Did You Notice Brands are Using TikTok More?

IG and FB - Nope. Here's how TikTok is cracking it

I was scrolling through TikTok (yep, guilty šŸ˜£), and I couldnā€™t help but notice how brands have taken over the platform in such an organic way.

You know how TikTok is full of random dances and challenges? Well, some brands use those to their advantage in ways that honestly blew my (well, all marketers) mind šŸ¤Æ

TikTok is big, I know. But a cranberry juice video skyrocket a brand's sales? Thatā€™s marketing genius. So, how exactly are these brands cracking the TikTok code and turning trends into šŸ’°

Firstly, why are these brands choosing TikTok over Instagram and Facebook?

Let's dive in

Lessons for Marketers [TikTok]

  • Leverage user-generated content: Encourage users to create content around your brand to build authentic engagement.

  • Adopt influencer marketing: Work with micro-influencers to reach niche markets with highly engaged audiences.

  • Capitalize on viral trends: Stay agile and participate in trending challenges to boost brand visibility.

  • Prioritize mobile-first content: Design campaigns tailored to short-form, mobile-friendly video content.

  • Utilize real-time marketing: Quickly react to trending topics for timely, relevant brand exposure.

TikTok is the social media sensation redefining how we interact with content.

Launched in 2016 by ByteDance, this app has taken the world by storm with its short-form videos ranging from dance challenges to comedic skits and beyond.

Unlike other platforms where content can often feel polished and curated, TikTok thrives on spontaneity and creativity, making it a hotspot for viral trends and user-generated content.

Understanding the Customer

TikTok's audience is young, diverse, and global. The app is particularly popular with Gen Z and Millennials, with 62% of its users aged 10-29.

These users prefer fun, interactive, and often user-generated content. TikTok recognized this early on and built its platform to meet these needs.

A study conducted in 2023 says 70% of TikTok users discover new products and brands through the app.

TikTok's algorithm prioritizes content that resonates with individual users rather than relying only on influencer popularity. So, this gives the playing field for smaller creators.

Brand Strategy

TikTokā€™s brand strategy revolves around authenticity, creativity, and community participation. Unlike traditional social media platforms, TikTok promotes a culture where everyone is both a creator and a consumer.

Here's a breakdown of the main pillars of TikTokā€™s brand strategy:

  1. User-Generated Content (UGC)

TikTokā€™s strategy revolves around the power of user-generated content. The platform encourages brands to shift from polished advertisements to organic, raw content that feels relatable to everyday users.

Brands benefit from real consumer engagement authenticity by enabling users to create content around their products or services.

Over 55% of TikTok users have created their content, compared to just 37% on Instagram. The TikTok algorithm prioritizes content that gets immediate engagement (likes, comments, shares).

So, this allows even low-follower accounts to achieve viral success giving brands the chance to leverage smaller creators for impactful campaigns.

Example: Chipotleā€™s #GuacDance campaign went viral because it wasnā€™t just about promoting the product. It encouraged users to create fun, creative videos around guacamole. As a result, Chipotle saw its largest guacamole sales day ever, with 800,000 sides of guac served in one day.

@chipotle

Good times #chipotle #guacdance #avocado #fyp

  1. Participation Over Persuasion

TikTokā€™s slogan ā€œDonā€™t Make Ads, Make TikToksā€ highlights its shift from traditional advertising to participatory marketing.

Instead of pushing persuasive messaging, TikTok urges brands to create fun, engaging, and aligned content with trending challenges or hashtags.

The platform's algorithm pushes trending content to the forefront, so brands become part of the larger chat when they hop on viral trends.

In 2022, TikTok introduced the TikTok For Business platform to make it easier for brands to create in-app experiences and launch creative ads.

It highlights that users are 23% more likely to remember brands they see on TikTok than traditional digital ads.

Example: E.l.f. Cosmeticsā€™ #EyesLipsFace challenge generated over 4 billion views. Instead of promoting the brand outright, the challenge invited users to create videos showcasing their faces using the brandā€™s theme song.

The result? E.l.f. sold out of the featured product within days of launching the campaign.

@avani

eyes, lips, face, SAFE <3 #eyeslipsface #elfpartner #ad @elfyeah stay safe during these times :)

  1. Hashtag Challenges

Hashtag challenges are the heart of TikTok's interactive strategy. By launching branded hashtag challenges, companies can directly involve users in promoting their products.

These challenges often become viral, exponentially expanding the brand's reach. TikTokā€™s #Hashtag Challenges have an 8.5% engagement rate, exceeding industry standards for ad interactions on other platforms.

Brands create a specific hashtag and invite users to participate in a challenge. It could be anything from dancing a move to showing how they use a product. This approach changes advertising into an interactive experience.

Example: The #InMyDenim challenge by Guess was one of TikTokā€™s first brand collaborations. Guess uplifted users to show off their denim outfits and increased engagement by gaining over 10,000 new followers in 7 days and generating 38 million video views.

@kuhleeuh

Had a fun day #inmydenim āœØšŸ‘–āœØ @guess #style #OOTD

Apart from these core strategy elements, TikTok also focuses on branded effects like interactive filters, stickers, and AR (augmented reality) effects that users can add to their videos. And the application continuously works on setting trends with a trend lifespan of 7 days.

Execution

TikTokā€™s marketing success involves strategic execution. Hereā€™s a detailed study of the key marketing strategies TikTok uses to ensure its campaigns thrive:

Influencer Collaborations

TikTokā€™s collaboration with influencers, particularly micro and mid-tier influencers, is one of its strongest strategies.

Unlike traditional social media platforms that rely on mega-celebrities, TikTok focuses on everyday creators resonating with niche communities.

