TikTok is ranked as the most valuable platform for direct-to-consumer advertisers, surpassing Facebook, according to a new report from Triple Whale.
Ad spending by DTC brands on TikTok has surged 231% over the past year, hitting $30 million in the second quarter of 2022, the highest growth among major online platforms including Facebook, Snapchat and Google, e-commerce analytics software company Triple Whale found. Google Ads also saw strong growth in the second quarter, ranking as the second-highest DTC channel by spend in its report.
Triple Whale analyzed $530 million in ad spending across 5,000 e-commerce stores. It found that brands generating $1 million to $5 million in annual revenue are buoying TikTok platform usage and driving up aggregate spending, rather than larger brands. Alexa Kilroy, head of brand at Triple Whale, points to several key reasons: affordability, investment into new strategy, competition and audience.