5 Game-Changing Reasons Businesses Need TikTok Advertising

TikTok is one of the fastest-growing social media platforms in the world, bar none. And the numbers don’t lie. To the consumer, TikTok represents a hub of entertainment. But to businesses like yours, this only means one thing— TikTok advertising is a treasure trove for marketing opportunities.

But making the leap into a new channel can be daunting. Maybe you’re not entirely onboard or need some convincing as to why TikTok should play an integral part in your sales and marketing strategy. If this resonates with you, read on as we'll dive into why TikTok ads are a must-have.

What is TikTok Advertising?

TikTok ads are straightforward on paper. They’re promoted content, typically short, snappy in-feed videos, that capture attention and engage with viewers.

In practice, however, advertising on TikTok is complex, requiring businesses to constantly keep their fingers on the pulse of what’s trending and vibing with viewers.

TikTok offers a smorgasbord of ad formats for businesses to connect with their target audiences, ranging from in-feed videos to branded hashtag challenges. But to dig deep into the nitty gritty of TikTok messaging ads and how to get them up and running, check out our other article here.

5 Reasons You Need to Use TikTok Advertising

This article isn’t about the whats and hows of TikTok advertising. Instead, it focuses on the whys—specifically, why you should use ads for your TikTok sales and marketing efforts.

From TikTok usage statistics to TikTok demographics to TikTok's user growth amongst other TikTok insights, all of these benefits show that TikTok's cost is worth every penny. — From TikTok’s audience to TikTok’s reach to other TikTok stats, we cover it all below

So let’s get into it:

TikTok Benefit #1: Massive User Base and Engagement

TikTok has firmly established itself as a staple social media platform, not a passing fad, thanks to its massive user base. As of 2024, TikTok is projected to reach 1.8 billion monthly active users (MAUs) and has been downloaded 4.7 billion times, while the countries with the largest audiences are Indonesia, the U.S. and Brazil. There is a huge opportunity here for businesses to connect with a diverse, global audience.

Beyond audience metrics, TikTok users are actively engaging with content, with 625 million videos viewed per minute and the average user spending 52 minutes per day on TikTok. This level of engagement means your TikTok ads have a better chance of being seen and making a lasting impression on the platform.

What’s also interesting is that TikTok's core demographic is 18 to 24-year-olds—a group known to be difficult to reach through traditional marketing. This demographic, known for setting trends and being trailblazers, presents a unique avenue for businesses looking to connect with younger audiences.

TikTok Benefit #2: High Advertising Reach and Effectiveness

TikTok’s advertising reach isn’t just wide, it’s effective. With ads on TikTok reportedly reaching 21.3% of internet users over the age of 18 (equating to over 1 billion users), TikTok is an obvious heavyweight.

However, it’s not just about the reach. It's about the punch each ad packs. TikTok’s engaging ad formats allow businesses to make a big impact with minimal time. Even ads viewed for less than six seconds can be more influential than similar ads on other leading social media platforms.

The most distinctive feature when it comes to TikTok advertising is their users’ surprising openness to ads. Unlike the case on other platforms where ads are seen as annoying interruptions, TikTok users are far more receptive. For marketers, this means engaging with audiences is easier thanks to the lack of resistance.

TikTok Benefit #3: Proven Impact on Consumer Behavior

But what’s the point of reaching people if it doesn’t lead to action? This is where TikTok shines.

56% of U.S. consumers have bought products they discovered on TikTok while 37% of TikTok users in the U.S. have made purchases either through links on the app or directly within it. TikTok isn’t just for window shopping. It’s where browsers turn into buyers, making TikTok the place to be for businesses looking to amp up their sales.

The platform's ability to turn viewers into buyers is also especially evident when it comes to impulse purchases. Whether it's grabbing a deal after watching a TikTok LIVE session—something 50% of users have done—TikTok integrates entertainment and shopping. This blend builds a sense of trust and connection with users as after seeing a TikTok ad, 41% of viewers feel they can trust the brand more, and 31% are more likely to stay loyal.

TikTok Benefit #4: Rapid Adoption Among Marketers

Given TikTok’s impressive stats so far, it’s unsurprising that marketers everywhere are jumping on the bandwagon, with 43% of marketers planning to ramp up their use of TikTok ads in the near future. TikTok is being recognized by businesses everywhere and the way things are heading, this trend is only growing stronger.

