How to use TikTok for Business

Why is TikTok so good for small businesses?

The app’s unique discovery algorithm learns what you like over time, which means that the more you engage with its content through the For You Page (watch, like, share, comment), the more of that content you’ll see. This is a game changer for small businesses, because TikTok will most likely share your content with users who are going to be interested in your brand and content. Every TikTok video holds the potential to go viral, regardless of follower count or how new your business is.

But is it right for my business?

Target audience, marketing goals and your creative content capabilities are the areas that will help you decide if TikTok is a strategic fit for your business.

1. Target audience

 To connect with a younger audience, prioritise TikTok in your social media strategy, as Gen Z favours authenticity and creativity and appreciate small businesses that build community and resonate with their language. 

Stats-wise, as of January 2024, it was found that 18% of TikTok’s global audience were women between the ages of 18 and 24 years (Gen Z), while male users of the same age made up approximately 18.6% of the platform’s audience. Millennials are also in the mix, with its online audience further composed of 15% female users aged between 25 and 34 years, and 17.6% of male users in the same age group.

If TikTok’s user base aligns well with your target audience, you need to be strongly considering adding the platform to your marketing mix.

2. Marketing goals

If they include increasing brand awareness, driving engagement, and leveraging influencer collaborations, TikTok can be highly effective.

3. Creative content capabilities

Does your business have the skills and resources to produce short-form videos that are creative, engaging and visually appealing? If not, do you have the budget to outsource this type of content creation? Avoid launching on TikTok if you’re not in a position to post creative content regularly. (It could do more harm than good.)

Understanding your target audience on TikTok

Utilise TikTok analytics

After setting up your business account, access TikTok’s analytics by going to “Settings” > “Creator Tools” > “Analytics”. Analyse data on follower demographics, including age, gender, and location, as well as their active times and engagement patterns.

Observe competitors and trends

Follow competitors and relevant influencers in your industry to see what content resonates with their audiences. Participate in trending challenges and use popular hashtags to increase your content’s visibility and reach.

Engage with your audience

Respond to comments and messages to build a community around your brand. Create content that encourages interaction, such as polls, Q&A sessions, and challenges.

Experiment with content

Test different types of content (e.g., tutorials, behind-the-scenes, user-generated content) to see what performs best. Use TikTok’s features such as sounds, effects, and duets to make your videos more engaging.

Monitor and adapt

Continuously monitor your analytics to understand which content strategies are working. Be flexible and willing to adapt your content strategy based on performance insights and audience feedback.

How does the TikTok algorithm work?

The TikTok algorithm determines which videos appear on users’ For You Page (FYP), the main feed where users discover new content. Key factors influencing the algorithm include:

User interactions

• Engagement metrics such as likes, shares, comments, and watch time.
• Interaction history, including the types of content a user has previously engaged with.

Video information

• Details such as captions, hashtags, and sounds.
• The video’s genre and content, identified through metadata and on-screen text.

Device and account settings

• User’s device type, language preferences, and location.
• Account settings and preferences.

Content freshness

• Newly uploaded content is given a chance to be seen by users, promoting fresh and relevant content.

How to leverage TikTok’s algorithm for business growth

Here are some best practice tips to ensure your content is seen by as many people as possible: 

• Create engaging content: Focus on producing high-quality, entertaining, and valuable videos that prompt viewers to like, share, comment, and watch to completion.
• Use relevant hashtags: Incorporate popular and trending hashtags relevant to your niche to increase discoverability.
• Post regularly: Consistent posting helps keep your content fresh and increases the chances of appearing on users’ FYP.
• Engage with your audience: Respond to comments, participate in duets, and interact with your followers to build a community and increase engagement.
• Utilise trends and challenges: Participate in trending challenges and use popular sounds to increase your content’s visibility.
• Optimise video descriptions: Write compelling captions and include keywords relevant to your business and target audience.
• Keep it short and sweet: Create short, captivating videos that quickly grab attention, as shorter videos tend to perform better and are more likely to be watched to completion.

How to use TikTok analytics

TikTok’s analytics provides detailed insights into audience demographics, engagement metrics and content effectiveness. Knowledge is power – the more you understand, the more you can optimise your performance on the platform.

Here’s how you can do this:

• Monitor performance metrics: Regularly review metrics such as views, likes, shares, comments, and follower growth.
• Understand audience demographics: Analyse the demographics of your audience, including age, gender, and location, to tailor content that resonates with them.
• Track content performance: Identify which types of content perform best in terms of engagement and reach, and use these insights to inform your content strategy.
• Adjust strategy based on insights: Use data to refine your posting schedule, content types, and engagement strategies. Experiment with different formats and trends to see what works best.
• Benchmark against competitors: Compare your performance metrics with those of competitors to identify opportunities for improvement and differentiation.

Effective content strategies for TikTok

Developing a powerful content strategy

It’s not as daunting as it seems – you just need to approach it in a well-informed, bite-sized way:

• Identify your goals: Define clear objectives such as brand awareness, audience engagement, or driving sales.
• Understand your audience: Research your target audience’s interests, behaviours, and preferences. Utilise TikTok’s analytics to gain insights into your current followers.
• Plan diverse content: Mix various types of content such as educational, entertaining, behind-the-scenes, and product demonstrations. Ensure your content aligns with your brand’s voice and values.
• Create a content calendar: Get an overall view of what you’re posting and when to ensure a good balance of topics, types of video and keeping in mind any seasonal dates that align with your brand. (Keep things flexible though, as you might want to respond to trends etc. ad hoc or remove any planned content that could be considered inappropriate as a result of any unexpected events that arise.)
• Emphasise quality and creativity: Focus on high-quality visuals, engaging storytelling, and innovative ideas to capture attention quickly. Use TikTok’s editing tools and effects to enhance your videos. (Tip: Authenticity goes a long way rather than corporate marketing jargon.)

