Choosing where to spend your social media marketing budget can feel overwhelming, especially when platforms like TikTok and Instagram are both competing for your attention. If you’re trying to work out which social platforms give you better value for money, you’re not alone. Let’s break down the costs, benefits, and real differences between TikTok ads and Instagram ads to help you make the smartest choice for your business goals.
Understanding the Cost Difference
When it comes to Instagram advertising and TikTok marketing costs, there’s quite a gap between the platforms. TikTok typically charges around £6.30 per thousand impressions (CPM) in the UK, whilst Instagram ads come in slightly cheaper at around £4-£8 per thousand impressions. However, the cost per click tells a different story. TikTok ads average about £0.89 per click, which is actually lower than Instagram’s £1.29.
Here’s where it gets interesting for smaller budgets. TikTok requires you to spend at least £50 per day on your campaign, with a minimum of £20 per ad set. Instagram advertising, being part of the Meta family, offers more flexibility with lower minimum spends, making it easier for businesses just starting out with video ads.
| Platform | Average CPM (UK) | Average CPC | Minimum Daily Budget |
|---|---|---|---|
| TikTok | £6.30 | £0.89 | £50 |
| £4-£8 | £1.29 | More flexible |
Who Uses Each Platform?
Understanding who you’ll reach on each platform is crucial for making the right choice. TikTok is absolutely dominated by younger users, with the majority being under 25 years old. If you’re trying to reach Gen Z (people born between 1997 and 2012), TikTok is your best bet. These users spend hours scrolling through their ‘For You’ page, discovering new products and brands.
Instagram has a broader age range. Whilst it’s popular with younger people, nearly half of users aged 30-49 are also active on the platform. This wider demographic spread can be brilliant if you’re targeting multiple age groups or if your product appeals to people beyond just teenagers and young adults.
Engagement Rates: Where Your Ads Get Noticed
This is where things get really interesting. TikTok’s engagement rate sits at around 2.65%, which is significantly higher than Instagram’s 0.70%. What does this mean for you? Simply put, people on TikTok are more likely to interact with your content by liking, commenting, or sharing it. This higher engagement rate helps you reach and engage with potential customers more effectively.
However, there’s an important detail to consider. TikTok’s engagement rates have been dropping over the past couple of years, whilst Instagram’s rates remain steady. This consistency makes Instagram a reliable marketing tool for long-term TikTok marketing strategies, especially when you want to increase brand awareness.
Ad Formats and Creative Freedom
Both platforms offer unique ways to showcase your products or services, but they work quite differently. TikTok thrives on authentic, casual content that feels native to the platform. Your video ads need to blend in with regular TikTok videos, using trending sounds, effects, and styles. The platform offers in-feed ads, branded hashtag challenges, and branded effects that can help you go viral.
Instagram marketing provides more variety in ad formats. You can choose from feed ads, Instagram Stories, Instagram Reels, carousel ads, and explore page ads. Carousel ads let you showcase multiple images and video options in one ad, perfect for displaying different products or services. Instagram posts can be promoted as ads, whilst Instagram Reels offer the short-form video format similar to TikTok. This flexibility means you can test different approaches and see what works best for your audience. Instagram’s polished, professional aesthetic means your ads can look more ‘traditionally’ advertising-like without standing out negatively.
When creating content for either platform, it’s essential to understand UK advertising regulations for targeting young audiences, especially as both platforms have significant numbers of users under 18.
Return on Investment: Getting Your Money’s Worth
Here’s what really matters: which social networking platform gives you better results for your spend? Research shows that TikTok is brilliant for brand awareness and impulse purchases. About 4 in 10 TikTok users buy products after seeing them on the app, and 67% say TikTok inspires them to shop even when they weren’t planning to.
Instagram shines when it comes to conversions and direct sales. Feed ads on Instagram see click-through rates between 0.22% and 0.88%, whilst Instagram Stories get about 0.33% to 0.54%. The targeting option on Instagram is also more sophisticated, allowing you to reach specific audiences based on detailed interests and behaviours. If you’re focused on getting immediate sales rather than just building awareness, Instagram might give you better returns.
Which Platform Suits Your Goals?
The answer depends entirely on what you’re trying to achieve. TikTok is perfect if you want to build buzz around your brand, reach younger audiences, and create viral moments. The platform’s algorithm is incredibly powerful at pushing content to new audiences, meaning even small accounts can suddenly reach millions of people.
