TikTok publishes a new capacity report to increase offline sales through TikTok ads

We all know that TikTok is a social platform at the moment, and we have all seen its huge growth, emphasizing its popularity, especially among younger audiences. But is TikTok actually effective for advertising, given that TikTok ads are so easy to skip – and especially are TikTok campaigns capable of encouraging offline transactions in a store as a result of exposure and increased brand awareness?

This is what TikTok tried to clarify through a recent set of studies, in collaboration with Nielsen, which used analysis of marketing mix modeling to determine the increase in offline sales that TikTok campaigns can drive, which could provide more perspective for your approach.

Nielsen analyzed 16 brand advertising campaigns across North America, Europe and Southeast Asia, with a focus on determining the optimal approach to increase offline sales.

Here’s what they found:

First of all, the data showed that TikTok ads drive a solid ROI for CPG brands, as well as higher “sales efficiency” – ie. How long does it take to see a return on your in-store campaigns:

“The US, for example, recorded a 14% higher ROAS for paid media compared to all digital media measured in models and 2X higher efficiency of offline sales, while the figures for Europe and Southeast Asia were even higher.

That makes some sense – given that TikTok is so popular right now, you could see how real campaigns can link a brand to that hype, and increase awareness and response, based on pushing within the app.

Nielsen’s study also considered which types of content work best to drive audience response and found that video in a feed is the most effective type of ad. Which, again, isn’t overly surprising, given the limited amount of TikTok ad options on offer – but the data also showed that advertisers could actually increase the placement of their ads in the app to see better results.

TikTok sales increase studies

In other words, brands could run more campaigns and work to push their brand even harder on TikTok, while still seeing the same levels of efficiency. This could help increase awareness of your brand and take advantage of the popularity of the app.

Finally, Nielsen also used its in-store sales increase methodology to determine specific capacities for TikTok ads to generate in-store sales for CPG brands:

“Among the 16 commissioned studies, 14 achieved a significant increase in sales. The average ROAS for these studies was 2x higher than the NCS average campaign performance standard.

TikTok sales increase study

Again, given the wider popularity of the platform, these results are not overly surprising, and in fact, all they effectively show is that brands that are able to embrace the trendy styles and formats of the platform, which then reflects on their products, see positive sales growth as a result of the correct situation.

However, for this to be right, it takes time and dedicated effort. If you want to win at TikTok, you need to understand the key trends of the app, popular content formats and create content that looks original and consistent with the presentation of the in-feed video.

If you can understand these elements correctly, the data shows that your business can benefit from the reflected brilliance of the trendy popularity of the application, in different ways.

Here you can read TikTok’s complete study of the impact on offline sales.

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Naveen Kumar

Friendly communicator. Music maven. Explorer. Pop culture trailblazer. Social media practitioner.

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