-
Presented as a showcase for companies, the fashion platform is based on an efficient business model on advertising.
Impact on the youngest segments of society. This is undoubtedly the pending task that brands must tackle today. Young people are callous before traditional marketing, but reaching them is essential for companies to survive in the long run. They are potential customers who fall in love today to buy tomorrow.
Seducing them is also a complex need. For not following the rule: they don’t watch tv, a medium that has been the winning horse of traditional advertising since its inception. Companies, too, do nothing but ponder what content and formats to reach these consumers, who are increasingly demanding and selective, and only accept ads that add value to them; that affect, interest and serve them. not everything is worth it.
TikTok stands as an oasis in the middle of this desert of possibilities. “His birth changed the paradigm of the advertising industry,” he says. Thebe LorenzoGeneral Manager of Business Solutions at TikTok for Spain and Portugal. The platform allows advertisers to create branded content that is organically integrated into the entertainment world; this is a formula that seems to be a winner among the youngest. Lorenzo insists that TikTok is “a playground where they can show themselves as they are. A blank canvas” for brands.
In fact, the platform aims to be “a reference partner for the digitization of the Spanish economy”. To this end, it interspers three organic content with an ad placement in different situations when it comes to showing videos to users. But beyond paid campaigns, brands also use the organic variant for display. Based on the fact that TikTok accounts are free and accordingly LawrenceNo upgrade to premium the platform’s business model is based on its advertisers. And it’s not bad at all: $990 million was billed worldwide last year, according to the Financial Times. Therefore, it is open to “listening to the market and responding to its needs”.
In this content; trends and viral phenomena are created that brands use to interact with the public. For example: some time ago young people went crazy with a pasta sauce recipe consisting of cooking tomatoes with oil, feta cheese and spices, so much so that supermarkets offered it for sale in packages containing the necessary ingredients for cooking. And they’re out of stock.
from 10.000 Euros
Although TikTok refuses to talk about fees, it ensures that self-driving campaigns have a minimum budget of 20 euros per day. “There are media that you can’t start talking about if you don’t start with at least half a million euros,” he explains. Alejandra Galvez, director of integrated media at Ikea Spain. But this is something that social networks “are more efficient than media like television because you can segment the public” are not. Platforms like TikTok therefore “have a pretty big payoff, not only in terms of sales, but also in terms of store visits, especially online. Even though TV is still the queen of mambo in Spain,” the director continues.
Related news
However, even though advertising on Spanish television is more affordable than in other European countries, he says, “You can’t run a campaign with 10,000 euros. But yes on TikTok.” An advertisement on television can cost between 5,000 and 6,000 euros. “And you’re not doing anything with an ad,” says Gálvez. TikTok ‘breaks records’ for engagement (the level of consumer loyalty to brands) and also “has been showing relentless growth in recent months,” he concludes.
Most brands hire agencies to manage their actions with TikTok. This is the case of Ikea Spain, which has had a user managed by YMedia for about a year. Your account manager Andrea Oscozexplains that the platform has “a lot of potential to deliver messages to very hard-to-reach destinations.” AND influence transcends the community itself from the account. “Because the algorithm positions them based on the relevance of their content, not the reach of their community,” he says. Of course, it requires a posting frequency that is “pretty high, at least one or two pieces of content per week, which should be consistent with advertising.” And he warns: TikTok is drastically increasing both its consumers and consumption time. “So the sooner the brands start, the better. Because it’s not very saturated yet.”