Head of Strategic Partnerships
Agency Partnerships Manager
Predictions 2023: TikTok
We’ve all seen the tremendous market demand for TikTok both for users and brands within the last several years. At Rise, we’ve seen the number of clients running paid media on TikTok grow three to four times in the past year. And if you’re an active user on TikTok, it’s more than likely you can attest to the platform’s extremely engaging content.
As part of our Predictions 2023 Series, Mina Salami (Head of Strategic Partnerships, Rise Interactive) and Taylor Roy (Agency Partnerships Manager, TikTok) discussed TIkTok’s user base, reviewed the platform’s top 2022 wins, and their biggest bets for 2023.
Want to learn more? Watch the full interview now, or read the recap below!
When you think of TikTok, your mental picture might include Gen Z users enjoying and posting video content. While they’re present on the platform, TikTok’s audience has evolved.
“There’s still this misconception that TikTok is primarily a Gen Z app — which is far from the truth now,” stated Roy. Tiktok has aged up entirely: Over half of users on TikTok are in the Millennial age range.
However, Gen Z is not an age segment advertisers should ignore, either. Like everyone else, they’re growing older. They’re also graduating college and entering the workplace — and gaining a higher percentage of disposable income.
“It’s a really engaged group that has a tremendous opportunity for brands to really speak to and communicate with,” added Roy.
Salami then considered a frequent question Rise gets from our clients looking to foray into TikTok: “What makes your audiences unique? And why should brands invest their marketing dollars on TikTok?”
Roy said it came down to three main components: Content, community and culture. From a data perspective, TikTok has extremely high unduplicated users compared to other social platforms. As much as 45% of users on TikTok are not present on other competitor channels. And while TikTok is often categorized as a social media platform, the platform sees itself as more of an entertainment channel.
The average TikTok user watches a movie’s length worth of content daily.
TikTok’s ability to create overnight celebrities and sell out products lies in its ability to capture authenticity through community-based content, and notably, through their For You Page (FYP). The FYP leverages a highly sophisticated and personalized algorithm that encourages users to engage, learn, and share. In short, the platform is an open channel to interact with large brands and creators, and to co-create with them.
A Product-Focused 2022
“It appears TikTok is having a massive impact across various industries,” said Salami. “What were some of the biggest wins and product launches in 2022 that drove this kind of momentum?”
Roy noted that overall, TikTok’s product growth has been explosive and quick. While success in each of TikTok’s individual products is defined in a very unique way, Roy focused on three products that helped to shape TikTok’s ad platform to be much more effective in 2022:
1. Tremendous strides were made in TikTok’s ecosystem of commerce solutions to enable brands who focus on driving sales to achieve lasting growth. Specifically, they focused on improvements in attribution and measurement in alignment with data privacy and brand safety. They also announced the production of new, cutting-edge advertising products that level up TikTok’s position in the market. They include:
- Video shopping ads
- Dynamic video shopping opportunities
- Catalog ads
- Live shopping
2. The launch of TikTok Pulse. This product is tailor-made to encourage awareness: It shows your ad among the top 4% of content that is brand safe, and bids on contextually relevant placements. TikTok has already seen incredible success with this placement, especially in comparison to TV ads. A study from MAGNA shows it's three to four times more memorable and persuasive than TV ads.
3. Creative solutions that equip brands with a variety of ways to ease creative production. Did you know that 70% of your performance success on TiKTok is reliant on the quality of creative you use? The evolution of TikTok creative products like TTCX, Creator Starter Packs, and Creator Marketplace allows your brand to evolve your creative approach on TikTok.
Future-Proofing with a Fresh Focus on Creative and Commerce in 2023
2022 demonstrated that TikTok’s growth isn’t going to slow down anytime soon. So, what are their biggest bets for 2023 and beyond?
“My biggest bets are on the two big “C’s”: Creative and commerce,” Roy confirmed. “Right now, more than ever, it’s really important for advertisers to lock hands with their agencies and their dedicated TikTok teams and lean in with the solutions to drive full-funnel strategies on TikTok. We want to have a lockstep approach to successful campaigns so brands are excited to advertise on our platform.”
While it will be important to streamline the process of working with creators and generating the best creative fit for brands on the platform, she said the top focus will be on commerce specifically. TikTok drives purchases and collapses the funnel faster than any medium that’s been experienced in digital marketing. It’s imperative to also remember that brands will need to maintain a healthy hunger for data while also recognizing a broad shift towards privacy-first experiences — and Roy strongly recommends solidifying your full-funnel TikTok tactics now to drive success in the future.
Salami further asked, “How are you further innovating your product in the coming year to better serve a wider reach?”
Roy identified three ways that advertisers will benefit from upcoming innovations from TikTok in 2023:
1. SEO optimization is on the horizon. TikTok was the #1 most downloaded app and visited website in 2020, and by 2021, a lot of consumer behavior on TikTok was different from how people interact with other channels. Now, searching on TikTok is becoming a main source of easily consumable content matching exactly what you're looking for. While TikTok is still developing an SEO-related product, it’s never too early to start having conversations about TikTok that include SEO and paid search tactics.
2. Streaming to TikTok. Any brand who focuses on entertainment channels like TV, or streaming platforms like Twitch, should have TikTok at the forefront of their strategies. TikTok is considered a leading entertainment source, meaning it’s wise for entertainment brands to weave TikTok streaming into their approach.
3. Leveraging catalog-based advertising. With advancements coming in TikTok Shops, Video Shopping and e-commerce, it's crucial for advertisers to be set up for success as TikTok continues to innovate, especially for brands that focus on catalog sales.
Entertainment that Drives Growth
It’s clear that TikTok’s ability to deliver entertaining, authentic and personalized content to its users can be leveraged as a key part of an audience-centric paid social strategy. With the promise of innovation and expansion in 2023 within the suite of TikTok products, Rise is excited to see the new ways that brands can secure serious growth, all while having fun along the way with the audiences they’re targeting.
Ready to have fun and get creative with your strategies on TikTok? Contact us today!