Digiday+ Research deep dive: TikTok is getting even more marketing spend from brands and retailers

By Julia Tabisz  •  March 22, 2024  •  4 min read  •

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But none of this is affecting how a lot brands and retailers are spending on marketing on the platform — at the least now not yet. This is per a learn about of brand and retailer professionals performed in the principle quarter of 2024 by Digiday+ Research. In spite of all the pieces, the learn about discovered that brands’ and retailers’ marketing spend on TikTok is in fact rising.

Digiday’s learn about discovered that, total, virtually three-quarters of brands and retailers are on TikTok. Seventy-three p.c of brand and retailer execs mentioned their companies at the moment spend TikTok, placing the platform in third living in contrast with other social marketing channels, in the good thing about Meta siblings Instagram and Fb. Brand usage of Meta’s platforms is over 90%, per Digiday’s learn about.

Digiday’s learn about also discovered that engagement is some distance and away brands’ and retailers’ fundamental dimension of success on TikTok — which is a distinct behold, in contrast with Fb and Instagram, where brands measure success with gross sales. Forty-one p.c of brand and retailer execs mentioned engagement is the principle dimension of success for his or her marketing efforts on TikTok, making it the No. 1 dimension for the platform among brands.

Engagement’s high situation on TikTok isn’t in fact a surprise, brooding about how the social platform works. But it’s value noting that the 2nd-living situation went to commerce and gross sales, per Digiday’s learn about. More than a quarter of brand and retailer execs (27%) mentioned that commerce or gross sales is their fundamental dimension of success on TikTok.

This datapoint is distinguished because of its seemingly connection to the originate of TikTok Shop this previous plunge. Already in Q3 of ultimate year, a Digiday learn about discovered that more brands had been placing marketing spend in direction of TikTok. And heading into the vacation season, 59% of brand execs mentioned the platform would grow more fundamental to their finish-of-year marketing plans. Brands’ and retailers’ emphasis on TikTok-pushed commerce and gross sales will be value watching, since it’s a doable indication that they’re utilizing TikTok Shop as share of their marketing techniques.

Regardless of brands’ and retailers’ pastime in TikTok Shop, Digiday’s learn about discovered that this community’s marketing spend on TikTok is rising. In the final year, the proportion of brand and retailer execs who mentioned their companies spend at the least a in fact small share of their marketing budget on the platform has grown from true over half (54%) in Q1 2023 to more than three-quarters (Seventy nine%) in Q1 2024. (The huge majority of that deliver came about by Q3 of ultimate year, when 78% of brand and retailer execs mentioned their companies spent at the least a limited on TikTok marketing, bringing us advantage around to the originate of TikTok Shop.)

Severely, the proportion of brands and retailers spending loads on TikTok marketing has been trending upward. In Q3 2022, true 7% of brand and retailer execs told Digiday their companies spent a immense or very immense share of their marketing budget on TikTok. That share rose to 12% in Q1 2023, and rose again to 17% in Q3 2023 ahead of hitting 29% in Q1 of this year.

Breaking that files down a limited bit extra, the proportion of brands and retailers who spend a immense share of their marketing budget on TikTok has been rising continuously for the final year. Nineteen p.c of brand and retailer execs mentioned in Q1 2024 that their companies spend a immense quantity on TikTok marketing, up from 13% in Q3 2023 and 6% in Q1 2023. In the meantime, the proportion of brands and retailers who do a in fact immense share of their marketing budget in direction of TikTok saw fundamental deliver in true the final six months. Four p.c of brand and retailer execs mentioned in Q3 2023 that their companies spent a in fact immense share of their marketing budget on the platform, in contrast with 10% who mentioned the same in Q1 2024.

Interestingly even supposing, despite the deliver in brand and retailer spending on TikTok, Digiday’s learn about discovered that the platform doesn’t scandalous very high by map of utilizing conversions or branding. Fewer than a quarter of brand and retailer execs (22%) told Digiday that TikTok is the social channel that is most attention-grabbing for utilizing conversions, placing TikTok in third living in this class, in the good thing about No. 1 Instagram and No. 2 Fb. For context, first-living Instagram came in at 41%.

Even fewer brand and retailer execs mentioned TikTok is doubtlessly the most attention-grabbing social platform for branding. Factual 16% of brands and retailers selected TikTok as their high alternative for branding. TikTok does reach in 2nd living right here, but tremendously in the good thing about Instagram, which holds the head situation with 55% of brand and retailer execs saying it’s doubtlessly the most attention-grabbing social platform for branding. Fb and YouTube came in in the good thing about TikTok, each at 12%.

https://digiday.com/?p=538839

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