How to Use TikTok for Business Growth Purposes

Lisa Scheiblhofer
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Should you use TikTok for business purposes? Can this app further your business growth?

You might be wondering, “Isn’t this app only for 13-year-olds?” It’s a common misconception. People think TikTok is for children and thus not interesting for businesses. But, I believe this social media app has a lot of unused potential.

Hear me out: The age group on TikTok is indeed younger than on other social media apps. More than 50% of global users are below the age of 34.

That means the majority of TikTok users belong to “Generation Z” - the generation born after 1998. And here lies the one thing most businesses don’t understand.

They think there is no money in TikTok because the audience is too young. Wrong! Generation Z actually has a lot of potential buying power.

While we don’t have exact numbers yet, researchers estimate that by 2020, Generation Z will have a buying power of $29 to $143 billion. That’s quite a sum. What’s more, 93% of parents admit that their children influence their purchase decisions.

What do the numbers tell you? TikTok for business makes absolute sense. You should market to this audience. They either have capital themselves - or if they don’t, they rely on their parent’s money.

Since TikTok is new, businesses are only recently starting to advertise on the app. TikTok for business is slowly on the rise.

Does TikTok for Business Make Sense?

TikTok is a video sharing app that was only launched in 2017. The growth of the app is quite impressive. According to the latest numbers, there are 800 million active users on TikTok per month.

On the app, you can publish short videos between 3 to 60 seconds long. Fans can follow your account, heart your videos, and leave comments.

Like every other social media platform, TikTok has certain trends. The app is best known for “lip-sync” videos, memes, and comedy.

The algorithm on TikTok is not as fleshed out as on other social media apps like Instagram. As long as you use hashtags and post frequently, you will reach a wider audience.

Do Marketers Underestimate TikTok?

When you get a lot of views, your content will get promoted and reach more people. What does that mean? It means most marketers underestimate TikTok and its marketing potential.

While TikTok is on the rise in the U.S., it’s most popular in China, where it’s called Douyin. Douyin was already published in 2017. It’s separated from TikTok however, to fit with certain laws in China.

But how popular is TikTok really? Already in February 2019, TikTok was downloaded 1 billion times through app stores. Download wise, TikTok is more popular than Facebook or Instagram. When it comes to numbers, TikTok has more monthly users than Snapchat and Twitter.

Most content on TikTok is short and fun. Writer Jia Tolentino of The New Yorker put the peculiar atmosphere on TikTok into words:

“I was not giving TikTok my attention because I wanted to keep up with the news, or because I was trying to soothe and irritate myself by looking at photos of my friends on vacation. I was giving TikTok my attention because it was serving me what would retain my attention.…”

TikTok works because the short videos are attention-grabbing. Creating light-hearted videos for the TikTok audience will grow your customer base.

TikTok for Business - What Are the Benefits?

TikTok for business is great if you want to build brand awareness. This works especially well through organic content. There is a possibility to market via paid advertising on TikTok. Right now, there are four types of paid ads.

By far the most popular is the “hashtag challenge”. For that kind of ad, you create a hashtag with a goal in mind. Sometimes the participants can win a prize.

Some brands had great successes with their hashtag challenges. Denim asked their users to show off their best looks. Dreamworks asked their audience to dance to the theme song of their new movie.

So, paid advertising is only slowly emerging on the app - but apparently it's pretty expensive. How expensive? A hashtag challenge runs six days and costs $150,000. (Ouch)

If your brand is small, you can still advertise on TikTok. But do so with your organic content. This way you can engage your target group without spending much money.

Increase Your Customer Lifetime Value

As I said, most TikTok users are very young. This offers another great potential for businesses. Why? Because if you can win over a young audience, it will increase the customer lifetime value.

What does that mean?

It simply means that people buy from your business from a young age. They likely stay loyal to your brand as they get older. So, in the best case, they stay loyal to your business for their entire life.

If you have a $30 product and a person buys from you once, their customer lifetime value is $30. If that person buys from you yearly from age 18-55 their customer lifetime value is $1,110.

If you build trust with such a young audience now, you will get an incredible customer lifetime value. From a marketing perspective, it makes absolute sense to use TikTok for business.

Should You Use TikTok for Your Business?

Whether you use TikTok for your business highly depends on your target market. On TikTok, users are a certain age group with a certain buying power.

If you want to market to the general U.S. population, then TikTok isn’t for you. You can find them on mainstream apps like Facebook and Instagram.

In an online survey by HubSpot, only 10% of the general population said that they most often use TikTok. So be aware, you are targeting a very special generation in a certain niche when you use TikTok.

Should you market on TikTok? Yes, if your business fits with the more young and fun spirit of this app, then you absolutely want to use it.


TikTok was only released in 2017 and is getting more popular each year. It’s a young app with a young audience and hasn’t seen much advertising yet. That’s why TikTok for business has lots of potential. This is especially true if you use organic content to grow your follower base and expand your reach.

If you want to start out on TikTok, you need fun and engaging video content.

Our dedicated copywriters can craft video scripts for you. If you want to make the most out of your TikTok video advertising, contact us today.

Lisa Scheiblhofer

Lisa Scheiblhofer believes that the most important part about copywriting is human emotion and connection. Because of this, she focuses on making your message speak to the heart of your audience.

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