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Should Your Company Be Advertising on TikTok?

Should Your Company Be Advertising on TikTok?

TikTok has fast become one of the most used social media platforms in the world. The video-sharing site reportedly has more than one billion users, with daily usage ranging from 400 million to 800 million (depending upon who’s counting). This is pretty impressive, especially when you consider that the TikTok platform and app have only been around for a little over two years. This also begs the question as to whether those engaged with social media marketing should consider advertising on TikTok? Given that advertising on the site has only been available since April 2019, the answer may not be clear cut, but it’s certainly worth some initial research.   

TikTok Basics

TikTok was created in August 2018 through the merger of Chinese video-sharing social networking service called Douyin with a lip-sync and comedy video platform startup called Musical.ly, which already had a U.S. presence. Upon the merger and renaming of the platform, TikTok became the most downloaded app in the U.S. (TikTok remains separate from “Douyin” in China) and has been since named the 7th most downloaded mobile app of the decade.  

The TikTok app allows users to create short videos of themselves that can feature background music and a variety of special effects. The videos can then be shared with others on the TikTok platform and/or posted to other social media. TikTok users can like, share, comment on, and save videos, as well as “follow” other TikTok users, which further allows for direct messaging and virtual gifting capabilities. As with other social media apps, TikTok users have created numerous viral videos and memes, and the platform has helped turn some users into Internet celebrities and influencers.  

TikTok Advertising Basics

The first thing to know about TikTok advertising is that it is considered the most expensive among social media platforms. Advertising fees will likely decline as the site’s marketing initiatives mature and the number of advertisers grow, but for the time being advertising on TikTok is going to cost you. The latest pricing we are aware of puts the starting price of a campaign at a minimum base of $500, with another $10 per thousand views. Those basic costs climb quickly with a variety of options relating to such factors as ad type, placement, targeting, timing, duration, and optimization.

The second thing to know is that the TikTok market is young, with more than half of TikTok’s user base under the age of 30. That might be great if you’re targeting teenagers and twenty-somethings, but not very cost-effective if you have a broader market.

TikTok offers a number of advertising ad types and that number is bound to grow as the company develops innovative new marketing tools for the site. Current ad types include:

  • Brand Takeovers—Pop-ups displaying links to other TikTok videos or websites, which appear when a user opens TikTok.
  • Video Hashtag Challenge—video ads that challenge TikTok users to participate in unique hashtag challenges that promote the brand.
  • Native Video Ads—ads placed beneath TikTok videos or displayed between the video queue that directs users to other websites, TikTok videos or apps.
  • Branded Filters and Lenses—Branded filters and lenses that allow users to manipulate and edit video while introducing users to the brand and encouraging engagement. 

The Jury is Still Out, But Keep TikTok on Your Marketing Radar

Now, before you get too excited about advertising on TikTok, know that the platform is being used as a pawn of sorts for President Donald Trump’s trade war with China. In fact, the Trump Administration recently ordered the app banned in America unless the Chinese parent company sold its stake. The ban was spurred by alleged national security concerns and U.S. courts are currently weighing the legality of it.

Of course, if you’ve got the budget and would love to get in on a new platform targeting the younger generations, you might want to get in early to establish your brand’s name on the site. Whatever social media advertising you might be interested in, Moxxi Marketing has extensive experience creating and managing social media advertising campaign as part of a comprehensive online marketing campaign for businesses. If you would like to learn how Moxxi Marketing can help grow your business with a powerful online marketing presence or campaign, contact us today at 239.330.6236.


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