Channel Deep Dive
The digital ad space has been oversaturated for years; most business owners are acutely aware of this. But luckily, a guiding factor is beginning to shed a helpful light: Not only is TikTok marketing coming out on top, TikTok style short-form videos on any platform are winning too.
You should be using video in your ads (goodbye graphics and carousels), and not just any video– the style that engages and converts best is something that didn’t quite exist in years past: TikTok style. That is, more informal, first-person, short-form video.
A quick breakdown on content marketing on TikTok and why B2C/D2C brands should be taking it seriously:
Read more about TikTok marketing trends from TikTok niche experts when it’s time to dive in.
So how can you stand out above the rest? How can you focus on effective customer acquisition without breaking the bank on an endless array of suggested marketing tactics?
When choosing which funnels to focus your marketing strategy on, invest in the channels with the greatest engagement. Lean into the kind of content that specific channel and target audience likes to see.
Yes, for the last 10 years, Facebook Ads manager has been king. Perfectly-designed graphics, carousels, and video ads could be targeted and retargeted to your chosen audience (and as we know, this rolled over to Instagram as well). But in 2023, TikTok is king.
TikTok for Business is, without a doubt, the number one social media platform for short form video content, whether you’re running ads or organically.
For most products or services, the ads that do well on TikTok are nothing like what did well on other channels. In fact - they’re not ads so much as they are content. TikTok has created something special in the social media space - a new era of customer-brand relationships that brands can’t afford to ignore.
Because the style of TikTok videos revolves around authenticity first and foremost, users are connecting more and more to the human sides of a brand. Loyalty is being built on influencer-type brand “faces” (like white-labeling an influencer for your channel as opposed to getting sponsored on their channel), UGC, and tangible brand personalities. For instance:
All this is to say, the best way for brands to optimize their customer acquisition cost using social media is to hone in on TikTok, and do it in the style TikTok likes to see. Here’s what that means…
Following all of TikTok’s classic tactics doesn’t pigeon hole you into a TikTok-only marketing strategy. Actually, you can repurpose these same short form videos on other channels like Instagram Reels and YoutTube Shorts.
Furthermore, if you play by TikTok’s game, your average cost per thousand advertisements (CPMs) will be lower. Low CPMs are important because they lead to higher conversion rates without raising your ad budget.
TL;DR: All else equal, TikTok style short-form video performs better when it comes to ad creative.
When all else is the same (targeting, landing page, ad spend, etc.) TikTok videos result in lower CAC.
Consider this example: A landing page for an ad with traditional, non-TikTok content has a 2% conversion rate. If the brand has a $100 budget, they’ll typically get a $20 CPM and 2% CTR. This would result in 5,000 impressions, 100 clicks, and 2 conversions. That’s $50 for each new customer acquisition!
*indicates 50% improvement
However, with new TikTok style content, we could decrease our CPM by 50% and increase our CTR by 50%. That is, with all else remaining the same, TikTok style content will lower CPM to $10 and increase CTR to 3%. This results in 10,000 impressions, 300 clicks, and 6 conversions. 6 new customers for the same $100 sounds a lot better, doesn’t it?
That’s a 200% increase in conversions…and the only change? The creative. Short-form, TikTok-style video.
Your acquisition marketing doesn’t need to be spread thin across all possible channels and strategies– it just needs to do the most impactful strategies the right way. And with TikTok, learning to do TikTok-style content is a straight and clear path to lower CAC.