Why 2020 Is TikTok’s Year

Why 2020 Is TikTok’s Year

Mobile

TikTok is having quite a year. And so, by association, is American Eagle Outfitters. According to Mobile Marketer, the clothing and accessories retailer enjoyed a Q1 sales surge online, driven in part by TikTok campaigns that connected with a young target audience eager to spend money online. The headline is this: TikTok is helping businesses benefit from massive shifts in consumer behavior in 2020.

TikTok, which is owned by the Beijing-based ByteDance, give brands a great platform for creating awareness, and more businesses like American Eagle are enjoying increases in online sales because of that platform. Read on to learn more about how TikTok is evolving rapidly in 2020.

What Is TikTok?

A free video-sharing social networking app that launched in the international market in 2017, TikTok was once predominantly dedicated to lip-synching. But now the platform, which features short looping videos of three to 60 seconds, and music and lip-sync videos of three to 15 seconds, has evolved into a short-form video content hub. And it’s becoming something of a powerhouse: according to Adweek, App Annie’s Q1 Global App Market Index identifies TikTok as the most-downloaded app in Q1 2020, as consumers continue to go online to find things to do and to express themselves at a time of social distancing.

Mobile-first 18- to 34-year-olds are the dominant market for TikTok, and one need only take a look at user numbers to recognize the platform’s significance—even beyond that primary market. Datareportal, for example, reports that  TikTok enjoys 800 million monthly active users. Those users are engaged, too: Oberlo notes that on average, they spend 52 minutes per day on TikTok.

Brands Getting in on the Action

Brands, particularly those catering to younger consumers, are taking an interest in TikTok. The platform is an ideal place to engage audiences and demonstrate a lighter side through funny videos or challenges. And during the COVID lockdown, TikTok has become a pressure valve for people cooped up inside. Examples of the wildly diverse brands who have already invested in a TikTok presence include:

  • NBA: the NBA uses TikTok to show off a lighter side, posting videos of players working out to music, for example, or the adventures of team mascots. The app’s musical features help the organization lighten up its branding; the videos still promote basketball, even as they fit in well with other quirky or musical posts on TikTok. Though the 2019-20 season was disrupted by COVID-19, the NBA has kept fans engaged by posting exciting plays from NBA stars. And players like Shai Gilgeous-Alexander, who plays for the Oklahoma City Thunder, and Los Angeles Lakers megastar LeBron James, are turning to TikTok to keep fans amused with coordinated dances and funny moments.
  • elf Cosmetics: the cosmetics brand used TikTok to face COVID head-on, releasing a remix of an original song that had originally appeared in fall 2019. Changing the title of the song from “Eyes. Lips. Face.” to “Eyes. Lips. Face. Safe.,” elf paired the rebranded song with a new TikTok video demonstrating hand washing and social distancing.
  • San Diego Zoo: capitalizing on the fact that many people love cute animals, the San Diego Zoo’s TikTok account posts videos of adorable animals with fun music. It’s a simple strategy that has earned the account more than 50,000 fans. Even during the downtime brought about COVID-19, the zoo has kept up interest among its followers by posting amusing and sweet videos of animals going about their day.
  • Mucinex: Mucinex might not seem to lend itself to playful TikTok videos, but last fall the sinus relief brand successfully leaned into a popular TikTok theme: that of transformation. In the Mucinex spots, quick video edits showed influencers changing from zombie-level “too sick” to fashion-forward “so sick” after taking their medicine. The campaign generated nearly one billion views. 

So how does one become part of the TikTok revolution? The platform offers a variety of advertising options. If you are new to TikTok, we suggest reviewing this beginner’s guide courtesy of TikTok.

TikTok and Influencer/Brand Collaborations

As for what’s next, look for TikTok to increasingly help brands find influencers to work with. In the TikTok Creator Marketplace, brands can already search through the app’s top creators, a list of more than 1,000 TikTok stars including Zach King and CJ OperAmericano. The marketplace allows interested brands to gain insights into the audience demographics of a given creator/influencer, and germane details like engagement rate over time.

