TikTok Charges Up to $2 Million a Day for Top Advertising Spots

TikTok is selling its most valuable real estate for $2 million.  The short-form video app is…

TikTok is selling its most valuable real estate for $2 million. 

The short-form video app is asking for more than $1.4 million for a takeover of its home page in the U.S. during the third quarter, according to a document obtained by Bloomberg News. That figure will jump to more than $1.8 million in the fourth quarter — and more than $2 million on a holiday.

These prices are a significant increase over what TikTok was charging just a year ago, according to people familiar with the terms, who declined to be identified because the document isn’t public. The total price has gone up in large part because of the app’s growing customer base. The app had more than 100 million monthly active users in the U.S. as of last August, up from 11 million early in 2018. TikTok estimated that anyone who purchased this advertising unit could generate 109 million impressions.

TikTok isn’t yet making a lot of money from that user base, and is still building its advertising team. Advertisers haven’t dedicated large chunks of their video budgets to TikTok in the way they do for YouTube. But it’s only a matter of time, said Brian Wieser, global president of business intelligence at the advertising giant GroupM. Facebook, Instagram, Snap, Pinterest and YouTube have all gone through the same cycle of user growth followed by advertising sales.