TikTok Ads vs Facebook Ads: Which Is Profitable For You?

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Which do you prefer: TikTok or Facebook, and why? 

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It’s a question that many businesses continue to grapple with. While TikTok is relatively new in advertising, its trend-driven content and engaged user base makes it highly attractive. Facebook, meanwhile, remains a tried-and-tested pillar, solidifying its position as a digital marketing juggernaut in 2023.

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But to really judge between TikTok ads vs Facebook ads, we need to examine their unique features, costs, and most importantly, ROI. You’ll then understand why platform selection matters in the ever-competitive advertising landscape.

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Let’s start!

Understanding TikTok And Facebook Ads

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First, let's dip into the basics of both platforms and how they differ. You may find that your business is better suited for one, especially if you are not ready to invest in both.

Facebook Ads: Versatility and Precision

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Facebook ads are renowned for their multifaceted campaign options, enabling advertisers to select from various ad placements, formats and custom audience targeting. Its ability to extend campaigns to Instagram also amplifies its reach, blending two powerhouse platforms for maximum impact.

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All in all, with over 3 billion monthly active users across many age ranges, Facebook can potentially target almost any demographic or niche imaginable. As such, it's remained an advertising staple among digital marketers and businesses.

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TikTok Ads: Branded Content and Engagement

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TikTok ads may be relatively new to the advertising game, but its user engagement levels and youth-focused audience make it a hot commodity for marketers. TikTok's audience is hugely influential and responsible for many of today's biggest trends, making it a prime location for branded content. 

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Going viral is not just a possibility but a reality for many brands who have leveraged the platform's trend-centric nature to create impactful campaigns. Even as I type, I’m sure there's a new viral challenge or catchy jingle taking the platform by storm.

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TikTok's ad formats are also creative and engaging, with In-Feed Videos, Branded Hashtag Challenges and Brand Takeovers garnering the most success. 

Key Differences Between TikTok and Facebook Ads

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Now that we have a general understanding of the two platforms let's delve deeper into their key differences:

Ad Cost 

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Let’s look at the different TikTok ads vs Facebook ads cost below:

TikTok:

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• TikTok average CPM (cost per mille): $10.00
• TikTok average CPC (cost per click): $1.00

Facebook:

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• Facebook average CPM: $7.00
• Facebook CPC: $1.00

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CPM for Facebook ads, on average, cost less than TikTok ads. However, many variables can impact your ROI on both platforms. For example, if your ads primarily use short-form video content to TikTok’s predominant user base, you may experience a lower cost-per-click from TikTok.

CPC for both platforms, meanwhile, is identical with both averaging at $1.00. 

Ad Format

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TikTok and Facebook offer a wide range of formats, but there are a few distinct differences.

TikTok video ads, for example, can include branded effects which can be customised with branded elements like CTA buttons or logos. On the other hand, Facebook ads provide a more extensive array of ad formats, each tailored to different stages of the marketing funnel and user interaction types. To get different ideas on Ads, you can take a look into TikTok Ad Library and Facebook Ad Library.

Facebook:

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1. Carousel ads
2. Collection ads
3. Image ads
4. In-Stream Video ads
5. Messenger ads
6. Stories ads
7. Video ads

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TikTok:

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1. Branded Effects ads
2. Branded Hashtag ads
3. Brand Takeover ads
4. Collection ads
5. In-Feed ads
6. Top View ads

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As you can see, it's pretty close on who gets the verdict between the two platforms regarding ad formats. However, what separates the two and puts Facebook on top is its ability to extend onto Instagram. This allows advertisers to seamlessly integrate their campaigns across both platforms, reaching a diverse and expansive audience.

User Demographics

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Regarding each platform's active users, there's the common belief that TikTok mainly caters to Gen Z and Millennials, while Facebook has a wider age span. But is it really true? Let's dive into the data and judge for ourselves:

TikTok:

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• 18-24 Age Group: 37.3% 
• 25-34 Age Group: 32.9% 
• Combined 18-34 Age Group: A whopping 70.2% of adult users.
• Combined 35+ Age Group: 29.8% 

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Facebook:

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• 18-24 Age Group: 22.6% 
• 25-34 Age Group: 29.6%, its largest user group, translating to 668.5 million individuals.
• Combined 18-34 Age Group: 52.2%
• 35-65+ Age Group: 47.8%
• Combined 35+ Age Group: 94% of Facebook's active users are above 35.

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These statistics prove that younger audiences love TikTok, while Facebook has a more diverse user base. Although this information doesn't indicate one is superior, it certainly can inform specific businesses on where to allocate their ad spend based on target audience demographics.

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Audience Targeting

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TikTok and Facebook offer a range of targeting options based on age, gender, interests, behaviour and device, making it easy to find your desired audience. Furthermore, both have features that use data from existing customers to create new custom audiences. 