More Developments

Ever evolving, TikTok is also looking to live broadcasts and educational content to expand its reach and net more ad dollars. But as c|net reports, the platform won’t be nixing the familiar dance and lip-syncing videos that put TikTok on the map. Bryan Thoensen, who oversees content partnerships at TikTok, perhaps puts it best: “It’s adding more legs to the stool,” Thoensen says.

 A Caveat

There is a dark cloud on TikTok’s horizon, as the platform faces security concerns. Last fall, Senate Minority Leader Chuck Schumer and Senator Tom Cotton asked U.S. intelligence officials to investigate the security risks posed by TikTok. In a letter addressed to acting Director of National Intelligence Joseph Maguire, the senators wrote, “With over 110 million downloads in the U.S. alone, TikTok is a potential counterintelligence threat we cannot ignore.” The concern that the app could be used for intelligence-gathering and foreign influence campaigns by the Chinese Communist Party was also voiced.

To date, however, the negative coverage has not appeared to deter brands.

Contact True Interactive

Want to learn more about what benefits TikTok might bring to your business? We can tell you more about the options and how to get started. Contact us.

Consumer Spend on Mobile Hits Record Levels in Q1 2020

Consumer Spend on Mobile Hits Record Levels in Q1 2020

Mobile

On April 1, I blogged about some trends in mobile behavior based on a 2020 App Annie State of Mobile report. As if on cue, App Annie then revised its report to note the incredible surge in mobile usage during the first quarter of 2020 as people have practiced social distancing on a widespread scale. These numbers should convince businesses to invest in mobile advertising now more than ever:

  • Q1 2020 was the largest-ever quarter in terms of consumer spend on apps: $23.4 billion.
  • The number of new app downloads in Q1 totaled 31 billion, a 15 percent increase over the fourth quarter of 2019. As Tech Crunch reported, “That’s notable, given that the fourth quarter usually sees a big boost in app installs from holiday sales of new phones, and Q1 managed to top that.”
  • The United States and China were the largest contributors to consumer spend on the Apple iOS operating system.
  • Users of the Google Android operating system spent the most on games social, and entertainment apps, in large part due to Disney+ and Twitch.
  • The Top Five apps worldwide for Q1 based on downloads and consumer spend: TikTok, WhatsApp Messenger, Facebook, Instagram, and Facebook Messenger.

All of that time people devote to managing their lives with mobile devices creates opportunities for businesses to engage with customers. The key is to create a sustained presence and to be mindful of using tone appropriate for the times we’re living in right now.

At True Interactive, we have deep experience helping businesses thrive on mobile. For instance, for Snapfish, we launched a digital media campaign that combined major platforms such as the Google Display Network with mobile-centric display networks that serve up ads to consumers on mobile devices. Revenue from mobile app installs grew 343 percent year over year during the holiday season. Mobile app installs grew 23 percent during the same period. Overall, Snapfish saw a 756-percent return on ad spend. Meanwhile, Snapfish saw a 56-percent decrease in costs per install.

For more insight into our work with Snapfish, read this case study. For more insight into responding to the surge in mobile activity, check out my recently published blog post, “Why Mobile Will Power Your Marketing Future.”

Contact True Interactive

Mobile is where the action is. Are you getting in on it? Contact us.

Photo by Rob Hampson on Unsplash

Why Mobile Will Power Your Marketing Future

Why Mobile Will Power Your Marketing Future

Mobile

For businesses, engaging with mobile should not be a matter of if, but when. And according to App Annie’s The State of Mobile 2020 report, sooner is better than later. The report underscores how important it is for businesses to connect with their customers on mobile. Here are some stats that resonate:

Mobile Is a Way of Life

  • According to the report, consumers downloaded a record 204 billion apps in 2019. Annual downloads have grown 45 percent in the three years since 2016, and six percent year over year. As App Annie points out, this growth is especially impressive because it excludes re-installs and app updates.
  • Also of note: in 2019, people spent roughly three hours and 40 minutes a day on mobile, a 35 percent increase over 2017.

