For companies trying to tap into the lucrative base of younger consumers, many remain wary of social media platforms like TikTok and choosing to buy TikTok followers to advertise their brand. But there is no denying that the video platform that features self-made shorts can generate viral phenomena, and that’s a clear path for brands to connect with young consumers.
One of the most attractive consumer base for marketers is the Gen Z consumers, the oldest of whom will turn 24 this year. They total about 68 million people, or about 20 percent of the U.S. population, representing more than $140 billion in spending power. But they can be tough consumers to please and to reach through traditional marketing channels. They are demanding of the brands they support, often expecting shared values and beliefs as part of their consumer relationship.
TikTok has announced a series of new initiatives aimed at attracting companies and ad agencies to buy space on the platform, according to The New York Times. Some advertising agencies, including Carson Doyle Creative Advertising Agency, are already promoting their expertise with TikTok. The social media platform has introduced an automated system that matches advertisers with content creators in hopes of helping TikTok catch up with other social media companies generating ad revenue from their platforms.
The power of TikTok was on full display this summer after country singer Walker Hayes posted a video of himself dancing with his daughter to “Fancy Like,” his country-pop song that prominently calls out the restaurant chain Applebee’s. The video inspired copycats and prompted Applebee’s to quickly develop a television campaign featuring the song. It’s not clear who benefited more from the viral video – Hayes’ musical career or Applebees.
The problem TikTok faces is a lack of trust from companies that are worried about the content young viewers are exposed to on the platform. Facebook, Instagram, and YouTube all have established themselves as trustworthy platforms for advertisers, although Facebook’s recent struggles may pose problems down the road. TikTok is also still responding to criticisms from 2020 about its Chinese owners and its ties to the Chinese government.
TikTok is working to help marketers use their platform effectively. In the coming weeks, the platform expects to launch a series of videos designed to help marketers understand the basics of the app, and how to create better TikTok campaigns for their clients.