TikTok Marketing for Business Growth

TikTok was created by the Chinese tech company ByteDance. The app was then launched internationally in September 2017 under the name Douyin for the Chinese market. ByteDance next introduced the app to the international market as TikTok in September 2018. Since that time, it’s taken off like a rocket.

How TikTok Works

Tiktok quickly gained massive popularity for its short-form video format and creative content, particularly among younger users.

In a way, it was sort of like YouTube but geared more for teens and pre-teens.

The primary success of TikTok however can be attributed to its algorithm-driven content recommendation system, which quickly surfaces videos tailored to users’ preferences, creating an engaging and personalized experience. TikTok’s global expansion was rapid, and it became one of the most downloaded apps worldwide.

ByteDance’s strategy involved understanding and adapting to the preferences of users (and permitting marketing ad spends) in different regions.

The company invested in localization efforts, including language support, cultural nuances, and collaboration with local influencers.

(And as an aside, as I’ve always said in every interview I’ve ever given, every workshop I’ve ever taught, SEO and marketing and advertising and even political messaging all start local and grow outward from there.)

TikTok ascended to prominence marked by its ability to capture the attention of a diverse and global user (and advertising) base as a result.

It’s important to note that while TikTok was initially launched internationally in 2018, its roots can be traced back to ByteDance’s earlier app, Douyin, which laid the foundation for the platform’s success in China.

The international version, TikTok, has since become a cultural phenomenon and a significant player in the social media landscape.

Now that we’ve gotten the history and rapid growth of TikTok out of the way, let’s talk about the real gist of why you came here:

Advertising on TikTok

The cost of advertising on TikTok (just like any other social media platform) can vary widely based on several factors, including the type of ad, campaign objectives, Key Performance Indicators (KPIs), target audience, geographic location, budget, and the duration of the campaign.

TikTok offers various advertising options, and each comes with its own pricing structure. Here are just a few of the most common TikTok advertising formats and an overview of their potential costs:

1. In-Feed Ads: These are short video ads that appear in users’ “For You” feeds. The cost can vary based on factors like targeting options, ad placement, and the duration of the campaign. On average, in-feed ads may cost between $10 to $25 per CPM (Cost Per Thousand impressions).
2. Branded Hashtag Challenges: These campaigns encourage users to participate in a branded challenge. Costs for branded hashtag challenges can range from tens of thousands to hundreds of thousands of dollars, depending on factors like the level of promotion and collaboration with TikTok influencers.
3. Branded Effects: These involve creating branded filters, stickers, and special effects that users can use in their videos. Costs for branded effects can vary, and the pricing structure may include a combination of setup fees and CPM charges.
4. TopView Ads: These are high-impact, full-screen video ads that appear when users open the TikTok app. TopView ads are one of the more expensive options and can cost several hundred thousand dollars for a day-long campaign.
5. Branded Content: Collaborating with TikTok influencers for branded content is another option. The cost depends on the influencer’s reach, engagement rate, and negotiating terms. Influencers may charge per video, per campaign, or based on their follower count.

It’s important to note that TikTok’s advertising landscape is dynamic, and pricing structures may change.

Additionally, the costs can vary based on the competitiveness of your target audience, interests, and industry.

For the most accurate and up-to-date information on TikTok advertising costs, I always recommend visiting TikTok’s official advertising platform or consult directly with TikTok’s advertising team. They can provide insights into current pricing, campaign options, and help tailor a strategy that aligns with your business objectives and budget.

Using TikTok for business advertising can be advantageous for several reasons:

1. Large and Diverse User Base: TikTok has a massive and diverse user base, with millions of active users across various demographics. This allows businesses to reach a wide audience and target specific demographics based on their products or services.
2. Engaging Content Format: TikTok’s format focuses on short-form videos, typically ranging from 15 to 60 seconds. This format encourages creativity and can be more engaging than traditional advertising methods.
3. Trend Utilization: TikTok is known for carefully studying trends and using challenges to engage consumers. Businesses can leverage popular trends to create content that aligns with the platform’s culture, increasing the likelihood of their content being discovered and shared. Remember the three different types of silos of marketing content I’ve discussed elsewhere in my blog.
4. Influencer Marketing Opportunities: TikTok has a vibrant community of influencers. Partnering with influencers relevant to your industry can help businesses tap into their followers and gain credibility.
5. Hashtag Challenges: Creating branded hashtag challenges can encourage user-generated content, fostering community engagement. Users participate by creating content related to the challenge, helping to increase brand visibility.

