Why Advertise on TikTok? Is This the Right Time to Start?

According to Statista, an astounding 167 million TikTok videos are viewed globally in an internet minute. The user base of TikTok has undergone astronomical growth in recent years. And businesses are leaving no stone unturned to leverage this growth. TikTok ads have the potential to reach this huge market. The growth in TikTok’s user base

Tiktok For Business - Social Media Marketing

According to Statista, an astounding 167 million TikTok videos are viewed globally in an internet minute. The user base of TikTok has undergone astronomical growth in recent years. And businesses are leaving no stone unturned to leverage this growth. TikTok ads have the potential to reach this huge market. The growth in TikTok’s user base has surged 45% during COVID-19, but it cannot be characterised just as a pandemic trend. Today, TikTok has surpassed 1.2 billion monthly active users and this growth seems boundless.

Businesses can use the TikTok Ads Manager to set up an ad group and run video ads. The TikTok Ads Dashboard also helps measure performance points, such as:

  • Ad delivery
  • Ad spend
  • TikTok ad placement
  • Campaign budget

With this data, users can optimize ads to get the best results for their ad budget. If you’re still debating whether TikTok should be part of your social media marketing strategy, then keep reading. We’re sure we can convince you.

A TikTok Ad Campaign Target Audience Hits Every Demographic

People used to think TikTok was for teens. Several years ago, that might have been true. Now, TikTok users come from every part of the age spectrum.

Statistic Id1095186 Tiktok User Ratio In The Us 2021 By Age Group - Paramount Digital

As you can see, every major age group uses TikTok in almost equal measure. Your ad groups can reach whatever age audience you choose on TikTok.

TikTok Advertising Reaches High Value Users

TikTok appeals to all age groups, but also to wealthy users. In fact, 40.2% of TikTok watchers earn more than $100K per year. If your business wants to target the decision-makers in the business world, you can probably find them on TikTok.

Statistic Id1119957 Tiktok User Ratio In The Us 2020 By Income - Paramount Digital

Compared to Instagram, TikTok’s users are wealthier. This may not matter for some businesses. But here are a few business types that might want to target a wealthier demographic:

  • Luxury brands selling high-ticket merchandise
  • Lifestyle brands marketing non-essential items
  • Coaching, self-improvement, and therapy businesses

All three business models need consumers with extra cash to spend. TikTok’s users may have the fund to buy exclusive products, take an extra holiday, or hire a personal coach.

A TikTok Ad Group Can Target the World

Your TikTok ad account can reach people all over the world. TikTok is one of the most downloaded apps on the planet right now. With users all over the world,

TikTok is perfect for global brands. It is also brilliant for expanding businesses because of its global reach.

Here are stats to show you TikTok’s global reach:

  • The app is available in 155 markets and in over 75 languages.
  • TikTok has been installed on over 1.5 billion Android phones.
  • There are over 1.2 billion active users each month.

That last statistic needs to be paired with one more:

  • TikTok has 138 million active users in the USA. That’s a high number, but consider what it means for the rest of the world. 88.5% of TikTok’s watchers are from the rest of the world. Many advertising companies focus on the USA. But TikTok could be a strong choice for reaching a global audience.

TikTok Ads Cost and Benefit Analysis

Audience size and reach are important but they don’t really measure the effectiveness of the platform. The key question here is:

Will TikTok advertising actually bring more revenue to your business?

Does your ROAS improve with TikTok Ads?

Nielsen and TikTok assessed 16 campaigns in Europe, North America and Southeast Asia.

In the US, TikTok’s paid media ROAS was 14% greater than that of all other digital media models, while in Europe, it was 64% higher. Additionally, sales performance was twice as high as the US average for digital media.

The best ad format for boosting audience interaction in TikTok campaigns is in-feed video. According to the US model, TikTok advertisers can enhance ad placement in the app to increase performance and weekly in-feed impression volume by 50%.

As each campaign’s overall ROAS outperformed the NCS median campaign result by two times, 14 of the 16 campaigns under study showed a notable campaign lift. Brands capable of adhering to the platform’s popular formats and styles gain from in-store sales.

How Effective Is TikTok Advertising Compared to Google?

Many businesses already use Google for advertising. Google’s domination of the search market is well known. Google ads appear across their Search and Display Networks, reaching a huge audience.

But how do TikTok Ad specs compare to Google?

User Reach vs. User Engagement

Given the volume of searches on Google, there is a very good chance that customers looking for the solutions your company provides will be there as well. You can easily overpower your competition by using Google Ads and smartly responding to searches.

In contrast, TikTok’s innovative delivery technology helps it to achieve user engagement with an iota of effort. Your videos may still go viral even if your company is brand-new on TikTok and has no followers. Many people find the app to be addicting, and approximately 90% of them check in more than once every day, which elevates the engagement rate.

You could sum up the differences by saying that TikTok ads help new customers find you, whereas Google ads help you find new clients.

Cost Effectiveness

Google search advertisements can cost somewhere between $1 and $2 per click. Prices, however, might vary from $0.5 to $150 based on the domain.

The typical cost per thousand impressions (CPM) for Google display advertising is $3.12, with a range of $0.50 to $4 CPM.

When compared to Google ads, the average TikTok ads’ cost starts at $10 CPM, which looks a little expensive. But depending on the ad type, you will need to spend somewhere between $50,000 and $120,000 on advertisements. TikTok is more expensive than other social media platforms.

One big caveat, though:Your business videos can go viral on TikTok without spending a penny on advertising.

TikTok’s algorithm regularly shows people non-viral videos. If many users react positively to a video, it can go viral. This is true for unknown creators. So, investing in high-quality videos that go viral might be better than spending thousands on an unknown ad campaign.

Target Audience

We find higher buyer intent in Google search ads. This is because people are actively searching for certain types of goods or services.

Hence, there is a good probability that they will become your clients if your ads appear at the right time and your goods or services fit their needs.

Users on TikTok, however, are not specifically trying to purchase goods or services through TikTok. They are really hooked on the platform and use it to occupy their time by browsing short-form videos. Therefore, the chances that they will leave the platform and click an advertisement to visit your website are slimmer.

Does that make TikTok less valuable?

No, certainly not. TikTok is a great platform for building brand awareness, reaching new customers, and finding an entry point to your target market.

Why Advertise On Tiktok?

Why You Shouldn’t Make TikTok Your Only Advertising Platform

TikTok is brilliant for user generated content. It performs better than other social media channels for engagement. Organic content can go viral and really expand a brand’s reach.

What’s not to like? A few things:

TikTok’s algorithm is intentionally addictive – allegedly. Some businesses may want to consider how their target audience engages with TikTok because it is a Chinese company engaged in (allegedly) shady practices.

Companies have banned TikTok. India, Pakistan, and Bangladesh are prime examples. Donald Trump tried to have TikTok banned in the USA over data privacy concerns. This is a great example of “watch this space.” TikTok’s data collection is aggressive and privacy concerns are common.

How to Use TikTok Wisely

As a business, you want to use every tool to grow. A TikTok ads account might be just what you need. The platform’s reach, engagement, and popularity are impressive. To make the most of them, consider how TikTok advertising fits into your overall strategy. Here are a few key questions:

  • Does TikTok match your campaign objective?
  • Are other platforms necessary, beneficial, or even better for your audience?
  • Do you have the creatives and budget to make the most of TikTok advertising formats?

We may be biased, but we think every business should have an intelligent marketing strategy managed by experts. TikTok might be the best way to go for your business. But if you’re not sure, get in touch. One of our experts can help you review your strategy and choose the best platform for your plans.


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