Among SMEs (small to medium-size enterprises) advertising on TikTok, a whopping 78% have said that marketing on the app has yielded ‘overwhelmingly positive’ results.
According to Capterra’s ‘2022 TikTok Marketing Survey’, well over half of the small retailers and restaurants that use TikTok to advertise have said that their organic and advertising content on TikTok is extremely valuable to their overall marketing performance and ROIs.
A further 52% of SMEs have declared plans to spend more money on TikTok marketing in 2023.
The research from the software consultant suggests that using the short-form video content app to market brands is undoubtedly powerful, especially with Generation Z.
“Users like TikTok because its seemingly endless content feels authentic and unfussy—videos made by real people, for real people,” Capterra senior retail analyst, Molly Burke, told Internet Retailing. “Creating ads that capture the candid nature of organic TikTok content helps businesses blend in and profit.
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According to over half of those SMEs surveyed, ‘In-Feed’ ads are the most effective in terms of conversions as they 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 added.
Organic content is believed to derive more value for brands than sponsored content on the social media app.
“While other platforms’ content suggestion algorithms can feel like an oligarchy dominated by legacy brands and Hollywood celebrities, TikTok’s ‘For You’ page has been characterized as a meritocracy where small businesses can reap rewards from both paid and organic content,” Burke added.
“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.”
