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What does TikTok offer businesses?

TikTok has become more than just a platform for dance challenges and fun videos: it’s now a powerful marketing tool that businesses can’t afford to neglect. In just a few years, it has become a global phenomenon with over a billion active users worldwide. But what exactly does TikTok offer businesses, and why should your brand join in? Let’s explore why this platform is a game changer for businesses looking to make an impact and answer the question what does TikTok offer businesses?

1. Unrivaled Audience

First things first: the scale of TikTok’s audience is staggering. With over a billion active users worldwide, TikTok is no longer just for Gen Z. Users of all ages, from teens to adults, spend hours browsing content every day. For businesses, this means unprecedented access to a diverse and engaged audience.

Unlike traditional platforms, TikTok’s algorithm is designed to promote new content to a wide audience based on engagement, not just number of followers. Even if your business is just starting out, TikTok gives you the chance to go viral and introduce your brand to millions of people who may have never heard of you. Small businesses can gain massive visibility, and the “For You” page allows your content to reach the right people, regardless of the size of your followers.

In fact, brands have reported a significant increase in visibility through the use of TikTok, with many seeing increased website traffic and sales conversions directly linked to their TikTok business. For more information on the marketing potential of TikTok, check out our article on Why TikTok is a good marketing tool and why you should use it.

2. Authentic engagement and connection

Today’s consumers crave authenticity, and that’s what TikTok delivers. Unlike Instagram, where perfectly curated images reign supreme, TikTok aims to be real. Companies that take a more human approach, showing behind-the-scenes moments, team culture, and day-to-day operations, tend to do exceptionally well on TikTok. This focus on authenticity allows brands to connect with users on a deeper, more personal level.

TikTok users are not just passive viewers: they are highly engaged. Studies show that TikTok has higher engagement rates than any other social media platform, making it easier for businesses to build relationships with their audiences. According to TikTok’s own research, users spend an average of 52 minutes per day on the app, with the majority actively participating by liking, sharing and commenting on content.

So, what does this mean for businesses? You have a great opportunity to create memorable interactions with potential customers. This type of authentic engagement fosters trust and loyalty, turning viewers into customers and customers into long-term brand advocates. Forbes notes that brands that are willing to interact with their community on TikTok, especially in an unscripted way, often see higher customer retention and more enthusiastic brand loyalty.

3. Creative Advertising Opportunities

TikTok isn’t just about organic reach. Its advertising capabilities are broad and effective, offering businesses different ways to connect with their audiences through paid media. One of the most compelling aspects of TikTok’s advertising platform is how seamlessly ads blend with organic content. When users see a TikTok ad, it doesn’t feel like a traditional interruption; instead, it looks like another piece of engaging content in their feed.

TikTok’s advertising platform offers several innovative options, including:

  • In-Feed Announcements: These ads appear in users’ For You feeds, seamlessly integrated with other videos.
  • Branded Hashtag Challenges: This unique format encourages users to create content around a specific hashtag, often leading to viral trends generating millions of views. For example, Chipotle’s #GuacDance challenge saw more than 250,000 video submissions and 430 million video starts.
  • TopView Ads: These ads appear the moment a user opens the app, providing unbeatable visibility.
  • Brand effects: These are fun, interactive filters and effects that businesses can create that users can interact with.

All of these formats make advertising on TikTok incredibly flexible and engaging. According to a study, TikTok users are 1.7 times more likely to act on an ad than users of other platforms like Instagram or YouTube. If you’re looking for tips on how to maximize TikTok advertising, our blog on Dos and Don’ts of Advertising on TikTok is a great place to start.

4. Data-Driven Insights

Couple watches TikTok videos

Gone are the days when businesses had to guess whether their social media efforts were paying off. TikTok’s powerful analytics tools provide businesses with comprehensive data on the performance of their content. This allows businesses to optimize their strategies, knowing exactly what works and what doesn’t.

