Image Credits: Solen Feyissa on Unsplash
Apptrust Announces New Ad Campaigns Integration with TikTok
We have an exciting announcement to make: we are introducing TikTok to our existing advertising formats. This new rollout enables all Apptrust partners to connect TikTok ads directly to campaigns they are promoting with us.
TikTok is the leading destination for short-form mobile video. As one of the fastest-growing social media platforms worldwide and a major traffic source for advertisers, our advertising integration offers the chance to tap into an incredibly vast and engaged audience.
In 2021, TikTok has big plans to maximize revenue potential for advertisers. They recently announced a partnership with LiveRamp that allows brands to plug audience data into TikTok’s tools, and better target their efforts.
So, what do marketers and brands need to know about TikTok, and how can they benefit from advertising on the platform? Keep reading to find out.
What You Need to Know About Advertising on TikTok
- The numbers: TikTok has surpassed 2 billion downloads and it’s the most downloaded non-gaming app
In the last year, any social media users will have seen at least one viral TikTok video make their way into one of their other social media feeds. After all, TikTok from ByteDance is one of the fastest-growing social media platforms globally, with 732 million active users per month (official stats) and surpassing the likes of Facebook, Instagram, and Snapchat in global app downloads.
Image Credits: App Annie
In 2020, TikTok has become a global cultural phenomenon. It is an outlet for the online community to stay connected during socially distanced times, featuring everything from “cloud raves”; to dance crazes, comedy, and financial content. This has led the app to surpass 2 billion downloads, with yearly downloads in 2020 of 850 million (excluding Chinese third-party downloads) (Business of Apps).
The app allows users to create 15- to 60-second videos with music and filters.
TikTok only launched in Europe in 2019, after a successful rollout in APAC and the US. Thanks to its easy-to-use interface and viral component, it grew phenomenally fast, but it reached new heights after Covid-19 entered the picture.
We can see why this format is so appealing during the Covid-19 lockdowns when users’ screen time is higher than ever before (read our blog post for more info). With such an overwhelming amount of social content competing for our attention, smartphone users can’t get enough of these bite-sized videos.
In fact, TikTok generated the most downloads for any app ever in a quarter during Q1 2020 gaining 315 million installs across the App Store and Google Play. Between February and March 2020, in-app engagement jumped by 27 percent (Obvious.ly).
Image Credits: Sensor Tower
Fast forward to Q1 2021 and TikTok is still the most downloaded app globally (App Annie). It is also the most downloaded non-gaming app in March 2021 with more than 58 million installs, followed by Facebook and Instagram (Sensor Tower).
- The users: Out of 689 million global users, the majority are under 30-years old
TikTok is seeing huge user growth and engagement. As of April 2021, it counts 689 million global active users globally (official stats), with China (Douyin app) as the biggest market, closely followed by the US with 100 million monthly users and 100 million monthly users in Europe.
Initially, TikTok attracted a Gen Z demographic, but as the app became mainstream gained more mature users (including boomers). In 2021, 66% of global users are under the age of 30. In the US, the split is 58% Gen Z and 33% Millennials (YPulse).
TikTok official data shows global active users as:
- 42% between 18 and 24 years old
- 22% between 25 and 34
- 17% between 13 and 17
- 12% between 34 and 44
- 7% is over the age of 45
Millennials may have the buying power (and spend more money shopping online than other groups), but Zoomers are decision-makers, driving digital and consumer trends from fashion to gaming. In a few years, Gen Z will own disposable income and are already worth $44 billion in purchasing decisions, Entrepreneur estimates.
By enabling its young users to build strong personal networks within the app, TikTok is well-positioned for ongoing expansion and growth – and so are their advertising partners, as the app’s users age up.
- In-App Spending: Lifetime user spending has reached $456.7 million
TikTok users are highly engaged, spending 89 minutes on the app daily and opening it 19 times a day, which is higher than Instagram (53 minutes) and Snapchat (49.5 minutes) (official stats). In the US, users spend more time on TikTok than any other social platform.
Image source: App Annie
How does spending work? Users can purchase coins and then convert these into emojis or diamonds, which can be exchanged for cash. Prices for coins start at $1.29 for 100 and go up to $134.99 for 10,000. They can then share these as gifts to reward their favorite content creators. So we can see why both creators and users spend a lot of time on the app and engagement is high.