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However, one clear difference between them is the amount of data collected for targeting purposes. Facebook is a social media giant, having begun their data collection process in 2007, whereas TikTok has done so since 2020. This means Facebook's targeted audiences may be more refined due to years of data accumulation, while TikTok's targeting might still evolve. 

Analytics

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Analytics helps businesses to track their campaigns, measures results, and uses that data to inform future strategies. As such, a good analytics platform is crucial for the success of any advertising effort.

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The good news is that TikTok and Facebook both offer analytics, with the following features available for both platforms:

• Analytics Dashboards: Your central location that lets you track and evaluate campaign performance (Ads Manager for Facebook and Ads Manager for TikTok).

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• Real-time data: Data revolving around your ad's activities i.e. number of comments or shares, clicks, impressions etc. This allows businesses to adjust their ads accordingly for maximum impact.

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• Conversion tracking: A feature that allows businesses to see their number driving conversions such as website visits, app installs or purchases. 

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• Additional Measurement: Both platforms offer advanced options like Brand Lift studies (Facebook) and ad effectiveness studies (TikTok) to help advertisers assess the broader impact of their campaigns on brand perception and audience engagement.

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• Tracking Pixels: Implement tracking pixels on your website for post-click user data on both platforms.

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In summary, both platforms excel in campaign measurement and can't really be compared on this aspect. It mostly depends on the user's preference and familiarity with the platforms. 

Determining The Right Ad Platform For Your Business Based On ROI

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ROI (Return on Investment) is essentially your end goal when advertising on any platform. It refers to the amount earned or lost due to your ad campaign. In other words, it measures how profitable your investment for advertising was.

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ROI can be calculated using the following formula: 

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Return on investment (ROI) = (Net Return / Cost of Investment) * 100

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This percentage represents how much money you gained (or lost) for every dollar invested. For example, if you have an ROI of 50%, it means that for every one dollar you spent, you gained $0.50 in profit, resulting in a 50% return. 

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So, if you spent $100 on your marketing campaign and achieved an ROI of 50%, you would earn your initial $100 plus an additional $50 - a total of $150.

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In the context of TikTok and Facebook ads, let's delve into some metrics that can influence ROI:

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Average Return on Ad Spend (ROAS):

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• TikTok ROAS: $1.20 - $3 per $1 spent.
• Facebook ROAS: $2 per $1 spent. 

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TikTok advertisers, on average, see a higher return on their investment than Facebook advertisers. It gets even worse for Facebook B2C e-commerce ads, dipping below $1. TikTok businesses, meanwhile, can achieve an even higher ROAS when more ads formats are used.

Click-Through Rate (CTR):

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• TikTok CTR: 1% to 5% for in-feed ads and up to 16% for top-view ads.
• Facebook CTR: 0.5% to 1.6%.

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Again, TikTok surpasses Facebook when it comes to CTR.

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The ceiling for engagement on TikTok, especially with top-view ads, is notably higher. This suggests that TikTok's audience may be more receptive or curious, making it a potent platform for advertisers aiming for higher interaction rates.

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Average Conversion Rate (ACR):

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• TikTok ACR: 1.5% to 3%.
• Facebook ACR: 2% to 15%. E-commerce ads average at 4%.

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Now, these figures may throw a spanner in the works.

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While Facebook appears to have better conversion rates, especially in e-commerce, it doesn't automatically translate to more profits or better ROAS. Remember that conversions doesn’t necessarily mean sales; it can refer to any predefined action, such as signing up for a newsletter, filling out a form, or downloading an app.

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Facebook's ACR wide range also suggests that different types of businesses and industries may have varying levels of success on the platform. It also indicates that advertisers play a significant role in ensuring a successful campaign, as variables like your ad's quality, targeting precision, and product type all help influence your conversion rate.

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Using Magic Brief's Ad Library to Boost Your Brand with TikTok and Facebook Ads

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Based on all the different ad metrics we've looked at so far, it's clear that TikTok and Facebook have unique strengths and weaknesses in advertising. It's also clear that averages and expected figures don't tell the full story.

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To truly understand which platform will be more profitable for ads, businesses must conduct thorough research and testing. One way to do this is by using MagicBrief's Ad Library, which provides insights into your competitors' ads from both TikTok and Facebook.

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With the MagicBrief, users can save competitor ads from the Facebook and TikTok Ad Library directly to their own library. This allows you to quickly build collections of ads based on the industry or product type, and analyze them to inform your own campaigns.

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Having trouble in finding your competitor ads? Read this blog: How to Find Your Competitor's Ads?

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But besides MagicBrief's all-in-one ad library, users also have access to the following features:

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• Brief: Helps to create detailed briefs for your creative team.
• Storyboard: Allows advertisers to create ad storyboards that tell a comprehensive story while highlighting your product or service.