People Are Spending on Mobile Apps

  • Consumers are opening their pocketbooks to engage with mobile—and not just with games. App store consumer spending hit $120 billion in 2019, up 2.1 times from 2016. Although games comprise 72 percent of all app store spend, subscriptions in non-gaming apps leapt from 18 percent share in 2016 to a solid 28 percent in 2019.

Mobile Is Where People Go to Be Entertained

  • Time spent on sports apps such as ESPN grew by 30 percent from 2017 to 2019.
  • Mobile gaming is, hands down, the world’s most popular form of gaming. In 2019, mobile games enjoyed 25 percent more spend than all other gaming combined.
  • New entrants like Disney+ are heating up consumer interest—and competition—in the streaming industry. For right now, consumers seem happy to double-dip: close to 25 percent of Netflix’s iPhone users also used Disney+ in Q4 2019, for example. That’s the highest overlap of users among top video streaming apps in the United States.

YouTube and TikTok Are Exploding

  • YouTube enjoyed a staggering 980 percent growth in worldwide active users from December 2017 to December 2019. And as we recently blogged, the platform is an advertising giant, to boot.
  • App Annie calls it the “TikTok Tidal Wave”: time spent on TikTok, which as a social networking app and entertainment source poses a double threat, grew 210 percent year over year in 2019. TikTok is also drawing interest from brands; as we have noted, the platform is an ideal place to demonstrate a lighter side through funny videos or challenges.

Social Media on Mobile Is as Strong As Ever

  • Social isn’t going anywhere. App Annie notes that 50 percent of time on mobile is spent on social and comms apps like Snapchat. As a result, apps like Snapchat are thriving: as we recently blogged, Snapchat continues to grow, even in a competitive landscape.
  • Meanwhile, use of Nextdoor has grown 65 percent from December 2017 to December 2019 in the United States, demonstrating an interest in social networking at a local level.

Gen Z Is Rocking Mobile

  • Gen Z are digital natives, and as such lead all other demographics in terms of mobile use. According to the App Annie report, Gen Z has 60 percent more sessions per user in top apps than older demographics. And 98 percent of Gen Z own a smartphone.

Implications for Businesses

  • If you are advertising on mobile already, don’t put your advertising on pause during the coronavirus pandemic. Phone carriers such as AT&T are reporting a surge in mobile usage as more people work from home.
  • That said, you may find yourself adapting your mobile campaign at this time: say, by discussing community building activities that will keep your brand front of mind when the crisis subsides. Sensitivity to the current crisis is key. And patience. Elijah Whaley, the CMO influencer marketing agency Parklu, notes of brands who proceed carefully and wisely through the coronavirus era, “When [consumers] start spending again they are going to spend with you.”
  • Capitalize on YouTube and TikTok. These apps are only going to increase in popularity as more Gen Zers come of age. TikTok is just sorting out its ad products, but, as we’ve noted, YouTube already offers strong advertising options.

Contact True Interactive

Mobile is where the action is. Are you getting in on it? Contact us.

Photo by Daan Geurts on Unsplash

Why Brands Are Flocking to TikTok

Why Brands Are Flocking to TikTok

Social media

Brands used to creating awareness via social networks like Instagram and Facebook now have a new option to consider: TikTok, which is owned by Beijing-based ByteDance. Read on to learn more about a platform that is gaining currency through a blueprint involving music, quirk, and innovation.

What Is TikTok?

A free video-sharing social networking app that launched in the international market in 2017, TikTok was once predominantly dedicated to lip-synching. But now the platform, which features short looping videos of three to 60 seconds, and music and lip-sync videos of three to 15 seconds, has evolved into a short-form video content hub. And it’s becoming something of a powerhouse: in 2019, TikTok was declared the seventh most downloaded mobile app of the decade spanning the years 2010 to 2019.

Mobile-first 18- to 34-year-olds are the dominant market for TikTok, and one need only take a look at user numbers to recognize the platform’s significance—even beyond that primary market. According to Search Engine Journal, the app boasts more than 1.5 billion users. Adweek reports that “[i]n the U.S., Messenger was the top app of 2019 by downloads . . . followed by TikTok and Instagram.” Those users are engaged, too: on average, they spend 52 minutes per day on TikTok.