As for the lifetime user spending in-app: users have spent $456.7 million in coins. (Sensor Tower).
- High-converting ad formats appear organic and unfiltered
Advertisers have been able to successfully tap into TikTok’s user base, leveraging their highly engaging ad format and effective content-based algorithm (which doesn’t prioritize videos based on the creator’s follower count, but on the user’s interests).
TikTok offers several ad format types for advertisers to reach their target demographic –
- In-Feed Video: Ads appear in the native news feed of TikTok on the For You page. These ads, by appearing in the users’ feeds just like regular TikTok videos, render the ad experience for users more appealing – and result in high conversion rates. A gaming app captured audience attention, achieving a 7.6% app install rate (official stats).
- Brand Takeover: TikTok users open the app and the ad completely takes over the screen for a few seconds before turning into an In-Feed Video ad.
- Hashtag Challenge: Ad appears on the Discovery page, encouraging users to participate in content creation challenges. These can include a shoppable component for retailers.
- Branded AR Content: Ad appears as branded lenses, stickers, and other 2D/3D/AR content for TikTok users to use in their videos.
- Custom Influencer Package: Ad appears as part of sponsored content created by a TikTok user with influence in your market
Audience targeting capabilities on TikTok are very granular and include behavioral targeting; custom and lookalike audiences; retargeting and customized options.
eCommerce and Gaming brands are making the most of TikTok ad opportunities for their campaigns, with outstanding results. Let’s discover some of these below.
- Platform’s eCommerce growth potential grows with new integrations
In the eCommerce space, Tiktok is a key platform for product discovery, with 47% of its users have bought something they’ve seen on the platform. In the US, ad business has grown more than 500% in 2020 alone.
Source: One Club
One such brand is make-up brand Elf Cosmetics, which created “Eyes.Lips.Face”, the most-viral TikTok campaign ever by targeting Gen Z. They generated nearly 5 million user-generated videos and 4 billion views.
Brands selling products under $200 are seeing better conversion rates on TikTok than Facebook or Instagram, proving the app’s young user base is willing and able to buy things on the platform. This makes sense given that 75% of Gen Z and Millennials shop online via smartphones – much more than any other age group (eMarketer).
In 2021, TikTok is adding new eCommerce integrations such as a range of in-stream shopping tools for brands such as “dynamic product ads”, as it continues to explore its eCommerce potential, Business Insider reports.
- Gaming on TikTok attracts a wide audience including over 35+
As consumers turned to mobile to stay entertained during the 2020 Covid-19 lockdowns, the gaming vertical boomed. It grew 19.6% YoY and reached a staggering $174.9 billion, which is an extra $15 billion (NewZoo).
Image Source: Newzoo
TiKTok is a fun home for gamers, attracting and building a strong community. In 2020, in-app gaming video creations have increased rapidly in every major market. Not only by showing product-focused content such as game clips, equipment, and console but also by shaping gaming culture in unique ways with role cosplay or dance content. Personally, we loved seeing this live Mario Kart recreation!
Image source: Medium
And it’s not just teenage gamers on TikTok. Gamers have a broader age profile, with 2 in every 5 being aged 35+. Also, 2 in every 5 TikTok gamers are female (Global Web Index). The top 3 ranking genres are Battle Royale, Simulation, and Shooter. Popular mobile games include strategy and casual games and more, such as Fortnite, Minecraft, Call of Duty, Clash of Clans, 8 Ball Pool, and Clash Royale.
There are tons of opportunities for gaming advertisers to showcase their story, gameplay, and build engagement with gamers on TikTok using solutions including in-feed ads.
Conclusion: TikTok has something valuable to offer for every type of mobile user and advertiser
As a performance marketer, there has never been a better time to leverage the power and growth of TikTok for your mobile advertising campaigns.
If you’re not sure where to begin, teaming up with a trusted team of mobile advertising experts who can advise you on the best strategy to reach your goals and help optimize your campaign budget will take the pressure off.
We are thrilled to offer TikTok as an additional source of social media traffic – and to be able to help our clients boost and scale their user acquisition campaigns in this exciting and engaging format!
Are you a mobile advertiser looking to launch your own TikTok campaign?
Contact us at partners@apptrust.io and we’d be happy to chat further about how we can support you.
Author: Elizabeth Marchetti
apptrust
