TikTok Ads vs. YouTube Ads: Which one is better for business?

Video platforms are a great way to increase your brand awareness and show your services to targeted audiences. Where should you put your ads? This will depend on your business, age groups you are targeting, gender, and your marketing goals.

YouTube

Until recently, YouTube was probably top-of-mind when you thought about “video sharing.” YouTube has led the category for over 10 years as the best place to share videos online. When YouTube was launched in 2005, its primary goal was to make it easier to share long-form videos. More than 83% of US Adults used YouTube in 2023. Videos can be watched, liked, and talked about by the community. YouTube is a great place to advertise your business because videos can be promoted and targeted to specific audiences.

TikTok

TikTok was launched in 2018 but quickly became popular surpassing even Instagram. TikTok has taken the number one spot with over 1 billion downloads worldwide. Netflix is in the number two spot, with 182.8 million downloads, comparatively. YouTube trails closely behind with 182.1 million downloads. Users usually scroll through their feed on their “For You Page” (FYP) to watch videos that are curated for them based on an AI algorithm, and the platform has been built around making 15-second videos (a new capability has since launched, allowing users to make videos up to 3 minutes). TikTok gives its users tools for making videos, editing them, adding music, filters, and other effects, and sharing them. TikTok could be an excellent way to market your business, but it will depend on your business and who you are trying to reach since most TikTok users are younger.

We’ve produced client campaigns using both TikTok and YouTube.

TikTok’s concentration on trends distinguishes it from other social media apps. TikTok trends are popular pieces of content that are widely shared across the platform. Dances, songs, challenges, and hashtags are examples of these trends. But TikTok trends are not simply for entertainment or viral challenges. TikTok trends are now being used by brands to develop new marketing campaigns that are fun and engaging such as showcasing the personality of your brand or team.

YouTube promoted videos have been especially successful in explaining healthcare services and procedures, showing tourism destinations, and spotlighting consumer products like restaurants or automobiles. Most of the YouTube videos we’ve created range between 15 seconds to 2 minutes with 30 seconds being an average.

Production cost can be low as you can start with a smartphone and a little time to make a video to promote your goods or services. Software is readily available to quickly create clips with music effects and filters.

YouTube remains a popular platform for users across generations. The largest distribution of YouTube’s user base falls between the ages of 18 and 49, followed closely behind by those aged 50-64 making it a great advertising platform for most businesses. But TikTok has grown quickly where its user base skews heavily Millennial and Gen Z. The single largest group of TikTok users is female 18-24 years old (23.8%).

So which platform is best for your business?” The answer depends on several factors. First, identify your ideal customer. TikTok’s viewers are younger and slightly more likely to be women, while YouTube’s users span a wider age range and are 54% male. Second, what will be the subject of your work? Do you think a short, funny clip will work better for your audience or a longer, more in-depth demonstration? Can you get your message across in 15 seconds, or do you need more time? Finally, think about the budget you are willing to spend. With YouTube you can set a daily advertising budget and your spending will not exceed that amount. We have many clients who are spending under a $1,000 per month on YouTube, or less than $30 per day. It has taken a while for TikTok to enter the ads market, but they have now set up their formal ads program.