Jewelry ECOMM Tech

Is TikTok Advertising Right For Jewelers And Jewelry Brands? July 24, 2020 (0 comments)

TikTok is social media's latest breakthrough app. With over 800 million monthly active users, businesses can’t ignore TikTok advertising. Especially if you’re looking to reach users under the age of 30.

But, TikTok is still very new. Will it last? Is advertising on this platform worth it?

What Is TikTok?

TikTok encourages its users to upload short videos. Most TikTok videos are up to 15-seconds long, although you can create and share 60-second Stories-type videos.

Both the original TikTok and Musical.ly targeted the same audience – teens and tweens. Many TikTok fans have stayed with the app as they have aged, but it is clear that the bulk of users are young. Even now, 41% of TikTok’s users are aged between 16 and 24. 66% of TikTok’s users are under 30.

How Can Brands Use TikTok?

There are three main ways that brands can market on TikTok.

1. They can create their own channel and upload relevant videos through their channel
2. They can work with influencers, to spread content to a broader audience
3. They can pay to advertise on TikTok

Many brands do a combination of running their own channels and working with influencers to spread content to a broader audience. You might try some of the ideas listed below on your own channels, or you may suggest that your influencers create and share these kinds of content.

What Makes An Online Platform A Good Advertising Investment

Facebook/Instagram and Google are the obvious kings of online advertising platforms. The reason they've won the advertising war is because both these companies know they can target your ads to the right people.

Facebook knows a LOT about their users. Facebook have spent years learning about their users... their age, their interests, and even what types of posts and ads they click on.

This enables them to target their users with the most relevant ads possible.

Similarly, Google knows that your ads are being shown to the right people because your ads are shown by search term. So if you want to reach someone searching for "diamond engagement rings", Google will show your ads to those exact people.

How Does TikTok Compare To Other Advertising Platforms?

Data knows what it's users are interested in because TikTok users watch lots of videos - the types of videos that the users watch, like, and interact with helps Tik Tok learn about their users.

Here are some powerful stats about TikTok users:

• With 800 million monthly active users, TikTok beats LinkedIn (660+ million), Reddit (430+ million), Snapchat (218+ million), Twitter (340+ million), and Pinterest (322+ million).
• Apple and Google Play users have downloaded the TikTok app over 1.5 billion times.
• TikTok is the sixth most popular app globally based on the number of monthly active users.
• TikTok users span 150 countries worldwide.
• TikTok was one of the most downloaded apps in the US, Japan, India, and Korea in 2018.
• 63.5% of TikTok users in the United States are under the age of 29.
• 51.8% of TikTok users in the United States make over $75,000 per year.

(Hootsuite)

On a personal note, my fiance tells me all the time that she has purchased more from TikTok ads than any other ads from other social media platforms prior. So whoever is advertising to her on TikTok - good job!

How To Advertise On TikTok

To get started advertising on TikTok, you will need a TikTok advertising account or account manager. Start here: https://www.tiktok.com/business/en/

What Can You Do On TikTok Advertising?

TikTok offers several advertising options for advertisers to reach their target demographic.

• In-Feed Video: Ads appear in the native news feed of TikTok on the For You page.
• Brand Takeover: Ad appears when TikTok users open the app and completely take over the screen for a few seconds before turning into an In-Feed Video ad.
• Hashtag Challenge: Ad appears on the Discovery page. It encourages users to participate in user content creation challenges. These can include a shoppable component for retailers.
• Branded AR Content: Ad appears as branded lenses, stickers, and other 2D/3D/AR content for TikTok users to use in their videos.
• Custom Influencer Package: Ad appears as part of sponsored content created by a TikTok user with influence in your market.

TikTok allows you to target audiences by general demographics, interests, and devices.

Similar to Facebook, TikTok also lets you use custom audiences in your ad group targeting. You can create custom audiences in a few ways. You can use your customer’s contact data, website traffic, app activity, or ad engagement.

TikTok Advertising Costs

Ads on TikTok are still new. This means that TikTok can afford to charge a premium rate for them, knowing that advertisers aren’t going to abandon TikTok to compete with their competitors for prime Facebook/Instagram advertising space.

TikTok ads start at $10 per CPM (cost per 1000 views). Also, they require you to spend a minimum of $500 on a campaign.

However, it has also been reported that the cost of advertising on TikTok can be anywhere from $50,000 to $120,000, depending on the type and duration.

If these reported numbers are true, it would make sense as to why we haven’t really seen smaller businesses advertising on TikTok just yet.

According to a leaked TikTok pitch deck from June 2019, each ad type cost the following.

• In-Feed Video: $25,000 minimum per campaign with $30,000 daily maximum.
• Brand Takeover: $50,000 per day.
• Hashtag Challenge: $150,000 for six days.
• Branded Lenses: $80,000 – $120,000 based on the complexity of the lens design.
• Customer Influencer Package: Variable based on influencer and campaign. Some sources have noted $600 – $1,000 per post.

So unlike Faceboook - where you can run a cheap $50-$200 ad campaign to promote an in-store event or special ring - you aren’t going to use TikTok ads for a cheap viral marketing campaign or quick promotion.

The Verdict

I think TikTok can be a great way for brands with big pockets to begin leaving lasting brand impressions on younger folks before they become brand loyal. Could this be big jewelry brands looking to show young women their engagement ring lines? Perhaps.

For jewelry store owners and small brands, I think the overall costs and minimum spending requirements just aren't worth it right now.

What do you think?