How has tiktok affected consumer spending?
Written by: Heleyna PentukTikTok’s Impact:
Ever since social media has taken over society, people have been enthralled with online browsing and shopping. Of all social media platforms taking the world by storm, TikTok has proven itself to be the most successful at increasing consumer engagement and spending. TikTok is home to thousands of videos of people promoting just about any type of product including clothes, makeup, cleaning products, etc. Businesses have taken advantage of this new marketing opportunity to build brand awareness, boost traffic, and increase conversion rates.
The Influence of Social Media:
In the age of social media, anyone has the power to be an influencer for a brand. This creates a sense of agency for the audience, which fosters a sense of connection to the brand. What makes TikTok marketing stand apart from classic marketing methods, is the authenticity created by the unprofessional tone of TikTok videos. Instead of spreading forceful advertisements, TikTok users share honest and trust-worthy reviews of products, which generates word of mouth marketing. In fact, 58% of TikTok users have persuaded someone else to purchase a product. This rise of word of mouth marketing is important because it increases life long value for the brand and exposes the brand to more potential customers.
Additionally, social media increases consumerism because it is a simple, convenient and fun way to browse products. Instead of going into a brick and mortar store, TikTok shopping can be done from anywhere at any time. Social media makes shopping feel like a fun activity rather than a chore, which can cause people to be more open-minded to trying new products.
Brands Can Reach Large Audiences:
An exciting factor about marketing on TikTok is that any product has the potential to gain recognition. Research shows that after being exposed on TikTok only twice, a brand has a 173% rise in top-of-mind recognition. The hashtag “#TikTokMadeMeBuyIt” has accumulated over 4.6 billion views over the past few years. This represents the mass interest users have for browsing for products on TikTok. Amazon added a page of products called “the latest to go viral” which showcases popular TikTok products that users can easily browse. Maximizing user experience like this matters because the more comfortable, easy and enjoyable it is to use a brand’s website, the more likely they are to return (Nahai).
Also, TikTok has its own niches, such as “CleanTok” or “FoodTok”, that targets an audience looking for a product for a specific need. The pink stuff, a cleaning paste for hard surfaces, is one example of a brand that gained recognition through TikTok. In the past three years, since the product has reached communities on TikTok, sales rose from $2.6 million to $34 million. These numbers reflect the more than 250 million views the brand has received on TikTok alone.
(https://www.nytimes.com/2021/10/02/style/tiktok-shopping-viral-products.html)
What Brands Can Do:
It is clear that digital marketing through TikTok can lead to exponential growth for the brand. But what can brands do to utilize this? First, it is important to note that 79% of consumers decide to support business that grasps TikTok’s creative requirements. In other words, it is essential that brands use unique digital marketing techniques to set themselves apart from similar brands to pique interest. Next, brands should discover and connect with their target audience using this platform. This will make users more engaged which creates an emotional connection between users and the brand. Lastly, brands can utilize TikTok by observing consumer behavior and trends to market toward their specific needs. Because of TikTok, consumers have a more powerful voice than ever. Brands should listen to what their audience really wants and needs so consumers feel seen and heard.
Closing Comments:
TikTok has created an entire new world for e-commerce. It Is important that brands recognize the impact TikTok has on digital marketing so they can use this platform to gain brand awareness and increase sales.
References:
Harsh. “Impact of TikTok on Consumers’ Purchase Journeys.” Digital Marketing Agency, 20 June 1970, codedesign.org/impact-tiktok-consumers-purchase-journeys.
Herrman, John. “Will Tiktok Make You Buy It?” The New York Times, The New York Times, 2 Oct. 2021, www.nytimes.com/2021/10/02/style/tiktok-shopping-viral-products.html.
Nahai, Nathalie. Webs of Influence: The Psychology of Online Persuasion. Pearson Education Limited, 2017.