Are you still wondering WHY TikTok is an effective and outstanding social media tool for business today? Well, with over 700 million monthly active users worldwide and the record (315 million (!) installs) for the most downloads in a single quarter for a social app, it’s at least witless to disregard its power. 


In this article, we will shed light on TikTok efficiency for businesses and why brands can use this social media to make a name for themselves. Let’s get it started — it’s gonna be captivating! 


  • You can be as creative as you want

The thing is that TikTok videos are about relaxation, entertainment, and fun. People open their TikTok app to get light content, not a 3.5-inch rocket launcher manual, and you can reap benefits from it. 


Even if you are in a B2B (business-to-business) industry or working in a SaaS company, use TikTok to showcase your service or product in a light manner. People thirst for authenticity and human connection. They got tired of everlasting wearisome ads that could seize them even on vacation far away from civilization. 


Have fun and create content that will show your clients you understand them more than they could think. Sometimes, humor and music mixed together is the best strategy to build a long-term partnership. 


  • You can reach an enormous number of influencers

Working with influencers is quite an effective marketing strategy brands often use on Instagram. When people get to know about your products from their role models, it looks like a recommendation from a friend and works much better than an advertisement.


TikTok influencer marketing is almost the same but also something brand new at a time. Since many Instagrammers just want to earn money on the brands and sponsored posts, Instagram became too commonly used for marketing and not as effective as before.


On the flip side, TikTok is not that salesy, and various businesses have just started exploring it. What’s more, if you target a younger audience, TikTok is a match made in heaven. A recent study has claimed that most TikTok users (69%) are between 13 and 24, with 42% between 18 and 24. 


As we’ve mentioned before, TikTok has hundreds of millions of users, which means it can offer a deep pool of influencers to choose from. However, choosing the right influencer who could raise your brand awareness is a burdensome process — you might simply waste your money and get no result. That’s why TikTok created the TikTok Creator Marketplace — a tool that helps brands partner with the right TikTok influencers. 


Another helpful tool is called Influence Grid, which provides you information on influencers’ status, the number of their followers, views, and likes. It can help you get a better idea of which user can bring your business better results. 


  • You can reach your audience with a variety of ad formats

Firstly, there were no ads on TikTok — it was just a place to unwind and have fun. But everything has changed recently, and TikTok decided to offer businesses 5 different types of ads that can help them gain new high-quality clients. From 0 to the whole 5 — pretty fast and forward-looking pace, isn’t it? 


However, advertising your brand on TikTok may cost you an arm and a leg. For instance, the cheapest ad campaign on TikTok costs $500, while on Instagram, you can spend $50 and get positive results. 


So, there are 5 types of TikTok ads we are going to investigate: 

  • In-Feed Ads
  • Brand Takeovers
  • Branded Hashtag Challenges
  • TopViews
  • Branded Effects

In-feed ads are the ads you can see between TikTok videos in your feed. It’s like Instagram ads that are flipping through your stories. By the way, this is the cheapest kind of ads on TikTok, which may cost you around $500. Their benefit? Oh, of course, it’s unique content. The whole idea of in-feed ads is to create content that doesn’t even remind the regular ads. 


Use as much creativity as you want — the goal is to catch the user’s attention and make them wonder,


“Wow, is it an ad?” 


Brand takeovers appear when users open an app. The thing is that this kind of ads pops up only once a day and, as you might have guessed, is… sky-high. Not that many businesses can afford brand takeovers and, thus, the effectiveness of such ads is much higher while the pool of competitors is smaller. 


Branded hashtag challenges are a bit different from the previous types of ads — they increase brand awareness through UGC (user-generated content). They appear on TikTok’s Discover page when users click on the particular hashtag and reroute you to the brand’s landing page with all the information about the challenge and the website link. Yay, you will definitely get recognized! 


However, these hot-shot ads are as expensive as all get out — to run a six-day challenge, you have to pay a whopping $150,000. 


TopViews are located at the top of the For You page and capture users’ attention when they open the app with a full-screen takeover. These ads feature 5-60 second full-screen vertical videos that support external and internal landing page conversions. 


Branded effects can significantly raise brand awareness by allowing brands to create AR overlays that users all over the world can use in their videos. The more creative effect you make, the more TikTokers use it, the more popular you become. As simple as it is. 


But there is always a BUT, and here, it’s the price. To create a single effect, you will need to pay $100,000. 

  • You can reap benefits from amazing user engagement

33 million. This is a number of TikTok downloads in Apple’s iOS App Store. 33 hecking million! 


Snapchat, Pinterest, Twitter, and other social media simply fall behind. What’s more, an average TikTok user spends 52 minutes a day scrolling their feed. This means your chances to reach the right customer are higher than ever. 


  • You can go viral faster

Let’s face it — TikTok is something completely new and, thus, tantalizing. Yes, millions of people use it daily, but do they know how to use its new and unique algorithms effectively?


TikTok has claimed that the number of followers doesn’t directly impact what content shows up in your feed. This makes this platform your huge chance to go viral. You don’t necessarily need to grow your audience to get noticed. 


You can literally become famous overnight just because the video you took yesterday rocked the TikTok audience. 


A stroke of luck? Not exactly. Creativity and the correct understanding of algorithms (and sometimes paid ads) can make a wonder!