How Do Social Media Algorithms Work
Looking at the CPC which is typically a proxy for the cost of getting the user to click on the ad and visit your website, TikTok again offers value with CPCs being 30% cheaper. Read more: How to create TikTok content. Why Choose DMI? TikTok users are more engaged and less likely to leave the platform Beyond reach, advertisers are obsessed with how much users engage with their ads (like them, share them, comment on them). The Value of TikTok Advertising In this study, the Engagement rate on TikTok ads is 835% higher than Meta. This is likely due to the authentic nature of the ads on the platform, where they often don’t look like ads which leads to a far higher opportunity for audience engagement. Your chances of driving comments and shares are far higher on TikTok but one of the interesting features of this data is that users on Meta are almost three times more likely to actually click on an ad. So, why is that?
How TikTok ads are designed
TikTok ads appear like any other full-screen video on the platform, so they aren’t always immediately discernible as ads. In addition, TikTok’s mantra to advertisers in 2022 was – “Don’t make ads, make TikToks.” Perhaps another reason is that the TikTok algorithm is particularly good at showing users content they like or want so that users can’t bear to leave the app. The TikTok lost hour is real. Read more: Know what times are best for when you should post on TikTok. TikTok’s impact on sales So, for advertisers, TikTok is cost effective to reach and engage with an audience but more difficult to prise them away from the clutches of the algorithm than that of Meta. Ultimately though, the main reason advertisers use either of these platforms is to grow sales. How does TikTok perform here?
This is where things get tricky for advertisers.
This is where things get tricky for advertisers. The return on ad spend (ROAS) offered by TikTok ads is 26% less than Meta, but still a very healthy 11x return on an advertiser’s investment. The Value of TikTok Advertising However, we’ve already outlined how users are less likely to leave the TikTok app (see table 2), which means that when measured directly, the cost per sale for TikTok is seven times that of Meta. That doesn’t tell us the full story though because we know that users are influenced by the ads that they see (but don’t click) on TikTok. According to recent research, 49% of TikTok users purchase a product or service from a business after seeing it advertised or reviewed on the platform. Take #TikTokMadeMeBuyIt as an example of its influence.
