TikTok went through a rocky 2024-2025 with political uncertainty and a brief US shutdown. In 2026, ads are still running, brands are still spending, and the platform remains a powerful channel, for the right advertisers.
Short answer: it depends on your stage, channel mix, and competition. Below we break down when this is true, when it isn't, and how to actually evaluate it for your business.
TL;DR
- →Still worth it for: DTCbrands $500K-$20M with founder/team who can create native content
- →Not worth it for: B2B SaaS, local services, brands that need polished/corporate
- →CPMs: $6-$14 (still cheaper than Meta)
- →CPAs: Competitive for emotional-purchase products, worse for considered purchases
What changed in 2024-2025
- →Brief US ban threat, most brands diversified creative to Reels/Shorts
- →Ad Manager rebuilt with better targeting + measurement
- →Shop feature expanded, in-app purchase flow is now best-in-class
- →Creator partnerships became formalized (Spark Ads+ creator marketplace)
Who TikTok still works for
- →DTCbrands with under-$100 products and strong visual story
- →Apparel, beauty, supplements, all still thriving
- →Education / courses targeting 18-34
- →Brands with a team member who can show on camera
- →Products that benefit from demonstration or transformation
Who should skip TikTok
- →B2B SaaS targeting enterprise
- →High-consideration services (legal, financial, insurance)
- →Brands relying on static creative only
- →Any brand under $30K/mo ad budget, testing cost too high relative to other channels
What makes TikTok Ads work
- →Native creative only, polished studio ads fail
- →Creator-style content (even if brand-owned)
- →Hook in first 1.5 seconds, scrolls are brutal
- →UGC-heavy, brands that scale have 20+ UGCcreators
- →Constant creative refresh, 2-3x/week minimum
Typical performance in 2026
- →CPM: $6-$14 (compared to Meta $8-$18)
- →CPC: $0.30-$1.20
- →CPAecommerce: $25-$50 (competitive with Meta)
- →ROAS cold traffic: 1.5-3.5x
FAQs
Is TikTok shutting down?
No confirmed shutdown as of 2026. Political uncertainty has eased. Brands running TikTok should diversify creative to Reels/Shorts as insurance.
Can I use the same creative on TikTok and Reels?
Yes, but native TikTok style wins on both. Horizontal studio ads fail on either platform.
What budget is needed to test TikTok?
Minimum $5,000 over 3 weeks with 5-10 creative variants. Less than that, no signal.
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