spend on your TikTok ad campaign. You can set a daily budget or a total budget to control spending and ensure cost-effective results.
Screenshot of TikTok ad placement for Malaysian shop Kucingku.my
What are the TikTok ad formats and their corresponding costs?
TikTok offers a variety of ad formats, and you can choose according to your campaign objectives. Here are the different ad formats and their related costs:
1. In-Feed Ads
These ads appear in users' feeds as they scroll through videos. Similar to sponsored posts on other platforms, In-Feed Ads provide a non-intrusive advertising method. Pricing depends on your budget and targeting parameters, butgenerally, the starting price is about RM10 per thousand impressions (approximately 15.44 RMB).
2. Branded Effects
These ads involve custom AR filters, lenses, and other 2D/3D interactive effects that users can apply to their videos. Since these ads require custom development, costs vary, butusually around RM10,000 (approximately 15,400 RMB).
3. Branded Hashtag Challenges
This ad format makes full use of TikTok's user-generated content, allowing users to create videos around specific hashtags provided by businesses. It's a highly engaging option with higher costs, and campaignsusually start at around RM2,000 (approximately 3,087.26 RMB).
4. Brand Takeovers
These full-screen ads appear when users open the TikTok app, ensuring maximum exposure. Due to the exclusivity of this ad format, only one advertiser can occupy this spot per day. Therefore, Brand Takeover ads require a considerable budget,starting at about RM5,000 per day (approximately 7,718.15 RMB).
*Note: The above data may change from time to time. When planning your Malaysia TikTok ad budget, be sure to consider these components and ad formats. Allocate funds wisely among different formats and strategically choose pricing models based on your campaign objectives to ensure you get the maximum benefit from TikTok ads in Malaysia.
What factors affect the cost of TikTok ads in Malaysia?
1. Seasonality
During periods of high demand, such as holidays, major promotional events (like Singles' Day, Black Friday), or peak seasons for specific industries, your ad costs may increase. Therefore, seasonality has a significant impact on ad costs. You can monitor online traffic patterns to determine peak times on the platform.
2. Target Audience
The depth and breadth of your audience also determine ad costs. If you target a popular audience group, costs may increase due to competition. While understanding the demographics of your core audience is important, also consider whether you can attract other lower-cost audience groups.
3. Ad Quality and Format
On TikTok, high-quality and entertaining ads can attract more user attention and deliver better results. This includes not only the visual and audio elements of the ad, but also its compatibility with TikTok's vertical full-screen video format and mobile-optimized design.
4. Ad Placement and Duration
The placement and duration of your ad also affect costs. For example, In-Feed Ads are cheaper than advanced options like Brand Takeovers. Additionally, if you want your ad to run during prime time or for a longer period, you need to prepare a larger budget.
5. Geographic Location
Even in a country like Malaysia, costs may vary depending on the specific regions you want to target, which is affected by factors such as user population density and competition in those areas.
6. Bidding Strategy
TikTok offers different bidding strategies, such as cost cap, bid cap, and lowest cost. Your choice among these will affect the overall TikTok ad cost. Each strategy has its own advantages, and trying different strategies can help you find the best ad placement format for you.
Image source: TikTok for Business
Comparison of TikTok ad costs with other platforms in Malaysia
In fact, besides TikTok, other overseas social media platforms can also be used for advertising to better attract customers. So what are the ad costs on other platforms? Here are the answers:
1. Facebook
Facebook ad costs use a bidding system, so prices are not fixed and may vary depending on target audience, ad quality, and timing. Generally, the cost per click (CPC) in Malaysia isabout RM0.50-1.50 (approximately 0.77-2.32 RMB).
2. Instagram
Instagram's ad cost structure is similar to Facebook. Its CPC is usually higher, averagingRM0.50-5 (approximately 0.77-7.72 RMB) in Malaysia. For interactive ad formats such as Stories and Shopping Ads, the cost is even higher.
3. Google
Google Ads offers various ad types—search ads, display ads, shopping ads, video ads—to suit different budgets. However, costs may rise depending on the industry, competition for target keywords, and quality scores. It is estimated that the average CPC for Google Ads in Malaysia isRM0.50-10 (approximately 0.77-15.44 RMB).
4. LinkedIn
LinkedIn is known for its professionalism and can provide highly targeted leads, so ad costs are higher. According to the latest reports, the average CPC for LinkedIn ads targeting Malaysian audiences isRM2-10 (approximately 3.09-15.44 RMB).
Summary
TikTok, Facebook, Instagram, Google, and LinkedIn can all help overseas enterprises expand into Malaysia. While running ads, you should also continuously adjust and improve your marketing strategies so that you can occupy a more advantageous position in the fiercely competitive market and stand out in the Malaysian market.
