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Social Media Marketing Singapore: Complete Guide for Service-Based Businesses

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Author: Nicol Lee | Founder of The NextComms

Published on October 1, 2025

TikTok is one of the fastest-growing platforms in Singapore, with millions of active users and some of the highest engagement rates among social media apps. For SMEs, TikTok Ads Singapore represent an opportunity to reach younger audiences, boost brand awareness, and generate high-value leads.

But TikTok Ads are not a “start-small” platform like Facebook or Instagram. With its $50/day minimum budget requirement and a cost per lead (CPL) that often ranges from $50 to $120, TikTok is best approached once you already have a solid foundation on other channels.

At The Next Comms, we typically recommend TikTok Ads as a scaling strategy, not the first step in lead generation.

Cost of TikTok Ads in Singapore

TikTok Ads are priced differently compared to Facebook or Instagram.

Average Costs in Singapore (2025)

  • Minimum Daily Budget: $50/day (no matter which ad format you run)
  • Cost Per Click (CPC): $0.80 – $2.50
  • Cost Per Lead (CPL): $50 – $120 depending on industry
  • Starter Budgets: $1,500 – $3,000/month
  • Scaling Budgets: $10,000 – $30,000+/month for established SMEs

With these costs, TikTok is best suited for businesses with higher-ticket services (e.g., interior design, renovation, fitness, education, beauty) where one client can easily cover the ad spend.

Benefits of TikTok Ads for SMEs

Even with higher CPLs, TikTok Ads deliver benefits that make them worth considering once your FB/IG funnels are stable:

Massive Reach Among Younger Audiences

  • TikTok is the platform of choice for Gen Z and millennials in Singapore. If this is your target market, TikTok Ads give you unmatched access.

High Engagement Rates

  • TikTok users spend more time per session compared to Facebook and Instagram. Short-form video ads capture attention quickly and keep viewers engaged.

Lower Competition Compared to FB/IG

  • While TikTok Ads are growing, they’re not yet saturated in Singapore, meaning your ads can stand out more easily.

Virality & Organic Boost

  • TikTok’s algorithm can push ads beyond your paid targeting, giving you free “bonus reach” when your content resonates.

Great for Storytelling

  • TikTok’s creative format allows SMEs to showcase customer stories, behind-the-scenes content, and transformations in a way that feels authentic.

Strong Branding Impact

  • Even if CPL is higher, TikTok Ads build brand recognition and trust, which improves conversion rates across all your channels.

Cross-Platform Synergy

  • Running TikTok alongside Facebook and Instagram creates stronger retargeting funnels, increasing ROI across all platforms.

Why We Don’t Recommend TikTok First for Lead Generation

While TikTok Ads can generate leads, the higher CPL ($50–$120) means it isn’t the best first step for SMEs focused on daily enquiries. For most service-based businesses, Facebook Ads and Instagram Ads provide cheaper CPLs ($10–$45) and faster ROI.

At The Next Comms, our approach is:

  • Establish lead generation on Facebook & Instagram first.
    – Ensure consistent daily leads and ROI.
  • Add TikTok Ads as a scaling channel.
    – Use TikTok to expand reach, build brand awareness, and capture younger demographics.
  • Integrate all three platforms.
    – Retarget audiences across FB, IG, and TikTok for maximum efficiency.

This way, TikTok becomes an amplifier of growth, not a risky first move.

ROI of TikTok Ads for SMEs

While CPL is higher, TikTok delivers strong ROI for the right industries and scaling businesses:

Starter SMEs ($1.5K–$3K/month budgets)
20–60 leads monthly, ROI 2x–4x

Growing SMEs ($5K–$15K/month budgets)
100–200 leads monthly, ROI 3x–6x

Established SMEs ($20K–$30K+/month budgets)
200–500+ leads monthly, ROI 4x–8x

The true value of TikTok Ads is in brand lift, awareness, and reaching new demographics — while still generating high-quality leads if paired with strong offers and retargeting.

Strategies That Work on TikTok

The best TikTok Ads don’t look like ads. They look like content.

  • Native-Style Videos – Short, authentic, and relatable.
  • Strong Hooks – Capture attention in the first 3 seconds.
  • Simple, Bold Offers – Keep promotions clear and easy to understand.
  • UGC (User-Generated Content) – Testimonials and demos build authenticity.
  • Retargeting Campaigns – Convert viewers who engaged but didn’t enquire.

Key Takeaways

TikTok Ads Singapore require a minimum of $50/day

CPL is higher ($50–$120) compared to Facebook/Instagram

TikTok Ads work best for higher-ticket industries and scaling SMEs, not first-time advertisers.

Benefits include massive reach, high engagement, virality, and strong brand-building impact

SMEs should first establish ROI on Facebook & Instagram Ads, then scale into TikTok

Thinking of expanding into TikTok Ads in Singapore?

Let The Next Comms guide your growth. We’ll help you establish Facebook & Instagram lead funnels first, then scale into TikTok to reach new audiences and dominate your market.

FAQ's About TikTok Ads Singapore

TikTok requires a minimum budget of $50/day, no matter which ad format you run. This means businesses should be prepared to spend at least $1,500/month to start.

The CPL typically ranges between $50–$120, which is higher than Facebook or Instagram. That’s why TikTok Ads are more suitable for SMEs with higher-ticket services.

Yes. TikTok offers Lead Generation Ads with instant forms, plus retargeting options. But because CPL is higher, it works best for established SMEs that already have strong offers and budgets to support scaling.

We don’t recommend it. For SMEs focused on lead generation, it’s smarter to first build consistent results with Facebook and Instagram Ads (where CPL is $10–$45). TikTok should be added later as a scaling channel.

TikTok works well for interior design firms, renovation companies, fitness, education, F&B, beauty, and wellness brands — especially those targeting younger demographics.

Engagement often starts immediately. Leads can appear within the first week, but optimisation is usually needed for 2–3 weeks before consistent ROI is achieved.

TikTok is discovery-driven. Its algorithm pushes content beyond your target audience, which means your ads can go viral organically. However, the trade-off is a higher CPL compared to FB/IG.

Yes, TikTok is a video-first platform. The good news is our 100% in-house creative team produces unlimited TikTok-style videos designed to perform like native content.

We measure ROI by leads generated, CPL, conversions, and revenue growth. For some SMEs, just one converted lead can cover an entire month’s TikTok Ads budget.

We help SMEs build the right foundation first on Facebook and Instagram, then expand into TikTok when it’s time to scale. With our performance-first approach, unlimited creatives model, and in-house expertise, your TikTok Ads won’t just get views — they’ll generate real business results.

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