If you still haven’t joined TikTok, you may be missing out on tremendous sales potential. That’s because the popular social media app now reaches an incredible base of one billion users.
While TikTok is still the place for short, quirky videos and viral challenges, it’s also where many consumers go to seek the newest trends and latest products. In fact, 58% of users even head straight to the app for shopping inspiration. With so much visibility and so many engaged users, it’s a no brainer to advertise on the world’s fastest-growing social media platform.
The TikTok Audience
While TikTok’s audience trends younger (almost half of its base is Gen Z), the social media platform also attracts millennials, Gen X and baby boomers. Women in the 18-24 age category account for nearly a quarter (24.7%) of TikTok’s advertising audience.
TikTok is the third-largest social media platform in the US with 94.1 million monthly users. The China-based app also has a large user base in countries like Indonesia, Thailand and Vietnam, making it a strong choice for advertisers looking to attract a global audience.
Small and large businesses can advertise on TikTok, but the app is best suited for brands looking for large, engaged audiences. Brands targeting customers 35 and younger (especially women) and hoping to build a strong presence in Asia and the Middle East will have the best chance for success advertising on TikTok.
TikTok Ad Types
TikTok ads are so effective that 92% of users globally have taken an action after watching a TikTok. TikTok offers five primary ad types:
In-Feed Ads
In-feed ads are video ads up to 60 seconds long that are displayed within users’ For You news feed. Because they are integrated into the native news feed, they blend well with user-generated content, making users less likely to avoid it. However, your content should be eye-catching and engaging enough to keep audiences from scrolling past. Users can then like, comment, interact and share your ad videos.
Examples of in-feed ads might include:
- Beauty brands featuring a quick tutorial
- Food brands offering quick recipes or preparation ideas
- Athletic brands showcasing exercises to try
How effective is it?
TikTok claims ads are embraced like native content, prompting 72% of users to say ads on the platform are inspiring. A study by Neuro-Insight study found TikTok In-Feed Ads achieve 23% higher detail memory than TV ads.
Brand Takeover
A Brand Takeover ad appears right as TikTok users open the app, “taking over” the screen for a few seconds and ending as an in-feed video. The ads are highly exclusive, offering positions to only one brand per category and country per day, and are more expensive than other ad options. However, the ad type drives mass awareness and sales since it puts your brand directly in your target audiences’ line of sight.
How effective is it?
Brand Takeover ads are highly effective because they dominate users’ screens without the worry of competing ads. Each ad engagement lasts 24 hours.
TopView
TopView ads are similar to brand takeovers, but slightly delayed. They appear in a user’s For You feed after three seconds and take up the full screen with up to 60 seconds of video with autoplay and sound.
How effective is it?
According to TikTok, 71% of users say TopView grabs their attention. For CPG brands, TikTok ads achieve 67% higher sales effectiveness compared to total paid TikTok. When combined with In-Feed Ads, TopView has proven to be TikTok’s most effective ad type in driving sales impact.
Branded Hashtag Challenge
Branded Hashtag Challenges are exclusive to TikTok. They encourage users to generate content featuring sponsored hashtags that spark new trends and cultural movements by issuing participatory challenges.
How effective is it?
TikTok claims Branded Hashtag Challenges have a median engagement rate of 17.5%, and more than half of the ads have achieved ROAS greater than $5 for the CPG industry. A recent Nielsen MMx study also revealed that organic engagement doubled ROAS for the CPG industry when measured with Branded Hashtag Challenge.
Branded Effects
Branded Effects or filters are custom augmented reality video lenses users can activate to generate unique, shareable content. They allow brands to add customisable games, stickers, filters and special effects to users’ video content and can be live for up to 10 days.
How effective is it?
The most effective Branded Effects are fun and engaging, sparking viral and shareable content that boosts brand awareness.
TikTok also offers merchants a suite of commerce solutions to boost sales, including in-app storefronts, product links, collection ads, dynamic showcase ads and live shopping. The app has also announced more livestream shopping opportunities in the US in 2022. American adult shoppers rated watching livestreams as the top social commerce feature they currently use and plan to use more this year.
It’s also wise to partner with influencers related to your brand and products. Find influencers who make sense for your brand and products through the Creator Marketplace. Choose from thousands of influencers and let TikTok recommend the best one for your audience based on data-driven insights. Then, use the TikTok Selling Center to collaborate with them, set up a promotion plan and share affiliate links.
Get Started with TikTok Advertising
TikTok for Business offers brands the ability to run ads, connect with influencers, analyse campaign data and more. You can get started advertising on TikTok with a few simple steps:
- Start a TikTok Ads account. If you have an existing account, you can use it to sign up for TikTok Ads.
- Install the TikTok Pixel. A pixel is code you install on your website to help monitor visitors’ activity, sales and other events to help you find the right audience for your TikTok ads. That way, you can target the users who will be most responsive to your ads.
- Set up a campaign. Log in to the TikTok Ads Manager and specify your campaign objectives, name and budget.
- Create an ad group to start selecting your ad placements, audiences, targets, goals, schedule and bids.
- Start creating content. Upload images or videos to start catching eyes and attracting customers.
Be sure to check out TikTok’s ad guidelines and specs to ensure total compliance.
Rithum Helps You Win at TikTok
Need help? Rithum began supporting TikTok advertising in April 2022, offering managed support to help you:
- Streamline campaign creation, management and reporting across ad types
- Transform and optimise product data and automate feed delivery
- Activate cross-channel insights across social commerce and digital marketing campaigns
- Manage costs and uncover revenue-increasing opportunities
- Help scale your social commerce presence
Get started selling on TikTok with guidance from Rithum Managed Services by contacting us today.
