- TikTok delivered 90% higher ROI than online video and 12% higher ROI than other digital channels, excluding paid search, as revealed by the study.
- Campaigns leveraging a full-funnel approach on TikTok saw a 14% higher volume of enquiries compared to campaigns focused solely on lead generation.
- TikTok’s competitive CPM made upper-funnel campaigns cost-effective, showing returns similar to lower-funnel lead-generation campaigns.
- Despite its lower share of overall media spend, TikTok contributed 9.4% of all enquiries driven by digital media.
- For maximum ROI, 25%-40% of TikTok’s budget should be allocated to brand-building campaigns, with the remainder focused on performance campaigns.
- Running TikTok campaigns for 10-12 weeks resulted in a 62% higher efficiency, underscoring the importance of sustained marketing efforts.
In an increasingly competitive automotive market in the UAE and KSA, brands are adopting new strategies to stay ahead of the curve. According to a recent study by Al Futtaim Automotive, Annalect, and TikTok, TikTok has emerged as a game-changer for automotive marketing in the region.
The study highlights how automotive brands are leveraging TikTok’s full-funnel marketing capabilities to drive customer engagement, optimize media spend, and, most importantly, increase return on investment (ROI).
This shift toward a more integrated marketing approach has allowed automakers to reach customers at every stage of the buying journey, enhancing both awareness and action.
We will explore how TikTok is transforming automotive marketing in MENA, examining key strategies, the platform’s impact on ROI, and how brands can maximize their engagement and results through data-driven campaigns.
The Shift to Full-Funnel Marketing
The concept of full-funnel marketing has been gaining traction in recent years, and the automotive industry is no exception. Traditionally, marketers focused on optimizing leads and conversions in the lower-funnel stages—encouraging customers to take immediate action.
However, as customer behaviors evolve and the market becomes more competitive, automakers are now taking a more holistic approach. The study emphasizes that building awareness at the top of the funnel and nurturing leads through the middle stage is just as critical as closing sales at the bottom.
TikTok’s unique ability to engage users at various stages of the consumer journey has made it an essential tool for automotive brands. By integrating brand awareness campaigns with lead-generation tactics, brands can reach consumers earlier and more effectively.
As the study shows, campaigns on TikTok that used a full-funnel approach achieved a 14% higher volume of enquiries than those that focused solely on lower-funnel activities. This shift has been crucial in capturing the attention of digitally-savvy customers who are increasingly aware of their options before even setting foot in a dealership.
TikTok's Competitive Advantage in MENA
Why has TikTok become so central to automotive marketing in MENA? The answer lies in the platform’s ability to deliver significant ROI at relatively low costs.
The study revealed that TikTok delivered 90% higher ROI than online video and 12% higher ROI than other digital platforms, excluding paid search. These impressive results have made TikTok a go-to platform for automakers seeking efficient ways to reach and engage consumers.
One of TikTok’s major strengths lies in its ability to engage users through creative, data-driven campaigns. With the platform’s visual nature and short-form video content, brands can capture users' attention quickly and effectively.
The study highlighted that upper-funnel campaigns on TikTok, such as those focused on brand awareness, still managed to deliver results comparable to lower-funnel lead generation campaigns. This finding is critical in understanding TikTok's unique advantage over other digital platforms.
Moreover, TikTok’s ability to foster deeper brand loyalty has also made it a key player in the automotive marketing mix. The study indicates that content creators play a major role in driving consumer intent, with one-third of UAE buyers indicating that content creators influenced their purchase decisions.
This shift in consumer behavior towards relying on content creators underscores the growing power of user-generated content (UGC) in driving brand engagement and sales.
The Future of Automotive Marketing on TikTok
With TikTok proving to be such an effective tool for automotive brands, the platform’s role in shaping future marketing strategies is undeniable. Looking ahead, automakers will likely continue to invest in TikTok as a primary channel for customer engagement.
The study suggests that the long-term effectiveness of TikTok campaigns lies in sustained engagement, with 10-12 week campaigns yielding a 62% higher efficiency.
As the automotive buying journey becomes more complex, with consumers researching vehicles, reading reviews, and comparing options online before making a purchase, platforms like TikTok offer brands the chance to be part of the conversation early on.
This integration of brand-building efforts at the top of the funnel, followed by targeted lead-generation campaigns, will allow brands to nurture customer relationships over time, increasing the likelihood of conversion.
In the near future, the combination of creative content, user-generated engagement, and data-driven optimization will allow automotive brands to further refine their strategies on TikTok. These approaches will drive even greater efficiencies in media spend and continue to fuel the digital transformation of the automotive sector.
