TikTok is the trending app of the moment, which naturally also now has many brands exploring the possibilities of TikTok for advertising, and how they can leverage the power and influence of TikTok to maximize their campaigns.
To help with this, TikTok recently ordered a new set of measurement studies with third-party partners, across different verticals, for a new series it calls “TikTok Works,” which will provide key insights and guidance notes for marketers and advertisers looking to make the most of the app.
And today, TikTok released the first set of results from its TikTok Works initiative, with data on CPG performance, the increasing role TikTok is playing in discovery, and how TikTok can help increase overall brand awareness.
First, on consumer packaged goods (CPG) – TikTok says analysis from Nielsen has shown that TikTok is driving strong return on ad spend and sales effectiveness for CPG brands.
According to TikTok:
“According to the studies, the US saw a 96% higher paid media ROAS compared to all digital media measured in the models, and nearly three times as effective offline sales. Other regions such as the Middle East, Europe and Southeast Asia also saw similar increases.“
TikTok also conducted an additional study with NCS and found that in the beauty, personal care, and food and beverage categories, TikTok ads generated the same amount of incremental dollars per 1,000 views as TV commercials, despite lower views.
It makes sense that TikTok would be good for CPG brands, given the immediacy and impact of the format. But the information here adds further weight to this aspect, which can be included in your planning.
TikTok also commissioned research group Fairing to investigate the increasing role it plays in product discovery.
Which is another important aspect – even Google itself recently admitted that TikTok is now the preferred search platform for many young users in many categories.
“After making an online purchase, consumers were asked to identify the channel where they first heard about a product they bought online, and nearly 15% of product discovery began on TikTok. Just a year ago, that number was 4%.”
TikTok further notes that, according to KnoCommerce, 81% of all attribution surveys conducted in May 2021 included TikTok as an option.
This is an important factor to consider for marketers, that changes in habitual use of social platforms also affect search and discovery, which can have a significant impact on how people find or don’t find your brand.
Finally, TikTok worked with Kantar to analyze how TikTok ads compare to TV campaigns to increase brand and product awareness.
“According to the Kantar Link AI analysis, more than 3,500 measured TikTok ads outperformed their own digital and TV benchmarks by 15-20% on several metrics, including persuasion (the likelihood that an ad will lead to immediate brand acquisition) and enjoyment (the resonance and appreciation of an ad).
This also, increasingly, makes sense when you consider how people now consume media. My kids (both under 13) hardly ever watch regular TV, with all the time they spend online, and that’s increasingly the norm for younger cohorts.
TikTok is an entertainment platform, and as such it makes sense that it overtakes traditional TV in many respects.
These are some interesting and potentially valuable insights that can help inform your TikTok marketing approach.
You can read more insights from TikTok Works here.