TikTok has skyrocketed in popularity over the past few years, becoming one of the world’s most prominent apps. So what lies ahead? This blog post takes a look at the future of TikTok and how marketing teams can use it to their advantage.
It’s clear that TikTok’s popularity is only growing. With its unique format and creative content, the app has become an integral part of pop culture. Brands are increasingly using it in their marketing communication to reach their audience. In a previous article, we discussed why brands should leverage TikTok in their marketing strategy. Now, let’s take a look at what brands can expect from TikTok in 2023:
- E-commerce
- Unique ad formats
- Precision marketing capabilities
- Continued integration with other platforms
- User-generated content
E-commerce
E-commerce was a major focus for TikTok in 2022, and we anticipate it will take off in 2023. Social commerce is on the rise, and TikTok is a major contributor to this growth. According to Insider Intelligence, social commerce sales are projected to increase by more than 20% over the next three years, reaching $107.17 billion by 2025.
The number of US TikTok buyers increased by 72.3% this year, reaching 23.7 million. This reflects the company’s transformation towards a social-shopping pl
atform with all new features and possibilities for brands to sell directly via TikTok”
- TikTok Shopping – Brands can now build their e-commerce stores directly on TikTok, allowing users to purchase products with just a few clicks from ads.
- TikTok Shopping Ads – Shopping Ads make in-feed advertisements directly shoppable for users, revolutionizing the way brands reach their customers.
- TikTok Partners with Shopify – This integration opens up immense possibilities for all brands that use Shopify. With 28.5% market share in the US, this is a major move by TikTok towards the e-commerce world.
- Fulfillment Center in the US – Although this is yet to be officially confirmed, it looks like it will happen soon, according to more than a dozen job postings first spotted by Axios.
All of these factors have an impact on how creators, brands, and everyday users utilize TikTok. The #TikTokMadeMeBuyIt hashtag has garnered 41.1B views to date, resulting in increased sales for brands in both online and physical stores.
Unique ad formats
TikTok encourages creativity and breaking boundaries. Their ad platform offers innovative solutions to engage audiences and increase ROI. We anticipate more exciting formats to come, and brands should be ready to take advantage. Early adopters will benefit the most, as users on TikTok are always looking for something new and entertaining.
Spark ads
Spark Ads is an intriguing ad format on TikTok that recently made its way to Instagram. It allows you to leverage organic TikTok posts by creators and their features in your advertising campaigns. It’s a unique and powerful format that’s really easy to setup:
- The creator posts the ad to their profile
- Upon their approval, advertisers run the videos directly from their account as an ad!
By linking to organic accounts of both creators and brand accounts, Spark ads generate higher engagement, click-through rates, and followers’ growth. It’s a win-win situation for both parties.
TikTok Pulse
TikTok Pulse is a new contextual advertising solution that lets advertisers place their branded ad next to the top 4% performing content in the chosen category. Guaranteeing a spot within the first few scrolls! TikTok offers 12 of these categories: fashion, beauty and personal care, cooking and baking, automotive, gaming, and sports. So not only will ads appear in the first few minutes of the user’s scroll time, but they’re also going to be amidst relevant content.
Shopping ads
TikTok Shopping Ads is a feature that makes in-feed advertisements directly shoppable for users, allowing users to purchase products with just a few clicks from ads. By leveraging TikTok Shopping Ads, advertisers can benefit from increased sales and higher engagement rates, making it an essential tool for any marketing strategy.
Check out TikTok’s definition of their newly launched shopping ads:
“Shopping Ads is a simpler, smarter, and more advanced ad solution that helps brands meet shoppers wherever they are in the purchase journey, sparking demand and boosting sales.”
TopView ad
TopView ads, also known as brand takeover ads, appear on the user’s screen as soon as they open the app. These ads generate click-through rates as high as 16%, making them a highly effective advertising option. The benefit of TopView ads for brands is that they can reach a large audience quickly and effectively. By appearing at the top of the For You page, and as soon as one opens the app, it’s harder to scroll past them, making them more memorable and leaving a strong impression on viewers.
Branded mission
Branded mission ad campaigns are a new feature on TikTok as of May 2022. They allow brands to create unique branded missions, which creators can choose to participate in by creating relevant content and uploading it to TikTok! Using a special hashtag or filter helps make the content more engaging and eye-catching so it’s definitely a recommended best practice. Businesses can then choose to highlight and further partner with their favorite content and users. All of this leads to a community-generated advertising campaign that’s heavy on engagement.
Precision Marketing Capabilities
TikTok is not just a place for impersonal, generic discussions. It is a collection of hyper-personal spaces where users can live out their passions and explore something new. For example, people often turn to TikTok to find answers to specific questions and needs, such as dating advice or parenting tips.
Marketers can leverage this to create targeted campaigns that resonate with their intended audience. Depending on your vertical, you may be interested in targeting followers of the #TiredMoms hashtag, instead of targeting a female audience of a specific age.
However, targeting alone is not enough. To be truly effective, you also need to create relatable content that fosters authentic and honest conversations with your audience. This is where Foap excels. Contact our sales team to learn how we can help you achieve skyrocketing ROAS and enable precision marketing possibilities.
Continued integration with other platforms
As TikTok continues to evolve, it has become increasingly evident that the platform values collaboration and integration with other platforms. And we expect to see more in 2023. So far TikTok has announced integrations with other social media channels to cross-promote content on YouTube, Instagram, Snapchat and Twitter. In addition, a shocking integration with Shopify was recently announced, introducing an e-commerce platform into the mix, will allow businesses to create in-app Shopping ads with ease.
As businesses continue to explore the possibilities of TikTok, they should keep an eye on the latest trends to stay ahead of the curve. There are already several trends that businesses can leverage to make the most of the platform and reach their target audiences.
User-generated content will remain popular
User-generated content is one of the key features of TikTok and that’s why it gains such huge popularity around the globe. We believe this trend will provide businesses with an opportunity to connect with their audience by encouraging them to create content related to their brand. As the platform continues to grow, we reckon that each marketing team needs to learn how to implement UGC at scale in your company. Reach out to us and will make it happen for you.