If your goal is to expand your consumer base using Tiktok, remember, don’t just read about this. Use what’s here. To effectively embrace TikTok marketing, businesses can (and should) follow these steps:

1. Create Engaging Content: Develop creative and engaging short videos that resonate with the TikTok community. Focus on storytelling, entertainment, and authenticity.
2. Understand TikTok’s Algorithm: Learn how the TikTok algorithm works to ensure your content is discoverable. Engagement metrics, such as likes, shares, and comments, play a crucial role in content visibility.
3. Leverage Hashtags: Use relevant and trending hashtags to increase the discoverability of your content. Consider creating a branded hashtag for your campaigns.
4. Collaborate with Influencers: Partner with TikTok influencers who align with your brand. Influencers can provide authentic endorsements and reach a broader audience.
5. Run TikTok Ads: TikTok offers advertising options, including in-feed ads, branded hashtag challenges, and branded effects. Businesses can utilize these paid options to enhance their reach and visibility.
6. Participate in Challenges: Engage with existing challenges or create your own to encourage user participation. User-generated content can create a sense of community and loyalty around your brand.
7. Optimize for Mobile: Keep in mind that TikTok is primarily a mobile platform, so ensure that your content is optimized for mobile viewing.

Now, let’s look at the flip side to be totally fair and transparent here.

Reasons to Be Wary of TikTok Marketing for Business Growth:

1. Algorithm Challenges: Understanding and optimizing for TikTok’s algorithm can be challenging, as the platform’s content discovery is heavily influenced by user engagement metrics.
2. Limited Content Duration: The short video format may not be suitable for all types of content, and businesses need to convey their message effectively within a limited time frame.
3. Younger Audience: While TikTok has a massive user base, it tends to skew towards a younger audience. This may not be ideal for businesses targeting older demographics.
4. Brand Safety Concerns: As with any user-generated content platform, there is a risk of inappropriate or controversial content that could potentially impact a brand’s image negatively.
5. Competition for Attention: Due to the vast amount of content on TikTok, businesses may face stiff competition for user attention, making it challenging to stand out.
6. Limited Advertising Options: While TikTok offers advertising options, the platform’s advertising capabilities might not be as extensive or flexible as other social media platforms.
7. Constant Algorithm Changes: TikTok frequently updates its algorithm, which can affect the visibility of content. Staying updated on these changes is essential for maintaining a successful strategy.

Businesses should carefully consider these pros and cons, align their strategies with their target audience, and continually adapt to the dynamic nature of the platform to maximize the benefits of using TikTok for business growth.

TikTok Marketing Examples

Here are several examples of general strategies that businesses have employed on TikTok to ignite growth. Learn by their example and compare these approaches, how they matched specific brands, and see what feels right for what your business provides.

1. Chipotle: Leveraging Challenges and User-Generated Content
• Chipotle, a popular fast-food chain, has successfully used TikTok to engage with a younger audience. They launched the #GuacDance challenge, encouraging users to show their love for guacamole. This challenge not only went viral but also generated a significant amount of user-generated content featuring Chipotle products.
2. e.l.f. Cosmetics: Utilizing TikTok Trends and Influencers
• e.l.f. Cosmetics embraced TikTok’s trends and collaborated with influencers to create makeup tutorial content. By leveraging popular challenges and partnering with influencers who had a strong presence on TikTok, e.l.f. increased brand awareness and engagement among the platform’s beauty-conscious audience.
3. Ocean Spray: Riding the Wave of Virality
• Ocean Spray, a beverage company, gained unexpected viral attention when a TikTok user posted a video skateboarding while drinking Ocean Spray cranberry juice. The company embraced this viral moment and created their own response, leading to widespread positive attention and engagement on TikTok.
4. Nathan Apodaca (Ocean Spray TikTok Challenge): User-Generated Content Going Viral
• Although not a traditional business, Nathan Apodaca, also known as @420doggface208 on TikTok, gained fame by creating a video skateboarding and drinking Ocean Spray cranberry juice to the tune of Fleetwood Mac’s “Dreams.” His video went viral, showcasing the potential for organic, user-generated content to boost brand visibility.
5. Guess: Interactive and Shoppable Content
• Fashion brand Guess used TikTok to create interactive and shoppable content. They collaborated with influencers to showcase their latest clothing lines and encouraged users to participate in challenges related to fashion trends. By incorporating shopping features directly into TikTok, Guess aimed to convert user engagement into actual sales.

