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The Ad Monster That is Waking Up: the Huge Marketing Potential for TikTok

The Ad Monster That is Waking Up: the Huge Marketing Potential for TikTok

Of all the most downloaded apps of 2020, TikTok came out on top. It was the most downloaded app during last year and knocked Facebook Messenger off the top spot. 

The Chinese-video sharing platform was actually the only app in the global top five that was not owned by Facebook.

  1. TikTok
  2. Facebook Messenger
  3. Instagram
  4. WhatsApp
  5. Facebook

With brands and retailers continually thinking and rethinking marketing strategies to bring in more customers and then strengthen the relationships they have with them, ads that have a presence on new and emerging platforms can confer advantages; proactivity, after all, a valuable trait.

Social media has been a growing area that is receiving deeper marketing budgets as its value becomes clear. It’s where most of us are spending a lot of time on – talking, sharing, shopping.

And with TikTok surging to the number one spot, one of the newest platforms represents a sleeping ad giant. The platform has around 670 million global active users and is opened 8 times a day on average. In terms of time, users spend 52 minutes a day on average watching user-generated videos.

For those ecommerce stores that are trying to find an additional source of revenue and brand presence, TikTok may be the ideal place to stake a claim.

The Ad Monster That is Waking Up: the Huge Marketing Potential for TikTok“It is unique compared to other social media options,” according to Dariya Smailva, senior digital media buyer manager at Vendo. “Its largest advantage is an ability to put all users on the same playing field regardless of followers and account life using key strategies for how to set your account and content up for success.”

TikTok allows ecommerce stores to grow their presence and potentially be a huge and exciting advertisement investment.

Not only is TikTok the most downloaded app throughout 2020 but it’s also the trendiest, as it joins the older platforms of Facebook and its sister apps.

Marketplaces are also seeing an increase in sales emanating from the platform. Just as a snapshot of the landscape, #WalmartFinds has around 1 billion views while #AmazonFinds is being viewed 11 billion times.

The nature of TikTok makes it interesting as the video-centric platform not only lets its users share creative content but acts as a microlearning platform.

“People also share very short videos on how to do certain things like DIY projects or how to do makeup,” said Dariya. “So, ecommerce brands can use and actually benefit from the format.”

And it’s this sharing functionality that is central to TikTok, which gives it its virality and sustained popularity.

The advertising edge

The selling point of TikTok is its huge potential as an advertising platform for brands and retailers. Its ability to draw in millions of eyes around the world comes down to three factors, according to analyst Charles King.

“First and foremost are its users,” he said. “Over half of them are reportedly teens to 29 years of age. That is a prime audience for advertisers because many people in that age range are sensitive to current and emerging trends.”

The Ad Monster That is Waking Up: the Huge Marketing Potential for TikTokSecondly, TikTok videos tend to die or thrive on the level of cleverness both verbally and visually. Said another way, plain content doesn’t cut it. Creativity must supersede conventionality.

“But innovative agencies and voices will be able to exploit it to their and their clients’ advantage,” added Charles.

And thirdly, TikTok is the ideal gateway for ambassadorship and utilizing brand influencers. Brands can be clever by tying their products and values to celebrities and influencers that reflect them.

“Google, Facebook, and other ad platforms use algorithms to achieve that end but with often mixed results,” said Charles.

Two brands two strategies

When it comes to ad strategies for TikTok – or any other video-sharing platform for that matter – there is no one-size-fits all.

“In addition to profitability, we look at conversion rates of incoming traffic and how it influences our organic growth,” said Mike Frekey, head of advertising for a marketing platform company. “TikTok, like most demand-generating ad sources, is taking on a much more difficult job of finding people who are not actively in a buying mindset and convincing them to convert.”

Targeting

The number one generation that uses TikTok are the millennials, those aged 25 to 40. And that target audience is evolving to also include younger people, the Generation Zers, who are soon to be the primary creators of video content.

PS: ArganoStudios is one of the world’s leading digital products & experiences dev teams. Contact us to see how we can work together.

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