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Moreover, MagicBrief's 'MagicAI tool automatically transcribes and breaks down video ads into storyboards within seconds, providing advertisers with quick and visual sequencing and storytelling insights. This facilitates a more efficient ad analysis and empowers advertisers to optimise their own TikTok and Facebook campaigns based on this information.

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Register today to use MagicBrief's Ad Library and unlock all its free features to make data-driven decisions. You can then determine if TikTok or Facebook is the most profitable for your business. 

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Boost Your Business With TikTok And Facebook Ads

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Who says you have to choose between TikTok ads and Facebook ads? You can have the best of both worlds with the right ad strategy. Each platform brings unique features and audience demographics, making them equally viable options for reaching new customers and increasing your brand's online presence. 

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Let's review some actionable tips and insights to help use both platforms for your advertising campaigns.

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Collect and Implement Insights from Both Platforms

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Most top brands today use a cross-platform advertising strategy to reach their target audience. By collecting insights and data from TikTok and Facebook, you’ll gain a clearer understanding of  your customer's behaviour and preferences. This information can then be used to optimise your ad campaigns for maximum impact.

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Let’s say, for example, you post the same product launch ad on TikTok and Facebook. On TikTok, it gets a lot of shares, with many younger users making their own versions. On Facebook, meanwhile, people are chatting in the comments, asking about details, giving feedback, and even thinking about buying.

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From this, you can see that while both groups liked the ad, they engaged in their own ways. These unique insights can then be used to optimise your existing ads or inform the creation of new ones.

Determine Your Target Audience for Each Platform

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Once you know who you're targeting, you can create different ad campaigns for each platform based on their demographics and interests. For example, if you're selling skincare products, you can cater your TikTok ads to Gen Z with an upbeat, trendy vibe. In contrast, your Facebook ad can focus on the anti-aging benefits for older generations.

Maximise the Unique Features of Each Platform

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TikTok separates itself with its unique branded effects and hashtag challenges. Meanwhile, Facebook offers more ad formats, including video, carousel and collections ads that surpass TikTok. 

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When creating your ad campaigns, take advantage of these unique features and tailor your content accordingly. For TikTok, use branded effects and hashtags to create a viral-worthy campaign. For Facebook, experiment with different ad formats to see which resonates best with your target audience.

Tracking and Measuring

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Even if you post the same ad on both platforms, you’ll want to track and measure their performance as results may vary. 

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Use TikTok and Facebook’s analytics tools to monitor metrics such as engagement, clicks, and conversions to see which brings you the most success. You can then optimise your campaigns by allocating more budget towards the platform that is performing better for your business. Alternatively, if one platform is faring poorly, you can re-evaluate your strategy and make changes accordingly.

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FAQs On TikTok Ads Vs Facebook Ads

Are TikTok ads cheaper than Facebook ads?

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While TiTok and Facebook ads average the same CPM at $1.00, Facebook's CTR is cheaper at $7 compared to TikTok's $10. But remember, it's not just about cost but also how your audience engages with the ad and how well it converts into sales. Ultimately, it's your ROI that matters. Here, TikTok pulls ahead with a ROAS ranging from $1.20 to $3, while Facebook averages at $2.

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Are TikTok ads better than Facebook ads?

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It depends on your target audience and goals. TikTok might be better for reaching younger folks and going viral with captivating video content. At the same time, Facebook is ideal for targeting a slightly older demographic with good ad copy and various ad formats. Analyse your data to see which platform yields better results for your business.

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If your product is relatively new and you're unsure on which audience will respond best, Facebook's more diverse user base and targeting options can give a good starting point. If your respondents fall between 18-24 years old, you could move on to TikTok advertising. 

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Which is better for beginners, TikTok ads or Facebook ads?

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If you don't know your target audience, Facebook's broader, more detailed targeting options may be a better starting point. However, TikTok's user base is growing rapidly and has a strong younger demographic, making it an attractive option for businesses looking to target that specific audience.

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Which is better in 2023, TikTok ads or Facebook ads?

When you go on TikTok, you expect to see viral, fun videos, and that's where your brand can stand out. Facebook, meanwhile, produces less trending content, but is still ideal for reaching different demographics with its various ad formats, including Messenger Ads and Instagram Stories Ads.

If your primary goal is to maximise return on ad spend (ROAS), TikTok appears to be the more profitable platform in 2023, with an average ROAS of $1.20 to $3 per $1 spent vs Facebook's $2 per $1. 

On the other hand, Facebook's average conversion rate of 2%-15% is higher than TikTok's 1.5% to 3%, indicating that lead generation may be more effective on Facebook. While sales may be higher on TikTok, Facebook may be better for building brand awareness.