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The TikTok Phenomenon: Unveiling Performance Marketing's Rising Star

@britishpromise.cats

Repost 😇 #catsoftiktok #viral #funny #cute #cutness #foryoupage

Oh, Hello again,

It’s been a moment; thanks for your patience. Sticking the once-a-week cadence is not easy, but I am trying to get back on it!

My boy Gray turned a year old; the RBL team had a stellar showing at the Affiliate Summit in Las Vegas; the year is off to a good start with client KPIs exceeded, growth, a lot of learnings, and more work to do.

Before we give you some TikTok knowledge, I wanted to share a couple of thoughts:

1. Thank you for all your support; this little newsletter is receiving shoutouts, appreciation, and good questions, and many great brands are looking to us for help with performance marketing. Always here to help and learn and improve! If you are digging it, I would love to subscribe or share it with your colleagues/friends. 😉 
   

2. The Always Be Testing podcast is growing and well-received!
   
   Our recent episode with Lauren Nemeth broke the internet (almost) and was our most popular yet, Picking Winners Apple or Spotify.
   
   We also launched on YouTube and released past (throwback) episodes every Thursday morning, with the latest episode launching every Tuesday morning.
   

3. 2024 affiliate marketing trends - Impact featured us in their recent roundup of experts sharing trends in the space: 5 experts forecast affiliate marketing trends for 2024

4. RBL Merch - is pretty 🔥 😉 

Ok, let’s dive in. 🏊‍♂️

TLDR / Executive Summary:

1. TikTok is exploding - think engagement, not just users 📺️ 

2. It’s not just kids under 35 😉 

3. TikTok is a Search Engine 🔍️ 

4. It is its own Influencer Network 🤳 

5. TikTok Shops is growing fast; if you’re in EComm, you must test it.

6. We can help

Is TikTok the first channel to be used as a lever for the two biggest things Round Barn Labs does for brands: 1) affiliate/influencer and 2) paid social & search?

I think so. It combines the best of both for many.

Notice I said search 🔍️ - more on that later. 😉 

Meta and Google are still top dogs, but the TikTok cat is sneaking up.

While it is not yet at the consistent % of performance marketer portfolio for % of spend, it is growing, and consumers, influencers/creators, and brands are noticing.

As we navigate through the intricate landscape of performance marketing in 2024, it becomes increasingly clear that TikTok isn't just a platform; it's a paradigm shift.

1. The Unstoppable Rise of TikTok

TikTok's growth trajectory is nothing short of phenomenal.

With its global user base expanding by leaps and bounds, TikTok has transcended beyond a mere social platform to become a cornerstone in performance marketing strategies. This expansion isn't just about numbers but the depth of engagement and the unique consumption behaviors that TikTok fosters among its audience.

For brands and marketers, this signifies an untapped reservoir of potential waiting to be leveraged through creative, authentic content that resonates with a diverse and dynamic demographic.

2. Dispelling TikTok Myths

Despite its popularity, numerous myths surrounding TikTok hinder its full potential utilization.

The most common misconception is that TikTok is solely for the younger demographic, is centered around entertainment, and lacks commercial intent.

This could not be further from the truth.

TikTok has evolved, fostering a rich, diverse community where informative, educational, and brand-focused content thrives alongside entertainment. Marketers can unlock unprecedented engagement and conversion opportunities by understanding and embracing this diversity.

@mrbeandamatematica

#AgoraVoceSabe #matematica #AprendaNoTikTok #math #fyp

TikTok reach in the United States as of May 2023 by age group:

Yes, younger audiences make up a more significant % of overall TikTok users as estimated, yet the volume of users 35 or older is estimated at:

1.095 BILLION people over the age of 35!

3. TikTok as a Mobile Search Engine

In a groundbreaking development, TikTok is rapidly becoming a viable Mobile Search Engine Results Page (SERP), a revelation supported by recent observations from Search Engine Land.

TikTok videos are now showing in Search Generative Experience and featured snippets, according to SEL.

Users increasingly turn to TikTok to discover products, how-to guides, reviews, and more, challenging traditional search engines. This shift underscores the need for brands to optimize their TikTok content for visibility and discoverability in a new, dynamic search ecosystem.

Shout out to Cormac Jonas.

