- Automotive brands are successfully using TikTok’s full-funnel approach, combining brand awareness and lead generation efforts.
- Automotive brands achieve the best ROI by allocating 25%-40% of TikTok’s budget to brand-building efforts and 60%-75% to performance-driven campaigns.
- Campaigns that run for 10-12 weeks see a 62% increase in efficiency, making sustained efforts crucial for success.
- Full-funnel campaigns on TikTok drove 14% more enquiries than campaigns focused only on the lower funnel.
- TikTok’s competitive CPM allows brands to efficiently allocate spend while driving significant ROI.
According to a recent study by Al Futtaim Automotive, Annalect, and TikTok, automotive brands are finding significant success by leveraging TikTok’s full-funnel marketing strategies.
Rather than focusing solely on bottom-funnel lead generation, these brands are taking a more holistic approach, integrating both brand awareness and performance-driven campaigns. This has led to a dramatic boost in return on investment (ROI).
In this article, we will explore how automotive brands are using TikTok’s full-funnel strategy to maximize ROI, engage potential customers across all stages of their buying journey, and achieve measurable business outcomes.
The Power of Full-Funnel Marketing on TikTok
Full-funnel marketing refers to strategies that span from brand awareness at the top of the funnel to lead generation at the bottom.
Traditionally, many automotive brands focused primarily on the lower-funnel activities like lead generation, where immediate sales were the main objective. However, as customer behavior evolves and competition intensifies, brands are realizing the importance of engaging consumers earlier in their journey.
Hyundai’s TikTok campaign around the launch of its IONIQ 5 electric car is an excellent illustration of a successful full-funnel marketing strategy approach. By opting for a digital-first strategy around several highly notable sporting events, including NFL and NFC Championship games, Hyundai repurposed its TV ad for TikTok and targeted consumers with brand-building content before, during, and after the event.
@allisonholkerboss #ad You guys, this Hyundai #IONIQ5 commercial is crazy! What is your favorite part? Check it out yourselves on their page @Hyundai USA #hyundaipartner ♬ original sound - Allison Holker
This strategy led to a 3x increase in brand awareness and an 8.5x increase in ad recall, demonstrating the effectiveness of TikTok in driving brand awareness at scale.
TikTok has proven to be an ideal platform for full-funnel strategies due to its ability to deliver engaging content at scale and drive customer interactions across all stages of the buying process. In the study, it was revealed that campaigns utilizing TikTok's full-funnel approach experienced a 14% increase in enquiries compared to campaigns targeting only the lower funnel.
This demonstrates the critical role TikTok can play in reaching potential customers earlier, educating them about a brand, and building long-term relationships.
By reaching consumers with brand-building content at the top of the funnel, automotive brands can influence consideration and shift brand perceptions. This early-stage engagement ultimately improves the likelihood of customers entering the lower-funnel stages, where lead generation efforts can push them closer to making a purchase.
Optimizing ROI with Strategic Budget Allocation
A critical component of maximizing ROI on TikTok lies in the optimal allocation of marketing budgets across the full funnel. According to the study, automotive brands that successfully balanced their investments between brand-building and performance campaigns on TikTok saw the best returns.
The research suggests that the most effective allocation for maximizing ROI is 25%-40% of the budget for brand-building campaigns, with the remaining 60%-75% directed toward performance-driven campaigns like lead generation. This approach ensures that brands maintain high visibility and awareness in the upper funnel while also driving qualified leads in the lower funnel.
Hyundai’s campaign exemplifies this budget strategy: they invested in TikTok’s One Day Max for a high-profile ad placement, driving mass awareness, while also engaging creators in a react campaign that encouraged direct consumer interaction. This balanced approach not only enhanced brand visibility but also maximized engagement, leading to increased enquiries.
By investing in upper-funnel marketing, such as awareness-building videos or brand storytelling, automotive brands can create a foundation that leads to stronger engagement in the lower funnel, where consumers are ready to take action.
The full-funnel strategy allows brands to drive both immediate and long-term results, ultimately leading to higher-quality leads and greater sales potential.
The Impact of Campaign Duration on Efficiency
A key finding in the study is the importance of campaign duration in driving efficiency. Automotive brands running TikTok campaigns for 10-12 weeks experienced a 62% increase in efficiency. This data reinforces the idea that sustained engagement over time, rather than short bursts of activity, is crucial for success.
By maintaining a continuous presence on TikTok, brands are able to nurture relationships with potential customers and guide them through their purchase journey. Shorter campaigns may not provide enough time for full engagement, which is especially important in industries like automotive, where purchase decisions are often long and considered.
The study also highlighted that TikTok’s competitive CPM (Cost Per Mille) enables brands to run extended campaigns while still remaining cost-efficient. The combination of lower costs and longer engagement periods allows brands to drive meaningful results without overspending.
Practical Tips for Automotive Brands on TikTok
From the study, we can take a few tips to help automotive brands maximize ROI on TikTok:
- Integrate a Full-Funnel Strategy: Balance brand-building and performance campaigns to ensure maximum engagement at both the awareness and lead-generation stages.
- Allocate Budget Effectively: Aim to spend 25%-40% on brand-building campaigns and 60%-75% on performance campaigns to drive a well-rounded, effective strategy.
- Extend Campaign Duration: Running campaigns for 10-12 weeks increases efficiency by 62%, allowing brands to maintain consistent engagement.
- Leverage Creative Content: Create engaging, user-friendly content that encourages interactions and drives enquiries.
By embracing these strategies, automotive brands can continue to stay ahead of the competition and tap into TikTok’s vast potential to generate high-quality leads and sales.
Why TikTok Drives More Enquiries
At the core of TikTok’s effectiveness in automotive marketing is its ability to generate enquiries. The study showed that 9.4% of all enquiries driven by digital media were generated via TikTok, despite the platform having a relatively lower share of overall media spend.
Hyundai's TikTok campaign contributed to this phenomenon by driving high engagement through creator partnerships. TikTok creators like @angryreactions and @alisonholkerboss reacted humorously to Hyundai's ad, encouraging their audiences to engage and explore more.
This not only built brand loyalty but also drove additional enquiries. TikTok’s ability to engage users through creative, native content has proven effective in fostering customer interactions and driving lead generation.
