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DTC Marketers: Don’t Ignore TikTok ROI

DTC Marketers: Don’t Ignore TikTok ROI

Hand holding iphone with TikTok opened

Tiktok has been named the fastest-growing social media platform of all time, by Forbes. And no, it’s not just for teens. The app has over 1 billion users of all ages across the globe, making it the most explosive social media app to use and advertise on. 

In fact, according to Backlinko, 31.3 % of TikTok users are over 40.

(Source: Backlinko.com)

Tiktok works using a personalized algorithm, which updates as you view, like, and save content. The app learns your preferences and feeds them directly into your “For You” or home page.

Like Instagram and Facebook, paid content is placed within your feed based on its relevance to you and how the advertisers refine their audience.

TikTok trends can be followed, allowing the potential for advertisers to connect with this massive potential audience in a way that feels authentic to users. Smart use of creative as well as hashtags allow for targeting both behavioral and geographic.

The difference between paid and organic content can be difficult to determine, which is especially great for advertisers. And with less competition than Facebook, clicks can cost up to a third of what they are on other platforms.

This makes TikTok an excellent vehicle for DTC advertisers. Because of Tiktok’s massive reach, ads utilizing lead generation for high ticket items or services allows clients marketing those products or services huge ROI. 

Avalanche CEO Ava Seavey says, “The huge return on TikTok advertising for our clients (one is seeing a 30 to 1 return) are stats I have not seen since 1980’s infomercials. It is the most exciting platform for DTC ROI I’ve seen.”

Here are some helpful tips to consider before utilizing TikTok to advertise:

Don’t only make ads. Make TikToks – This is crucial. If you’re going to make the leap into TikTok, you must be ready to produce content that feels native to the platform. Don’t just use existing content from Facebook and Instagram Stories. Slideshows, static images, and slick content are automatically detected as advertising and decrease viewer interest.

Song/sound selection – The use of songs and sounds matters more on TikTok than on any other platform. Another great benefit as opposed to Facebook/Instagram where most users view with the sound off. TikTok users watch with sound.

(Source: Backlinko.com)

Regarding influencer culture on the app, TikTok has an engagement rate of 5.30% on accounts with over 100,000 followers, compared to 1.10% for Instagram and 0.30% for Twitter. It has quickly become one of the main avenues for influencers and micro-influencers to recommend products through testimonial-style videos, Amazon Marketplace affiliate link programs, as well as trendy, creative, or niche videos of any kind.

(Source: Backlinko.com)

The app’s fast-paced nature keeps its users engaged for relatively long periods. With an average session length of 10.85 minutes, it has become the most engaging social media app out today. (Source: Backlinko.com)

For DTC marketers who may be experiencing declining ROI on Facebook, TV, radio, Amazon or other avenues, TikTok can bring you immediate sales and leads and if you get out there before your competition does, you will have even better results.

Advertising on TikTok

Advertising on TikTok

TikTok has become one of the biggest social media platforms in recent years, with no sign of its popularity declining anytime soon. Using different social media platforms to advertise is an effective way of adapting to modern culture, since people today consume so many different media types. It is essential to understand the specific platform you’re using in order to create the most effective ad campaign. TikTok is unique to other platforms, so advertising on the app requires special attention to the way that it’s used.

Understanding the Platform’s Structure

Ads will need to be short videos (15-60 seconds), including engaging audio elements. The app thrives off trending hashtags, sounds, and challenges. It is less formal than other platforms like Instagram, so users are used to seeing relatively unpolished content. Creating too polished and ‘fake’ ads that do not convey authenticity will likely not be well received.

Consider Using Popular Users on TikTok to Promote Products/ Services 

Some people have found fame on TikTok and cultivated a large following on the platform. There are popular creators in many different genres, from vegan cooking to special effects makeup. It would be helpful to either feature these people or create content referencing them because TikTok users recognize these people as being influential on TikTok specifically. 

Consider Using Trends and Sounds that are Specific to TikTok 

In addition to creators, there are specific trends and audios (called sounds) that are distinctly popular on TikTok and not on other platforms. It would be helpful to tap into these trends/ challenges/ popular audios to catch the audience’s attention and create something similar to the content they are already seeing and enjoying.