4. TikTok's Built-In Influencer Network

What sets TikTok apart is its innate ability to function as its own Influencer Network. The platform naturally breeds influencers across various niches, offering brands an organic pathway to partner with content creators with genuine influence over their audience. This ecosystem promotes authenticity and relatability, which are crucial for successful influencer marketing campaigns in today's digital age.

5. Leveraging TikTok Shops for ECommerce

TikTok Shops launch announcement from TechCrunch

The introduction and growth of TikTok Shops mark a significant milestone for e-commerce brands. This feature enables direct product showcasing and sales within the platform and integrates seamlessly with TikTok's content-driven nature. For eCommerce entities, the strategy lies in crafting compelling, value-driven narratives around their products, tapping into TikTok's vast, engaged user base to drive not just views but conversions.

Not surprisingly, TikTok has ambitious plans to grow TikTok Shops 10x to $17.5 Billion this year! Some key points from TechCrunch…

The Information reported that TikTok will start raising the commission it charges on most items from 2% to 8% per transaction.

TikTok Shop has also started to reduce some subsidies for merchants. It’s worth noting that these commissions are still considerably lower than Amazon seller fees, which are about 15% for most product categories.

TikTok Shop, officially launched in the U.S. in September 2023, lets creators tag products to allow users to buy products from in-feed and live videos.

Brands can make their product portfolios accessed from their profile pages.

TikTok Shop has a dedicated tab that lets users search for different items, discover products through recommendations, browse items in different categories, and manage their orders.

TikTok is paying all players in the marketplace to work with them: 1) users, 2) creators, and 3) brands.

Amazon offers a kickback to Amazon Sellers that send third-party traffic to ASINs and Amazon listings. Similarly, TikTok incentivizes ECommerce stores to send traffic via TikTok Shops.

Of course, TikTok is paying to aggressively acquire users across platforms using the complete Reforge Growth playbook combining the following Growth Loops:

1. Content Creation Loop: Users are incentivized to create content by the potential for visibility and engagement. When content goes viral, it attracts more viewers, some of whom become content creators, perpetuating the cycle.

2. Social Sharing Loop: Users share TikTok videos on other social platforms, drawing in new users who, intrigued by the content, download TikTok and start their journey on the platform. This loop extends TikTok's reach beyond its platform and taps into the network effects of other social media networks.

3. Engagement Loop: The more a user interacts with content (through likes, shares, comments), the better TikTok's algorithm becomes at serving them content that keeps them engaged and spending more time on the platform. This increased engagement leads to higher content consumption and creation rates.

4. Collaboration Loop: TikTok facilitates collaborations between users through features like duets and stitches, encouraging users to engage with each other's content. This increases content creation and strengthens the community, making the platform more sticky.

5. Monetization Loop: As creators gain popularity, they have more opportunities to monetize their presence through brand partnerships, TikTok's Creator Fund, and other revenue streams. Success stories encourage more users to create content in hopes of monetization, fueling more growth.

About 8% of our client portfolio media runs through TikTok for Influencer and Paid Marketing, but I estimate it to grow to at least 15% by next year.

Our Director of Paid Marketing, Meaghan Jones, sums it up nicely here:

Conclusion

1. TikTok is exploding - think engagement, not just users 📺️ 

2. It’s not just “kids” under 35 😉 

3. TikTok is a Search Engine 🔍️ 

4. It is its own Influencer Network 🤳 

5. TikTok Shops is growing fast; if you’re in EComm, you must test it.

6. We can help

As The Flywheel and the Round Barn Labs crew assess the multifaceted opportunities presented by TikTok in 2024, it's clear that the platform is not just a trend but a transformative force in performance marketing.

Yes, the Flywheel newsletter was inspired by this post from years ago.

In short, we want to help brands create a flywheel with affiliate and influencer content and amplify that trusted content via paid channels. It still resonates today and is playing out live on TikTok.

Marketers can get the most out of the growing and often misunderstood channel by debunking myths, understanding its role as a search engine, leveraging its influencer network, and utilizing TikTok Shops.

The TikTok opportunity is here, and it's ripe for the taking, promising a landscape where creativity, engagement, and commerce converge like never before.

The affiliate world has been waiting for something like this for a while. Here it is. What are you going to do about it? #44