Short and Long-Term Sales Effects on TikTok
A recent Marketing Mix Modelling study conducted between both TikTok and a media agency within the Nordic markets took 15 brands and analysed their short term (1-6 weeks) and long term sales (1-10 months) to measure the sales impact of TikTok advertising, in essence demonstrating the effectiveness of advertising on the platform, both in terms of immediate action and long term value. This report was commissioned by TikTok, so we would expect a certain amount of bias. Having said that, it has interesting learnings that we can take into account when looking at the platform from a media effectiveness perspective.
TikTok and its short-term sales impact
The initial study highlighted TikTok’s ability to drive quick sales, with an average ROI of 11.8, making it one of the top platforms for revenue. The study saw that 75% of advertisers achieved their highest ROI on TikTok, with sales effects lasting 3-4 weeks after campaigns. On top of this, advertisers who maintained a consistent presence saw the best results.
Interestingly they were able to see that user-generated content, particularly involving creators, was key to driving sales, proving that authentic content resonates best with audiences. This adoption of UGC aligns with what we are seeing across all platforms when it comes to both maximising attention and engagement.
The Power of always-on strategies
It was also shown that staying active on TikTok is crucial for sustained growth. Brands that engaged consistently with their audience experienced healthier sales growth over time. Regular presence, instead of sporadic campaigns, helped improve brand recognition and recall, keeping the brand top of mind for consumers. Focusing on engaging, story-driven content instead of just promotions led to deeper connections and long-term results.
While short-term sales effects peak in the first six weeks, brands also saw a long-term ROI of 4.5, highlighting TikTok’s contribution to sustained growth. Creative storytelling proved to be especially effective in building brands, showing that TikTok supports both conversion and brand marketing strategies.
What does this mean for Irish advertisers?
For Irish brands, the study reinforces TikTok’s potential to drive both immediate sales and long-term growth. Consistency in posting both creative and engaging content is key when it comes to nurturing long-term success. By showcasing a brand’s personality and company values through humour/innovation, Irish brands can harness a strong presence and create a valuable bond with their audience. TikTok is a highly interactive platform, so through constant interaction and participation in trends/with consumers, brands will not only stay top of mind but also help cultivate a community around their products/services. By maintaining this consistent engagement with content, Irish brands can build loyalty, stay relevant, and foster stronger consumer connections, ensuring both short-term and long-term success.
Sources:
https://www.socialmediatoday.com/news/tiktok-ads-long-short-term-branding-benefits-study/740707/
