TikTok has published a new report on the ability to drive offline sales through TikTok ads. TikTok is the hottest social media platform of the moment, and we’ve all seen its staggering numbers proving its popularity, especially among younger audiences. But, given that TikTok adverts are so easy to skip, and in particular are TikTok campaigns effective for driving offline purchases as a result of exposure and boosted brand awareness?
This is what TikTok wanted to clarify through a recent set of research, in collaboration with Nielsen, which utilized marketing mix modeling analysis to assess the offline sale lift that TikTok campaigns can provide, providing some more insight for your tactics.
Report: TikTok ads effect on offline sales
Nielsen investigated 16 advertising campaigns from companies around the world, with a particular interest in determining the best approach for increasing offline sales.
Here’s what they found:
The first thing to note is that TikTok advertisements generate a high return on investment for consumer packaged goods companies, as well as better ‘sales efficiency,’ or how quickly you see in-store returns from your campaigns:
“The US, for example, saw a 14% higher paid media ROAS versus all digital media measured in the models and 2X the offline sales efficiency, while the numbers for Europe and Southeast Asia were even higher.”
That makes sense – with TikTok being so popular right now, you might be able to connect a brand to the hype and boost awareness and reaction based on in-app pushes.
The in-feed video was the most efficient ad type, according to Nielsen’s research, which also assessed which forms of the content generated the best audience response. This is not particularly surprising, given the restricted number of TikTok ad possibilities on offer – but it also revealed that advertisers might improve their ad presence in the app to achieve better results.
In other words, brands may continue to run more advertisements and work even harder to promote their brands on TikTok, yet the same levels of effectiveness will be achieved. This might assist you in maximizing your brand awareness efforts while also tapping into the app’s popularity.
Finally, Nielsen used its in-store Sales Lift approach to calculate the specific capacity for TikTok advertising to drive in-store sales for CPG brands:
“Among the 16 commissioned studies, 14 generated significant sales lift. The average ROAS for these studies was 2X the NCS median campaign performance benchmark.”
Given the platform’s wider appeal, these findings are not overly surprising; all they effectively demonstrate is that companies that can identify with the platform’s popular trends and formats benefit from increased sales as a result of getting it right.
However, getting it right takes time and effort. You must understand the key trends of TikTok, the most popular content types, and produce material that appears native and fits with the in-feed videos’ appearance to win on TikTok.
You can read TikTok’s full offline sales impact study here.