TikTok Ads vs Google Ads: Cost Breakdown for 2025

 

TikTok Ads vs. Google Ads: Cost Breakdown for 2025

In the competitive world of digital advertising, TikTok Ads and Google Ads have emerged as two dominant platforms, each catering to unique marketing needs. While Google Ads has long been the go-to solution for intent-driven campaigns, TikTok Ads has gained momentum as a creative and engagement-focused platform. In this detailed analysis, we’ll explore how these platforms compare in terms of costs, effectiveness, and suitability for different business goals.

Understanding the Platforms

Before diving into the cost breakdown, it’s essential to understand the core differences between TikTok Ads and Google Ads:

• Google Ads: A search engine-based advertising platform that excels in targeting users with high intent. It offers a variety of ad formats, including search ads, display ads, video ads on YouTube, and shopping campaigns.

• TikTok Ads: A social media advertising platform focused on short-form video content. TikTok's algorithm prioritizes engagement, making it ideal for brand awareness and viral campaigns.

Cost Comparison: TikTok Ads vs. Google Ads

1. Cost Per Click (CPC)

• TikTok Ads:

  • Average CPC ranges from $0.17 to $1.00 depending on audience targeting and campaign objectives57.

  • Lower CPC makes TikTok an attractive option for businesses with limited budgets or those aiming to drive engagement rather than direct conversions.

• Google Ads:

  • Average CPC is significantly higher, ranging from $1 to $2 on the Display Network and $2 to $4 on the Search Network12.

  • For competitive industries like legal services or finance, CPC can rise to $8 or more1.

2. Cost Per Thousand Impressions (CPM)

• TikTok Ads:

  • Average CPM is approximately $3.48 but can range from $3.20 to $10 depending on factors like location and audience segmentation78.

  • Premium ad formats such as Brand Takeovers can cost upwards of $50,000 per day3.

• Google Ads:

  • Display Network CPM averages around $3.12, while Search Network CPM is much higher at approximately $38.40 due to intense competition12.

3. Minimum Budget Requirements

• TikTok Ads:

  • The platform requires a minimum budget of $500 per campaign3.

  • This makes it accessible for small to medium-sized businesses looking to experiment with video-based advertising.

• Google Ads:

  • No strict minimum budget is required; businesses can start with as little as $100 per month.

  • However, achieving meaningful results often requires a larger investment due to higher CPCs and CPMs2.

4. Cost Per Conversion

• TikTok Ads:

  • Median cost per conversion is approximately $37.81 as of March 2025, with variations based on gender and optimization goals4.

  • Campaigns focused on app installs or in-app events may see higher costs but benefit from TikTok’s viral potential.

• Google Ads:

  • Conversion costs vary widely depending on industry and keyword competition.

  • For high-intent searches, conversion costs are typically lower than TikTok due to precise targeting capabilities6.

Ad Formats and Their Costs

TikTok Ad Formats

TikTok offers a variety of creative ad formats designed to engage users:

Ad Format	Cost Estimate
In-Feed Ads	$10–$150 CPM
TopView Ads	$65,000+ per day
Branded Hashtag Challenges	$150,000 for six days
Branded Effects	$80,000–$120,000
Brand Takeovers	$50,000+ per day

Premium formats like Branded Hashtag Challenges are ideal for large-scale campaigns aiming for maximum visibility but may not be feasible for smaller businesses35.

Google Ad Formats

Google provides a diverse range of ad types:

Ad Format	Cost Estimate
Search Ads	CPC: $2–$4
Display Ads	CPM: ~$3.12
YouTube Video Ads	CPM: ~$9
Shopping Campaigns	CPC varies by product type

Google’s versatility in ad formats allows businesses to target users at different stages of the buying journey16.

Effectiveness and ROI

TikTok Ads

• Best suited for brand awareness campaigns targeting younger audiences (Gen Z and Millennials).

• Viral potential can lead to high engagement rates even with lower budgets.

• Average click-through rate (CTR) ranges from 0.50% to 1%, which is lower than Google but sufficient for top-of-funnel campaigns12.

Google Ads

• Ideal for bottom-of-funnel conversions due to its intent-driven nature.

• Higher CTR of approximately 1.91% on Search ads ensures better ROI for eCommerce brands and lead generation campaigns16.

• Precise targeting capabilities make it effective for industries with high competition.

When to Choose TikTok Ads

1. Target Audience: If your primary audience consists of Gen Z or Millennials who engage with short-form videos.

2. Budget Constraints: Lower CPCs and CPMs make TikTok an affordable option for small businesses.

3. Creative Campaigns: Brands looking to leverage user-generated content or viral trends will find TikTok’s platform highly effective.

When to Choose Google Ads

1. High Intent Searches: For businesses targeting users actively searching for products or services (e.g., “buy running shoes online”).

2. Diverse Ad Formats: Companies needing flexibility in ad types such as shopping ads or YouTube videos.

3. Higher Budgets: Larger budgets are often necessary to compete effectively in Google’s ecosystem.

Real-World Examples

• A fitness app used TikTok influencer ads and achieved a 70% lower cost-per-install compared to Meta platforms6.

• An online mattress company saw a 12% conversion rate using Google Search ads targeting high-intent keywords like “best memory foam mattress”6.

Conclusion

Both TikTok Ads and Google Ads offer unique advantages depending on your marketing goals:

• Choose TikTok Ads if you’re focused on brand awareness, engagement, or reaching younger audiences at a lower cost.

• Opt for Google Ads if your goal is driving conversions through precise targeting and intent-based advertising.

Ultimately, the right choice depends on your business objectives, target audience, and available budget. For many brands, a hybrid approach leveraging both platforms may yield the best results in today’s competitive landscape.