It’s not over til it’s over, but advertisers should still stick with TikTok.

Standard

As the news of a Trump-approved deal between TikTok, Oracle and Walmart broke over the weekend, brands and agencies alike breathed sighs of relief. Our ad budgets can stay! Our data will be protected! TikTok will live to see another day!

Then I woke up on Monday morning to a dizzying twilight zone as Bytedance and Trump seem to have read two completely different deals, issuing statements in direct contradiction with one another. However nauseous we may be, we agree with TikTok when they say they’re here to stay.

Despite the looming ban, TikTok remains the #1 downloaded app across all three app stores.

And, while many brands feared its audience would abandon ship, TikTok has also maintained its 800M global active users, 100M of which are here in the states. For comparison, Twitter has less than half of that at about 49M US users, Snapchat has about 101M US users and Instagram has 120M US users.

So, my message to advertisers remains: stay the course. Here’s why:

  1. TikTok is continues to show its commitment to making it work — No brand has worked harder on every single angle of this situation than TikTok. It’s set up an offense and a defense that should assure advertisers that it’s not going anywhere and, in fact, where it’s headed is safer & more lucrative for brands than ever before.

 

The Defense:

  • Showing its cards – Earlier this summer it created transparency centers, a facility in their LA office allowing experts to come learn how TikTok is enforcing its policies. TikTok also allowed for an open investigation of its data policies and hired a very reputable US-based CSO, Roland Cloutier.
  • Making the deal – Bytedance knows what’s proprietary and what’s mandatory to TikTok’s success and that means keeping ownership of the platform. But it also knows data privacy is a legitimate concern that they it can’t lawsuit its way out of. To that end, it developed a deal with a one of the biggest data providers, Oracle and retail expert, Walmart. Two companies that may not be the first choice for such a hip, up & coming platform, but companies that can answer legitimate data concerns and solidify its commerce-forward future.
  • Sweetening it – While there’s still speculation around some of these deal points, a part of this deal is TikTok’s commitment to creating 25,000 new jobs in the US and developing an AI-enabled virtual learning platform to teach children a variety of courses from basic reading and math to science, history, and computer engineering.

TikTok may not be doing exactly what Trump is asking of them, sell, but they are addressing the legitimate data privacy concerns that exist and ensuring its own ability to monetize long term all in one deal.

 

The Offense:

  • Filing suit – While the most recent suit is likely to be dropped pending the ultimate deal, TikTok has filed two lawsuits against the Trump administration. The first lawsuit filed in federal court, was a response to President Trump’s executive order that would ban TikTok if it didn’t find an American buyer for its US operations. TikTok’s lawyers said that this violates due process protections of the Fifth Amendment, since they were given no time to react to the news. The second lawsuit is in response to the US banning US downloads of the app. This was filed last Friday as the company awaited a decision from President Trump regarding its deal with potential US partners, Oracle and Walmart. The complaint states that the Trump administration is acting beyond its capacity and violating the First Amendment of free speech.
  • Lobbyists – Bytedance has reportedly spent over $300k on lobbyists helping make the case that Trump will sour millions of voters against him.
  • Mitigating Attrition – The $1B creator fund was developed to reward all types of creators on the app for their creativity, passion and ability to connect with their audiences. This fund keeps creators around and when creators stay, their audiences stay.

An offense like this shows TikTok isn’t going to just sit still and look pretty. It’s going to fight for what makes the platform special and that should give advertisers more than enough faith that they have their users, brands and creators interests in mind every step of the way.

  1. Social ad dollars are easy to reallocate – First and probably most reasonably, reallocating advertising dollars is pretty easy. Whereas linear and some digital buys have long lead times, the self-serve nature of social advertising makes it fairly easy to change at a moment’s notice. Should the TikTok ban take effect in 45 days, the IOs you’ve created with TikTok will be flexible and you will be able to reinvest that money elsewhere. If your media is running on auction, once the ban takes effect, the cancelation happens immediately. No matter what, create a backup media plan, but don’t get hasty and reallocate dollars today. The user base is still there, it’s still active and your ads will still be effective.

 

  1. Unique Ad Options – Here’s the kicker, though. If your campaign was inherently UGC-oriented or counted on one of TikTok’s more unique ad options, like a branded hashtag challenge, you can’t easily change your creative or your buy. It wouldn’t be an apples to apples switch. In this case, you’ll need a contingency plan that is potentially a rework of your entire strategy and approach. While there are hashtag challenges on Instagram, they’re not buyable just yet and advertisers won’t get the same exposure as branded challenges receive as a part of the For You page on TikTok.

