A latest Dentsu examine, in partnership with TikTok, exhibits that advertisers on the platform obtain robust returns on funding (ROI) for each short-term and long-term gross sales.
The evaluation (PDF hyperlink) centered on 15 manufacturers in Norway, Denmark, Sweden, and Finland and in contrast TikTok’s efficiency with different media channels.
Dentsu discovered:
“With a short-term ROI of 11.8, TikTok ranks among the many best media channels for driving quick gross sales, based on dentsu benchmark knowledge. In sensible phrases, which means advertisers generate almost 12 instances their preliminary funding in gross sales income inside simply six weeks—establishing TikTok as one of many strongest efficiency advertising and marketing channels out there.”
In different phrases, advertisers gained almost 12 {dollars} in gross sales for each greenback spent in six weeks or much less.
For comparability, Dentsu measured the common short-term ROI from all media at 8.7.
Different prime findings from the Dentsu examine embody:
- 75% of advertisers discovered that TikTok offered the best ROI in comparison with different channels.
- All advertisers noticed a considerable increase in short-term gross sales from TikTok.
- To attain the most effective short-term outcomes, mix lower-funnel platforms with TikTok.
- TikTok’s gross sales influence lasts 3 to 4 weeks after a marketing campaign ends.
- Advertisers with the most effective ROI stayed lively on TikTok.
- Consumer-generated content material that includes creators had the strongest gross sales influence.
What About Lengthy-Time period Affect?
The information signifies that, along with the 11.8 ROI achieved within the first six weeks, a 4.5 ROI is noticed inside 10 months after publicity.
This means that TikTok can operate as a efficiency channel for quick outcomes and a software for constructing model fairness over the long run.
Nonetheless, as you’ll be able to see within the chart under, a number of advert platforms obtain higher outcomes than TikTok in the long term.
Storytelling Advertisements Carry out Higher
The examine examined two predominant varieties of user-generated content material (UGC):
- Storytelling UGC: Content material with a story focus and no direct promotional gives.
- Tactical UGC: Content material centered on pricing, gross sales promotions, or direct product calls to motion.
Dentsu discovered that storytelling-based UGC drove stronger gross sales outcomes than tactical promotions.
The narrative strategy generated higher viewers engagement and recall, translating to 70% increased ROI than promotional content material.
What This Means
Dentsu’s knowledge exhibits TikTok can assist meet each short-term gross sales targets and long-term model targets.
Advertisers in search of fast gross sales and lasting model influence may contemplate together with TikTok of their media technique.
Methodology
Dentsu used a three-step strategy to measure TikTok’s full influence:
- Brief-Time period Gross sales: Tracked direct income inside 6 weeks of advertisements working whereas filtering out different market elements.
- Model Metrics: Measured how TikTok promoting shifted client perceptions.
- Lengthy-Time period Gross sales: Linked these model notion modifications to further gross sales 1-10 months later.
The examine analyzed precise spending and gross sales knowledge from 15 Nordic manufacturers over 2-3 years. Statistical fashions remoted TikTok’s contribution from exterior elements like seasonality, competitors, and different advertising and marketing channels.
This system captures each quick efficiency and longer-term model results in a single framework.
Featured Picture: Poetra.RH/Shutterstock
