Marketing Analysis: Tik Tok
The social media giant, TikTok, is a perfect hub for both paid and organic marketing strategies. Growing at an exponential rate with both Generation Z and Millennials (Generation Y) as active users, TikTok is crushing the market with their trends influencing every aspect of the industry today.
One thing is for certain, TikTok has harnessed the buying potential of the younger generations through engaging content. With the power of international communication forever at their fingertips, their purchasing power will inevitably be more diverse. Generation Z are likely to purchase products either remotely or because of a virtual review. 30% of their transactions are done on the phone. They are also most likely to read online reviews out of any generation. Their motives, search time, and potentially the nature of the gift is all heavily influenced by mass media. Gen. Z purchasers are likely to buy brands with social media presence, endorsed by influencers with high ratings on the internet and TikTok knows how to use this to their advantage. Their predisposition towards virtual transactions affects the gestation stage overall, creating an easily predictable purchasing likelihood regarding the utilization of technology in the buyer making decision process. “You can’t ignore the power of TikTok, particularly if you’re looking to find customers (or employees) in the GenZ or Millennial generations. If you’re products, services or company culture matches this demographic, then TikTok should be part of your marketing and recruitment plans for 2022” (Forbes.com).
If you’re interested in the breakdown of demographics with active users on TikTok, make sure to check out the audience analysis blog post on this page.
As far as money-making goes for users, Tiktok’s algorithm allows for an interesting involvement of micro influencers, creating a platform where they have increasing reach and exposure. For example, the average engagement of micro-influencers on Instagram, is 3.8% while TikTok rate is as high as 17.9% (more than 3 times as much). The Tiktok app seems to have the best engagement rates of social media platforms, outperforming even Instagram. Producing a consistent content pattern for audience members to know what to expect is essential to success with the TikTok algorithm. So be warned, there is no point in being a one-hit-wonder. “Ideally, you want all your niche-themed videos to have the same look and feel about them – you want to create your own style” (influencermarketinghub.com/tiktok). It is also important to interact with viewers, so followers believe in the account’s realism.
To earn revenue on Tiktok one may create live videos and receive tips from viewers (this money-making feature was formerly called Live.ly but is now known as Go Live). However, unlike YouTube, TikTok users don’t get to share in the advertising revenue generated on the platform.
TikTok is currently trialing biddable ads, and this may change the way influencers can earn income on the platform in the future. According to Adweek, “TikTok has told agency partners in the U.S. that it is working on a biddable advertising option on the platform. With biddable ads, advertisers will be able to bid against one another for the ad impressions they want on a self-managed platform.” Presumably, TikTok will develop some form of ad revenue-sharing program in the same way that YouTube has (influencermarketinghub.com/tiktok).
Image Source: https://influencermarketinghub.com/tiktok-money-calculator/
