How Marketers are Reaching Gen Z with TikTok
By now, if you’re in the marketing world, you’ve probably heard of the newest social network sensation sweeping the Gen Z nation: TikTok.
Created in 2018 and owned by Chinese parent company ByteDance, this media app is a goldmine for advertisers looking to target Generation Z. Since the social video app’s algorithm is still in its infancy, reach is wholly based on audience engagement, allowing brands the opportunity to increase their exposure.
Why is TikTok relevant to marketers?
As Baby Boomers, Gen X, and Millennials age, marketers have turned their eyes toward Generation Z. According to a 2018 Barkley report, due to an increase in overall consumer purchasing power, Generation Z spends up to $143 billion a year. With so much to spend, marketers are eager to harness the attention of these young consumers in any way possible. Reaching them, however, has always been a puzzle - until TikTok.
Although TikTok has not officially released the number of active users, Sensor Tower - an app that tracks downloaded apps - reported that TikTok is the second most downloaded app after Facebook, with over a billion downloads by users who spend an average of 50 minutes per day on the app. Compare that to Instagram’s numbers this past year - which track at 444 million downloads - and it’s clear why TikTok has so much buzz surrounding it.
Despite TikTok's claims of popularity, its lack of transparency has led to market skepticism. Since TikTok refuses to share official numbers and only has a statement on their site claiming that the app is "top ranked in over 40 countries' app stores", and that “more than 90% of its users open the app multiple times a day,” some marketers are weary to trust the app.
What are the benefits of marketing on TikTok?
Benefit #1 - It’s not oversaturated by advertisers… yet.
Created in 2018, the video content creation app is still a fairly new platform…. meaning two things have not (yet) happened:
Brands have not yet oversaturated the platform with branded content, and
the platform has not yet penalized branded content / company profiles by suppressing organic reach via its algorithm.
Therefore, if a brand natively plugs their product with creative, engaging content, it will see more success than it would with other social platforms like Facebook - which has increasingly suppressed the organic reach of company pages in the name of ad revenue.
Benefit #2 - It’s snackable content.
TikTok caters to Generation Z’s responsiveness to quick, digestible, visual content. The popularity of the media platform has grown due to its resemblance to Vine. With TikTok, users can easily edit clips and produce engaging videos with popular songs to be shared across millions of social accounts.
Benefit #3 - It’s (probably) here to stay.
Unlike other social media platforms that rose and quickly fell, China’s version of TikTok came out in 2016 and has been beta-tested since.
Benefit #4 - It’s “hip” + accessible to marketers.
TikTok is an avenue for easy promotional access to Generation Z and teens. In a way, TikTok allows brands to approach marketing differently by uniquely positioning themselves to a new audience with less noise from other advertisers. Memes and reference culture also thrive on TikTok and, due to its algorithm, any user has the potential to create a viral video.
What are the best practices for brands who want to leverage TikTok as a marketing tool?
To understand how marketers can successfully leverage TikTok, Setup spoke to Shep Ogden, Co-founder of Scout Social, a native media company that has driven hundreds of millions of impressions through TikTok influencer campaigns.
Tiktok tip #1 - Avoid coming off as an advertisement.
Gen Z does not want to be sold to. In a world where streaming platforms with limited ads are becoming the norm, any video that is blatantly an advertisement will be ignored - and this applies to all social apps. Because TikTok generates the majority of its revenue from users purchasing coins, as opposed to media buying, the platform is hypersensitive to brands annoying the app’s users with overly intrusive advertisements.
Just like any other social media platform, marketers need to find a way to integrate their products natively into a content-heavy world instead of forcing themselves into it.
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Tiktok tip #2 - Find opportunities to engage the platform’s users in an interactive way.
On this point, Shep says, “TikTok is entirely based around user-generated content, which is what makes the platform what it is, but also what makes it so difficult to nail down for marketers.
Marketers can succeed on TikTok by finding ways for Gen Z to interact with the brands that they’re promoting. To have a successful TikTok campaign, marketers have to focus on building a fun trend that actually includes Gen Z with the product or brand.”
tiktok tip #3 - Work alongside platform influencers to understand how to leverage TikTok authentically.
One way marketers can engage with TikTok’s users is by creating branded hashtag challenges, which is typically done by working alongside TikTok content influencers who promote the trending hashtag. If your audience is on TikTok, influencer marketing provides an authentic perspective that formulates the brand’s message in a way the audience will be receptive to.
When talking about successful TikTok campaigns and brands on the platform, Shep shared that, “Crocs have rapidly regained popularity in recent years, bordering a cult following. Crocs have been used in a variety of organically created TikTok videos from shaving cream crocs to “Un Poco Loco” videos. They leveraged their existing popularity with TikTok users to launch an expansive campaign using influencers and paid promotions. This has lead to mass genuine engagement and brand exposure.”
“Brands should work directly with influencers or companies that understand the ins and outs of the TikTok community to make sure their ideas are something that will resonate,” says Shep, “TikTok is a close-knit community with a unique culture and plenty of inside jokes. Brands who come in from the outside and try to emulate the culture, but fall flat, end up with a product that is obviously inauthentic.”
Tiktok Tip #4 - Measure success based on engagement + user-generated content.
Most of the time, brands measure the success of social media marketing using engagement metrics - shares, likes, comments, etc. - and TikTok is no exception. However, there are additional engagement metrics that can and should be tracked with TikTok.
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According to Shep, “Beyond the normal social media engagement metrics, success on TikTok can be measured in user-generated content made in response to the branded content. If a brand is truly successful in creating a two-way conversation with its audience, its reach will be amplified by users creating additional content based on the hashtag or audio.”
Chipotle has certainly found their stride on TikTok. Their #GuacDance Challenge for National Avocado Day resulted in more than 800,000 sides of avocado served, jumping by 68% to 18,500 cases / 420,000 pounds of the fruit - making it the biggest National Avacado Day for the brand.
Tiktok Tip #5 - Before jumping in, make sure you know your audience.
Knowing your audience is imperative for any marketing campaign. That said, not everyone should be on TikTok. In fact, 66% of TikTok users are reportedly under 24. That means B2B companies may be out of luck - unless you’re really gunning for that remaining 34%.
At Setup, we briefly joined TikTok, knowing our core audience wasn’t out there. While we had fun following and mimicking the trends, our videos would be categorized as a “flop”...for now. Plus… we’re not the best dancers:
While B2B marketers may be out of luck, B2C marketers targeting younger consumers have hit the jackpot with TikTok. Maybe your brand should kick start some gift campaigns using TikTok influencers just in time for the holidays?
So… will your brand be joining TikTok any time soon? How do you plan to integrate your brand with the platform?
P.S. While we may not have ”made it” on TikTok, you can still follow us on our other social media platforms for the latest and greatest in marketing news: