TikTok is the new kid on the block and it has made waves in the social media industry. The app boasts over 1.2 billion active users worldwide and continues to grow every day. This means that TikTok is the perfect platform for businesses to gain customers. In this blog post, we will discuss how to utilize TikTok for business, including the benefits and potential roadblocks.
Tailoring your videos for the right audience
One of the key advantages of TikTok is that you have complete control over the length and style of your videos. Whether you prefer short or long videos, TikTok allows you to tailor your content to your audience. Furthermore, TikTok has an ad platform that allows you to create sponsored ads that appear in the news feed of your target audience. For instance, you can target customers by interest, audience, or location, including geotargeting.
In addition to length and style, another aspect of tailoring your videos for the right audience on TikTok is understanding the tone and trends that resonate with your target demographic. TikTok is known for its fun and engaging content, so it’s important to create videos that align with the platform’s overall vibe. Researching popular TikTok trends and challenges can help you stay up-to-date and create content that feels authentic and relevant to your audience. Experimenting with different video formats, such as tutorials, behind-the-scenes glimpses, or storytelling, can also help you find what works best for your business and engages your target audience.
Cost-effectiveness
TikTok is still relatively new, making it an affordable option for businesses. You can set a Cost Per Acquisition (CPA) goal once you understand the lifetime value of your customers. Take for example the company, Blush Boudoir, which is a client of Pink Slushy Media. Through TikTok ads, they were able to acquire new customers for $100, generating significant profit, considering they make $299-$399 per shoot with additional revenue from picture sales ranging from $300 to $2000. By analyzing the conversion rate (one out of three customers who express interest), Pink Slushy Media determined that a cost of $33 or less per lead is profitable.
Success in a specific area
TikTok allows businesses to generate ad clicks at a particularly lower cost in specific areas. For example, Pink Slushy Media was able to generate ad clicks for $1.50 in Grand Haven, MI, with 1 out of every 10 people filling out their contact form. This means they paid $15 per interested customer, and the conversion rate remained at 1 out of 3. Therefore, they were able to generate appointments for less than $45 per customer, well below their $100 goal. Armed with this knowledge, Pink Slushy Media was able to assist other businesses in the boudoir industry with their ad campaigns.
While TikTok may be an affordable option for businesses, it’s important to keep track of your ad spend and measure the return on investment (ROI) for your TikTok campaigns. Monitoring key performance indicators (KPIs) such as click-through rates, conversion rates, and the cost per conversion can help you assess the effectiveness of your ad campaigns. Adjusting your targeting, ad creatives, or budget based on the performance data can optimize your TikTok ads for maximum cost-effectiveness. Regularly analyzing and optimizing your campaigns will ensure that you are getting the most out of your ad budget and driving the desired results for your business.
Potential roadblocks
As with any advertising platform, there are potential cons to using TikTok. One roadblock is the steep learning curve that comes with the TikTok ad platform. The platform can be complex and new media buyers may encounter common pitfalls, resulting in lost money on ads that don’t convert. Therefore, it is important to educate yourself and become proficient in using the ad platform.
Another potential roadblock is creating video content, especially if you have never made videos before. Fortunately, there are solutions such as Microspire.org, an influencer social network that allows you to find creators who can create videos for your business. Creating an account on Microspire allows you to connect with different influencers on the platform to find the right fit. You can then reach out to them and discuss the possibility of collaborating, and prepare a script for them to use while shooting your ad.
Conclusion
TikTok is a powerful tool for generating new customers for your business. By leveraging its features, you can thrive in the TikTok ad marketplace, including cost-effectiveness and geotargeting options. However, it is important to be aware of the potential roadblocks such as the steep learning curve associated with the ad platform, as well as creating video content. But do not fret, there are solutions such as Microspire.org to assist you in creating eye-catching ads for your business. Overall, TikTok is a fantastic way to connect with and acquire customers for your business, making it a crucial platform to add to your marketing mix.
Can I target specific audiences in my local area with TikTok ads?
Yes, TikTok has an ad platform that allows you to geotarget customers. You can specifically target customers based on their location, such as targeting customers in Nashville, TN if you are based there.
Is there flexibility in creating and customizing my TikTok videos?
Absolutely! You have complete control over the length and style of your videos on TikTok. Whether you prefer short or long videos, it's up to you. You can also create sponsored ads that appear in the news feed of your target audience. This allows you to tailor your videos to appeal to your specific demographic
Is TikTok an affordable advertising platform?
Yes, TikTok is still relatively new and considered affordable compared to other advertising platforms. Once you understand the lifetime value of your customers and their worth, you can set a Cost Per Acquisition (CPA) goal to ensure cost-effectiveness. By analyzing conversion rates and profitability, you can optimize your ad spending.
What if I don't have experience creating videos for my business?
Are there any challenges to using TikTok's ad platform?
TikTok's ad platform has a learning curve, and new media buyers often encounter common pitfalls. It's important to educate yourself and become proficient in using the platform to maximize the effectiveness of your ads. Investing time to understand the complexities of the ad platform can help avoid losing money on ads that don't convert.