To TikTok or not to TikTok that is the Question

In the fast-paced landscape of digital marketing companies are constantly competing to find the next trend and next platform to showcase their content. You would be hard-pressed to find a social media platform that has grown faster than TikTok, especially when targeting Gen Z and younger millennials. The question on many marketers’ minds is if TikTok is worth the investment.  

What is TikTok?

TikTok was created by ByteDance a Beijing-based company and officially launched in 2017 internationally. TikTok is a social media platform that allows users to upload short-form videos and gives them the ability to be creative using filters, voiceovers, sound effects, background music, etc. Originally when TikTok launched the videos had to be under 1 minute, have been increased to 10 minutes in recent years. In 2020 TikTok blew up in popularity gaining more than 2 billion app downloads. Shortly after that 2021 TikTok became the world’s most popular website in 2021 passing Google according to Cloudflare.  

Average Users

TikTok had reported over 1 billion app downloads (with some websites reporting almost 2 billion) and over 900 million monthly active users globally as of 2024. Fun fact the average TikTok user opens the app 19 times per day and on average spends 95 minutes per day scrolling.

Main Demographic

The main demographic of TikTok users comprises a younger user base, particularly teenagers and young adults. This platform has gained widespread popularity among the age group ranging from 16-24 years old. 54% of the user base is female. Only time will tell if like other platforms the primary demographic base shifts as Gen Z ages or if TikTok will continue to attract a younger market.

TikTok Culture

Before there were YouTube shorts were created as a direct competitor, there was TikTok the original short-form video social media platform. Advertisers must keep in mind to create content tailored just for TikTok due to its unique format to keep the audience engaged. The platform is all about authenticity and engagement, making it essential for brands to resonate with users in a genuine and relatable way. TikTok’s appeal lies in its short-form video content, creative challenges, and a community that thrives on trends and user-generated content (UGC). For companies considering TikTok advertising, a key consideration is the ability to showcase their brand’s personality uniquely and authentically. TikTok users appreciate content that feels authentic.

Analyzing Performance Metrics

A successful advertising strategy requires robust analytics to measure performance accurately. TikTok provides a suite of analytics tools to track the effectiveness of your campaigns. Being able to analyze and interpret these metrics allows marketers to get the feedback needed to know if the campaign was successful or not. This will help marketers refine their approach and help optimize future campaigns for their target market.

Costs

TikTok offers a wide range of advertising options but you will have to pony up to unlock the full potential.

• Hashtag challenge that costs upwards of $150,000 USD per campaign. Hashtag challenges are TikTok videos performed while doing specific actions, like recreating an influencer’s content, displaying a physical feat, or dancing to a funny song. All while sharing your videos on TikTok with the corresponding hashtag.
• Branded filters and lenses cost $80,000 USD per day and allow companies to create filters that TikTok users can play with and create their organic content with.
• Brand takeovers cost a minimum of $50,000 USD per day which seems expensive, but they guarantee you 5 million impressions.
• In-feed ads: pay $10 USD per 1,000 impressions with a minimum of $500

Privacy and Security Concerns

The elephant in the room when it comes to TikTok is whether it’s a safe app to use. Some key points about recent legislation changes and TikTok mitigating the impact are listed below.

• USA parliament passed a bill “No TikTok on Government Act” on December 12, 2022, banning the use of TikTok on government devices.
• 14 countries have followed suit with similar bans and bills for government servants.
• TikTok gathers a ton of personal data on its users and is not limited to just the app’s use.
• TikTok spent over 1.5 billion USD on American-based servers in the USA that house all the data used in North America separate from the Chinese branch to help ease the minds of users and governments.
• TikTok has set up its two headquarters locations in Singapore and Los Angeles.
• The 4/5 board members are not from China-based.

TikTok has rapidly become a dominant force in digital marketing, particularly for reaching Gen Z and younger millennials. With its emphasis on short-form videos, creative challenges, and user-generated content, TikTok boasts over 1 billion users globally. Marketers have a unique opportunity to showcase brands authentically, although this comes with significant advertising costs.

Analyzing performance metrics is key to refining advertising strategies on TikTok, as the platform provides robust analytics tools. However, privacy and security concerns loom, with recent legislative actions reflecting a growing awareness of potential risks. TikTok’s efforts to address these concerns include substantial investments in American servers and establishing headquarters outside of China.

As businesses navigate the competitive digital marketing landscape, TikTok remains a powerful tool for those willing to embrace it. Staying informed about trends, user behaviors, and potential challenges is essential for leveraging TikTok’s dynamic and engaging marketing potential. In the fast-paced social media form that TikTok offer you would be hard pressed to find anything more engaging and enticing then a professionally ran Sweepstakes to drive engagement. Any company trying to run Sweepstakes and Contests to help grow brand awareness especially when trying to reach young adults need to use TikTok as of their primary platform.

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