What is TikTok and Why You Should Care as a Marketer?

With the best quarter for any app ever in Q1 2020 and surpassing 2 billion downloads globally, TikTok is the latest of the mainstream social media apps. You may be asking, what is TikTok? Who is on it and how can brands use it?

As an overview, here are some important TikTok statistics you should know:

1.   TikTok is now the sixth largest social network in the world. It has 800 million monthly active users.

2.   India, China and the US are the top three countries that account for the 2 billion downloads.

3.   Monthly active users in the US were reported to be 28 million in November 2019, we estimate this amount to be over 80 million after the surge in the app’s popularity during the COVID-19 lockdowns.

4.   TikTok has not disclosed the number of active users in the UK specifically. However, there are several TikTok influencers in the UK that have over 10 million follower counts.

5.   According to a leaked TikTok pitch deck, the average American user opens the app 8+ times and spends over 46 minutes on the app daily.

What is TikTok?

Credit: https://www.themds.com/back-stage/what-is-tiktok-the-new-social-network-to-conquer-gen-z.html

TikTok is a short-form mobile video-sharing app, as described on their website. It allows users to record, edit, and share videos while watching what other users created.

The Content on TikTok

The range of content on TikTok is diverse. The users on the app create videos of a length of 15 seconds up to a minute. Typical content found on TikTok is as follows:

·         Users acting, playing short scripts of jokes.

·         Dance videos

·         Lip syncing

·         Pranks

·         Artists such as comedians, photographers and painters showcasing their skills.

·         Pet videos

·         Cooking videos

·         Educational videos

Along with many more. 

The FYP Page

TikTok’s For You Page

TikTok’s homepage is called the For You Page. The FYP is described as an “endless stream of short videos that feel personalized just for you” on the app’s page on the App Store. The FYP is algorithmically personalized for each user based on the user’s past engagement, interests and demographic. The users don’t need to follow anyone on the app, the algorithm populates the FYP page automatically.

Thanks to the algorithm, the FYP shows popular videos to millions of users and keeps other videos to very limited audiences. The number of views a video gets on the platform may change from as low as 50 views to hundreds of millions. In fact, there is a record holding video that hit a view count of 1.7 billion views.

How do users engage with one another?

Users on TikTok can like videos, comment on videos and share videos. Users can share videos on the app, or across different platforms on apps like WhatsApp, Instagram or even Twitter.

Users can even use the same soundtrack, record reaction videos or duets with one another.

User with over ten thousand followers can do live video sessions, where they can interact with their followers on a more personal basis.

Video Editing, Effects and the Music Library

TikTok’s Music Library

TikTok has over a hundred effects, transitions and stickers. Users can use these tools to make their videos more engaging, more creative and express their feelings or a story.

TikTok has a huge licensed music library. Users can add the music over to their video or dance over the music. They can even incorporate the lyrics into their story play. 

TikTok Profiles

TikTok's Profile Page
TikTok’s Profile Page

Each user has a TikTok profile page. On this page, the number followers and the number of accounts followed are shown. Users can add a link to their Instagram and YouTube account on their TikTok profile.

If you like a video on your FYP page, you can go to the creator’s profile page, follow them and watch other videos they created.

How is TikTok different from other social media apps?

Tiktok is different than Facebook or Instagram as it puts the focus on creativity rather than being social. As described by Josh Constine of TechCrunch, TikTok created a new category of social apps – social entertainment, rather than competing with other social media apps.

Unlike Instagram, TikTok isn’t about sharing what you’re up to on spontaneously captured stories. TikTok is about entertaining your audience – and whatever that takes. To get a piece of TikTok fame, ordinary people from all around the world invent characters, create storylines and act.

Who uses TikTok?

TikTok has reportedly over 800 million monthly active users in the world. TikTok is available in 150 countries in the world. TikTok has the most users in India, followed by China and the US.

According to a leaked TikTok pitch deck dated 2019*, the audience stats are as below:

·         Age 16-24: 69% vs Age 25+ 31%

·         Female 60%:40% male

·         Android 46% – Apple 54%

Age breakdown:

·         Age 13-17: 27%

·         Age 18-24: 42%

·         Age 25-34: 16%

·         Age 35-44: 8%

·         Age 45-54: 3%

·         Age 55+: 4%

*The current data is not readily available. However, we estimate that the average age of the user base has grown, as the older generations started adopting the app.

Rise in TikTok’s Popularity During Covid-19 Lockdowns

By November 2019, TikTok already hit 1.5 downloads worldwide. At that point, the growth came from countries such as India and Turkey. The app also had 28 million users in the US. It started gaining traction by the promise of fame, as some users such as @charlidamelio had already over 10 million followers. Luring in many more users, especially from the Gen-Z population, the app continued its growth in to 2020, when something much unexpected happened: COVID-19 lockdowns.

Growing interest in TikTok coincides with covid-19 lockdowns in Google Trends

As the COVID-19 breakout caused many major cities around the world to be under lockdown, the interest in TikTok grew. Check out the graph above taken from trends.google.com showing the interest in worldwide searches containing the keyword, “tiktok”. The leap on the graph coincides with the dates lockdowns around the world started.

@darnbee

Quarantine or family bonding? ##wishmeluck ##fyp ##foryoupage

♬ Fabulous – mollscar

Lockdowns were great for TikTok’s organic growth, as it kept different generations under the same roof for extended periods of time. Empty nesters had their households full again as college students went back home. It wasn’t long before there were several videos showing parents with their kids doing their takes of popular TikTok dances.

At the same time, millennials started discovering the app and started flocking to the app. #millenial got over 1 billion views.

#millenial on TikTok

How can Brands use TikTok?

There are three main ways brands can use TikTok:

1.   Building a page on TikTok and posting videos

2.   Paid ads

a.   Performance marketing

b.   Brand marketing

3.   Influencer marketing

Building a TikTok Page for Your Brand

Due to the nature of the platform, great and well-crafted content can reach millions. However, creating great content for TikTok is a challenge.

TikTok is a platform where having a great number of followers does not guarantee great reach. If your content doesn’t gain attention from viewers it will surely “flop” (a term used by TikTok creators to describe videos getting very little views).

Using existing assets to create TikTok content

The branded content you use on your Instagram page or Facebook page won’t work on TikTok. TikTok context is entirely different than that of IG’s and FB’s.

A brand may boast their product’s function or benefits in Instagram and gain reach to their followers, but that same content in TikTok may get as little as a few hundred views. TikTok is a platform where people tune in to be entertained.

In order to reach hundreds of thousands of viewers on the platform, you will need to repurpose your existing assets to include the entertainment element. Your content needs to show the fun side of your brand.

You can also create new content by having your brand hop on one of the ever-changing trends on TikTok. Every week a new trend, challenge or song is popular on the app. You can create content adapting to these trends and maintain a fresh, up-to-date brand image on the platform. 

Watch below a piece of content by Boss, where they showed the fun side of the brand by surfing in a suit:

@boss

Kitesurfer @victor.borsuk gets airborne for his ##SuitChallenge – follow @boss and show us yours

♬ Originalton – boss

Paid Ads

Performance marketing

TikTok has a self-service ad platform just like Facebook and Snapchat. The ad platform is pretty new and it has a lot of catching up to do to get on the same level of functionality like that of Facebook’s. However, we have seen that it is quickly developing by adding new features onto it every day.

The ad platform lets you run ads in the in-feed video placement of the TikTok app. The platform also has a few more placements from other media channels ByteDance, TikTok’s owner company, has. The ads are 5-15 seconds long, auto-play, and audio-on. The ads are designed to feel like native advertisements. This is accomplished by the ad looking just like another video in the feed and the call to action appears only after the 9th second.

TikTok lets you run ads to interest-based audiences and choose from available demographic options. You can also create lookalike audiences as well.

TikTok also has the conversion ads feature, where you can set up a TikTok pixel on your website or use measurement partners’ data to feed in-app events to TikTok. TikTok has the ability to optimize these ads based on the conversion data from the client-side.

Brand marketing

TikTok has additional ad products for brands. These ad products have minimum budget requirements. There are three main products:

1.   Brand Takeover

2.   Hashtag Challenge

3.   Branded Lens

A Brand Takeover ad appears upon opening the TikTok app. It is the first screen users interact with as they open the app. It can be a 3-4 second long GIF, image or video. Brand Takeover ads start from $50,000 for 1-day buy.

A Hashtag Challenge is a sponsored hashtag, where users are encouraged to create their own content. This package starts from $150,000.

A Branded Lens is a sponsored special effect added to the effects toolbar of TikTok. Users are encouraged to use the effect and create their own content. This package ranges between $80,000 to $120,000.

The price ranges for the Brand Marketing packages are included in this article only as a reference. These prices were taken from a leaked TikTok pitch deck dated 2019.

Influencer Marketing

TikTok is already a viable platform for influencer marketing. There are hundreds of TikTok influencers with following counts ranging from a few thousand followers to millions of followers.

The TikTok influencer with the highest follower count to date is Charli D’Amelio, @charlidamelio. Charli is a teenage dancer who has over 50 million followers. She’s already struck several deals with brands, including Prada, Sabra Hummus and UNICEF.

@charlidamelio

##prada @prada

♬ CITY OF ANGELS 24KGoldn Funk Remix – llusionmusic

There are several challenges with influencer marketing on TikTok. One is that many influencers struggle with getting consistent views. Since TikTok is a platform that focuses on content, an influencer’s video’s views may tank when they try and promote a brand. For this reason, influencers on TikTok are experimenting with new ways of monetizing their audience without hurting their reach.

TikTok also launched a marketplace for influencer marketing. The platform is called “Creator Marketplace”. The marketplace helps brands and agencies contact select TikTok creators. The marketplace is beta-invite only for now.

Conclusion

TikTok is distinguished from its competitors and has become a mainstream and up and coming channel. Monetization of the channel has allowed more and more advertisers and marketers to start utilizing this channel. As many brands aren’t there yet, it is an opportunity for brands to hop on this new channel and gain a competitive advantage.

What does TikTok’s first-ever UK TV ad tell about the app?

TikTok debuted its first-ever UK TV ad this week, where the app is described as “somewhere colorful, home-made and joy-filled”. The ad aims to position TikTok as an entertainment app, where users would find joy and amusement. How well does the ad reflect the reality of the app? And, what does it tell us about TikTok’s growth strategy?

The Rise of TikTok with Covid-19 Lockdowns

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The ad’s punchline, “A Little Brighter Inside” is meant to refer to the lockdown, from which TikTok benefited hugely by acquiring a lot of new users. The interest in the app grew substantially with the onset of the UK lockdown. Take a look at the screenshot taken of a graph on Google Trends, showing the leap in the interest in the keyword, “tiktok”, coinciding with the start of UK lockdown in March.

The Happier Place

Tom Daley in TikTok TV advert

TikTok positions the app as a happy place, a place where users would find joy and happiness. It’s not a coincidence that the app saw a huge growth in popularity during the lockdown. People used the app to fill in their extra leisurely time, looking for easy entertainment while escaping from the actual world’s problems.

This approach distinguishes TikTok from its main competitor, Instagram. Instagram’s context is focused on self-promotion and trendsetting, whereas TikTok is a place solely for self-expression and entertainment.

Come to talk about self-expression, the ad also deems the app as a place where “cats dance like no other cats are watching“. TikTok aims to position the app where everyone can feel free to express themselves without the fear of judging from others.

Increasing Engagement Through Remaking and Reacting

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Another interesting bit about the ad is that it also promotes “remaking” and “reacting” in the app. This goes hand in hand with the trend culture inside the app. Many users go engage with each other by “remaking” other videos’ using the same soundtrack, or posting reaction videos or even duets. It is clear that the app wants to promote this behavior, and thereby increasing the engagement.

