According to a report from Bloomberg, TikTok is set to charge up to $2 million for their most valuable ad spaces, thanks to the app’s rapidly growing user base.
Over the past couple of years, TikTok has cemented itself as a staple social media platform. The short-form video app has fast become a hub of viral content, from viral sounds, filters, trends, and more.
With many of TikTok’s most popular stars such as Addison Rae and Charli D’Amelio making huge amounts of money from their careers on the platform, securing huge brand deals with businesses like Dunkin’ Donuts and Hollister, it’s clear that the site is becoming a hotspot of brand activity.
Now, according to a report from Bloomberg, TikTok is planning to sell their most valuable ad space for up to $2 million.
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The spot in question is called ‘top view,’ which refers to the first thing users see upon launching the app and heading to their For You Page, making it a highly coveted space from an advertiser’s perspective.
According to the report, the top view ad will cost up to $1.5 million per day on a national holiday in the third quarter, and $2 million in the fourth quarter.
This steep climb in price is likely partly a result of TikToker’s rapidly growing user base, with TikTok estimating that 109 million impressions could be generated from this unit.
The first ad slot on a user’s For You Page reportedly costs less than half of the top view as it generates less than 50 million impressions.
The high demand for this coveted ad spot and the increase in price may begin to direct more advertisers towards the increasingly popular app, as the userbase continues to grow.