Instagram works better if you need precise targeting options, want to reach a wider age range, or are focused on driving direct sales. The platform’s integration with Facebook’s advertising tools gives you sophisticated targeting capabilities that TikTok is still developing.
For businesses exploring social media advertising, understanding the strengths of TikTok marketing compared to other platforms helps you allocate your budget more effectively.
Content Strategy Matters More Than Cost
Here’s something that often gets overlooked: the platform you choose matters less than how well you adapt your content to that platform. Research has shown that native content (content that looks like it belongs on the platform) performs significantly better than repurposed content.
On TikTok, this means creating vertical video ads that use trending sounds, have captions, and feel spontaneous rather than overly produced. User-generated content performs exceptionally well on TikTok, as it feels authentic and relatable. On Instagram, you need to balance organic content with more polished visuals, whether that’s through Instagram Reels, carousel ads, or Instagram Stories. Mixing user-generated content with professional ads helps maintain authenticity whilst showcasing your products or services effectively.
| Success Factor | TikTok | |
|---|---|---|
| Best for | Brand awareness, viral reach | Conversions, precise targeting |
| Content style | Casual, trend-focused | Polished, varied formats |
| Ideal audience | Gen Z, under 25 | Broader demographics, 18-49 |
| Learning curve | Steeper (trends change fast) | More straightforward |
Making Your Budget Work Harder
Regardless of which platform you choose, there are smart ways to stretch your advertising budget. Start with small test campaigns to understand what resonates with your audience before committing large amounts of money. Both platforms offer detailed analytics that show you exactly how your ads are performing.
Consider influencer marketing on either platform. Working with micro-influencers who have engaged audiences can be more cost-effective than traditional video ads. These creators often charge less than major influencers, giving you authentic promotion at a fraction of the cost whilst helping you reach and engage potential customers effectively.
Time your campaigns strategically. Advertising costs spike during busy periods like Black Friday and the Christmas season, with costs sometimes doubling. If possible, run your campaigns during quieter months when competition for ad space is lower.
The Verdict: Which Platform Wins?
There isn’t a universal winner between TikTok ads and Instagram ads. TikTok marketing wins for businesses targeting younger audiences, those wanting viral potential, and brands comfortable with a more casual, trend-led approach. The lower cost per click and higher engagement rate make it attractive for building brand awareness on a budget.
Instagram marketing wins for businesses needing sophisticated targeting options, those with products or services appealing to wider age groups, and brands focused on direct conversions. The platform’s stability and integration with other Meta tools make it reliable for long-term social media marketing strategies.
The smartest approach? Don’t choose just one social platform. Many successful businesses use both platforms strategically, using TikTok ads to increase brand awareness and community building, whilst using Instagram advertising for retargeting and conversions. Start with the platform where your potential customers spend most of their time, test your campaigns, and expand from there.
Frequently Asked Questions
How much should a small business spend on TikTok ads or Instagram ads?
Most small businesses start with £200-£500 per month for testing social media marketing campaigns. On TikTok, with the £50 daily minimum, you’re looking at around £350 per week minimum. Instagram advertising offers more flexibility for smaller budgets, allowing you to test with as little as £50-£100 per week. Remember that content creation costs (filming, editing, graphics) often exceed your actual ad spend.
Can I use the same video ads on both TikTok and Instagram?
Whilst you technically can, it’s not recommended. Each social platform has its own style and user expectations. TikTok users prefer casual, trend-focused organic content with platform-specific features like trending sounds. Instagram users expect more polished content, especially in Instagram Reels and Instagram posts. Content that’s clearly made for one platform and reposted to another typically performs poorly. Create platform-specific versions for the best results to reach and engage your audience effectively.
Which platform is better for reaching teenagers and increasing brand awareness?
TikTok marketing is significantly better for reaching teenagers and young adults under 25, making it ideal to increase brand awareness with younger audiences. However, you must be extremely careful about advertising regulations when targeting younger audiences. Both social networking platforms have strict rules about advertising to under-18s, and certain products or services cannot be advertised to this age group at all. Always check UK advertising standards before launching campaigns aimed at young people.
How long does it take to see results from video ads on each platform?
TikTok ads can show results quite quickly, sometimes within 24-48 hours, especially if your content catches the algorithm’s attention and helps increase brand awareness. Instagram advertising typically requires 3-7 days to optimise your campaigns as the algorithm learns which potential customers respond best to your targeting option. For both platforms, give your campaigns at least two weeks before making major decisions about their effectiveness. Quick wins are possible, but consistent results from your marketing tool take time to build.
