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Why TikTok has the best ROI for Entrepreneurs in 2021
Why TikTok has the best ROI for Entrepreneurs in 2021
Ugh…TikTok, the social app for teenagers dancing and shaking their booty. Or is it?
TikTok, a short attention span video platform, emerged three years ago as a platform for teenagers to dance, lip-sync, and pull pranks on. But that’s no longer the case. If you’re a business owner, VP of marketing or a social media strategist, listen up. TikTok is where YOU need to start marketing.
7 Reasons Why TikTok Has the Best ROI:
- The NUMBERS speak for themselves
TikTok has been downloaded over two billion times globally and was one of the most downloaded social media apps in 2020. Of those two billion folks, there are approximately 700 MILLION active users on the platform on any given week. Do you know how long it took Instagram to get to those active user counts? Six years! TikTok has done it in just under three years… and it’s not slowing down anytime soon.
Of those 700 million active users, you have about 350 million active users over the age of 30. These individuals are also spending about 80 minutes a day on TikTok (and spending around 30 minutes on Instagram & Facebook)
What do all these numbers mean?
- YOUR demographic is on TikTok, especially if you are able to sell and market across the country.
- YOUR demographic most likely has the disposable income to afford higher ticket price tags.
- YOUR demographic is spending a lot of time watching other people’s content. But wouldn’t you rather they be watching yours?
2. TikTok’s commitment with #LearnOnTikTok
TikTok is getting serious about education. In May 2020, TikTok committed to investing over $50M to create new educational content by bringing experts (in their respective/varied industries) onto the platform to teach. In addition to #LearnOnTikTok, the platform is also the FIRST to bring in doctors and medical scientist to teach/fact check Covid-19 information with a $50 million investment. Compare that strategy to other social media platforms who’ve chosen to ‘screen’ COVID-19 information.
There are also incentives to use the platform to teach and share educational content. Businesses and experts who share their knowledge on TikTok become either authority figures or partners of TikTok, effectively pushing out (and prioritizing) their content more than the typical generic ‘fun’ and ‘entertaining’ videos. #LearnOnTikTok is a key value that TikTok wants to grow with and you will be rewarded if you jump on this.
3. But Instagram is way easier…right?
True, when it comes to posting pictures, yes, Instagram is WAY easier. But ask yourself this: What’s the average shelf life of a regular post on Instagram (not including Reels)? For 99% of us, it’s usually around 24 hours before your post becomes void. Your 20-minute post creation gave you 24 hours of exposure on your followers’ feed….not bad! How does that compare to TikTok?
Let’s say, you’re just learning how to make videos for TikTok and it takes you an average of 1 hour (with editing) to post. What, then, is the average shelf life for your TikTok video? Believe it or not, your video can last days, weeks, and even months! That means your time investment spent for one-hour creation could yield you months of free marketing! FREE! What other social media app can do that? And sure, not all videos will go viral and reach millions, but your odds on TikTok are much larger than Instagram, Facebook, LinkedIn…combined!
Clients of mine have videos still being shared, engaged and commented on after 3-5 months of being posted! If you can tell me another platform that can do all that (FOR FREE), I will eat my words.
4. TikTok’s Algorithm is unlike any other
Ever noticed how hard it is to gain followers and build your brand presence with Instagram and Facebook? That’s because both are ‘network driven’, meaning they show your content to 20-30% of your followers who engage with your content. These individuals are usually the same people - like your friends, family & other entrepreneurs you engage with (see chart below)
On TikTok, the beauty of it is most of the content on yours and your audience ‘explore page’ is actually people you don’t know! New eyeballs seeing your content! That’s because TikTok operates on a ‘batch system’ which shows your content to a sample size first (say 100 people), to test out your quality of content. This sample size of folks will be a mixture of 30% of your followers, 30% of individuals in your local area and 30% of people that TikTok thinks would really enjoy our content. So, excluding the overlap, 40-60% of the time you are getting your content in front of new audiences every single time you post.
THIS is how you can start to use Tiktok as a vessel - first, get your brand in front of a new and compatible audience, and then move the value off of TikTok into your business.
5. First Movers Advantage
Listen, when I talk about TikTok to my potential clients, I always hear the same three words. “Isn’t it for kids?” Yes, that was true when it first started. But do we remember when Instagram or Facebook was “Just for kids?” If we knew back in 2009 where Instagram was going to be today, would you not have jumped on the opportunity to market your business there? Absolutely, 1000 percent! I’m telling you, this is the exact same situation and this is your opportunity to jump on it from a business perspective right now.
6. Instagram and Facebook is getting oversaturated
Imagine you sell food at a food exhibition. You’re one of 100 vendors all competing and vying for the attention of your consumers. That’s what it’s like on Instagram and Facebook. There are a lot of coaches, accountants, restaurant owners and product base companies on there! Now imagine if you were the only food vendor at the stadium. Congratulations, you just monopolized this whole space. That’s what TikTok can be for you. I’m not recommending you abandon Instagram and Facebook, but if you are currently spending 90% of your ‘social media time’ on those platforms, consider dropping that down to 40%. And use the remaining time spent creating content over on TikTok …and see what happens.
7. The mood feels more authentic
TikTok isn’t yet filled with social influencers where every other post is someone promoting a skin cream or a thingy-ma-jiggy that they are more than likely not using. You don’t need to have a perfect feed, nor do you need to look like a supermodel. This is your opportunity to market your business without having to come off ‘salesy’, without having to film with a professional crew, and without having to leave your home! Tell us your story, create value for your audience and be your authentic self. This is what TikTok users relate to the most.
So what have we learned so far?
- Your demographic is using TikTok, and the platform’s growth isn’t slowing down anytime soon.
- TikTok is pushing out more educational content, further validating it as a go-to/credible source for the public.
- The shelf life of a TikTok on average lasts much longer than Instagram …by miles.
- The algorithm on TikTok is currently designed to bring more brand awareness than any other social media platform.
- Businesses like yours have the opportunity to be a first-mover on the platform.
- Other social media platforms might be oversaturated already.
- TikTok provides an authentic atmosphere for you & your potential customers
I could go on and on and on… my clients are getting HUGE results (followers and sales conversions) right now! So seriously, don’t wait on the sidelines on this one. Jump on TikTok before it’s full of businesses all trying to do the same thing. Lock in that username and post today.
Written by Samantha Vlasceanu at The TikTok Coach
