Seventy-eight percent of small businesses that run ads on TikTok see a positive ROI, with many seeing profits in under six months, according to research from Capterra, a software insights company. The company's TikTok Marketing Survey polled 164 retailers and restaurants to see how they are marketing with the platform.
The firm found that more consumers are turning to TikTok search over Google to find their next local restaurant, particularly Gen Z.
“In response to Gen Z’s preference for TikTok as a search engine over Google Maps, Google plans to launch augmented search functions to rival TikTok reviews’ immersive, authentic qualities,” said Molly Burke, senior retail analyst at Capterra, in a statement. “Users like TikTok because its seemingly endless content feels authentic and unfussy…. Creating ads that capture the candid nature of organic TikTok content helps businesses blend in and profit.”
More than half of TikTok marketers surveyed (52 perent) plan to spend more money on the platform in 2023.
More than three-quarters of businesses that use TikTok post organic content, while less than two-thirds run ads on the platform. Among businesses that post both organic and sponsored content, 72 percent indicate organic TikTok content is extremely valuable to their company’s overall marketing performance, while 55 percent claim the same for ads.
“While other platforms' content suggestion algorithms can feel like an oligarchy dominated by legacy brands and Hollywood celebrities, TikTok’s ‘For You’ page has been characterized as a meritocracy where small businesses can reap rewards from both paid and organic content,” said Burke.
Related: TikTok Food Trends Take Hold; Shopper Marketing Keys to Success