Introduction
When it comes to digital advertising in Singapore, Facebook and TikTok are two of the most dominant platforms. But which one provides better Return on Investment (ROI) for businesses in Singapore? Facebook boasts a mature ad ecosystem with powerful targeting capabilities, while TikTok excels in viral content and lower ad costs.
For businesses looking to maximize their ad spend, choosing between Facebook and TikTok isn’t just about reach—it’s about finding the best platform for conversions and engagement. In this article, we’ll break down costs, targeting, engagement rates, and overall ROI to help Singaporean businesses make the right choice.
🔎 Related: The Best TikTok Marketing Strategies for Small Businesses in Singapore – Discover how brands leverage TikTok to grow in Singapore.
Ad Costs: Which Platform is More Budget-Friendly?
A major factor in ROI is the cost of running ads. While both platforms allow for budget flexibility, TikTok tends to have a lower CPC (Cost Per Click) than Facebook.
According to Mega Digital, the average CPC on TikTok is approximately $1.00, which is lower than Facebook ($1.72) and Instagram ($3.56). Additionally, Varos reports that as of March 2025, the median CPC for TikTok ads is $1.06.
In terms of Cost Per 1,000 Impressions (CPM), the pricing can fluctuate depending on audience and ad format. TikTok’s CPM typically ranges from $3.20 to $10.00, according to Business of Apps. However, Mega Digital notes that TikTok’s average CPM is around $10, which is slightly higher than Facebook’s $7.19 and Instagram’s $7.91.
💡 Key Takeaway: TikTok generally offers a lower CPC but can have a higher CPM, meaning you pay less per click but may need to spend more to reach the same audience size.
Ad Targeting in Singapore: Which Platform Offers Better Precision?
Facebook has been the leader in ad targeting and audience segmentation for years. With its advanced interest-based targeting, lookalike audiences, and retargeting capabilities, Facebook provides businesses with hyper-specific audience reach. This is especially beneficial for B2B businesses, eCommerce brands, and high-ticket product sales in Singapore.
TikTok, on the other hand, relies more on behavioral targeting and AI-driven recommendations. While it may not be as precise as Facebook, TikTok’s algorithm is incredibly powerful at predicting user preferences. If your product or service appeals to Singapore’s younger demographic (ages 18-34), TikTok’s interest-based targeting and engagement-driven discovery system can be highly effective.
🔎 Related: Facebook Advertising for Small Businesses: Maximizing Reach and Engagement – Learn how to craft effective Facebook ad campaigns.
💡 Key Takeaway: Facebook is better for niche targeting and retargeting, while TikTok excels at discoverability and viral potential in Singapore’s digital landscape.
Engagement & Ad Performance in Singapore: Where Do Users Interact More?
TikTok users engage with ads differently than Facebook users. While Facebook users are accustomed to scrolling past ads, TikTok’s immersive format keeps viewers more engaged.
Studies show that TikTok ads have a 15% higher engagement rate compared to traditional social media ads. The short-form, full-screen nature of TikTok ads makes them harder to ignore, while user-generated content (UGC) ads often feel more organic than traditional paid promotions.
Meanwhile, Facebook excels in lead generation, retargeting, and driving direct conversions. If your goal is email sign-ups, webinar registrations, or direct purchases, Facebook’s ad ecosystem provides a more structured sales funnel compared to TikTok’s discovery-driven approach.
💡 Key Takeaway: If your goal is brand awareness and engagement, TikTok wins in Singapore. If you need structured lead generation and sales conversions, Facebook is the better option.
Which Platform Gives Better ROI for Singapore Businesses?
The better ROI depends on your business goals:
- For awareness & viral reach → TikTok Ads
- For conversions & retargeting → Facebook Ads
- For younger audiences (18-34) → TikTok Ads
- For broad audience reach (25-55) → Facebook Ads
Final Verdict: Where Should You Invest Your Ad Budget in Singapore?
If you’re a small business looking for cost-effective engagement, TikTok ads are a great entry point. However, if you’re running a long-term marketing strategy with precise audience targeting, Facebook ads still provide superior control over conversions.
Ultimately, the best approach is to test both platforms, measure your Cost Per Lead (CPL) and Return on Ad Spend (ROAS), and adjust your strategy accordingly.
🚀 Need expert help with Facebook or TikTok ads in Singapore?
DREALM.sg specializes in data-driven ad campaigns that maximize ROI for businesses in Singapore. Let’s create a customized ad strategy for you.
