I work in advertising and we've found that ads on Tiktok are expensive to produce and also get less engagement than other social media companies. I enjoy Tiktok as a product but I'd love to see conversion metrics across the platform.
I think that is something which has been in the background over there for awhile now considering their plan has always been to replicate the success in e-commerce in the Asian market [1] by expanding it to include the US/EU market [2]; to that end they also began to build fulfillment centers in anticipation [3] but I don't think it's had much success as of right now.
I imagine they are still very eager to shift into that type of model since the format does present some real potential in generating conversions. If you've done the ads where the user can 'swipe' into the e-commerce shop those seem to work really well for makeup brands from what I've seen.
Sources, if anyone is interested in checking out what I mean
I train market mix model for high level attribution for US companies and it usually looks like TikTok doesn't have a strong impact on revenue compared to how much is spend on it. Might be that there is some reason that the model doesn't view them as strong and I am planning to carry out a couple of incrementality tests to see how true that is.
