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TikTok ads for small businesses: worth it or hype?

Social advertisingFebruary 15, 20226 min read

TikTok is no longer just an app for teenagers. More and more people in their thirties and forties scroll through it every day. They watch recipes, DIY videos, workouts and funny clips. That also makes the platform interesting for business owners who have nothing to do with dance routines.

Even so, TikTok is not the right choice for everyone. It takes time to make good videos, and not every product suits the platform. In this article you will read when advertising on TikTok makes sense for your business, when you are better off skipping it and how to start small and smart.

Why TikTok is now also interesting for small and medium-sized businesses

There are three reasons why more and more businesses are looking at TikTok.

The reach is growing. The number of users is rising quickly. Older audiences are also finding their way to the app. If you start now, you compete with fewer advertisers than on Facebook or Instagram.

The costs are often lower. On many platforms, an auction determines the price of your ad. When there are few advertisers, you pay less for your impressions. On TikTok, that is still often the case. Do not count on this lasting. As soon as more businesses join, prices usually rise.

The video decides everything. On TikTok, the platform also shows your video to people who do not follow you. A good video can therefore travel far, even on a small budget. That is an opportunity for smaller businesses that are creative.

When TikTok ads work well

TikTok works best when you can show something within a few seconds. Think of a product being used, a before and after result, or a behind-the-scenes look.

These types of businesses often have a head start:

  • Food and drink: restaurants, bakeries, meal boxes and specialist shops. Visuals do the work here.
  • Fashion and accessories: clothing, shoes and jewellery are easy to show.
  • Beauty and personal care: a tutorial or a result convinces quickly.
  • Sport and health: exercises, products and fitness studios.
  • Home and DIY: tips, tricks and surprising transformations.
  • Recruitment: an informal video about your team and workplace often attracts younger candidates.

Recruitment deserves extra attention. Many small and medium-sized businesses are looking for staff for practical roles, such as mechanics, hairdressers, delivery drivers or hospitality workers. A short video with a real colleague says more than a standard job posting. You show what it is like to work for you.

When you are better off choosing another channel

TikTok is not a miracle cure. In these situations, another channel often makes more sense.

If you sell complex B2B services with a long decision process, LinkedIn or Google is usually a better place to start. B2B means that you sell to other businesses. Those buyers actively search for a solution or want to see business evidence first. A light-hearted video rarely kicks off a process like that.

If you have little time, TikTok can also disappoint. The platform demands a constant stream of new videos. An ad quickly wears out. If you have nobody who can film regularly or come up with what to show, you will not keep this up for long.

Finally, if you have a product with a small, very specific audience, Google Ads is often more efficient. People there search for exactly what you sell. On TikTok, you interrupt people while they are doing something else. That calls for a different kind of message.

How to make videos that suit TikTok

The biggest mistake is putting a commercial on TikTok. People scroll through at lightning speed. A polished video with a voice-over is spotted as an ad immediately, and then people swipe away.

Make videos that look like TikTok. Filming with your phone is fine. A moving camera, real people and everyday language often work better than an expensively produced video.

Keep to these points:

  1. Grab attention in the first few seconds. This is called the opening, or in industry jargon the hook. Start with a question, a surprising image or a clear problem.
  2. Show the product. Do not just say what it does. Show it in use.
  3. Keep it short. Fifteen to thirty seconds is often enough.
  4. Add subtitles on screen. Many people watch with the sound off.
  5. Finish with one clear action. For example, ordering, calling or booking an appointment.
  6. Use sound that fits. Choose music or audio that belongs on the platform, as long as you have the rights to use it in an ad.

How to start testing

Start small. You do not yet know what works for your audience, so you first want to learn. Choose a modest daily budget and check what minimum the platform requires. Let the campaign run for a few weeks before you draw conclusions.

Test at least three different openings for your video. The rest of the clip can stay the same. That way you can see which start holds the most people. This teaches you more than three completely different videos.

A common scenario: a bakery with two branches wants more customers from the local area. The owner films three short videos with the same cake. In the first, she starts by cutting the cake. In the second, she first shows an empty display case being filled. In the third, she asks a question: “What do you bring along to a birthday?” She uses a small budget and targets a radius around the shops. After two weeks she sees that one opening is clearly watched for longer and brings more visitors to the website. That video gets a larger share of the budget. She stops the other two.

This example is intended as an illustration. The outcome differs from business to business. The approach stays the same: start small, compare variants and adjust based on what you measure.

Measuring what really happens

Views and likes are nice, but they do not pay the bills. You want to know what happens after people watch. That is why you also measure on your website.

For this you use the TikTok Pixel. This is a piece of code on your website that shows which visitors come via TikTok and what they do. Think of an order, a completed form or a phone call. This shows you what a result costs.

Keep an eye on these figures:

  • Cost per click: what do you pay for a visitor to your site?
  • Cost per result: what does an enquiry or a sale cost?
  • Watch time: how long do people stay with your video?
  • Conversion: how many visitors do what you want, such as buying or getting in touch?

Bear in mind that TikTok is often at an early stage of a customer’s research. Someone does not always buy straight away. Sometimes they look you up later via Google or come back a week later. So also look at the overall picture, not just the last click.

Frequently asked questions

How much budget do I need to start?

You can start with a modest budget. First check what minimum TikTok requires and allow for a test period of several weeks. Also take into account the time or costs of making videos. These are often just as important as the advertising budget.

Do I need to have an active TikTok account myself?

It is not mandatory, but it helps. An account with real videos makes your brand more credible. People who see your ad often take a quick look at your profile. An empty profile then works against you.

Does TikTok suit my business if I do not have a young audience?

It can, because the user base is becoming broader. Still, it depends on your product and your options for video. First check whether your audience is active there and whether you can produce footage regularly. If you are unsure, test on a small scale before investing more.

Book a free 30-minute introductory meeting

Are you unsure whether TikTok suits your business? Or do you not know how to get started? Book a free 30-minute introductory meeting with Adventio Marketing in Amersfoort. We will discuss your audience, your goals and the channels that fit them. You will get honest advice, even if that means TikTok is not yet the best choice.

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Thirty minutes, free. You leave with at least three concrete improvements for your campaigns. Book an intro call
Rather call first? +31 6 39 82 1510 Or email info@adventio.nl
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