TikTok: why is it important to be present on this platform?
The popular video-sharing app is not only a good entertainment source but also could be a good marketing tool for the e-commerce participants.
One of the most popular apps in the world
TikTok, launched in China in 2016 (then also known as Douyin), is clearly one of the most dynamically expanding user sites: according to Statista, a total of 315 million users downloaded the application in the first quarter of last year and 306 million in the second quarter. Of course, the outbreak of the Covid-19 epidemic played a major role in this, and the number of downloads has indeed declined somewhat in recent times but has still reached 21 million in the last month.
TikTok currently has more than 800 million active users worldwide, and the number of users in Hungary can be estimated at 2.3 million, according to Growww Digital. As for the distribution of users by age groups, the platform is still popular mainly among young people, however, 70% of Hungarian users have already reached the age of 18 and 30% have reached the age of 35, in addition to 25-35 in 2020 most of the age group members downloaded the app.
TikTok as a marketing tool
According to a survey by Datareportal, by April 2021, the number of regular users of social media had grown to 4.33 billion worldwide. According to the Research Center, various social platforms are especially widespread among Hungarians, consumers often collect information from social media about different products, and influencers can influence the purchasing decisions of millions. Thus, TikTok is also a great opportunity for e-commerce market participants to reach younger age groups and reach potential customers who would not otherwise be reached, as only 35 percent of TikTok users have other social media accounts.
TikTok videos are also extremely cost-effective, they do not require significant financial investment: many of the channel's most popular content was created in a completely ordinary environment with simple tools. The app offers equal opportunities to all users: thanks to the platform's algorithm, videos posted in TikTok accounts with minimal or even zero followers can reach millions of views, unlike on social sites like YouTube or Instagram
Since the activity-response rate, the so-called engagement rate for TikTok, is much higher than the average activity rate on other social networking sites, well-designed marketing campaigns with user-friendly content can give e-commerce companies a strong interest in the products they offer, and services.
In June 2020, TikTok launched a service called TikTok for Business, which allows advertisers and business partners to deliver their goods to their consumers using the platform. Although most of the opportunities offered by TikTok for Business have been provided in the past, it is a major step forward that users can now access all of them in one place, in an easy-to-use format.
The platform partnered with Shopify at the end of last year: thanks to the agreement, users with a business TikTok account can now feature their products directly in their videos and offer them for sale. During the automated process, the app creates ads for each product from those videos, as well as a link to the merchants' landing page. TikTok and Shopify are also testing additional e-commerce solutions (including allowing in-app direct purchases) to help merchants achieve the highest possible conversion rates.
The year 2021 could be a milestone for TikTok in several ways, as it is tentatively expected that the number of active users of the platform could reach 1.2 billion by the end of the year. In addition, the channel's staff is working on a development that will allow the publication of up to three-minute videos in the future (as opposed to previous, fifteen-second, and up to one-minute content). If that development is implemented, new opportunities will open up for e-commerce players, who can increase the awareness of their brands on the platform by using more creative solutions than before.
In the case of TikTok marketing campaigns, it is very important that advertisers address users in a way that is in line with the spirit of the platform - as the channel's slogan advertises: "do not create advertising, but TikTok!" This is because visitors to the site are usually not interested in traditional ads and by no means want to see such ads on their favorite channel.
Remember, the essence of the platform is to make users feel good - if e-merchants want to run a successful marketing campaign, they need to target their potential customers with original videos in a playful and creative way, preferably involving their target audience in content production.