TikTok: what’s the offline sales impact for advertisers?

Written by Juliette Maumelat

#Insights

March 10, 2022

With more than a billion monthly active users worldwide, TikTok is the hottest social media platform at the moment. Thanks to the diversity of content it offers, the platform is THE opportunity not to miss for advertisers. However, given that TikTok ads are very easy to scroll over, are they really effective for driving sales – especially offline?

The application recently published the results of a Nielsen Study that validates its efficiency. They conducted a marketing mix modelling analysis based on 16 advertising campaigns from companies around the world. Their main objective was to determine the best approach for increasing in-store sales, brand awareness and to provide some more insights to strengthen marketing tactics.

According to the study, Tiktok gives:

High Return On Ad Spent (ROAS)

The social platform ads generate high ROI for packaged goods brands, especially for food and beverages. These results are not surprising as the desire of TikTok users to try new products they saw there make some brands trending and “go viral”.

“The US, for example, saw a 14% higher-paid media ROAS versus all digital media measured in the models and 2X the offline sales efficiency, while the numbers for Europe and Southeast Asia were even higher.”  TikTok For Business Report.

In-feed videos are the most efficient

Nielsen’s work revealed that in-feed campaigns are the most effective ones because they also have further opportunities to scale. “US model suggests advertisers could increase their weekly in-feed impression volume by around 50% while maintaining efficient offline sales lift.” TikTok for Business Report. As a matter of fact, these ads are unmissable when on TikTok. In that way, as a company, you should maximize your brand awareness and reactions based on in-app pushes. 

The study results have shown that TikTok can generate significant sales lift, in particular for packaged goods, with good knowledge and use of the social media platform. Indeed, when on TikTok and on any other social platform, the advertisers that are able to identify the popular trends and formats will be the ones that see their sales increase.

Understanding trends and applying them to your business is a difficult and time-consuming process. That is why, at Territory Influence, our social media experts are at your availability to design the most tailored strategies and advise you in real-time!

Get in touch with our experts!