By Sam Shennan, CEO of APAC at Incubeta
Quietly revolutionizing the way that businesses connect with audiences – TikTok is no longer a platform solely known for viral content and dance trends – it’s a valuable advertising hub that’s set to reach $35.66 billion in ad revenue by 2026.
With over 1 billion users – 92% of which take some form of action after viewing TikTok content – it has the unique potential to drive sales and increase brand-audience connections – meaning the organizations that invest in, and utilize TikTok in line with wider business KPIs will be the businesses that outperform.
The recent launch of TikTok’s ‘Search Ads’ and ‘Smart+’ only furthers business opportunities – offering enhanced control over search ad placements, allowing for better targeting and campaign management. Already we’ve seen advertisers that use these features, alongside in-feed ads, achieve a 20% conversion uplift at a similar, if not lower CPA.
Unmatched flexibility for advertisers
With a diverse set of ad formats and targeting capabilities, TikTok offers unmatched flexibility for advertisers. From in-feed ads that integrate into the user’s organic feed, to branded hashtag challenges and effects, advertisers can include call-to-actions that lead to landing pages or app downloads, or amplify organically through branded features.
The introduction of TikTok Search Ads has only accelerated the platform’s versatility. This feature enables increased user intent targeting, allowing businesses to target consumers actively seeking out products or services in their search queries. This is significant considering 57% of TikTok users tap the application’s search functionality, with 23% searching for something within 30 seconds of opening the app. Through keyword-ads, TikTok ensures an SEO-like capability that adds a new layer of precision to TikTok’s advertising ecosystem.
Additionally, Search Ad’s allows for easy activation, editing, and keyword and creative adjustment—both during campaign setup and while it’s live.
This flexibility allows businesses to react to campaigns in real time – optimizing performance, and reaching high-intent audiences at crucial moments.
Maximizing ROI with smarter spending
TikTok’s potential ad reach of more than 945 million adults, offers a goldmine for ROI. By leveraging advanced budgeting, bidding, and creative optimization tools, smarter spending is easier than ever.
The launch of Smart+, TikTok’s answer to Google’s Performance Max and Meta’s Advantage+, has taken ad performance to the next level, delivering a 52% improvement in return on ad spend. This automated solution handles ad creation, placement, and bidding, helping businesses reach the right users, minimize wasted spend, and drive higher engagement—all at lower costs.
Holistic business growth
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TikTok generated an estimated $16.1 billion in revenue in 2023—a 67% increase from 2022. With 44% of users purchasing directly on TikTok, the platform is more than just a social app—it’s a growth accelerator.
Its viral trends and interactive features build authentic connections and foster brand loyalty, while targeted ads and social commerce tools streamline the path from discovery to conversion.
Understanding brand value
Visibility over channel performance is key to making smart marketing investments. Without this holistic view, businesses risk under-investing in high-potential platforms and missing growth opportunities.
CarParts is a great example of what happens when you get it right. By optimizing their marketing strategy, they uncovered TikTok’s significant impact, achieving an 11.1 ROI to sales and a 43% higher return than other channels. This proves the power of understanding where your investments pay off.
TikTok’s emphasis on creative storytelling encourages brands to innovate, while real-time data insights help optimize strategies for sustained growth across all channels. The platform’s blend of visibility, engagement, and conversion supports long-term business success.
CMOs who harness TikTok’s potential will not only reach vast audiences but also position their brands for sustained success and innovation.
Finding the right TikTok partner
As brands look to utilize TikTok’s immense growth potential, there’s a real risk of being trapped between multiple partners, conflicting strategies, or competing technologies. The solution? Choosing a single, holistic partner.
Les Mills found the right TikTok partner in Incubeta, amplifying creatives through In-feed and TopView ad placements to drive awareness and reach amongst key audiences. This led to a 700% ROAS and the platform responsible for 14x as many sign ups to LES MILLS+.
Incubeta’s partnership with TikTok empowers brands to tap into the platform’s potential, driving advanced brand visibility, deeper customer engagement, and ultimately, business growth.
CMOs must focus on investing in the right TikTok partner to make the most of today’s fast-evolving digital landscape.
