TikTok is the trending app of the moment, which of course also has many brands exploring TikTok’s opportunities for advertising and how they can harness the power and influence of TikTok to maximize their promotions.
To help with this, TikTok recently ordered a new set of measurement studies with third-party partners, across various verticals, for a new series it’s calling “TikTok Works,” which will provide key insights and guidance notes for marketers and advertisers who seek to get the most out of the application.
And today, TikTok released the first set of results from its TikTok Works initiative, with data on CPG performance, the growing role TikTok is playing in discovery, and how TikTok can help build overall brand awareness.
First, on consumer packaged goods (CPGs) – TikTok says Nielsen analysis has shown that TikTok drives a strong return on ad spend and sales effectiveness for CPG brands.
According to TikTok:
“According to studies, the United States has had a 96% higher ROAS from paid media than all digital media measured in the models, and nearly three times the effectiveness of offline sales. Other regions such that the Middle East, Europe and Southeast Asia also saw similar increases.”
TikTok also conducted further research with NCS and found that across beauty, personal care, and food and beverage categories, TikTok ads generated the same amount of additional dollars per 1,000 impressions. than TV ads, despite weaker impressions.
It makes sense that TikTok would be good for CPG brands, given the immediacy and impact of the format. But the data here adds extra weight to this aspect, which could be taken into account in your planning.
TikTok has also commissioned research group Fairing to examine the growing role it plays in product discovery.
Which is another important aspect – even Google itself recently acknowledged that TikTok is now the preferred search platform for many young users across many categories.
“After making an online purchase, consumers were asked to identify the channel through which they first heard about a product they purchased online, and nearly 15% of product discoveries started on TikTok. Just a year ago, that figure 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 a major consideration for marketers, as the changing habitual use of social platforms also impacts search and discovery, which could 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 Kantar Link AI analysis, more than 3,500 measured TikTok ads exceeded their own digital and TV standards by 15-20% on multiple measures, including persuasion (the likelihood that an ad would cause an immediate predisposition to brand) and pleasure (the resonance and appreciation of an advertisement).
It also increasingly makes sense when considering how people now consume media. My kids (both under 13) hardly ever watch regular TV, with all of their time spent online, and it’s increasingly the norm for younger cohorts.
TikTok is an entertainment platform, and as such, it makes sense that it surpasses traditional TV in many ways.
This is interesting and potentially valuable information, which could help inform your TikTok marketing approach.
You can read more about TikTok Works here.