The short-form video platform now has over 1 billion monthly active users worldwide. Businesses make the most of the app’s marketing potential through its enormous audience. Let’s look at some TikTok statistics to see how effective TikTok is for companies.
There are a lot of factors to consider in measuring TikTok’s effectiveness. Here are some ROI statistics and other data that will let you know if the social media platform is a successful tool in business.
78% of small businesses received a positive return on investment (ROI) through the platform. About 75% of them got the returns within six months.
Prominent corporations are also riding the wave of TikTok’s popularity. In 2019, the fast-casual restaurant Chipotle started the #LidFlipChallenge on TikTok. It gathered 111,000 videos and 336 million views.
They also initiated the #GuacDance challenge, which now has over one billion views. Chipotle earned a 99% growth in sales coming from customers watching their videos and joining the challenges.
The video-sharing app is considered the fastest-growing media brand worldwide. Its brand value continuously increases, with a growth rate of 215%.
TikTok’s brand value is $59 billion in 2022 and $18.7 billion in 2021.
TikTok users can buy coins that they can convert to live-stream gifts. The company earned $75 million from this type of user spending in Google Play and App Store worldwide. More than 50% of this total comes from United States users.
In 2021, TikTok earned $4 billion in advertisements alone. It is expected that the app will double its current revenue by 2024.
TikTok’s parent company, Bytedance, is now valued at $140 billion. It surpassed SpaceX and Canva, worth $127 billion and $40 billion, respectively.
Advertising is the most perceptible step in marketing. TikTok made this phase easier for a lot of marketers. Let’s look at a few data on how TikTok marketing works.
With its algorithm feature, business engagement will pour in as long as your content appeals to the audience.
TikTok is the most engaging app. It has an average engagement rate of 4.25%, while Facebook’s at 0.15% and Instagram’s at 0.60%.
An average TikTok user spends 19.6 hours scrolling or posting on the app monthly.
Social media influences consumer behavior. According to TikTok usage statistics, 35% of users purchase the items they see on their For You Page or live streams.
Despite the positive ROI that TikTok brings, only 18% of marketers are on the app.
However, 89.3% of marketers believe that social media is vital to a marketing strategy. This means the number of marketers on the social media platform will change as the app encourages more brands to sign up.
TikTok offers five types of advertisements: In-Feed, Top View, Brand Takeover, Branded Hashtag, and Branded Effect.
Some brands use multiple ad types for more visibility. The more internet users view the brand’s content, the more likely they will buy it.
Depending on a business’ budget and preferred type of advertisement, TikTok ads can be expensive.
A brand takeover can be around $50,000 to $100,000. A branded hashtag challenge includes a flat rate of $150,000 for a six-day run.
(The Social Club)
Branded hashtags are pricey. However, trying one is worth every penny. 90% of these ads can bring a two-and-a-half-fold ROI.
With the app’s massive number of daily active users aged 18 years old and above, TikTok’s global ad reach is about 885 million people.
Other than businesses, TikTok is also opening doors for influencers. Big or small follower count, they can easily connect and influence the audience – thus furthering a brand’s reach. Here are some key TikTok stats about influencer marketing.
51% of marketers believe that influencers’ content is better than those of brands. Only 6% of marketers trust brand-created content more. Also, 37% of consumers rely on influencers compared to brands.
Brands invest more in such marketing forms, with more consumers counting on influencers.
17% of companies already spend more than 50% of their budget on influencers. 7% of these businesses planned to invest over a million dollars in influencer marketing in 2020.
Influencers on the social media app have a higher engagement rate than on other social networks. TikTok influencers have a positive engagement rate of 15.86%.
US TikTok influencers have a higher engagement rate of 17.99%.
Those with 100,000 to a million followers charge a minimum of $151 per TikTok video. Their rate can go up to $793 per clip. Mega-influencers, those with over a million followers, charge a minimum of $1,034.
Sony Music ventured into influencer marketing in 2019 by starting the “Atrévete” campaign across Spain, Argentina, and Italy. They contacted twelve influencers to create a video.
The campaign got 8 million engaged users with 1.2 million likes. The influencers had an average engagement rate of 6%.
Small businesses are worried about venturing into influencer marketing. It is understandable as every marketing method comes with risks.
However, research revealed that 89% of marketers find influencer marketing better. They say they see a higher ROI with influencer marketing than with other digital marketing channels.
A study showed that influencers with 50,000 to 250,000 followers achieve a 30% better ROI per dollar spent than those with 500,000 followers and more. They even get 20% better ROI than web celebrities with over a million followers.
This proves how “the more followers an influencer has, the lower the ROI.”
Without a doubt, TikTok is an effective marketing social media app. It provides the needed engagement while generating ROI. It also helps them reach a younger audience.
As TikTok continues to sweep the world by storm, many businesses will consider giving it a shot. The world constantly evolves, and companies must adapt to all those changes – including their concept of social media marketing.
Sources: (Capterra), (Chipotle), (Brand Finance), (Sensor Tower), (Statista), (CB Insights), (Social Insider), (Statista), (TikTok), (Sprout Social), (TikTok), (The Social Club), (TikTok), (DataReportal), (Linqia), (BigCommerce), (Statista), (Statista), (TikTok), (Big Commerce), (NeoReach)