TIKTOK ADVERTISING & INFLUENCER MARKETING -- WHAT BRANDS NEED TO KNOW
Updated: Jun 4, 2021
As an influencer marketing agency, we’re always talking with our clients about the latest and greatest approach, so getting to the bottom of the right approach to brand marketing on TikTok is high on the list. What should brands consider when adopting TikTok? How can brands advertise on TikTok? And definitely, what can brands expect in-terms of pricing with TikTok influencers?
By now, we all know that TikTok is huge (800 million monthly active users with 90% using the app daily is pretty convincing), but what a lot of people don't know is that TikTok has evolved beyond the high school and middle school dance videos that many marketers still think of when they think about TikTok. We know TikTok is here to stay despite the stickiness of Instagram Reels and the presence of Snapchat and Facebook.
Today, 50% of TikTok's active users are between the ages of 18 and 34 -- an attractive demographic for most brands. Even if your brand has a target market that’s a bit older, there’s still a real opportunity to market on TikTok because you can pursue creators and paid social in a targeted manner. Yes, TikTok is even for old folks. Cool, huh? Of course we would never call you old.
What should brands consider when advertising and running influencer marketing campaigns on TikTok?
Yes, TikTok is growing for the Gen Z audience -- but all generations are now on TikTok (we see you Gen Xers & Millennials) with a large growing user base above the age of 24. In fact, 50% of all users on the platform are between the ages of 18 and 34. This means there are nearly 27MM users and growing in this demographic in the US. Not bad, eh?
Keep in mind that unlike other social media platforms that put a lot of weight on the source of the content (the “who”), TikTok is extremely algorithm-based, and the algorithm dictates views on the content. This means that your brand will see heightened engagement when partnering with creators who make really good content, and not necessarily creators who have a massive following. This is a big advantage to brands without a massive budget looking to advertise on the platform because smaller creators, who are less expensive, have a better chance of scoring huge views for your brand on the platform. Of course, the flip side here is that there’s no guarantee that large creators are going to garner significant views.
How can brands advertise on TikTok?
There are three main ways brand's can advertise on TikTok.
Influencer Content or “Traditional Influencer.” Brands can partner with creators & have these creators develop content and post content that advocates for brands in the form of a “traditional” influencer marketing campaign. This option does not allow for a clickable links, which limits some if the excitement for campaigns with lower-funnel marketing objectives.
Paid Social. Both in-feed ads and boosted content allow content to be developed and then run as a paid social campaign through an ad manager inside of TikTok. Brands can determine budget, audience, and creative just like other forms of paid social. Boosted posts are content that creators post on their account and then allow brands to put spend behind the creative in order to target a larger audience. In-feed ads are when brands list content on their own account and then amplify tough paid social. For both in-feed ads and boosted content, you can have a clickable link that allows you to drive traffic from TikTok to your brand’s webpage or wherever your marketing heart desires (maybe a link to your favorite Nickelback song?).
Brand Takeovers, Hashtag Challenges, and Top-Down Takeovers. Using TikTok as a service, brands can create in-app experiences that curate tons of UGC, 24 hour displays when users open the app, or large-scale creative formats. For the average brand this method may not be realistic because pricing starts in the hundreds of thousands of dollars.
How much does it cost to advertise on TikTok?
Currently the cost of advertising on TikTok in the form of boosted content and in-feed ads is very affordable, and affording to partner with creators is similar to Instagram or cheaper. As a rule of thumb you can expect CPMs to be around $5 when running influencer marketing campaigns, creating in-feed ads, or boosting content. For organically created content by influencer we have seen CPMs between $3 and $7. For in-feed ads and boosted content we have seen CPMs as low as $2.50. And you can do better (or worse) than these numbers...but we like to be conservative because you know — nobody likes big promises and wimpy results.
Visit The Outloud Group's Youtube Channel for our video series, "Influencer Insight"and "Thinking Outloud" where we share industry knowledge, discuss influencer marketing trends and host influencers we work with. Also, follow and chat with us through Twitter , Instagram and LinkedIn!