Partnering with influencers for maximum reach

Those who’ve played Super Mario before will know of those secret passages that could be taken to move further along in the game. Well, partnering with influencers on TikTok is a similar concept – a smarter, quicker way to reach your desired destination. In a business’s case, it’s reaching your target demographic quicker. Here’s how you can do this effectively:

• Identify relevant influencers: Look for influencers whose audience aligns with your target demographic and whose content matches your brand’s values.
• Build authentic relationships: Engage with influencers by commenting on their posts and establishing a rapport before proposing collaborations.
• Collaborate on content: Partner with influencers to create authentic and engaging content that resonates with their followers. Co-created content often feels more genuine and trustworthy.
• Leverage influencer reach: Use influencer campaigns to amplify your brand message and reach a wider audience. Track performance metrics to evaluate the success of these collaborations.

N.B. Be mindful of disclosure policies and legal obligations when working with influencers to ensure compliance and transparency.

Utilising user-generated content and trends

This is a great way to build a library of engaging TikTok content for your business, as well as establishing a strong community around your brand. Here’s how to do it:

• Encourage user-generated content (UGC)
  Run contests, challenges, or campaigns that motivate your audience to create and share their own content featuring your products or services. (Remember to abide by various rules and guidelines to ensure compliance and avoid legal issues.)
• Feature UGC on your profile
  Share user-generated content on your TikTok profile to build community and show appreciation for your followers. This also provides social proof and enhances brand credibility.
• Participate in trends
  Stay updated with the latest TikTok trends, including popular challenges, sounds, and hashtags. Adapt these trends creatively to fit your brand narrative.
• Create branded hashtags
  Develop unique hashtags for your campaigns to encourage user participation and make it easy to track UGC.

How much do TikTok Ads cost?

As much as you want them to! The platform uses an auction and bidding model, which puts you in control of what you spend per view, click or impression. However, a minimum budget is required when setting both lifetime budgets and daily budgets to ensure the continuous delivery of your ad.

• ​Campaign level minimum budget: For campaigns, both daily budgets and total budgets must exceed $50.
• ​Ad group level minimum budget: For ad groups, daily budgets must exceed $20. Lifetime budgets will be calculated as the minimum daily budget (20 USD) × scheduled days. E.g. if delivery is scheduled for 31 days, the minimum budget for the ad group would be $20 x 31 days = $620.

In terms of ballpark spend, TikTok ads cost between $10 per CPM (cost per thousand impressions) for In-Feed ads to over $100,000 for high-visibility options like TopView ads and Branded Hashtag Challenges.

TikTok bidding methods

There are four key methods:

• CPV (cost per 1K views)
• CPM (cost per 1K impressions)
• oCPM (optimised cost per 1K impressions)
• CPC (cost per click)

TikTok’s Suggested Bid feature is worth taking advantage of to ensure your price is right.

Maximising reach and impact with TikTok advertising

1. Define clear objectives
   Set specific goals for your campaigns, such as increasing brand awareness, driving traffic, or boosting sales. This helps tailor your ad strategy effectively.
2. Target your audience
   Use TikTok’s targeting options to reach specific demographics, interests, and behaviours. Narrowing your audience ensures that your ads are seen by potential customers who are most likely to engage.
3. Create engaging content
   Develop high-quality, creative, and authentic content that resonates with TikTok’s audience. Use compelling visuals, catchy music, and strong calls to action to capture attention.
4. Leverage trends and hashtags
   Incorporate trending hashtags and participate in popular challenges to increase your ad’s visibility and engagement.
5. Monitor and optimise
   Use TikTok’s analytics to track the performance of your ads. Analyse metrics such as impressions, click-through rates, and conversions to understand what works and make necessary adjustments.

Example of a successful TikTok advertising campaign

Brand: Gymshark – a UK-based fitness clothing brand

Campaign

Gymshark66. “They say it takes 66 days to create a habit.
We believe it takes 66 days to change your life. Gymshark66 is a 66-day challenge that encourages you to focus on the small wins. Whether it’s 30 mins at the gym or a 30-min walk. 10 mins of mindfulness or 10 pages of a book.”

Type of ad:

Branded Hashtag Challenge (#Gymshark66)

Objective:

Promote a fitness lifestyle and increase brand engagement.

Strategy:

Launch a Branded Hashtag Challenge (#Gymshark66), encouraging users to share their 66-day fitness journey.

Results:

• Over 193 million views.
• 1000s of user-generated videos showcasing fitness transformations.
• Strengthened community engagement and brand loyalty.
• (Gymshark also increased its engagement around this campaign via influencer marketing on TikTok.)

How to consistently grow your brand on TikTok

Your performance with TikTok will reflect the time and effort you put into it. Consistently produce engaging content that resonates with your audience, get involved with trending challenges and hashtags, collaborate with influencers, post regularly, interact with your community, invest in paid campaigns to attract new users, channel insights back into your content… It all works towards growing your brand.

The more consistent you are, the more consistent your TikTok growth will be.