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February 27, 2023
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TikTok’s reach is global. The app is available in over 150 different countries, and has an astounding 1 billion+ unique monthly users. TikTok had 656 million downloads in 2021, more than any other app on the planet. In the second half of 2021, TikTok became the most visited online site in the world leaving Google in second place. In 2022, TikTok took the number 1 spot in time spend per user over YouTube.
TikTok’s growth does not seem to end in 2023. In fact, TikTok may actually become the biggest social / entertainment platform in the world very soon.
Let’s look at some fast facts regarding TikTok’s user base:
These are just a handful of statistics that prove TikTok’s potential for mass marketing and the TikTok advertising platform allows digital marketers to target a wide variety of user demographics to ensure that your message reaches its intended audience.
Due to its fast growth of users, TikTok advertising is still quite affordable in comparison to its social media competitors. This is simply because current ad inventory is greater than the number of advertisers. TikTok has been gradually opening its advertising opportunities through its partners like Shook and is also allowing direct access in wider selection to markets. While TikTok’s CPM and CPC can be 2-10 times cheaper than Facebook and Instagram, they are likely to increase when more advertisers find their way to TikTok.
TikTok’s users are passionate about the platform and engaged with its content. As a result, TikTok’s ability to drive sales and downloads from advertisements is unparalleled. A report from TikTok’s own Marketing Science team revealed that TikTok advertisements drive the most unplanned and impulse purchases when compared to four other leading social media platforms. In fact, 89% of all platform-inspired sales on TikTok are unplanned or impulse purchases, meaning that with the right advertisement optimized for a TikTok audience, brands can see more tangible success than other social media advertising.
Studies have shown that TikTok’s ability to drive purchase intent is 2,6x stronger than Kantar’s index. 83% of users say that TikTok played a role in their purchase decisions and 67% also say that TikTok gives them ideas about new brands and products. In our recent campaign with Airtrack Nordic, we discovered that TikTok drove a 63% uplift of sales during the campaign period.
Performance advertisers, especially eCommerce stores, are looking into TikTok to help with decreasing campaign performance from Facebook and Instagram after the recent iOS14 update. TikTok might just be a solution to help scale online direct response advertising budgets profitably, as some advertisers are reporting results that are on par with their long-profitable Facebook campaigns. Some advertisers are even seeing a higher return on investment from TikTok than any other platform, which leaves many to wonder how. Based on our experience, it is critical to understand TikTok’s demands in terms of creative and campaign setup and optimization. TikTok is developing fast, but is still considerably new to the performance game, lacking some of the coziness of Facebook’s powerful eCom algorithm. However, with the right measurement setup, TikTok optimized performance ad creatives, and a campaign operation that considers the requirements of TikTok’s ad algorithm, you may see TikTok developing a consistent ROAS for your campaigns. At Shook, we’ve helped our clients systematically to lower their campaign CPAs below their target levels. This requires commitment to develop and optimize TikTok campaigns in the long run, since your first campaigns won’t most likely be your best performing ones.
TikTok is a place where people go to discover new things: what would be a better position to introduce a new brand or a product to your audience than this? You, as a brand, are basically serving the audience what they are looking for - the joy of discovering.
With the right kind of content, you will have the exclusive attention of the user in a full-screen, sound-on setting for 30 seconds or more.
However, there is a flipside. In the worst case, your video may be skipped faster than your jingle reaches its first note. This is why it is important that your content starts with a bang and fits the TikTok experience - the continuous flow of entertaining TikToks. The engagement on the video works like magic: it helps more like-minded users to discover the content and let’s you get better performance for your ad campaigns. The combination of affordable reach and frequency and a high recalling content format is a match made in heaven for brand advertisers. Kantar studied that TikTok can make a 3,7x uplift on brand preferences vs. the index. We at Shook can navigate through improved brand performance by improving the viewability rates and cost-efficiency metrics of your video content; just like we did for Ed Sheeran.
Since TikTok’s growth has been exploding, many advertisers are still catching up and getting started on TikTok. There are little known best practices that fit everyone, and it is still all about figuring out the ‘how’ of TikTok for many. This brings an enormous opportunity for early-movers - the ones who are willing to spend the extra effort and money to figure out how to create appealing content for TikTok, how to set up and optimize campaigns and how to build a long-term strategy and craft industry-leading best practices for their brand.
One of our Creative Operations Specialists will be ready for a personalized demo.
In an era where reaching the right audience depends on both quality and quantity of creative, brands must find a new approach to content production that balances creativity with efficiency. But what if there was a way to transform this challenge into an advantage? What if brands could create a system that not only keeps up with demand but also gets better with each iteration?
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