TikTok Reveals Insane Stats About Sales on the App
Spoiler alert: if you aren't on TikTok yet, the stats TikTok recently revealed are going to convince you that it's time to start marketing on TikTok - especially if you have a product that millennials and the generations below would be interested in. TikTok was around well before the pandemic, but the pandemic exploded the app on to our global consciousness. TikTok has over 50 million daily users in the US, meaning that nearly 20% of all internet users in America log on to TikTok every single day. As digital marketers, we have to meet our audience where they're at. And the place they're at is overwhelmingly becoming TikTok.
The Infinite Loop
In its new marketing report, TikTok has coined a new phrase to describe the sales pattern on its app: the infinite loop. TikTok says that it's users don't follow the tradition sales funnel pattern well known to marketers.
"Today's consumers rarely go from the top to the bottom of the traditional funnel to make a purchase. They often enter, exit, and re-enter at different stages of the purchase journey based on their needs and wants. Additionally, the funnel often leads consumers to make one-time purchases, failing to help brands nourish long-lasting and meaningful relationships with consumers." - TikTok for Business
Instead, TikTok users follow a looping path to their purchases. Discover --> Consideration --> Purchase --> Review --> Participation --> Purchase --> Discover ... You get the picture. TikTok users are more active in their purchasing journey than consumers exposed to traditional forms of marketing.
10 TikTok Marketing Stats You Need to Know
1. TikTokers are 1.5 times more likely to immediately buy something they see on the platform.
2. TikTok is 1.7 times more likely to be the source for product discovery than the other social media platforms.
3. TikTok users are 1.4 times more likely to research products/brands they find on TikTok than on the other social media platforms.
4. TikTokers are 1.4 times more likely than other platforms' users to buy a product/brand they find on TikTok.
5. Compared to other platform users, TikTok users are 1.5 times more likely to convince a friend/family member to buy a product they've seen on the app.
6. TikTokers are 2.4 times more likely than other platform users to create a post and tag a brand after buying their product. Hello, UGC!
7. TikTok users are more than 2 times as likely to comment/DM a brand after making a purchase than users of other platforms.
8. 39% of TikTokers say that "lifting spirits" in a video is a key factor for wen they decide to buy a product.
9. TikTok users are 1.3 times more likely than users of other platforms to feel excited or euphoric about product purchases.
10. TikTok users come to the app ready to discover and be inspired. 49% of users come to the app to discover something new, 35% of users come to the app to learn, and 29% of users come to the app to be inspired. That's an audience ready to be influenced.
What Do These Stats Mean for Your Brand?
First and foremost, these stats mean that your brand probably needs to get a TikTok account ... today. Yes, of course there are exceptions. If you are selling a service that wouldn't be an attractive sale to the main demographic on the app (around 50% of TikTok users are under the age of 30), focusing time on TikTok might not be right for you. For example. if you have a product that specifically targets women in their late to middle age - you won't want to make TikTok your number one focus. But ... reposting Reels content from your Instagram page definitely won't hurt.
While older generations don't make up the majority of TikTok users, there is absolutely power for selling to the age group in the virality of UGC on the app. After a woman posted a casual video of the result of her favorite under eye wrinkle cream, the cream was completely sold out within a day.
Here's the kicker: do not post ads on TikTok. If you watched the viral video above, you know that an effective sales video doesn't have to be polished or sales-y. But it must be entertaining. According to TikTok's recent study, 44% of daily TikTok users want branded content to be fun and entertaining.
In short, they don't want to feel like they're watching a commercial.
So how do you achieve this?
Use the trends. Simple as that. Adapt trends to your industry's niche and watch the magic happen.
As your account grows, you'll want to be active in the comment sections of other videos. Consumers love when brands are dropping funny comments. It humanizes your business and keeps your name at the top of their minds.
TikTok isn't going anywhere, and the longer you stay off of the app - the harder the learning curve will be when you're finally forced to join as the spending power of the users on the platform grows. To learn more about TikTok, head to the TikTok section of our blog here.