Here’s how TikTok is changing the way businesses advertise

More than half the world is now on social media, and advertising on social media platforms is becoming the go-to solution for small and medium-sized businesses (SMBs).

But as with any other media, businesses must first conduct research and plan content for these platforms for optimal conversion. Content creation can also be costly and may take longer than expected to produce – especially for those lacking the right tools.

This is where short-form video app TikTok comes in. With its new self-serve ad platform TikTok For Business, the app helps SMBs reach wider audiences easily by providing them with the right tools to create and monitor content effectively.

“It doesn’t matter if you’re a first-time user from an island in Indonesia or a global celebrity, whether you are a small business or a multinational brand,” says Chew Wee Ng, TikTok’s head of business marketing. “As long as you are telling authentic stories and engaging and collaborating with the TikTok community, you can succeed on TikTok.”

The TikTok approach

TikTok’s low barrier of entry for content creation has helped users shape trends, both from within and outside the platform. Indeed, music used on TikTok has often gone viral: K-pop artist Hwasa’s Maria, for instance, climbed up the music charts and garnered over 740 million views, largely due to the participation of the TikTok community in the “#mariachallenge,” which urged users to make their own videos using the song as a backtrack.

Chew Wee Ng, head of business marketing at TikTok / Photo credit: TikTok

According to Ng, nine out of 10 users go on the app daily and are very much willing to participate in storytelling with brands, even going as far as creating ads for brands themselves. She adds that users spend an average of 20 to 30 minutes on the app, either creating content, participating in trends and challenges, or both.

”They would gladly amplify a brand’s message, take part in a brand’s activity, and essentially become the brand’s ambassador,” says Ng.

Being a part of users’ native experience

TikTok ads work well for SMBs because they allow businesses to participate in the users’ native experience. There are no disruptive pop-up ads or unskippable video ads on TikTok; instead, advertisements are seamlessly woven into users’ For You feeds. This way, a brand’s message gets delivered without disrupting the users’ overall viewing experience. SMBs can choose to blend in with the other recommended content or stand out from the crowd to capture attention.

Indonesian dessert company Bittersweet by Najla is one SMB that has successfully leveraged the platform. Behind-the-scenes content on how its desserts are made helped the business acquire over 700,000 followers and 18 million likes on its TikTok account. Plus, much like how influencer engagement is carried out on social media platforms, Bittersweet invited fellow TikTok creators to taste test its cakes and visit its physical shop. Beyond building brand authenticity, this approach helped the business gain brand awareness. More importantly, it successfully converted TikTok users to real-life customers.

TikTok’s unique recommendation algorithm keeps users’ For You feeds fresh and exciting, allowing them to constantly discover new content categories. The algorithm takes into account signals such as user interactions, video information, account settings, and declared interests to put together a slew of videos for each individual. As a result, no two feeds are the same. This is great for SMBs as it can lead new audiences – and potential customers – to their content.

Making video advertising more accessible for SMBs

Marketing on TikTok is done differently from other online platforms, mainly because of its unique user behaviors. Between Twitter, Instagram, and TikTok, studies claim that the latter amassed the highest engagement rates in 2019. Additionally, Ng says users on TikTok expect and want to see brands; they don’t scroll past or skip ads after five seconds.

“TikTok is a platform that gives engaging organic content an equal chance to go viral as our users embrace and welcome brands that interact with them,” she adds.

Marketing on TikTok also comes at a lower price compared on other platforms. Since the app leans toward authentic content, this means that SMBs need not invest thousands of dollars in costly, high-end video production. They also don’t have to pay for tools to edit content or monitor their performance, as the creative tools available on the platform enable SMBs to do these tasks themselves. Businesses can easily ride on user trends to build brand authenticity and awareness, drive app installs, and increase online and offline sales.

Photo credit: TikTok

Through the app’s Smart Video function, SMBs have the power to produce multiple videos from a company’s pool of creative assets, which can greatly reduce production costs and time. The Smart Video Soundtrack feature, for example, takes away the additional step – and expense – of purchasing copyright for ad music, while the Video Template function accelerates the process of creating advertisements from still images.

And unlike other platforms, TikTok was designed for a sound-on experience. Studies show that 80% of Facebook users watch ads without sound. Users on most other platforms also view ads on mute, reading subtitles instead of playing the jingles, which is a shame since music plays a substantial role in storytelling, communication, and building an emotional connection with an audience.

“Sound is essential to the narrative,” affirms Ng. “It’s the most immediate way to emotionally connect with your audience, capture their attention, and hold it.”

As the online media ecosystem gets increasingly interwoven, it’s common to see viral content on TikTok reposted on other platforms. But while cross-posted content racks up millions of views, likes, and shares on other platforms, they still miss an important element that makes TikTok special: active audience participation.

“You don’t get that level of participation where other users remix and mimic the trends like you do on TikTok,” says Ng.

A snapshot of advertising’s future

In the US, 70% of small businesses actively use social networking platforms to reach consumers online. As more of them look toward these platforms to advance their advertising efforts, further changes are bound to occur in the advertising space.

“We see a shift in the mindset of marketers when it comes to defining ‘what makes the perfect video ad,’” says Ng.

This shift may spur marketers to look past conventional standards and practices in the industry, focusing their marketing efforts instead on creativity even as they stay true to their brand. In line with this shift, Ng anticipates that more marketers will experiment with user involvement and new ways of encouraging audiences to interact with their business.

In the future, she predicts that “there will be a place for both more native ads [and] the more obvious ones for different purposes.” Much like the ads on TikTok, advertisers will have the option to create content that either blends in or stands out. She also foresees a likely resurgence of engaging productions that fuse visuals and sound, much like the commercials from television’s golden age in the 1970s.

With all these changes in view, Ng advises marketers to be unafraid when it comes to experimentation. She also emphasizes the importance of understanding user profiles, as it’s no longer enough to know which platforms their target audience frequents. Marketers should also learn about the topics that are trending among them and the kind of content they enjoy.

TikTok For Business enables companies of all sizes to reach their ideal audiences with a simple and easy-to-use advertising platform.

Get started on the TikTok For Business website.

This content was produced by Tech in Asia Studios, which connects brands with Asia’s tech community. Learn more about partnering with Tech in Asia Studios.