This allows brands to reach highly engaged audiences while maintaining authenticity. 49% of consumers depend on influencer recommendations on TikTok.

These collaborations lead to a 20% higher engagement rate than on Instagram or YouTube.

Example: The viral Ocean Spray Cranberry Juice campaign is a perfect example. After TikTok user Nathan Apodaca (Dogface208) posted a video of himself drinking Ocean Spray while skateboarding to Fleetwood Mac, the video quickly went viral.

Ocean Spray capitalized on the buzz by gifting Apodaca a truck filled with their products. The brand saw a huge spike in product awareness, with Ocean Sprayā€™s cranberry juice sales increasing by 20%.

@madiflemm

OceanSLAY Cranberries šŸŒæšŸ§ƒ @Ocean Spray Inc. @unhmac @Maddie Shatzer #oceansprayguy #oceanspray #cranberryjuice

Hashtag Challenges

One of TikTokā€™s most effective marketing tools is the Hashtag Challenge, which encourages users to participate in creating content around a brandā€™s product or campaign theme.

These challenges are designed to go viral, with users creating their own versions of videos based on a specific theme or action.

TikTokā€™s #Hashtag Challenges generate an average engagement rate of 8.5%, significantly higher than standard digital ad campaigns.

These challenges are simple, and fun, and give users creative freedom, often leading to mass participation and sharing.

By combining organic participation with paid promotions, hashtag challenges give brands a dual strategy for success.

Example: Chipotle's #GuacDance is a prime example of a successful Hashtag Challenge. Launched during National Avocado Day, the challenge invited users to dance for free guacamole.

The campaign generated over 250,000 video submissions and 500 million video views in just six days, making it the most successful TikTok brand challenge in the U.S. during that time.

Branded Hashtags

Branded Hashtags allow companies to sponsor their hashtag challenges. These hashtags appear on TikTokā€™s Discovery Page and receive promotion through the appā€™s paid marketing tools.

While hashtag challenges invite participation, Branded Hashtags help push visibility. Branded Hashtags get 3x more engagement than generic hashtags and are a key driver of user participation on the platform.

Brands often launch these hashtags with a CTA encouraging user-generated content (UGC) around a particular trend or campaign.

Example: The #EyesLipsFace challenge by E.l.f. Cosmetics resulted in over 5 million user-generated videos and 1.5 billion views in just 2 weeks.

The campaign went viral because of traditional influencer marketing and users showed their creativity using the brand's signature song.

In-Feed Native Ads

In-feed native ads are TikTokā€™s version of traditional digital advertising, but with a twist - they are embedded directly into usersā€™ ā€œFor Youā€ feeds, making them feel like organic content.

These ads are skippable, which means they need to be engaging and relevant from the very first second. In-feed ads on TikTok have a view-through rate (VTR) of 9%, double that of Facebookā€™s video ad VTR.

These ads often come with clickable call-to-action buttons that direct users to landing pages, app downloads, or e-commerce stores.

Example: The fashion brand Gymshark uses in-feed ads to showcase quick, user-generated videos of people working out in their gear. This approach blends with TikTokā€™s content, resulting in 500,000 likes and high website traffic.

TopView Ads

TopView Ads are premium placements on TikTok, appearing as the first video users see when they open the app. This ad format offers a high-impact, fullscreen experience with sound-on video.

Itā€™s designed for maximum visibility and is often used for major product launches or brand awareness campaigns, with an 11% engagement rate.

While these ads are more expensive, they deliver unparalleled visibility and engagement, making them a powerful tool for large-scale campaigns.

Example: Disney+ used a TopView ad to promote the launch of the Loki series, and the campaign reached over 37 million users in a single day, boosting the showā€™s awareness and generating massive buzz on social media.

Shopping and live-streaming

TikTok has begun experimenting with shoppable content and live streaming for brands. TikTokā€™s live streams offer direct interaction between brands and users, similar to QVC-style marketing.

In 2021, TikTok introduced TikTok Shop for specific markets, allowing users to buy products directly from the app.

These TikTok live-stream shopping events give an 80% conversion rate.

Example: TikTok Live shopping events during Black Friday resulted in a 400% increase in product searches and a 300% uplift in purchases for participating brands.

Results

  • By 2023, TikTok had over 1.2 billion monthly active users worldwide. This is one of the highest engagement rates compared to other social media platforms.

  • TikTok users spend an average of 95 minutes a day on the app, far outpacing competitors like Instagram (53 minutes) and Facebook (49 minutes).

  • TikTokā€™s ad revenue grew by 150% from 2022 to 2023, reaching $12.2 billion. This growth is expected to continue, with projections suggesting TikTokā€™s ad revenue will hit $15 billion by 2024.

  • 93% of TikTok users take action after viewing a product or brand video, whether that action is purchasing, researching, or engaging with the content.

  • TikTok users are 23% more likely to remember brands they see on the platform than those who view ads on other social media sites.

  • In 2022, TikTok surpassed YouTube in average daily video views, solidifying its position as a top video platform.

  • TikTokā€™s live-stream shopping events yield an 80% conversion rate, making it one of the most effective tools for immediate sales.

Conclusion

TikTokā€™s success lies in merging entertainment with marketing, allowing brands to reach highly engaged audiences. Through innovative strategies, TikTok drives both brand awareness and sales.

With continued growth in user engagement and ad revenue, marketers can no longer ignore its potential as a powerful tool for digital marketing.

Would you like to reflect on these?

  1. Are you using influencer collaborations effectively to reach niche communities?

  2. How can your next ad campaign include interactive or user-generated content?

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Integrated marketing offers opportunities to break through to consumers in new markets.

Betsy Holden - Senior Advisor, McKinsey & Co.