ClickZ TikTok Insider Newsletter - 09.19.2024

PLUS: TikTok’s First Super Brand Day with L'Oréal Takes Over the UK!

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ClickZ
September 19, 2024 • Estimated Reading Time: 7 minutes

Specialty Bites 🍪

Gen Z is rewriting the rulebook on shopping, and marketers better keep up. First off, these digital natives are meticulous about their purchases. Unlike their impulsive elders, Gen Z scrutinises every dollar spent, leveraging online reviews and mobile apps to make informed decisions. They’re not just window shopping; they’re deep-diving into Reddit threads and app features to get the best bang for their buck.

TikTok is their playground, not just for viral dances but for discovering and researching products. With 71.2% of US Gen Zers using TikTok monthly, it’s no wonder two-thirds of them find new brands there. TikTok’s rapid integration of shopping features has made it a powerhouse in social commerce, outpacing Instagram and YouTube.

But don’t count out physical stores just yet. Half of Gen Zers recently bought something they found in-store. For them, shopping is a social event, and physical stores are still the top awareness drivers across various product categories. Retailers should focus on making in-store experiences fun and engaging to capture this crowd.

The takeaway? Marketers need to be omnipresent, from TikTok to Twitch, and blend digital savvy with traditional tactics. Coupons and smart pricing still work wonders. So, get creative and meet Gen Z where they are—everywhere.

TikTok is challenging a US law that mandates its sale or faces a ban due to privacy concerns. ByteDance, TikTok's owner, argues this infringes on free speech. The case will be heard by a Washington, DC appeals court. The law aims to protect against foreign espionage and data misuse.

Amazon is reportedly considering acquiring TikTok amidst U.S. ban discussions. TikTok's new feature allows users to shop Amazon products directly within the app, strengthening their partnership. This potential acquisition could revolutionise social media-led e-commerce, combining TikTok's vast user base with Amazon's e-commerce dominance.

TikTok Shop and L'Oréal have launched the UK's first Super Brand Day, running from September 16-21. The event features exclusive discounts, product launches, and a takeover of Piccadilly Circus in London. Highlights include a 12-hour live event, new product unveilings, and participation from top beauty brands like Garnier and Maybelline.

TikTok is revolutionizing toy marketing with its vast reach and engagement-driven algorithm. Brands can go viral without hefty budgets, leveraging user-generated content and trends for authentic promotion. Key strategies include maximizing ads, choosing the right creators, and continuous analysis. Now is the time to join TikTok Shop.

Research by Daivid reveals that 80% of branded TikTok videos are underperforming, with 24% evoking negative emotions like anxiety and disgust. Only 16% scored above the average Creative Effectiveness Score. Alarmingly, 60% are forgettable, highlighting the need for brands to analyse beyond basic metrics.

Performance Platters 🍽️

Fospha's latest report, "The State of E-Commerce H2 2024", reveals crucial trends that will shape your marketing strategy. What's inside:

  • 📱 How the major platforms' KPIs have trended in 2024, and where you should be investing. 

  • 🚀 How to access Paid Social's huge scaling potential. 

  • ✨ The most effective Google channel of 2024.

  • 🎯 Full-funnel strategies for Meta, TikTok and Snapchat

Let's break down the platform-specific insights: 

  • TikTok: Emerging as a powerhouse for efficient new customer acquisition 

  • Meta: Maintaining strong performance with competitive CAC 

  • Snapchat: Experiencing rapid growth, particularly effective during peak shopping periods 

"These findings underscore how impactful platforms like Meta, TikTok and Snapchat continue to be for driving sales - yet how underinvested they remain. It's incredible to see that brands can triple spend in Paid Social before becoming unprofitable. Success now lies in diversifying across the entire funnel, understanding the nuances of each platform, and continuously optimizing to unlock more scaling potential." 

Jamie Bolton, VP Growth at Fospha

WPP and Coca-Cola topped the 2024 Cannes Lions creative charts, with Coca-Cola winning 17 awards. WPP was named Creative Company of the Year. Heineken and Apple followed in the rankings. The United States was the most creative country. The LIONS Creativity Report highlights impactful creativity driving growth.

Shopify partners with Roblox to integrate in-game shopping, allowing brands to sell physical items directly within the game. This collaboration targets Roblox's 80 million daily users, with a full launch in 2025. Shopify's president highlights the endless possibilities, emphasizing the future of immersive commerce in the digital world.

Ad spend in 2024 is set to rise, driven by retail media, value-based messaging, political ads, and CTV monetization. The IAB projects an 11.8% increase, with retail media leading due to high CPG and beauty spend. AI in search could further boost Q4 advertising.

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