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TikTok has launched a new portal aimed at advertisers, TikTok For Business — the culmination of its months-long roll-out of new ad products. The platform provides information on all of TikTok's existing ad options — like its Brand Takeovers and Hashtag Challenges — and through it, the company introduced its new augmented-reality filter product.
Its collection of new ad products present opportunities for brand marketers, but performance marketers may want to hold off for now. TikTok's strength lies in its interactivity and the potential for ad campaigns to go viral, making it a particularly good platform for brand marketers — especially now, if they can jump on the platform before ad prices inevitably rise.
Digiday reported in May that CPMs on the platform were still relatively cheap — around $1 compared with Facebook's $4 — but as a trade-off, clickthrough rates were also comparatively low, making the platform less appealing for performance marketing. "All of the ad types listed on TikTok For Business are branding-oriented. What's missing for now — and probably still to come — are ad products aimed at lower-funnel objectives such as lead-generation or conversion," said Debra Aho Williamson, eMarketer principal analyst at Insider Intelligence.
While performance marketers may find it best to hold off at the moment, more relevant ad products do appear to be in the works: For example, TikTok's recent partnership with adtech company Sprinklr could help the platform expand its targeting options in the near future.
TikTok has evolved from just an experimental platform to an increasingly important part of brands' marketing strategies. In addition to greatly improving its ad offerings, the platform also saw skyrocketing growth during the pandemic, jumping 48.3% to 52.2 million monthly unique visitors between January and March this year. The average minutes spent per visitor grew 10.8% in the same time period, according to March Comscore data.
And while the platform has historically had more younger users, its audience is expanding past its Gen Z user base: 18 to 24 year olds still make up the majority (35.3%) of TikTok's users, but the number of 25 to 34 year olds grew 5 percentage points from January to April and now makes up 27.4% of users, per April Comscore figures. As TikTok's audience diversifies, its potential utility for marketers also grows.
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