It’s no secret that TikTok is the most popular social media platform currently. So it should be a no-brainer that advertising on the platform offers big potential. TikTok kindly recently put out a new study series they are calling ‘TikTok Works’, which will provide key insights and guidance notes for marketers and advertisers looking to make best use of the app.
Now, TikTok has published the first set of results, including data on CPG performance, the increasing role that TikTok’s playing in discovery, and how TikTok can help boost overall brand awareness.
First, Consumer packaged goods (CPG). The platform says that data from Nielsen has shown that TikTok drives strong return on ad spend and sales efficiency for CPG brands.
“According to the studies, the US saw a 96% higher paid media ROAS versus all digital media measured in the models, and almost three times the offline sales efficiency. Other regions such as the Middle East, Europe and Southeast Asia also saw similar increases.”
TikTok conducted another study 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 impressions as TV ads, despite lower impressions. This should come as no surprise given how a product can go viral so quickly on the app.
In another study, research group Fairing analyzed the increasing role of the platform in product discovery. Google recently acknowledged 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 discoveries began on TikTok. Just a year ago, that number was 4%.”
In the last listed study, TikTok employed Kantar to analyze how TikTok ads compare to TV campaigns in driving both brand and product awareness.
“According to the Kantar Link AI analysis, more than 3,500 measured TikTok ads outperformed their own digital and TV norms by 15–20% on multiple metrics, including persuasion (the likelihood an ad will drive immediate brand predisposition) and enjoyment (the resonance and appreciation of an ad).”
This should, again, come as no surprise given the amount of time younger generations spend on the internet compared to watching TV. And, that most of those people’s TV watching habits occur on streaming sites with many fewer commercials on average than traditional TV channels.
You can read more insights from TikTok Works here.