Brands Getting in on the Action

Brands, particularly those catering to younger consumers, are taking an interest in TikTok. The platform is an ideal place to engage audiences and demonstrate a lighter side through funny videos or challenges. Examples of the wildly diverse brands who have already invested in a TikTok presence include:

  • Guess: the clothing brand and retailer worked with TikTok to promote its Fall ’18 Denim Fit Collection during the back-to-school shopping season. The #InMyDenim Hashtag Challenge on TikTok, which invited users to show their fashion style in Guess denim with an overlay of Bebe Rexha’s “I’m a Mess,” exhorted consumers to “Transform your outfit from a mess to best-dressed! All you need is denim!” The six-day campaign was the first branded challenge on TikTok to go viral.
  • NBA: the NBA uses TikTok to show off a lighter side, posting videos of players working out to music, for example, or the adventures of team mascots. The app’s musical features help the organization lighten up its branding—and make the athletes seem more relatable. The videos still promote basketball, even as they fit in well with other quirky or musical posts on TikTok.
  • The Washington Post: the newspaper was one of the earliest brands to adopt TikTok, and uses its account to post comedic behind-the-scenes videos and newsroom skits. Serious in other arenas, on TikTok The Washington Post demonstrates its quirky side, taking advantage of TikTok’s weirdest special effects to create funny, musical videos. The cheeky installments, meant to entertain TikTok’s young viewers, present The Washington Post’s journalists as real—and trustworthy.
  • San Diego Zoo: capitalizing on the fact that many people love cute animals, the San Diego Zoo’s TikTok account posts videos of adorable animals with fun music. It’s a simple strategy that has earned the account more than 50,000 fans. And the zoo has “dueted” with other animal-friendly accounts, like the Monterey Aquarium, to cross-promote using TikTok features, thus introducing zoo followers to the aquarium, and vice versa.

There’s still an opportunity to get in on the ground floor with TikTok: as noted in the 2019 Sprout Social Index, 89 percent of marketers are adding Facebook to their social media marketing plans for 2020, while only four percent are adding TikTok. But those numbers are likely to change. As Search Engine Journal opines, “Getting your brand or business on TikTok does not have to be difficult. But at some point, it is going to become a must.”

Advertising Options on TikTok

So how does one become part of the TikTok revolution? The platform offers a variety of advertising options, but in terms of a quick overview, note that:

  • Costs start at an average of $10 per CPM, and can go up to $300,000 total budget for larger campaigns.
  • TikTok campaigns require a minimum investment of $500.
  • TikTok ads are still in beta so you must fill out a form to set up an account.
  • The platform offers video creation tools.
  • A couple different ad formats/types, audience targeting tools, and placements and optimization objectives/goals are available.

In addition, this article from Social Media Examiner contains more insight on getting set up.

TikTok and Influencer/Brand Collaborations

As for what’s next, look for TikTok to increasingly help brands find influencers to work with. In the TikTok Creator Marketplace, brands can already search through the app’s top creators, a list of more than 1,000 TikTok stars including Zach King and CJ OperAmericano. The marketplace, launched last year and still in beta testing mode, allows interested brands to search using filters like topic, the number of followers a creator has, and location by state.

A Caveat

There is a dark cloud on TikTok’s horizon, as the platform faces security concerns. Last fall, Senate Minority Leader Chuck Schumer and Senator Tom Cotton asked U.S. intelligence officials to investigate the security risks posed by TikTok. In a letter addressed to acting Director of National Intelligence Joseph Maguire, the senators wrote, “With over 110 million downloads in the U.S. alone, TikTok is a potential counterintelligence threat we cannot ignore.” The concern that the app could be used for intelligence-gathering and foreign influence campaigns by the Chinese Communist Party was also voiced.

To date, however, the negative coverage has not appeared to deter brands.

Contact True Interactive

Want to learn more about what benefits TikTok might bring to your business? We can tell you more about the options and how to get started. Contact us.