Should DTC Brands use Tiktok Ads as an Acquisition Channel?

Introduction

Given the technological age that we’re in and the COVID-19 pandemic that shook the world, the surge in eCommerce should come as no surprise. Consumers are now shopping online more and more each day.

Still, consumers don't want a clinical experience when they shop. Instead, they want a personal touch - the social experience that comes with in-person shopping. As such, any DTC brand that can find creative ways to replicate this experience online will be at the top of their market.

This is where video ads come in. Video is one of the most emotional types of digital marketing. And by using these ads, DTC brands can establish a personal connection with their customers.

One of the most popular and fastest growing apps for creating and sharing videos is TikTok. It has gained massive popularity since its inception in 2016 and has become a marketing tool for online businesses. Even large brands like Amazon, PacSun, Gap, and Walmart have tapped into TikTok’s digital marketing power.

But does this mean that you should add TikTok ads to your list of advertising strategies as a DTC business owner? Should you use TikTok ads as an acquisition channel?

In this article, we’ll be weighing the pros and cons of using TikTok ads for customer acquisition.

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Pros

TikTok ads wouldn't be so popular if there were no benefits to using them. So here are some of the top pros that make TikTok ads a great tool for customer acquisition.

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#1. The Number of Users

In September 2021, TikTok reported having 1 billion active users. That's millions of potential customers.

More than half of these users are below the age of 34, with 41 percent being between 16 and 24, but that doesn't have to be a disadvantage.

The great thing about this audience is that people within this age range (teens to 30) are typically more susceptible to current and emerging trends. As such, they're more likely to purchase trending items from emerging brands.

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#2. Reach a Diverse Audience

While it's true that a majority of TikTok users are young, this demographic is quickly changing. People are gradually showing less interest in platforms like Facebook, leading to more older users migrating to TikTok.

The gap between females and males on the app is also generally pretty even, with 47% of users identifying as female. Given these demographics, it's very probable that you'll find your ideal customer already active on the app.

But that's not all. TikTok is currently available in about 155 countries and over 70 languages. With TikTok ads, you can garner brand awareness on a global level and expand to new markets. And with the number of available languages on the app, you can create effective ads that can resonate with nearly any audience in the world.

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#3. More Ad Exposure

In order to keep the user’s experience going, TikTok plays ads automatically as people use the app. Given TikTok users reportedly spend 52 minutes on the app every day, you can be sure of diverse ad exposure.

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#4. Share-ability

TikTok is all about fun and creating relatable, funny, appealing, and, very importantly, shareable content. Assuming your video content has these qualities, viewers will most likely share the video with their friends by downloading it or using its URL. This would extend your reach and could help your brand go viral.

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#5. Ease of Use

TikTok also has an extensive video library and provides advanced editing and production tools like filters. Using these tools, you can produce eye-catching video ads that generate massive appeal.

As such, there's no need to hire a professional production company to create or edit your videos.

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Cons

Despite its various advantages, using TikTok ads as an acquisition channel does have its downsides.

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#1. Limitation of content types

TikTok is a video-focused platform and only supports short videos. As such, if your business's digital marketing strategy relies more on photos, static infographics, and article sharing, it might not be suitable for your strategy.

Nonetheless, you can find your way around this snag by using the infographic as the background of a video while someone explains the data. You can also use the CTA to link to the relevant article or form.

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#2. TikTok isn't the best platform for all industries

A good digital marketing strategy is about reaching your target audience and converting viewers to customers. That said, TikTok isn’t always the best social media for certain industries.

For instance, if you run a plumbing business, TikTok advertising isn't the best strategy for your brand. The reason is simple. People tend to only look for plumbing services when they have plumbing issues or building/renovating a bathroom.

So before using TikTok ads, make sure that those viewing your content can become customers by using your service or buying your product instantly.

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#3. Creating TikTok videos can be time-consuming

Creating a video ad that will perform well on TikTok can require a lot of time and thought. There's an unending stream of video content for users to choose from, making it easy for them to see an ad and swipe right past it.

As such, if you want to get the type of results you want from using TikTok ads, you'll need to research the kind of videos your target audience typically engages with on the app. What type of videos do they enjoy?

Then you’ll need to create a quality, engaging, entertaining, and authentic video ads that fits the TikTok environment. Originality is what sells on TikTok. Thankfully, with content generation software like Gander, this wouldn’t be an issue. We help you save time by collecting and embedding high-converting content.

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#4. Expensive

With TikTok ads, time isn’t the only commodity you’ll be spending. TikTok ads are quite expensive, costing around $10 per impression. This may be too costly if you’re a start-up company. What’s more, they require a minimum spend of at least $500. Compared to Instagram and Facebook advertising, this price is steep.

Nonetheless, this doesn’t have to be a limiting factor to using TikTok as an acquisition channel. You can go for a more budget-friendly option by creating a TikTok challenge and partnering with influencers to help you promote it to your target audience.

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Conclusion

Succeeding in ecommerce marketing requires developing authentic and compelling relationships with your consumer. Being more personal and connecting with your audience meaningfully drives sales.

DTC brands that fail to connect with their customers and guide them through a relationship-driven shopping experience will likely fall behind in 2022. Simply put, you need to humanize your ecommerce store.

And that’s why Gander was created. With Gander, you can bring your ecommerce pages to live by helping you collect and embed video content. As a result, we can help you convert users by providing high-quality content while also increasing customer engagement.

So, what are you waiting for? Get Started Today!

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