These examples highlight various strategies, including challenges, user-generated content, influencer collaborations, and leveraging unexpected viral moments. Keep in mind that TikTok’s fluid nature requires businesses to stay agile, creative, and authentic in their approach to effectively connect with the platform’s user base.

Remember, the key to success on TikTok lies in understanding the platform’s culture, creating content that resonates with users, and staying authentic to your brand.

Summing Up

The returns on investment (ROI) for TikTok marketing compared to other social media platforms can vary based on factors such as the target audience, industry, campaign objectives, and the effectiveness of the marketing strategy. Here are some considerations when comparing TikTok marketing to other social media platforms:

1. Audience Demographics:

• TikTok has a predominantly younger user base, with a significant presence of Gen Z and Millennials. If your target audience aligns with these demographics, TikTok may provide strong engagement and conversion rates.
• Other platforms like Facebook and Instagram have a broader age demographic, making them suitable for businesses targeting a more diverse audience.

2. Content Format:

• TikTok’s short-form video format is unique and can be highly engaging. If your brand message fits well with this format, TikTok may offer a more immersive and entertaining way to connect with users.
• Other platforms offer a variety of content formats, including images, videos, and longer-form content, providing flexibility for different types of marketing campaigns.

3. Advertising Costs:

• TikTok advertising costs may vary but can be competitive compared to other platforms. The cost-effectiveness of TikTok marketing depends on your campaign objectives, target audience, and the type of ads you choose.
• Some businesses find cost-effective results on platforms like Facebook, especially if they have a well-defined target audience and utilize advanced targeting options.

4. Competition and Saturation:

• TikTok, being a relatively newer platform, might have lower competition in certain industries compared to more established platforms like Facebook and Instagram.
• On established platforms, there may be higher competition for user attention, potentially impacting ad costs and the visibility of organic content.

5. Algorithm and Discoverability:

• TikTok’s algorithm-driven content discovery can lead to videos going viral and gaining widespread visibility quickly.
• Other platforms, like Instagram and Facebook, also use algorithms, but the organic reach of content can be affected by factors such as changes in algorithms and competition.

6. Influencer Marketing:

• TikTok has a strong influencer marketing culture, and collaborations with influencers can drive brand awareness and engagement.
• Influencer marketing is also prevalent on platforms like Instagram, with a range of influencers catering to different niches.

7. Ad Formats:

• TikTok offers unique ad formats like branded hashtag challenges and branded effects, providing creative opportunities for businesses.
• Other platforms have their own set of ad formats, such as Instagram Stories, Facebook Carousel Ads, and LinkedIn Sponsored Content.

Ultimately, the effectiveness of TikTok marketing relative to other platforms depends on your specific business goals, target audience, and the nature of your products or services.

A comprehensive social media strategy may involve a mix of platforms to reach a diverse audience and maximize overall ROI. Regular monitoring, analysis, and adaptation of your marketing strategy are crucial for achieving optimal results across different platforms.

Want Even More TikTok? I’ve Got This.

Want even marketing information on how you can benefit from using TikTok to market your business? Watch my interview with a TikTok marketing specialist in the space below.

You can watch the interview directly on YouTube and BitChute and Vimeo. You can also listen to our interview at Apple or using the code embed below.