If your competitors aren't already using TikTok, they probably will be soon. Staying competitive means getting on board with TikTok before you get left behind, as according to marketers, TikTok has the third highest engagement rate among social media platforms, ahead of Facebook and even YouTube.

Even in the B2B space, TikTok is TikTok is making strides with 16% of B2B marketers reporting that TikTok delivers the highest ROI among social media platforms. Beyond dancing and memes, TikTok is rapidly proving itself invaluable across different sectors.

TikTok Benefit #5: Cost-Effectiveness and Return on Investment (ROI)

Last but not least, let’s not forget about budgets. Marketing isn’t cheap but TikTok doesn’t break the bank. With nearly 80% of small businesses reporting a positive ROI from their TikTok campaigns, it's clear that this platform is affordable for most.

In addition, the average cost-per-click on TikTok is $0.22, making it accessible even for businesses with constricting marketing budgets.

But it's not just about being budget-friendly. It's about getting a solid return on investment (ROI). TikTok advertisers often see an impressive return of $2 for every $1 spent. Numbers like this paint the picture that this kind of ROI is potentially game-changing for businesses looking to maximize every dollar spent on advertising.

TikTok for Marketing: Advertising Success Stories

Now, let's bring the numbers to life with real-world examples. Here are some success stories of businesses that successfully incorporated TikTok advertising:

Hyundai

Hyundai took the TikTok route for its IONIQ 5 launch and nailed it. They transformed their traditional TV ad into a TikTok "react" campaign, using features like Duet and Green Screen.

This fun twist not only captivated viewers but also led to 242 million impressions and an 18% increase in 6-second view-through rates. Hyundai's campaign involved collaborating with creators who reacted to the ad, adding humor and relatability, which significantly boosted brand awareness by three times the norm.

Prinics (KODAK Photo Printer)

Prinics showed off the KODAK Photo Printer in a flashy way, using TikTok’s video shopping ads and creative challenges. The result? A staggering 1.8 million impressions and an eye-popping 611% return on ad spend.

They engaged users by launching a challenge that encouraged them to showcase their creative printing projects. This hands-on approach not only drove a 2.65% click-through rate but also highlighted the product's versatility and appeal.

Simply Sing

Simply Sing, known for making creative hobbies like singing and playing instruments fun and accessible, found the perfect stage on TikTok. They wanted to grow their global audience and keep costs low.

They used a Test-and-Learn approach, running split tests on different ad elements like bidding strategies and creative content. This paid off in the end, boosting conversions by 75% and cutting their cost per acquisition by 39%.

Anatomy of Effective TikTok Advertising

Though we’ve tried to impress upon you the importance of TikTok advertising, there’s a caveat: TikTok is not a magic bullet.

Our TikTok tips aren't an exhaustive list. To learn more, try learning from successful brands using TikTok to get the most out of TikTok viewers and TikTok followers. — Follow these TikTok best practices to get the most out of your ads!

Effectively using TikTok for marketing requires time, effort and know-how to fully harness. Behind every good TikTok ad, you can expect to find the following elements:

TikTok for Marketing Tip 1: Avoid Traditional Ad Formats

According to research conducted by TikTok themselves, high-performing ads on TikTok shouldn’t feel like an ad. Instead, it should blend in natively with what users typically expect to see on their feeds.

Don't use polished, overly produced, sales-y content that screams "advertisement." Instead, aim for a more casual, organic feel that aligns with the platform's nature. In TikTok’s own words, they strongly advise: “Don’t make ads. Make TikToks.”

TikTok for Marketing Tip 2: Be Authentic

Authenticity is key on TikTok. Users value genuine content that resonates with their experiences and emotions. Be real, be relatable and try to showcase some of your brand’s personality.

Authenticity builds trust and when done right, keeps viewers coming back for more. Sometimes, an honest behind-the-scenes moment can do more good than a polished, well-researched advertisement.

TikTok for Marketing Tip 3: Know Your Audience

Effective ads require you to do your homework. Understand what makes your audiences tick, what they love and what they find funny (and not funny). Speak their language, use the trends they're into and don’t be afraid to hop on the train of the latest memes.

The more you understand your target audience, the better you can create ads that inspire them to take the action you desire.