ClickZ TikTok Insider Newsletter - 10.10.2024

PLUS: US Trusts TikTok Over X

Author

Sophie Bruxner-Randall
October 10, 2024 • Estimated Reading Time: 7 minutes

Ad Week New York 🎤

ADVERTISING INSIGHTS
✨ Fresh Insights from AdWeek 2024

Missed AdWeek 2024 in New York? No worries! Chair of Contentive Lee Arthur attended, capturing fresh insights. Here's a snapshot of what you need to know:

  1. Transition to Profit-Focused Metrics: The shift from traditional ROAS to profit-driven metrics emphasizes the need for DTC marketers to evaluate the true impact of each channel. This aligns with findings from Fospha's latest report, highlighting the importance of optimizing customer acquisition across platforms like Meta, TikTok, and Snapchat.

  2. First-Party Data Utilization: Emphasizing first-party data is crucial for creating personalized advertising experiences. As brands enhance their omnichannel strategies, leveraging this data will be key to delivering consistent messaging across all touchpoints.

  3. Full Funnel Measurement Challenges: Understanding how different channels contribute to conversions is increasingly complex. The insights shared at Adweek emphasize the necessity for sophisticated full funnel measurement tools and strategies.

  4. Platform-Specific Strategies: With unique strengths across platforms, DTC marketers must adapt their approaches accordingly.

Specialty Bites 🍪

TikTok introduces new branding and commerce playbooks to boost brand engagement and sales in Southeast Asia. With AI-powered tools like TikTok One and Symphony, businesses can enhance creative production and leverage TikTok Shop for seamless shopping experiences. These innovations aim to drive growth and unlock new revenue streams.

A recent survey highlights that Americans trust Amazon and TikTok more than Elon Musk's X and the US government. This shift in trust is attributed to controversial policies and misinformation on X, which has seen a decline in public confidence. Notably, Amazon, Google, and Netflix lead in trust, with 70%, 65%, and 64% of respondents expressing confidence, respectively.

X, formerly Twitter, ranks last in trust, with only 28% of respondents expressing confidence. This decline follows Musk's acquisition and significant changes, including layoffs and policy shifts. Despite efforts like Community Notes to combat misinformation, X faces regulatory scrutiny and user alienation. Understanding these dynamics can guide you in navigating the evolving landscape of social media trust.

Webinar Wrap 🎧

This week, we attended Fospha's pre-peak webinar on Acquiring Customers Profitably During Peak Period. Here's what we learned:

  1. Competition is hot – so be prepared

With the ad economy rebounding and cross-channel CPA up 13% YoY, brands need to step up. Dan Sava compared Peak Period to the Olympics—each year, competition gets tougher, and brands need to start preparing early to stay competitive.

  1. Go full-funnel to unlock scaling potential in Paid Social

There is still huge headroom for brands to scale Paid Social, but there’s a knack to creating a sustainable approach. A full-funnel strategy. Henry Linney shared how Seraphine boosted returns by investing more in Paid Social Consideration and Awareness, while Dan Sava highlighted Nike’s method of educating customers early to ensure they’re ready to convert by Black Friday.

  1. Don’t ignore TikTok

The panel highlighted the huge value in TikTok’s seamless consumer experience, from discovery to purchase. Dan Sava added, “Most, if not all, brands should try it.”

🎥 Watch the full webinar here!

More to Discover 🛍️

TikTok is enhancing its e-commerce strategy by training partners in successful live-selling techniques from China. At its first U.S. summit, TikTok emphasized live selling, inspired by its Chinese counterpart Douyin's success. However, adapting these strategies to the U.S. market presents challenges due to differing consumer behaviors.

Storfund partners with TikTok Shop to launch Daily Advance, a cash flow solution for U.S. sellers. This innovation allows sellers to receive payments immediately after shipping, enhancing their ability to restock and grow. By embedding this solution, TikTok Shop aims to further disrupt the ecommerce industry.

TikTok brand accounts are experiencing slower growth as the platform matures. Smaller accounts often have more engaged followers, while wellness and home brands see the highest growth. Despite slowing user growth, TikTok's user base remains large, requiring brands to work harder to attract followers.

Performance Platters 🍽️

Social ad spending targets younger audiences with low-cost products, leveraging platforms for direct-response ads and video formats. Media and entertainment use social media for game installs amid reduced TV spending. Retail and CPG dominate social ad spend, driven by competition from Shein, Temu, and D2C players.

Brands face "deal fatigue" as constant sales events pressure budgets and loyalty. To stand out, they innovate with exclusive products, tiered discounts, and added value like loyalty points. Despite challenges, Prime Day remains crucial. Adaptation is key in navigating this evolving retail landscape, ensuring sustained customer engagement and growth.

Retailers are starting holiday promotions earlier due to inflation and a shorter shopping season. With a focus on budget-friendly options and early deals, marketers aim to capture consumer interest. Enhanced in-store experiences and creative delivery strategies are key to building customer loyalty and adapting to economic challenges.

ClickZ is a Contentive publication in the DTC Ecommerce division