The ad also featured a popular TikTok creator, Granddad Joe (@granddadjoe), and as well as other clips where youngsters are dancing with their parents. The app seems to be aiming to keep up the momentum of interest coming from older generations, breaking the notion that TikTok is only for Gen-Z’ers.

Conclusion

TikTok wants to keep up the momentum gained during the lockdown. They are looking to achieve this by promoting the engagement from older generations. The app also wants to further distinguish itself as a platform for social entertainment.

Watch the advert below on YouTube.

How did TikTok grow during Covid-19 Lockdowns, and Why?

With the best quarter for any app ever in Q1 2020, as well as surpassing 2 billion downloads globally, TikTok is the newest up and coming mainstream social media app. TikTok has been around since 2016, and the app was already seeing an increase in the momentum of its growth in 2019.

However, what caused the exponential growth reported in 2020, and what did COVID-19 lockdowns have to do with it?

The Best Quarter for any App Ever

TikTok Global Downloads by Quarter - SensorTower

Source: https://sensortower.com/blog/tiktok-downloads-2-billion

In the graph above by SensorTower, TikTok showed a steady growth in both 2018 and 2019, but what happened in 2020 that caused the download numbers to skyrocket? In order to investigate this, we took a look at Google Trends.

Google Trends Snapshot of Interest in TikTok

Google Trends show that the interest in the keyword “tiktok” grew exponentially in the second week of March – coincidentally when most major cities in the world implemented lockdown measures due to the looming COVID-19 pandemic. Evidently, the lockdown allowed TikTok as a platform to achieve a surge in popularity. The question that remains, however, is how exactly did the lockdown and stay at home orders contribute to this growth?

How did COVID-19 Lockdowns contribute to TikTok’s growth?

Lockdowns were great for TikTok’s organic growth, as it kept different generations under the same roof for extended periods of time. For example, empty nesters had their households full once again as college students returned back home.

Due to this, it wasn’t long before TikTok grew populated with several family dance videos, featuring parents and children dancing along to popularized TikTok moves.

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Here is a TikTok of a family attempting the #blindinglights challenge.

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At the same time, millennials began to discover the app and started flocking onto the platform to find out what the hype was about. This is in contrast to TikTok’s previous younger audience demographic, comprised mostly of teenagers. In fact, “#millenials” received over 140 million views! Some millennial creators even jokingly posted videos, claiming that millennials were the generation to invent social media and that they would take it over again!

No alt text provided for this image

The Escapist’s Paradise

TikTok is a platform for humor and entertainment. There is no pride, politics, or quarrel on TikTok. This is the most important feature of TikTok, which distinguishes it from the plethora of available social media channels.

Unlike other channels, there are no negatives on TikTok. This is in contrast to individuals showing off their perfect moments only on Instagram, or talk of politics on Twitter.

For this reason, it was no coincidence that TikTok’s popularity surged when a catastrophic pandemic was taking over the world, and people evidently needed some humour in their lives.

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The quarantine hashtag received over 54 billion views on the app. This hashtag and similar hashtags are made up of videos showing how people coped with the quarantine lifestyle.

How about after all of this is over?

When the lockdowns around the world are finally lifted, people will go back to work and school. People won’t have as much time for watching or creating videos on TikTok. Instagram, after getting wind of TikTok’s popularity, has already started copying TikTok’s original lenses and effects (much like it did with Snapchat).

ByteDance, TikTok’s parent company, is aiming to keep up the growth by promoting the app on many other media channels, including the other social media apps and TV.

Conclusion

TikTok, an app for pure entertainment and humor, had an advantage of engaging its users more during the difficult times of COVID-19 lockdowns. People used the app as an escape from the harshness of their real lives.

As people will go back to their normal lives, TikTok’s advantage will slowly dissipate. With that being said, TikTok will surely try to retain their new user base. However, challenges may arise for users who associate the app with their days in quarantine.