TikTok, the short-form video app that has taken the world by storm, has also proven to be a valuable platform for digital advertising. With a highly engaged user base and a range of targeting and advertising options, TikTok offers a unique opportunity for businesses to reach and connect with their audience in fresh and engaging ways.
In this article, we will explore the various benefits of using TikTok for digital advertising, including its large user base, targeting and advertising options, and the high levels of engagement amongst its user base.
By the numbers
- In a DAC test comparing TikTok ads and YouTube skippable instream ads with both having the goal of awareness, TikTok CPM’s were nearly 50% lower
- 37% of TikTok users have a household income of $100k+
- 61% of all TikTok users are female
- 90% of TikTok users access the app every day
- 30% of Gen Zers prefer using TikTok for product research
- 43% of TikTok users try something new after seeing it on the platform
2 billion monthly users
One of the key benefits of using TikTok for digital advertising is the app’s massive user base. As of 2021, TikTok had over 1 billion monthly active users, making it a highly attractive platform for advertisers. This large user base represents a significant opportunity for businesses to reach a wide and diverse audience, potentially increasing the chances of success with their ad campaigns.
Having access to such a large and diverse audience also provides businesses with the opportunity to test and optimise their ad campaigns. By targeting different segments of the TikTok user base and analysing the results, businesses can gain valuable insights into what works and what doesn’t, allowing them to fine-tune their campaigns and get the most out of their ad spend. Additionally, the ability to target users based on their demographics, interests, and behaviors ensures that businesses are able to reach the most relevant and receptive audience, increasing the chances of engagement and conversion.
TikTok’s targeting and advertising options
In addition to its large user base, TikTok offers a range of targeting and advertising options to help businesses reach the right audience. The app allows advertisers to target users based on demographics, interests, and behaviors, ensuring that ads are shown to the most relevant and receptive audience. This level of targeting can help businesses get the most out of their ad spend and increase the chances of success with their campaigns.
TikTok also offers a variety of ad formats and placements to suit the needs of different businesses. From sponsored hashtag challenges and branded effects to in-feed ads and branded content partnerships, TikTok has something to offer for every advertising goal and budget.
A highly engaged user base
Another benefit of using TikTok for digital advertising is the app’s highly engaged user base. TikTok users are known for their active participation and engagement on the platform, which can translate into higher levels of engagement with ads. This high level of engagement is a key advantage for businesses looking to increase brand awareness and drive conversions.
One of the ways that businesses can take advantage of TikTok’s engaged user base is through the use of interactive ad formats, such as sponsored hashtag challenges, branded takeovers and branded effects. These types of ads encourage users to create and share their own content, which can help to spread the brand’s message and increase awareness. By leveraging the power of user-generated content, businesses can tap into the creativity and passion of TikTok users, leading to higher levels of engagement and more effective ad campaigns.
In addition to interactive ad formats, businesses can also use TikTok’s (branded lenses) to reach their target audience. These options allow businesses to deliver targeted and relevant ads to users, increasing the chances of engagement and conversion. By understanding the unique features and best practices of TikTok, businesses can effectively leverage the platform to achieve their advertising goals and drive success.
TikTok as a search engine
TikTok has become more than just a platform for creating and consuming video entertainment. It has also become a search engine that many young users, especially those belonging to Gen Z, turn to for answers to questions or to find nearby restaurants. The reason for this is likely due to the platform’s powerful algorithm, which personalises each user’s feed based on their interactions. This personalisation of content, paired with the authenticity of “home-made” videos, allows for users to trust the information they find on TikTok more than on faceless websites.
Prabhakar Raghavan, a Google senior vice president, even noted the shift in user behavior at a technology conference in July:
In our studies, something like almost 40 percent of young people, when they’re looking for a place for lunch, they don’t go to Google Maps or Search. They go to TikTok or Instagram.
These two brands are doing it right
Ryanair and DuoLingo are both successful TikTok accounts that have built a strong organic presence on the platform. Both accounts regularly post TikToks that are timely and relevant, incorporating viral sounds and engaging with their followers through comments. They have also stayed true to their brand identities, with Ryanair using consistent filters and green screens in their content and DuoLingo featuring a mascot in every video who serves as the face of the brand. By following these strategies, Ryanair and DuoLingo have been able to build a large following on TikTok.
Plan for success: The key elements of a strong TikTok ad campaign
To succeed with a TikTok ad campaign, businesses need to have a solid plan in place. The following five elements are critical considerations for creating a successful TikTok presence that will last beyond sudden virality:
TikTok trends move at the speed of light. To stay relevant, businesses need to be able to act quickly and jump on trends as soon as they emerge. This requires a dedicated social media manager who is skilled in creating and editing content that resonates with the TikTok audience.
Manage the conversation
A traditional posting timeline may not be fast enough for TikTok, which is why a skilled TikTok manager may be the best route. A trusted asset on the team who can hop on trends quickly and maintain the brand’s presence on the app is essential. A combination of paid and organic content is often the most effective approach on TikTok. Ads can draw users to your account, while organic content keeps their attention and primes the pump for future conversions.
Understand the algorithm
The algorithm that powers TikTok’s content recommendations plays a crucial role in the success of a campaign. Hashtags, sounds, keywords, captions, and location all influence how the algorithm delivers content to users. By targeting ads and organic content effectively, businesses can increase their chances of reaching the right audience and achieving their advertising goals.
Know your niche
TikTok is a platform that caters to a wide variety of niches, including fashion, food, retail, media and entertainment, news, beauty, travel, health and fitness, and animals. To succeed on TikTok, it is important for businesses to understand their niche and focus on creating content that resonates with their target audience.
Treat TikTok comments like Amazon reviews
Reviews and comments both play a crucial role in the success of a business. On Amazon, positive reviews can help customers make purchasing decisions, while on TikTok, comments can make or break a video. Users often check the comments section to gauge the general sentiment towards a piece of content. Brands that disable comments or fail to engage with their audience in the comments may come across as shady or unresponsive. By actively managing and engaging with comments, businesses can build trust and create a positive reputation on TikTok.
In conclusion, TikTok offers a unique and valuable opportunity for digital advertising. Its large user base, targeting and advertising options, and highly engaged user base make it an attractive platform for businesses looking to reach and connect with their audience.
By understanding the key elements of a successful TikTok ad campaign and creating a plan for success, businesses can effectively leverage TikTok to achieve their advertising goals—and we’re here to help you do exactly that. Let’s talk.
By Ellie Hughes, Erin Rose, and Gregory Flannigan