The TikTok community comes to the platform to be entertained and uplifted, to discover, participate and learn. But, unlike other platforms with similar aims, statistics show that TikTok motivates those users to take action on and off the platform, whether that’s making a purchase, signing up for something or initiating a download.
This ripple effect of action, both on- and off-platform, ensures that the TikTok community enjoys an experience where discovery meets activity, and intent-based search drives outcomes. As TikTok continues to expand its performance suite of solutions, a host of opportunities are poised to emerge.
The power of performance
For brands, TikTok offers endless opportunities for exploration by both current fans and new audiences. TikTok’s natural user experience starts with discovery and with its suite of products, which can harness that interest and drive consumers through the funnel. The TikTok community is 2.7 times more likely to engage with brands online.¹ In addition, two in five users who discovered a product on TikTok went to a physical location that sells that item.² “As we look at how our platform drives performance, it’s important to me that clients have transparency into the mechanics they need to track that progression through the funnel,” said Jorge Ruiz, TikTok’s global head of marketing science. “This is why it's so important to have strong attribution and incrementality solutions. You want to start using TikTok’s measurement solutions in conjunction with each other so you can start to understand the journey.” These solutions include TikTok’s self-attribution network, where clients are able to view all conversions driven on TikTok. Because the average consumer travels through a different decision funnel when using TikTok, rather than via a simple click-to-buy model, breaking down ad engagements into more granular metrics is essential. This approach to the down-the-funnel decision journey is fueling the future of advertising, said Adolfo Fernandez, TikTok’s global head of performance solutions. While other platforms track ad clicks as their primary revenue driver, TikTok’s model is designed to encompass a more realistic consumer journey, one that takes into account a more dynamic way of measuring different types of engagement, he said. “TikTok has been designed to entertain and built to perform,” said Fernandez. “We view ad views as the starting point for further exploration on other channels.” TikTok’s function as a consumer discovery engine doesn’t just drive results for advertisers at the end of the funnel; statistics show that the platform drives results over the course of an entire user journey. Fernandez said that 70% of users discover new brands and products³ on the platform and 92% of users took some form of action⁴ based on TikTok content. “While the click-and-buy scenario isn’t the only outcome we’re focused on, 61% of TikTok users have made a purchase immediately after seeing an ad on TikTok⁵,” he added. “TikTok has become a platform that drives trackable results for advertisers throughout the entire user journey, not just the first point of contact.”
The future of performance media
To further explore what’s possible in performance media and marketing, TikTok recently expanded TikTok Shop to encompass a suite of solutions that allow businesses of any size to drive sales online, in-store, and on TikTok. Fernandez said this move has bolstered in-app engagement between consumers and brands in unprecedented ways. “When compared with other online video channels, TikTok delivers an online retail return on ad spend [ROAS] that is 3.5-times more efficient⁶ when compared with other online video channels,” he said. “TikTok's retail ROAS for online conversions is 1.6 times more efficient⁷ than the average.” “We’ve seen how truly effective the channel is in driving incremental revenue for our clients,” said Jenny Howell Stiles, Power Digital’s managing director of TikTok. “With our custom measurement methodologies, we educate and demonstrate the impact of TikTok on our client's bottom line while executing TikTok-first creatives and strategies. On average, we see that TikTok drives an incremental ROAS of $3.”
Travel is another area where the community is taking action at the point of discovery. Fernandez said almost half the users engaging with travel content on TikTok visit a travel website, and similar metrics reign in gaming-related content verticals. All of this indicates what Fernandez and Ruiz already know: By designing wraparound solutions that harness the consumer behavior that has become a hallmark of TikTok’s brand, the app is poised to remain a capable solution for advertiser needs. “Ultimately, our goal is for consumers to get inspired, connect with their communities and take action at the point of discovery,” Fernandez said. “Our vision is to continue to make TikTok the most immersive, frictionless and trustworthy experience. As we like to say: “Start with discovery. Stay for results.”
Sources
1. TikTok Marketing Science US Path to Purchase Part 2 Research 2022, conducted by Material 2. TikTok Marketing Science Global eCommerce Study (Global Results) 2022, conducted by Material 3. TikTok Marketing Science Global Retail Path to Purchase Study 2021 conducted by Material 4. TikTok Marketing Science Global Shopping Ad Products Study 2022 conducted by Material February 2022 5. TikTok Marketing Science Global Shopping Ad Products Study 2022 conducted by Material February 2022 (n=17,937) 6. TikTok Marketing Science Offline Sales Lift study based on 11 CPG campaigns across Food & Bev, Beauty and Care, conducted by NCS, 2022 7. TikTok Marketing Science Transunion MTA Study commissioned by TikTok, US Only ROAS inclusive of Big Box, Specialty Big Box, Beauty Retail, and Fashion/Luxury Retail
About TikTok
TikTok for Business is a global platform designed to give brands and marketers the solutions to be creative storytellers and meaningfully engage with the TikTok community. With solutions that can deliver seamlessly across every marketing touchpoint, TikTok for Business offers brands an opportunity for rich storytelling through a portfolio of full-screen video formats that appear natively within the user experience.
