How TikTok is transforming brand advertising

TikTok is no longer just the platform for viral dances and trends; it’s transforming how brands connect with consumers and driving unprecedented advertising success. 

As companies embrace TikTok’s unique blend of storytelling, targeted ads and interactive features, they’re discovering a powerful path to growth that seamlessly integrates brand visibility, audience engagement and increased sales.

TikTok: An essential advertising platform

TikTok is quietly revolutionizing the way that brands connect with people. The social platform has now become a valuable advertising hub, with ad revenues set to hit $43.96 billion by 2026.

With over 1.9 billion users, TikTok has the rare potential to drive both sales and increase brand audience connections. Around 92% of the platform’s users engage in some form of interaction after viewing TikTok content. This means organizations that invest in and use TikTok in line with wider business KPIs will outperform the competition.

The recent launch of TikTok’s search ads and Smart+ expands business opportunities by providing greater control over ad placements, improved targeting and easier campaign management. Advertisers using these features alongside in-feed ads see a 20% increase in conversions at a similar, if not lower, CPA.

Unmatched adaptability: Tailoring ad campaigns with precision

TikTok offers various ad formats and targeting options, from in-feed ads to branded hashtag challenges. You can add calls to action that drive users to landing pages, prompt app downloads or boost organic reach.

TikTok’s new search ads boost the platform’s versatility by letting you target users who are actively searching for products or services. This is significant, considering 57% of TikTok users tap the app’s search functionality and 23% search for something within 30 seconds of opening the app. Through keyword ads, TikTok ensures an SEO-like capability that adds a new layer of precision to its advertising ecosystem.

Additionally, search ads allow for easy activation, editing and keyword and creative adjustment both during campaign setup and while it’s live. This lets you react to campaigns in real time — optimizing performance and reaching high-intent audiences at crucial moments.

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Achieving an increased ROI with strategic spending

TikTok’s potential ad reach of more than 945 million adults offers a goldmine for ROI. Advanced budgeting, bidding and creative optimization tools make smarter spending easier than ever. 

The launch of Smart+, TikTok’s answer to Google’s Performance Max and Meta’s Advantage+, has taken ad performance to the next level, delivering a 52% improvement in return on ad spend. This automated solution handles ad creation, placement and bidding, helping businesses reach the right users, minimize wasted spending and drive higher engagement at lower costs.

TikTok generated an estimated $16.1 billion in revenue in 2023 — a 67% increase from 2022. With 44% of users purchasing directly on TikTok, the platform is more than just a social app — it’s a growth accelerator. 

Its viral trends and interactive features build authentic connections and foster brand loyalty, while targeted ads and social commerce tools streamline the path from discovery to conversion. 

Understanding core brand values

Visibility over channel performance is key to making smart marketing investments. Without this holistic view, businesses risk under-investing in high-potential platforms and missing growth opportunities. 

CarParts is a great example of what happens when you get it right. By optimizing its marketing strategy, it uncovered TikTok’s significant impact, achieving an 11.1 ROI in sales and a 43% higher return than other channels. This proves the power of understanding where your investments pay off.

TikTok’s emphasis on creative storytelling encourages brands to innovate, while real-time data insights help optimize strategies for sustained growth across all channels. The platform’s blend of visibility, engagement and conversion supports long-term business success.

Brands and marketing leaders who harness TikTok’s potential will reach vast audiences and position their brands for sustained success and innovation.

Discovering your perfect TikTok collaborator

As brands increasingly integrate TikTok into their marketing strategies, they often face challenges managing multiple partners, differing campaign strategies, or competing technologies. But the solution is clear: Choose a single, holistic marketing partnership.

For example, by partnering with our agency, Les Mills streamlined its TikTok strategy, using in-feed and TopView ad placements to drive awareness and reach among key audiences. This resulted in a 700% ROAS and a 14-time increase in sign-ups for LES MILLS+.

Selecting a unified approach to TikTok marketing can help brands maximize the platform’s reach and engagement, build stronger connections with audiences and support long-term growth.

Dig deeper: Executing a TikTok campaign: Best of the Bot