TikTok Ads for Business | Captivate Users with Epic Ads in 2020

TikTok Ads for Business | Captivate Users with Epic Ads in 2020

TikTok Ads is a comparatively new platform with a massive potential. As a business, you should start planning on using it for connecting with the millennial customer segment.

There’s been a lot of buzz lately when it comes to using TikTok for businesses.

Is it the next big thing? 

Is it worth the investment? 

How will I check my performance?

We have been receiving a never-ending stream of questions since our previous blog on The Rise of TikTok. Hence, we decided to talk about TikTok ads as a platform for businesses and brands. In this article, we’ll try to look into the different aspects of what makes a social media platform a good choice for brands. And, does TikTok measure up to the industry leaders for what it is now?

The platform has been around for a couple of years now, and has around 800 million active monthly users. The larger part of the users are Generation Z, so you will find a lot of memes, random clips, and weird music on the app. But wait, scratch the surface of cringe, and you will see the potential of this app.

We think it is one of those platforms which is best suited for experiential marketing. This marketing strategy directly engages consumers and encourages them to participate in a brand experience. 

“Experiential marketing is, in its simplest definition, a type of marketing based on creating memorable and innovative customer experiences to create deep emotional connections between the customers and the brand,”

Esther Sauri, Marketing Professional at LinkiLaw.

The idea is to not push a product, but emotionally connect with a niche audience to build (and/or strengthen) your brand identity. TikTok ads can be a goldmine for brands if used correctly. Since, the primary audience ranges between 13 to 25 years, you will need to create content that resonates with today’s youth.

Hence, before you start investing on TikTok ads, we recommend that you spend some time on the platform, understand how it works, the rules and terms, engagement, trends, and analytics. Adopting the platform just because it is a trend, without proper research and preparation, leaves the campaign prone to blowing up in your face.

That being said, let’s tell you about the newly launched TikTok Ads platform.

TikTok Ads

TikTok only recently launched an advertising process and hyperlinking capabilities for brands. However, eminent brands have been using this platform to raise brand awareness and not generate leads or traffic. Brands have been trying to build a connection with the younger audience while trying to show off their lighter-side using funny videos, memes, and gifs.

With the roll-out of TikTok Ads, brands now have a whole lot of tools available at disposal. The ads platform, though new, boasts of some advanced analytics and support systems. The most important thing, irrespective of everything, is that CREATIVITY plays a huge role in your brand’s success on this platform. Because the audience is so demanding by nature, brands need to be innovative in order to really get their customers to pay attention. A basic ad or an endorsed video by influencers on this innovative and fast-paced device may not cut it.

The TikTok Ads platform offers engaging and interactive formats for you to tell your brand story. It has a detailed analytics page so brands can measure their ROI by tracking performance in real-time.

tiktok ads for business

Brands like Guess used the platform to run a 6-day campaign for the hashtag #InMyDenim. This campaign generated over 5.5k user-generated videos, 10.5 million video views, 14.3% engagement rate, and over 12,000 additional followers for the brand on TikTok. Similarly, Universal Pictures used the hashtag #FindYourMagic to attract more than 1.3 million likes on influencer videos and more than 19K user-generated contents. This campaign also led to an 11K increase in official account followers.

See, that’s the growth and engagement we have been talking about.

Did you notice a similarity between both these ads?

Both the campaigns were about promoting a cause and user engagement, neither of the brands were trying to sell a product. This is why TikTok ads is so important and must be part of your new online marketing strategy. With the right ads, you will be able to engage with users who are at the forefront of the latest trends and movements, while being relevant and a part of trends that matter.

The NFL signed a multi-year agreement with TikTok users in September 2019 to share game highlights and behind-the-scenes material. Meanwhile, a mix of high-profile personalities, organizations, and media have appeared as prominent TikTok profiles like Will Smith, Gary Vaynerchuk, The Washington Post, Lil Nas X, BTS, … the list goes on.

Types of TikTok Ads

 Paid TikTok ads can come in several forms, including:

  • Pre-roll ads: Videos that start as soon as the user opens the app.
  • In-feed ads: Videos that appear between organic posts as the user scroll through their feed.
  • Promoted hashtag challenges: Videos encouraging user submissions using a custom/branded hashtag.
  • Branded effects: A personalized effect filter for video creators-similar to those on Snapchat and Instagram, but with brand-specific information.

TikTok Ads for Businesses/Brands

With such a massive audience, TikTok ads has the potential to help brands and businesses strengthen their brand identity while building an army of followers. If you’re ready to experiment and show off the youthful and vibrant side of your brand, this might just be the right platform for you.

Third-party data from Apptopia suggests that TikTok’s in-app purchase revenue topped $50 million in Q4 2019. Sensor Tower estimates closer to $87 million. For comparison, in the same period Snapchat earned $561 million.

HootSuite cited in their recent blog that on TikTok, an average cost per one thousand impressions (CPM) is $10. 

Hashtags for Business

TikTok follows the hashtag system like the one’s you can find on Instagram and Snapchat. One of the most-commonly used hashtags is the branded hashtags. The branded hashtag challenges are known to drive significant user engagement. A lot of brands like Pepsi, Sunsilk, NFL, Universal Pictures, etc. have been leveraging on it for some time, while other brands are following suit.

Some trending hashtags that spilled to over social platforms were the Salman Khan starrer #SwagStepChallenge. One of the good things about the branded hashtags is that they appear on the news feed as well as under the Discover tab of the app. When a user clicks on it, they’re brought to a Challenge Page that includes a brief description. Brands can pay extra to secure the upper banner position. 

The Shoppable Hashtag Challenge is a new feature, and Kroger was the first brand to try it. With this, TikTok ads introduced an additional tab alongside the Challenges tab where users could shop for products (like a product gallery). Clicking on the product redirected the users to the brand’s website.

tiktok ads

Branded Songs are what the teengers call LIT. Remember those good old jingles? If you know how to drop the beat or make a quirky theme song, you can find millions of users using your brand theme to create videos. For instance, Oreo partnered with popular creator @glitterandlazers to create an original tune with the hashtag #WhatsYourStuf which gained around 2.9 billion views.

Influencer Partnerships is another great way to attract new customers and promote your products. A lot of brands have started partnering with micro influencers to promote their products. We loved the part that TikTok ads provides a list of potential creators to brands. One such recent partnership was between Amazon and popular creator @glitterandlazers.

What’s new?

TikTok is reportedly beta testing shoppable ads with select influencers in the United States. Since November, these creators have been able to embed links to product pages in their videos.


There’s a lot of untapped potential in TikTok. Although the ads platform is new, it has all the makings of a great tool for digital marketing. Comparing it to established platforms like Facebook and Instagram isn’t fair as TikTok has a different audience and a completely different platform that relies on quality content to stand out.

As a brand, it is important to stay abreast of trends and connect with the audience. The consumer has changed, so has their buying habits. And, TikTok ads brings the right balance of everything, thus making it a goldmine for brands.

Again, it is important that brands spend some time to understand the platform and the type of content users engage with. It is a platform where 90% of the audience is between 13-24 years of age. So, make sure you understand the lingo of this new and growing generation before using TikTok ads for business.

If you are thinking about creating an account and need some assistance, connect with our team of creators and get yourself a hip and trendy brand identity.

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