Why Every Brand Needs to Be Advertising on TikTok in 2024

Since its global launch just a few years ago, TikTok has become nothing short of a cultural phenomenon. The short-form video app has amassed over a billion users worldwide and shows no signs of slowing down. For brands and marketers, TikTok presents a massive opportunity to reach and engage audiences, especially the highly coveted Gen Z demographic.

As we look ahead to 2024, it‘s clear that TikTok will only become more important in the digital advertising landscape. In this post, we‘ll dive into the data behind TikTok‘s meteoric rise and highlight the key stats that show why every brand needs to be leveraging TikTok ads in their marketing strategy.

TikTok‘s Unprecedented Global Reach

The first thing that stands out about TikTok is the sheer scale of its user base. As of 2024, TikTok boasts over 1.2 billion daily active users worldwide. To put that in perspective, that‘s more than the populations of the U.S., Indonesia, Brazil, and Russia combined. And these aren‘t just casual users – the average TikToker spends over 850 minutes per month on the app in top markets like the UK and US. That‘s nearly 10 times the amount of time spent on competing apps like Facebook and Instagram.

What‘s also noteworthy about TikTok‘s user base is its demographic tilt towards younger generations. In the U.S., nearly 40% of TikTok users are between the ages of 18-24, compared to just 23% on Instagram and 19% on Facebook. For brands targeting Gen Z and young Millennials, TikTok is unequivocally the place to be.

TikTok Ads Blow Other Platforms Out of the Water

Okay, so there are a ton of eyeballs on TikTok – but are TikTok ads actually effective compared to other channels? The data says a resounding yes.

In a 2024 HubSpot survey, a whopping 71% of marketers who buy social media ads said they planned to purchase TikTok ads in the year ahead, putting TikTok behind only Facebook and Instagram. What‘s more, when asked to compare the ROI of video ads across platforms, marketers ranked TikTok ads as the second most effective, just slightly behind YouTube.

TikTok‘s unique full-screen, sound-on ad formats are incredibly engaging, with view-through and click-through rates that put other social platforms to shame. Internal TikTok data shows that TopView ads, which appear when a user first opens the app, drive a 71% higher ad recall compared to other formats.

The proof is also in the pudding when it comes to brand lift and conversions. A 2023 study by Kantar found that TikTok ads drove a 1.9x higher brand impact versus other digital platforms, with a 2.2x higher aided brand awareness. And according to TikTok‘s own data, nearly 80% of users have made a purchase inspired by a TikTok video ad.

TikTok Is Changing Consumer Behavior

Beyond just driving impressive ad metrics, TikTok is fundamentally reshaping how consumers, especially younger ones, discover and buy products. A 2024 HubSpot survey found that Gen Z is discovering and purchasing products via social media at higher rates than any other generation. And on TikTok specifically, 36% of users say they want to learn about new products through short TikTok-style videos.

The power of #TikTokMadeMeBuyIt cannot be overstated. An incredible 43% of TikTokers report trying something new after seeing it on the platform, and users are twice as likely to recommend a product they discovered on TikTok compared to other social channels.

For brands, this means TikTok isn‘t just another advertising channel – it‘s becoming a critical part of the consumer journey that can‘t be ignored. Being discoverable and building awareness on TikTok could mean the difference between growing your customer base or getting left behind, particularly for brands targeting teens and young adults.

The Secrets to TikTok Ad Success

So we know TikTok ads work – but what‘s the key to getting them right? A big part of it comes down to embracing the unique creative culture on the platform.

On TikTok, traditional, polished ads stick out like a sore thumb. The most successful brand content fits seamlessly into the user‘s For You page and feels native to the platform. That means leaning into popular trends, sounds, and effects, and harnessing the power of creators.

TikTok found that creator-partnered ad content achieved a whopping 93% higher engagement rate compared to traditional ads. Investing in relationships with popular TikTok creators who can put an authentic, engaging spin on your brand message is one of the most effective tactics in the TikTok playbook.

It‘s also important to hook users fast with eye-catching visuals and a strong opening. Remember, users can easily swipe away if you don‘t grab their attention. TikTok recommends keeping ad videos between 21-34 seconds long, with the key message delivered in the first few seconds. And be sure to use music – 58% of users say they‘re more likely to engage with an ad if it features a song they like.

TikTok: The Next Great Product Discovery Engine?

Looking ahead, all signs point to TikTok becoming an even more important product discovery and shopping destination. Already, 55% of TikTok users say the platform helps them discover new things. And TikTok is investing heavily in new social commerce tools, like live stream shopping events and shoppable ads, to make it easier for users to go from discovery to purchase without leaving the app.

Some analysts predict that TikTok could become Gen Z‘s version of QVC as these shopping capabilities expand. While that may be a bit of a stretch, it‘s not hard to imagine a world where TikTok rivals giants like Amazon and Google as the first place digitally native generations turn to when they want to find new products. Gaining a foothold on TikTok now could pay major dividends for brands in the long run.

The Big Brands Betting Big on TikTok

If you needed any more convincing of TikTok‘s advertising potential, just look at the growing list of major brands pouring serious dollars into the platform.

In the first half of 2024, mega brands like Amazon, HBO, and Lionsgate all significantly upped their TikTok ad budgets compared to the previous period, spending millions to reach the platform‘s huge audience. McDonald‘s, which has been incredibly successful on TikTok, more than tripled its TikTok ad spend this year. Even auto brands like BMW and Nissan are getting in on the action as they look to build affinity with the next generation of car buyers.

As more and more big brands wake up to TikTok‘s potential and shift larger portions of their ad budgets to the platform, the competition for users‘ attention will only intensify. Brands that establish a strong presence and identity on TikTok now will be well-positioned to capture market share as investment accelerates.

The Time to TikTok Is Now

The writing is on the wall: TikTok is the future of social media advertising. With an enormous and highly engaged global user base, ad units that consistently outperform other channels, and growing clout with the next generation of consumers, TikTok offers marketers an unprecedented opportunity to drive awareness and affinity at scale.

But the platform‘s meteoric growth also means the window of opportunity is closing for brands who want to get in early and gain a first-mover advantage. Waiting another year could mean facing substantially more competition for ad inventory and creative eyeballs.

The key is to start experimenting now, whether that‘s launching a brand channel and testing organic content or setting aside a small budget to pilot paid ads. Focus on creating compelling, platform-native creative, tap into the power of creators and trends, and commit to constantly testing and iterating based on performance. Before you know it, you could be seeing a new, younger audience engaging with your brand like never before.

At the end of the day, the decision to invest in TikTok is not a matter of if, but when. And based on the current data, there‘s never been a better time than now. Don‘t let your brand become a relic of the social media past – get on TikTok and start speaking the language of the next generation today.