For example, TikTok’s in-app analytics provide insight into key metrics like:

  • Video views
  • Average viewing time
  • Engagement rate (likes, shares, comments)
  • Subscriber Growth
  • Audience Demographics (location, gender, age)

By leveraging this data, businesses can better understand their audience’s behavior and preferences, allowing them to create more tailored and effective content. The platform also allows brands to track the success of paid ads, helping them measure ROI and adjust future campaigns based on real-time data.

5. Trends and cultural relevance

TikTok is evolving rapidly—Really fast. Trends can emerge overnight, and companies that jump on board can reap the rewards of cultural relevance. But staying on top of TikTok trends isn’t as intimidating as it seems. The platform makes it easy to discover trending content with features like the Discover page and trending hashtags.

Being culturally relevant is a huge win for brands because it brings them into the conversation. For example, Scrub Daddy, a popular cleaning product, gained massive exposure by creating timely content around popular TikTok trends, leading to millions of views and increased sales. The ability to quickly spot trends and create content around them can set your brand apart and give you a competitive advantage.

6. A profitable marketing tool

Finally, one of the most attractive aspects of TikTok for businesses is its profitability. Whether you’re a startup with a small budget or a large brand with a robust marketing department, TikTok has advertising solutions that cater to everyone. The platform’s self-service advertising tools make it easy to create and launch campaigns with budgets as low as $50.

But here’s the real kicker: TikTok ads are often much more affordable than ads on Facebook, Instagram, or YouTube, making them an ideal platform for businesses looking to get the most bang for their buck. Additionally, due to the high level of user engagement on the platform, businesses often see higher returns on investment than other platforms. If you’re ready to try TikTok ads, check out the TikTok Economic Impact Report to understand how effective TikTok can be for your business.

The answer:

A group of people watching TikTok videos

So, what does TikTok offer businesses? The answer is simple: the ability to connect with massive audiences, create authentic relationships, capitalize on trends, and advertise effectively, all while staying within your budget. Whether you’re looking to increase brand awareness, engage with your audience, or increase sales, TikTok is an essential tool in today’s digital marketing landscape.

Conclusion

In conclusion, TikTok offers businesses a unique opportunity to connect with a vast and diverse audience through authentic engagement and creative advertising. With its powerful analytics tools and trend-driven content, TikTok enables brands to stay culturally relevant and maximize their marketing efforts. Whether you’re a small startup or a large corporation, TikTok’s cost-effective advertising solutions and high user engagement make it an essential platform for any business looking to thrive in the digital age.

Frequently Asked Questions (FAQs)

What makes TikTok different from other social media platforms for businesses?

TikTok stands out due to its algorithm that promotes new content based on engagement rather than the number of followers. This allows even new businesses to go viral and reach a wide audience. Additionally, TikTok’s focus on authentic and unscripted content helps brands connect with users on a personal level.

How can businesses benefit from TikTok’s advertising options?

TikTok offers various advertising formats such as In-Feed Announcements, Branded Hashtag Challenges, TopView Ads, and Brand Effects. These formats seamlessly integrate with organic content, making ads feel like engaging content rather than interruptions. This leads to higher user engagement and better ROI for businesses.

What kind of content performs well on TikTok for businesses?

Content that is authentic, behind-the-scenes, and culturally relevant tends to perform well on TikTok. Brands that show their human side, share team culture, and participate in trending challenges often see higher engagement and build stronger connections with their audience.

How can businesses measure the success of their TikTok campaigns?

TikTok provides powerful analytics tools that offer insights into key metrics such as video views, average viewing time, engagement rate, subscriber growth, and audience demographics. By leveraging this data, businesses can optimize their strategies and measure the ROI of their campaigns.

Is TikTok suitable for small businesses with limited budgets?

Yes, TikTok is highly suitable for small businesses. The platform’s self-service advertising tools allow businesses to create and launch campaigns with budgets as low as $50. Additionally, TikTok ads are often more affordable than ads on other platforms, making it a cost-effective option for businesses of all sizes.

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