 

  1. The TikTok Mindset – In paid media, every impression isn’t the same. When trying to gain brand favorability, it helps if you meet users on a platform where they’re already happy. Just when Snapchat claimed the happiest mindset of any social platform, TikTok came around and changed the status quo. Because of the dancing and the originally younger demographic base, the platform became an environment of positivity, education, silliness and fun. Ads on this platform meet users in an open-minded and happier mindset, something invaluable to advertisers attempting to create positive context around their brands.

 

  1. Lean In Nature – The only platform that can reproduce the lean in nature of TikTok is YouTube. And even it doesn’t have the same addictive, time-agnostic feed that TikTok has. Generally, Facebook, Instagram, Snap, Twitter, Pinterest, LinkedIn, etc. are all platforms that can be second screens. These feeds are ones that can be mindlessly scrolled through, with less attention placed on the content itself. Simply by forcing audio-on, TikTok required its users to lean in and more actively consume content. For advertisers, an active impression is much more valuable than a passive impression.

All these factors considered, indicate that keeping your ad commitments to TikTok make sense. Certainly, living in uncertainty is not our favorite. But if we’ve learned anything from 2020, it’s that any sense of ultimate control over our advertising month over month is a myth. All we can do is plan against what we know today, and what we know is that TikTok remains one of the most popular social networks, that takes up the most time spent by any platform and it is as resilient as they come.

Why advertisers should stick with TikTok

Standard

From an advertising standpoint, TikTok is still a nascent platform. Many advertisers have been slow to adopt the platform for some of the same brand safety & privacy concerns the government has. Those who have used it, haven’t used it very consistently. Big splashes and test & learn budgets are the extent of the ad dollars lobbed at it to date.

My message to advertisers is: stay the course. Here’s why:

  1. TikTok is committed to preventing the ban from coming to fruition – Despite the potential ban in 45 days, TikTok is working very hard to prevent it from happening in the first place. It’s instituted transparency centers, appointed a new CSO, changed the makeup of its board and is in talks with Microsoft and Twitter to change ownership of the platform.

 

  1. Social ad dollars are easy to reallocate – First and probably most reasonably, reallocating advertising dollars is pretty easy. Whereas linear and some digital buys have long lead times, the self-serve nature of social advertising makes it fairly easy to change at a moment’s notice. Should the TikTok ban take effect in 45 days, the IOs you’ve created with TikTok will be flexible and you will be able to reinvest that money elsewhere. If your media is running on auction, once the ban takes effect, the cancelation happens immediately. No matter what, create a backup media plan, but don’t get hasty and reallocate dollars today. The user base is still there, it’s still active and your ads will still be effective.

 

  1. Unique Ad Options – Here’s the kicker, though. If your campaign was inherently UGC-oriented or counted on one of TikTok’s more unique ad options, like a branded hashtag challenge, you can’t easily change your creative or your buy. It wouldn’t be an apples to apples switch. In this case, you’ll need a contingency plan that is potentially a rework of your entire strategy and approach. While there are hashtag challenges on Instagram, they’re not buyable just yet and advertisers won’t get the same exposure as branded challenges receive as a part of the For You page on TikTok.

 

  1. The TikTok Mindset – In paid media, every impression isn’t the same. When trying to gain brand favorability, it helps if you meet users on a platform where they’re already happy. Just when Snapchat claimed the happiest mindset of any social platform, TikTok came around and changed the status quo. Because of the dancing and the originally younger demographic base, the platform became an environment of positivity, education, silliness and fun. Ads on this platform meet users in an open-minded and happier mindset, something invaluable to advertisers attempting to create positive context around their brands.

 

  1. Lean In Nature – The only platform that can reproduce the lean in nature of TikTok is YouTube. And even it doesn’t have the same addictive, time-agnostic feed that TikTok has. Generally, Facebook, Instagram, Snap, Twitter, Pinterest, LinkedIn, etc. are all platforms that can be second screens. These feeds are ones that can be mindlessly scrolled through, with less attention placed on the content itself. Simply by forcing audio-on, TikTok required its users to lean in and more actively consume content. For advertisers, an active impression is much more valuable than a passive impression.

 

All these factors considered, indicate that keeping your ad commitments to TikTok make sense. Create contingency plans, no matter what. But for now, if your ad buy isn’t something you have to set in stone today or that contributes significantly to the bottom line, stay the course.

TikTok really is here to stay & here’s why

Standard

By: John Stier & Allie Wassum

TikTok says it’s here to stay and we agree.

Despite how it’s been reported, TikTok wasn’t an overnight success. Its roots grew as Music.ly, and then, alongside a major rebranding, TikTok spent billions to amass the user base it has today. In an almost unprecedented way, TikTok advertised on social networks, on billboards and even during the Superbowl.

