TikTok published the results of a new study into the effectiveness of TikTok promotions for fast-moving consumer goods campaigns. The research also examined how TikTok users are influenced to action by in-app promotions in the sector.
In order to measure ad performance, TikTok enlisted consumer analytics company Circana to analyze 97 Geo Lift studies conducted across the U.K., France, Germany, Spain, Italy and the Netherlands.
Geo Lift studies assess the impact of ad campaigns across different geographic regions, which can provide insight into how different elements drive varying responses with regional audiences.
They also uncover commonalities, providing a broader comparison for general ad performance.
As per TikTok: “Using geo-testing methodologies and advanced modeling approaches, the research explored how different campaign variables; including media mix, campaign duration, format strategy and creative execution, influence both sales life and ROI on TikTok.”
The results showed that TikTok campaigns drive improved offline sales impact compared to social media platform benchmarks. Though the difference is slight, with TikTok campaigns, on average, generating a 2.7% increase in in-store sales, versus 2.3% as the social baseline.
However, TikTok saw much stronger performance in relation to consumer response during non-sale periods.
As explained by TikTok: “Brands often concentrate investment around peak trading periods. However, analysis suggests that quieter moments may offer some of the strongest growth opportunities. Campaigns activated during non-seasonal periods generated a 46% higher sales lift on TikTok, while activity during peak moments still outperformed social benchmarks by 13%.”
TikTok said that this highlights the value of maintaining an ongoing presence in the app, as opposed to targeted seasonal campaigns.
Indeed, TikTok said that campaigns running for seven weeks or longer, with increased investment levels, “delivered stronger sales lift, whilst maintaining ROI efficiency.”
In addition, campaigns that incorporated premium TikTok formats, like its attention-grabbing Top Feed and Pulse offerings, generated significantly stronger business outcomes.
Though that makes sense. Top Feed enables advertisers to ensure that their promotion appears in the first in-feed ad spot for their target audience on a given day. Pulse enables advertisers to place their ads alongside TikTok clips that are in the top 4% of performers, based on views and engagement.
As such, using these tools should lead to greater exposure, so the recent findings would only be relevant if the opposite were true.
The data also showed that TikTok’s Video View campaigns drove strong ROI, while creative structure and consistency also played a role in driving ad performance.
“In particular, campaigns that refreshed creative regularly and maintained clear branding throughout were more likely to sustain effectiveness across longer durations,” TikTok said.
The data suggests that maintaining an active TikTok presence can help to improve brand recall and lead to sales lift as a result.
The performance here is relative, but conceptually, through consistent branding, TikTok can help to solidify presence for FMCG campaigns.
