TikTok Gives More Growth Opportunities for Businesses on the Platform
TikTok solutions help brands and marketers drive greater impact, reach, and value to their customers
TikTok, the leading destination for short-form mobile video, is capitalizing on its array of commerce solutions to help brands develop and launch campaigns that can maximize their market engagement, reach more customers, and generate favorable returns.
According to David Gomez, TikTok Regional Brand Partnership Head, Southeast Asia, content on the platform registers growth in video views across diverse categories in the Philippines, reflecting its popularity and reach that brands can capitalize on for their campaigns. From July 2021 to 2022, News & Entertainment grew by over 70%, while Beauty & Fashion and Baby & Parenting grew by over 57% and 53% in video views respectively.
“TikTok’s growth continues to be driven by positive sentiment from users. This has greatly increased our platform’s scale, reach, and impact. Moreover, we are continuously introducing innovations and solutions that will help more brands and local businesses to achieve more from TikTok’s success,” Gomez said.
A TikTok commissioned survey with Nielsen IQ, a global information services company, found that 91% of Filipinos come to TikTok to learn new things, from funny and entertaining content to the latest trends. 73% also come to discover new brands and products and create entertaining or even educational content around them.
This high engagement level often allows trends to develop around products in an organic and authentic manner, amplified by active users and trend ambassadors. This is best exemplified by the hashtags #BudolFinds and #TikTokMadeMeBuyIt, both of which continue to flourish with over 35 billion views to date.
Shopping on TikTok
In a separate TikTok commissioned study with marketing research firm Toluna on online shopping behaviors, 93% of Filipinos discovered they were inspired by, or bought a product because they saw it on TikTok. Such is the influence of TikTok videos that viewers are 1.4 times more likely to consider a brand because of content they have seen, while 4 out of 5 users made a purchase because of a review or recommendation on the platform.
When users make a new product discovery and purchase it on TikTok, the Toluna survey also found that viewers are 1.2 times more likely to share it with their friends, and 1.5 times more likely to convince them and their families to also buy it.
“When brands show up as part of the TikTok community, consumers’ experiences are accelerated, and they are more likely to pursue engagement with businesses. When done right, it can catapult brands from zero awareness to being the top in a buyer’s mind,” Gomez claims.
Tiny Buds is one such brand that built a strong community by offering consumers a holistic experience of discovery and genuine interaction. Offering a range of natural baby care products, the brand invested in livestreaming, short videos and other positive engagements to connect with their audience and generate sales. The brand eventually managed to achieve a record Gross Merchandise Value (GMV) during the TikTok 8.18 Brand Day Sale, predominantly driven by its livestreams.
Entertainment to Cart
With TikTok’s innovative suite of commerce solutions and the integration of authentic interactions, marketers have the opportunity to drive their businesses forward. In fact, according to Kantar Media Reaction, TikTok ranked #1 in the Philippines for innovation among marketers.
Marketers can elevate their strategies through these tools that merge entertainment and commerce. TikTok’s Creator Marketplace has both self-serve and managed services that help marketers run campaigns more effectively, ensure right market reach, and explore partnerships, presenting a one-stop performance and marketing platform.
Moreover, there are also opportunities for brands and businesses to do creator collaborations, allowing localized content to reach more people with the creators’ followings. With creators being the heart of TikTok, there is an endless list for brands and businesses to choose from.
Fintech startup Plentina leveraged TikTok Creator Marketplace to reach out to two popular creators to collaborate with in its goal to grow its presence in an authentic way on TikTok. The brand also used Spark Ads to amplify these creators’ videos on its campaign and drive conversions through app installs. In less than two weeks, the brand’s strategy attracted more than 20 million video views and more than 12,000 app installs.
Meanwhile, PureGo, the online grocery shopping platform of PureGold supermarket chain, went for TikTok Collection Ads to create more targeted product recommendations for its customers. This approach led customers to an Instant Gallery Page which showcased individual products and an exclusive promo call-to-action, moving visitors over onto its own grocery shopping website for purchases and more information. This helped PurGo effectively engage its audience and convert that interest into significant web traffic during their campaign.
TikTok Shop, the newly launched e-commerce platform in TikTok also offers video shopping ads shown on users’ FYP; LIVE shopping ads that pop up during sellers’ live streams; and lastly, catalog listing ads, the new ad solution presented in a non-video format. These ad solutions help merchants create greater visibility and drive traffic to their TikTok Shops, and blend shopping and entertainment for consumers.
“As our creators and marketers level up, so must we. In the coming year, marketers can gear up for even more exciting developments from TikTok and our partners,” Gomez says. “After an amazing 2022, TikTok is expecting an increase in marketers joining in 2023, which is why TikTok is coming up with new and better ways to support brands and businesses in unleashing their highest potential.”