We all know TikTok is the social platform at the moment and we have all witnessed its massive growth numbers, which confirms its popularity, especially among younger audiences. But is TikTok really effective for advertising, since it’s so easy to skip TikTok ads – and in particular, are TikTok campaigns able to drive in-store transactions as a result of exposure and increased brand awareness?
This is what TikTok has sought to illustrate with a recent set of studies, in collaboration with Nielsen, that used Marketing mix modeling analysis to determine the offline selling leverage that TikTok campaigns can achieve, which may provide a more perspective on your approach.
Nielsen analyzed 16 ad campaigns from brands across North America, Europe and Southeast Asia, focusing on identifying the optimal approach to driving offline sales.
This is what they found:
First, the data showed that TikTok ads drive a strong ROI for CPG brands, as well as stronger “sales efficiency” – that is, how long it takes to see an in-store return from your campaigns:
The US, for example, experienced a 14% higher return on ad spend for paid media versus all digital media measured in models and 2 times the efficiency of offline sales, while the numbers for Europe and Southeast Asia were even higher.“
This makes sense to some extent – since TikTok is so popular right now, you can see how the right campaigns can associate a brand with that hype, boost awareness, and responsiveness, based on in-app payments.
The Nielsen study also looked at what types of content worked best at increasing audience response, and found that in-feed video was the most efficient type of ad. This, again, isn’t overly surprising, given the limited amount of TikTok ad options on offer – but the data also showed that advertisers could actually boost the position of their ads in the app to see better results.
In other words, brands can run more campaigns, work to push their brand on TikTok that much harder, and still see the same levels of effectiveness. This can help maximize your brand awareness, and capitalize on the popularity of the app.
Finally, Nielsen also used the In-Store Sales Leverage methodology to determine the specific capacity of TikTok ads to generate in-store sales for CPG brands:
Of the 16 studies commissioned, 14 had a significant increase in sales. The average return on ad spend for these studies was twice the campaign performance criterion for the average NCS.“
Again, given the platform’s widespread popularity, these results aren’t overly surprising, and in fact, all they effectively show is that brands that are able to catch the popular styles and hues of the platform, which then mirror their products, see the positive sales increase. As a result to correct it.
However, doing it properly takes dedicated time and effort. If you want to beat TikTok, you need to understand the main trends of the app, popular content formats, and create content that looks original and matches the presentation of in-feed videos.
If you can correct for these, the data shows that your business can benefit from the reflexive glow of popular app popularity, in various ways.
You can read the complete offline sales impact study of TikTok here.