78% of SMEs see ROI from TikTok Marketing

CATEGORY: Customer

If you’re wondering where to put your marketing efforts in 2023, TikTok Marketing has produced a positive return on investment for 78% of SMEs that use the platform according to Capterra’s TikTok Marketing Survey.

TikTok is one of those platforms that is harder to get to grips with for many who have been retailing online for decades, but it’s a platform that if you can crack and build a following that the rewards appear to justify the efforts. 52% of SMEs already on the platform indicated that they would increase their TikTok marketing spend and a further 21% say that they will maintain their existing level of investment.

From those that have found success with TikTok marketing, in-feed ads are reported to be the most effective so if you’re not sure where to start, get your organic content going and then start with this ad format. Capterra say that their research indicates that the top content types in order of effectiveness are:

  • In-Feed – Ads which resemble organic posts
  • Shopping Ads – Posts that include viral soundtracks or dance music
  • Branded Effects – Posts that leverage hashtags
  • Trending Challenges – Viral hashtagged challenges
  • Live Video – TikTok Livestream options

“According to 60% of SMBs currently running ads on TikTok, In-Feed ads are the most effective in terms of conversions. In-feed ads resemble organic content so closely that the two are virtually indistinguishable. When ads don’t look like ads, viewers are more likely to engage with your content rather than instantly scrolling past it.”

– Capterra

You do need to know your audience and what they want, and naturally you’ll need to adopt TikTok’s vertical video format which admittedly takes some getting used to. While users of all ages use TikTok, in particular Gen Z have started to use TikTok as their default search engine and so targeting this demographic and exposing them to your brand and products may be the place to start.

In response to Gen Z’s preference for TikTok as a search engine over Google Maps, Google plans to launch augmented search functions to rival TikTok reviews’ immersive, authentic qualities. Users like TikTok because its seemingly endless content feels authentic and unfussy—videos made by real people, for real people. Creating ads that capture the candid nature of organic TikTok content helps businesses blend in and profit.

– Molly Burke, senior retail analyst at Capterra

If you go on many social platforms, advertising appears dominated by larger brands and lacking mega-budgets it’s hard for SMEs to compete. TikTok marketing offers a platform where content is king and the ability to go viral organically is entirely depending on the ingenuity of a small business and their ability and creativeness marking this as a platform that levels the playing field and an opportunity for 2023.

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