ClickZ TikTok Insider Newsletter - 12.18.2024

PLUS: Winter Wonderland's live shopping test & Very's 5-star ad win

Author

Rachael Kennedy
December 18, 2024 • Estimated Reading Time: 7 minutes

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Welcome to TikTok Insider, your trusted source for insights into the trends and strategies shaping social media and video marketing on TikTok.

This will be our final edition for 2024, so on behalf of all of the ClickZ Team, we wanted to wish you a Happy Christmas. We will be back in the new year to provide more insight on how to utilise TikTok to drive eCommerce success in 2025.

Top Reads 🌟

TikTok foray into social commerce is gaining traction, evidenced by its impressive Black Friday sales of $100 million—triple the previous year. This surge, with a 165% increase in shoppers, underscores a growing acceptance of in-app shopping among U.S. consumers. The hashtags #tiktokshopblackfriday and #tiktokshopcybermonday amassed over 7.5 billion views, signaling a shift in consumer behavior towards social commerce.

Despite this progress, TikTok faces a steep climb to match Asia social commerce dominance. Douyin, TikTok sister app, generated $500 billion in sales in 2023, dwarfing TikTok sub-$4 billion performance. The U.S. market hesitance is rooted in low trust, with 76% of consumers preferring to finalize purchases on retailer websites, as per an October Aftership survey.

TikTok Cyber Five’s success is a promising indicator of its potential to reshape U.S. social commerce. Notably, a third of sales benefited small and midsize businesses, potentially inspiring broader adoption. However, TikTok’s potential looming U.S. ban complicates its trajectory.

Sector Spotlight 🎥

TikTok is incentivizing U.S. users with Shop credits to boost its user base and in-stream shopping, aiming to strengthen its position against a potential forced sell-off. This move seeks to enhance user engagement and revenue, despite looming regulatory challenges and uncertain future in the U.S. market.

TikTok’s collaboration with Hyde Park Winter Wonderland merges digital and physical shopping experiences. This two-day event, held at Snowglobe Studios, offers a unique blend of e-commerce and festive spirit, showcasing brands like Bear Burners, L’oreal, and Inkey List. The initiative underscores TikTok innovative approach to live selling, aiming to bridge the gap between online convenience and the tangible allure of in-person shopping.

Online shopping has often lacked the element of human interaction, while in-person shopping has rarely recognised the power and potential of the digital world. Now, TikTok Shop’s partnership with Winter Wonderland will deliver the best of both worlds.

Nora Zukauskaite, TikTok Shop marketing director

This partnership not only enhances consumer engagement but also reflects a broader trend where marketers are increasingly investing in TikTok, despite recent data showing underperformance in brand videos. The platform potential remains untapped, with 77% of marketers planning to boost their ad spend, signaling a shift in digital marketing strategies.

Very’s latest TikTok ad, featuring the flamingo character Coral, achieved a rare 5-star rating on System 1 platform, underscoring the power of consistent branding. The ad success highlights the importance of engaging digital-first creative strategies, with a 77% brand recognition rate, significantly above average.

Influencer Corner 📣

2025 Spend Trends - Did you catch them?

Interesting report from Enders Analysis on ad spend trends out this morning. They discuss how the growth in ad spend is mainly driven by increased e-commerce and the high associated fulfilment costs (retail media, search and short-term focussed online display) as well as increased comp from Chinese bargain sellers (Temu, Shien).

1) Cost of sale via e-commerce is getting higher as fulfilment costs increase at a faster rate than overall e-commerce spends - basically the DTC bubble is bursting.

2) Most of the ad spend growth is bypassing creative / media agencies. The generally reported headline figure of a vibrant, growing ad market is a false flag.

3) Content media (Newsbrands / Magazines / Radio / TV / Cinema) remain under threat as the overall economy and negative reaction to the budget has stemmed ad investment.ce…

Matt Hill, Director Research & Planning, ThinkBox

Google's decision to stop prioritizing PMax over Shopping campaigns is already making waves. Shopping CPCs have doubled YoY, reflecting advertisers’ growing shift back to Shopping for better control and strategy. With Shopping spend set to increase further, CPCs could spike even more.

READ INSIGHTS FROM JOSH DUGGAN HERE 👉

Calculating CAC Ratio, Payback Period, and LTV:CAC can seem complicated

And you may be tempted to defer to finance. But, if you’re finalizing your marketing budget right now, you need to check if it’s efficient.

Here’s a primer on how to calculate these efficiency metrics, and what they actually mean…

Emily Kramer, MKT1

Performance Pulse 📈

Performance marketing in 2025 will focus on strategic use of AI, first-party data, and personalized engagement to enhance customer loyalty and efficiency. As costs rise and effectiveness declines, marketers must prioritize creativity and strategic value. Agencies face pressure to adapt, while skills in strategy and technology become increasingly vital.

TikTok ads require strategic optimization for success. Key steps include defining objectives, refining audience targeting, enhancing ad creativity, and utilizing automated bidding. Additionally, adjusting ad placements, retargeting, and leveraging advanced features are crucial. Continuous testing and alignment with TikTok trends ensure maximum ad performance and brand visibility.

Influencer Partnerships

Crocs ➡️ Influencer Marketing Manager

📍 Broomfield, CO

Marketing & Communications

Fospha ➡️ Partnerships Executive

📍 Austin, TX, USA

Affiliate Marketing

Macy’s ➡️Director, Affiliate Marketing

📍 New York, USA

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