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Brands will continue to embrace TikTok this holiday season

The news: A Digiday+ Research survey of over 400 brand and retailer professionals reveals TikTok's increasing significance in marketing, especially during the holiday season.

  • In 2023, 32% of respondents considered TikTok extremely valuable for revenues, up from 8% in 2022; 60% anticipate its increased importance in holiday marketing, up from 55% last year.
  • TikTok's importance for brand development is recognized by 96% of respondents in 2023, a consistent upward trend from previous years.
  • Marketing investment on TikTok has grown, with 78% of brands allocating funds toward it in Q3 2023, up from 54% in Q1.
  • Advertising on TikTok has increased, with 35% of brands purchasing ads on the platform in mid-2023, compared with 24% in the previous year.
  • A shift towards creating original TikTok content is evident, with 39% of brands heavily investing in 2023, an increase from 23% in 2022.

Why it matters: The increased focus on TikTok for holiday campaigns highlights its evolving role as a pivotal tool in seasonal marketing, substantially influencing both consumer trends and buying behavior during critical sales periods.

  • The Digiday data comes as TikTok introduces a new Engaged View-Through Attribution (EVTA) metric to more accurately link ad exposure with outcomes, measuring conversions after users view an ad for six seconds or more without clicking, then taking action within seven days.
  • EVTA, along with other newer ad measurement tools like Attribution Analytics, aim to provide a comprehensive understanding of TikTok's influence on purchase behavior, addressing the underestimation of TikTok-driven conversions using traditional tracking methods.
  • TikTok's increased impact on revenue generation underscores its growing clout with consumers and effectiveness in driving sales. Its high value for branding demonstrates its strength in enhancing awareness and customer engagement.
  • The uptick in marketing investment on TikTok reflects brands' recognition of the platform's potential to reach crucial demographics effectively.
  • The growth in TikTok advertising and original content creation signal a broader trend of diversifying marketing approaches to be more platform-specific and creative.

Our take: While some US states have attempted to ban or regulate TikTok and nearly half of consumers say they would support a ban, the platform's significant role in holiday marketing strategies suggests advertisers consider the ByteDance-owned platform too entrenched to go away anytime soon.

  • The increasing reliance on TikTok for revenue generation and branding indicates a strategic shift to exploit its highly engaged user base.
  • TikTok's shift toward original content and its growing marketing role emphasize the need to be authentic, creative, and adapt to consumer preferences for interactive, immersive experiences.