Surpassing 1 billion users in September and counting, TikTok is the platform of the moment – and the opportunities available for business advertising on TikTok shouldn’t be underestimated.

If you’re wondering why TikTok is good for advertising, the answer lies in engagement. With an average session length of 11 minutes, it’s by far the most engaging social media app available, meaning there’s a greater chance that customers will interact with your brand. And the good news is that those interactions often lead to purchases. TikTok is currently the number-one app for consumer spend – totaling $2.3 billion in 2021.

So, let’s take a closer look at why TikTok is good for business and how you can find what works for your brand.

How do TikTok ads work?

If you’re unsure how to advertise using TikTok, there are a few different types of ads available, each varying in potential reach and cost.

In-Feed ads appear to users within their ‘For you’ page, in amongst the videos that the famous TikTok algorithm has decided they’ll be interested in. These posts have the same interface as organic posts so feel like native content, making it a good space for brands to advertise. Each ad includes a video, an ad display image, brand or app name, and ad text.

Rather than covering the screen when a user signs in, a TopView ad appears as the first In-Feed post after 3 seconds, showing up to 60 seconds of full-screen video automatically with sound. These ads are supported by ‘like’, ‘follow’, ‘share’, and ‘comment’ functions, encouraging community engagement.

Spark Ads
A recently introduced format, these ads allow brands to boost their own organic posts, or videos of creators as TopView or In-Feed ads, with their permission. They need to have already been posted on TikTok, and include a built in CTA and direct link to the brand’s website after 3 seconds.

Branded Hashtags
Branded Hashtags are a great way to generate community engagement, and are offered as both organic and sponsored opportunities. However, with the cost of advertising on TikTok via a sponsored Branded Hashtag coming in at around $150,000 for six days, it’s a much less accessible format.

Branded Effects
Branded Effects can include everything from 2D, 3D and AR effects, to product stickers and bespoke filters – making it a versatile way for brands to connect with and encourage interaction from users. It is worth considering whether your target audience is likely to use effects when considering opting for this ad strategy.

What makes TikTok ads so successful?

In comparison to other social advertising, there are several elements that make this platform different:

The best TikTok adverts don’t even feel like adverts

TikTok has been set up so that branded videos resemble organic content, giving brands powerful opportunities to run advertising that feels authentic within users’ feeds.

They are served alongside organic content

Most of the TikTok advertising formats put these videos in users’ ‘following’ and ‘for you’ feeds, so brands’ ads seamlessly appear while they are scrolling.

TikTok advertising increases social reach

It can be difficult for brands to increase organic reach and drive engagement, but TikTok has a secret weapon: creators. Established creators know how to show off products, and the results are ads that showcase the real side of your product or service.

Why brands should consider TikTok advertising for business

Despite what you may have heard, TikTok is not just a space reserved for beauty brands and viral dances. In fact, some of the best TikTok brand campaigns have spanned B2C, B2B, and not-for-profit businesses, with the best-performing industries being food and drink, fashion, B2C consumer products, retail, health and fitness, and travel. So, how do you know if it’s right for your brand? Here are a few things to consider when it comes to TikTok advertising.

What are your objectives?

TikTok ads offer seven objectives broken down into three categories: awareness, considerations, and conversions. Ask yourself whether you want to simply get your brand out there, drive people to a specific webpage or other platform, or see specific actions like sales or subscriptions – and these objectives should match your wider business goals.

Is your target audience using TikTok?

While TikTok’s audience is growing in the 30-49 age bracket, Gen-Z are still the most popular users of the app. You should consider whether your product or service has wide enough appeal across TikTok’s dominant demographics.

Do you have the budget to execute your vision?

The beauty of TikTok is that you don’t need a huge budget to get started with advertising. However, it is important to be realistic in what you can achieve with a smaller budget, and opt for In-Feed and Spark ads over the more expensive options like TopView ads.

While there are valuable opportunities for all kinds of businesses looking to advertise on TikTok, there’s also a lot to consider to get it right. If you’d like to talk about maximizing your ad performance, get in touch with the team at JGM.