Gareth Hoyle, Managing Director at Coveragely, explores TikTok’s potential for business growth, weighing its benefits and limitations for brands aiming to reach a young, highly engaged audience.
The platform, now in its eighth year, has gained prominence, attracting nearly 1.6 billion global users as of 2023. With a primary user base aged 18 to 35, TikTok is a tempting marketing platform, boasting significant daily engagement, as users spend nearly an hour each day on the app.
Businesses and brands are increasingly drawn to TikTok for its potential to connect with a youthful, digitally native audience. However, Hoyle raises essential considerations for brands to evaluate if TikTok aligns with their goals, strategy, and audience profile.
Can TikTok Support Business Growth?
One key appeal of TikTok is its accessibility for content creation. Businesses do not need substantial budgets to produce content on the platform, which often rewards authenticity over production value. Many popular TikTok videos are created on smartphones without high-end editing, allowing smaller businesses to reach audiences without heavy financial investment. TikTok’s format enables brands of all sizes to experiment with budget-friendly content that resonates with viewers.
TikTok’s influence on purchasing behaviours is also noteworthy. Data from the platform shows that over 35% of users have bought a product they saw on TikTok, and 29% of users who wanted to purchase items found them sold out. A prominent example is Stanley’s Quencher Cup, whose popularity skyrocketed after gaining traction on TikTok, contributing to annual sales growth from $75 million to $750 million in 2023. This demonstrates how TikTok can drive demand and brand visibility, particularly when content is relatable and resonates with users.
Reaching an Engaged, Younger Audience
Nearly 70% of TikTok’s users are under 40, making it a valuable platform for brands aiming to engage Millennials and Gen Z. The app’s users not only scroll for extended periods but also actively engage with content, which is promising for businesses seeking a highly engaged, younger demographic. Hoyle highlights how TikTok can also help humanise a brand by providing an accessible way for companies to showcase their personality and values, potentially fostering stronger customer connections.
Brands with an existing presence on other platforms, such as Instagram or Facebook, can repurpose content for TikTok, leveraging assets like Instagram Reels or Facebook videos. This flexibility allows brands to extend their reach without developing entirely new content, offering an efficient way to maintain presence and fill content gaps on TikTok.
Potential Drawbacks of TikTok for Business
Hoyle also identifies challenges brands may encounter on TikTok. The platform’s younger demographic may not align with every brand’s target audience. Brands focusing on audiences over 45, for example, may not achieve the same engagement on TikTok as they might on platforms like Facebook, where a larger proportion of users fall within that age range.
TikTok’s content style, often characterised by a light-hearted or informal tone, may also not suit brands with a more serious or corporate image. The platform’s emphasis on humour and engagement-focused content may not align with the branding needs of companies that prioritise a professional or reserved image. For such businesses, using TikTok could risk negative feedback or dilute their brand identity.
Determining if TikTok Fits Business Goals
Hoyle underscores the importance of setting clear objectives before investing in TikTok as a marketing channel. Brands should conduct research to assess if TikTok aligns with their goals, including identifying target audience alignment and engagement potential. Considerations such as resource allocation, content creation costs, and competitor presence can help brands decide if TikTok will effectively contribute to their marketing strategy.
In particular, setting clear objectives around brand awareness, engagement, or conversion goals is crucial. Additionally, examining competitors’ strategies and engagement levels on TikTok may offer insights into the platform’s effectiveness in a specific industry.
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