What got TikTok its 35M+ daily users was its mega ad spend. What kept users around and what will keep users around are TikTok’s unique sharing functionality, its algorithm and its unique relationship with music. Three things Instagram hasn’t replicated and won’t anytime soon.

TikTok’s Special Sauce:

  1. Sharing on TikTok is open. Whereas most social platforms keep sharing closed, placing the emphasis on sharing content exclusively on the platform on which it was created, TikTok was never precious about where you share your content. It smartly places a TikTok logo in the right corner of every video and makes sharing via SMS, Twitter, Snapchat, FB, IG, IG Stories, saving a video, etc. all seamless. It seems counterintuitive but doing this has contributed to TikTok’s growth and popularity.

 

  1. TikTok’s algorithm starts with the what, not the who.TikTok’s content serving model is based less on who you follow and more on what you like. This is important, because unless Instagram/Facebook completely overhaul their algorithms, they will never be able to achieve TikTok’s addictive succewss. No Reels product is going to change the fact that I follow who I follow. Unless, of course, Instagram changes its own Explore page to be more like the TikTok For You page (which it hasn’t), there’s no replicating the means of discovery TikTok has facilitated. It’s this discovery that’s also led to the democratization of virality. Going TikTok viral is open to any and everyone. Why? Because your existing followership isn’t more important than the content itself.

 

  1. Audio Discovery & Attribution Because of its roots as music.ly, TikTok’s platform depends on music and audio. Artists have been discovered on TikTok (see #2) and the entire music industry has changed because of TikTok. Anyone can upload their own audio track and it can then be used by someone else, with attribution back to the originator.

If we use these three factors as lenses on the new competitors launched alongside the potential ban on TikTok, it’s easy to see why TikTok has staying power:

  • Reels: Instagram’s TikTok clone that launched Wednesday morning, can be found hidden on IG’s explore page. Reels functions almost identically to TikTok, but it is missing all 3 items that make up TikTok’s secret sauce:
    • Shareability – At launch, Reels doesn’t allow users to share videos on other platforms.
    • Algorithm – Reels also only shows you the videos of people you currently follow & is hidden on the Explore page.
    • Music Integration – Finally, Reels has a music integration, but it doesn’t allow users to upload their own audio to be dubbed or reused by the rest of the platform.

Reels does provide an opportunity for brands to lean into the TikTok aesthetic and mentality without the burden of standing up a new platform. It also provides a way for creators to diversify their following. But without the secret sauce, it doesn’t pose a threat to TikTok’s survival.

 

  • Triller: When news of the potential TikTok originally ban broke, Triller shot to the top of the Apple App store. Triller is similar to TikTok in that it is a video sharing app, but it caters more to the celebrity than the everyday person. Celebrities & record labels alike have used Triller for quite some time, but it lacks a wide user base as well as the comedic relief inherent in TikTok.
    • Shareability – Triller allows users to share content with a link on other platforms, but it forces viewers to view content inside the app. Not seamless.
    • Algorithm – Triller’s algorithm does surface content based on the content itself and not on who created it, however it’s not as great/addictive as TikTok’s.
    • Music Integration – Triller allows users to choose from licensed music on Spotify or Apple and it allows users to upload their own audio, but this isn’t a common user behavior (yet).

 

  • Byte: Byte is the second try for Vine co-creator Dom Hoffman and, as such, is focused mostly on comedy and content curation, lacking the musical aspect of TikTok as well as its intelligent content-serving algorithm. Byte also lacks a strong user base with only 2.5M U.S. downloads so far. We wouldn’t put our money on this being the next home for TikTok creators.
    • Shareability – Byte’s still in development, so currently you can only share content within the app itself.
    • Algorithm – Content on Byte is served to you based on what you’ve interacted with thus far and so it has a similar feel to TikTok’s. Though again, it definitely isn’t as addictive.
    • Music Integration – Byte’s allows users to upload music but it doesn’t have an official library of tracks as do the others.

 

  • Dubsmash: This German app is focused first and foremost on music, dancing and lip-syncing to your favorite songs. Like Byte, it lacks entertainment options outside of the music angle however Dubsmash does have 41.5M downloads in the U.S. Despite accomplishing two of our lenses, it’s been around for a while and just doesn’t have the same cache as TikTok.
    • Shareability – Dubsmash sounds can be shared publicly in the app, but the videos (called “my dubs”) are not publicly viewable unless they’re downloaded and reuploaded, without any Dubsmash branding.
    • Algorithm – Content on Dubsmash is served based on both the content you like and people you follow.
    • Music Integration – Dubsmash has a library of music and allows users to upload their own sounds, it is very core to the experience.