TikTok’s advertising platform has once again proven its strength in driving sales, with new data revealing significant returns on investment (ROI) for advertisers in both the short and long term.
In collaboration with Dentsu, the global marketing agency, TikTok released the findings of a comprehensive study that analyzed the impact of advertising across 15 Nordic brands.
The study, which focused on the ROI of TikTok ads over both short (1-6 weeks) and long-term (1-10 months) periods, presents valuable insights for marketers seeking to optimize their campaigns on the platform.
We're going to go over these findings and explore how brands can leverage TikTok’s unique strengths to maximize their ROI, both in the short and long term.
TikTok’s Impact on Short-Term ROI for Advertisers
The study revealed that TikTok delivers one of the highest short-term ROI in the advertising industry, with an impressive average return of 11.8.
For comparison, the study showed that other media channels typically yielded an average ROI of just 8.7, placing TikTok at the forefront of immediate sales generation. Specifically, advertisers saw nearly 12 times the return on their investment within just six weeks, making TikTok a standout performer in terms of driving sales quickly.
The results also highlighted that TikTok’s sales impact extended beyond the campaign period, with effects lasting up to four weeks after the ads had finished running. This sustained impact reinforces TikTok’s ability to deliver lasting results even after the initial push.
Long-Term ROI: Building Brand Equity
While TikTok is known for its ability to generate immediate sales, the study also revealed its significant contribution to long-term brand growth.
Over a 1-10 month period, TikTok's ROI averaged 4.5, surpassing the ROI of many other media channels, which averaged around 3.2. This demonstrates that TikTok is not only effective for short-term sales but also plays a crucial role in long-term business sustainability, driving brand loyalty and recognition over time.
Brands that leveraged TikTok for long-term growth saw stronger brand-building effects, reinforcing the idea that TikTok's value goes beyond direct sales.
Its combination of short-term performance and long-term brand-building capacity positions TikTok as a unique tool in advertisers' media strategies.
The Role of Content Types in Driving ROI
The study also categorized TikTok ads into three distinct types: Storytelling UGC, Tactical UGC, and Professionally Produced Ads.
Storytelling UGC, which focuses on creating engaging narratives without direct promotional messaging, was found to generate 70% higher ROI than Tactical UGC, which is designed with a clear intent to drive sales.
A great example of a brand using Storytelling UGC on TikTok is Frank Body's. In a video ad, a user demonstrates the application of Frank Body's Original Coffee Scrub in a casual, authentic manner.
Despite no narration, the user shares their personal experience, focusing on how the product makes their skin feel smooth and rejuvenated. Rather than promoting the product directly, the video highlights the effectiveness of the scrub through an engaging and relatable narrative.
@frankbody There’s a reason why they call it the OG. Try my Original Coffee Scrub now for the softest skin of your life. 😍 #coffeescrub #beautyhacks #bodycare ♬ OH MY - Camino 84
The content feels organic and personal, making it resonate more with viewers. This approach, where the product is subtly integrated into a story, results in higher viewer engagement and stronger brand recall.
So far, the UGC video has amassed 90k likes and thousands of views, proving once again that storytelling is a highly effective marketing tactic.
Tactical UGC tends to be more promotional and less engaging, whereas Storytelling UGC builds stronger connections with the audience, driving higher engagement and longer view times. This highlights the importance of creating authentic, narrative-driven content that resonates with viewers on a deeper level, rather than simply focusing on direct sales messaging.
The Power of Consistency: Always-On Advertising
One of the key findings from the study was the importance of maintaining a consistent presence on TikTok.
Advertisers who adopted an always-on strategy—meaning they were continuously engaged with their audiences on the platform—saw higher ROI compared to those who relied on sporadic, one-off campaigns. This approach not only increased brand familiarity but also kept the brand top of mind for consumers when they were ready to make a purchase.
A highly relevant example of an always-on strategy comes from Gymshark, the fitness apparel brand known for its consistent and creative engagement on TikTok. Gymshark has adopted an always-on approach by regularly posting engaging content, including workout tutorials, influencer collaborations, and community-building videos.
Instead of focusing on occasional campaigns, Gymshark integrates itself into everyday conversations around fitness, consistently creating content that resonates with its audience.
Oh, and they also inject storytelling elements into their videos, sharing authentic fitness journeys, personal transformations, and motivational stories that inspire viewers. This storytelling approach not only showcases the brand's products in a natural, relatable context but also strengthens the emotional connection with the community.
@gymshark don’t know where I’d be without it #gym #mindset #Gymshark @Chris Bumstead @Annabel Lucinda @nickvenuti_fit @Analis Cruz @Belcast @JamesBeardwell ♬ just leave me to bleed - usedcvnt
This approach has led to significant success for Gymshark on TikTok. With over 5.7 million followers and almost 113 million likes on its account, Gymshark’s videos regularly receive between 100k and several million views.
Their consistent presence and relatable content not only build stronger connections with their audience but also keep the brand top of mind.
This ties directly back to the original finding from the study: brands that remain consistently active on TikTok see a higher ROI because they foster familiarity and engagement with their audience, ensuring they remain relevant when consumers are ready to make a purchase.
Strategic Insights for Advertisers
For advertisers looking to maximize their TikTok ROI, the study offers several actionable insights:
- Leverage Storytelling UGC: Focus on creating authentic, narrative-driven content that resonates with users and drives higher engagement.
- Maintain an Always-On Strategy: Consistency is key—keeping your brand visible and top-of-mind for users will yield better results than sporadic campaigns.
- Integrate with Other Channels: While TikTok excels in driving short-term sales, integrating TikTok campaigns with other media channels can further enhance overall marketing effectiveness.
By implementing these strategies, brands can ensure that their TikTok campaigns not only deliver strong immediate sales but also contribute to sustained brand growth over time.
Maximizing ROI with Consistency and Creative Storytelling on TikTok
TikTok’s latest study reaffirms the platform’s dual power in driving both immediate sales and long-term brand growth, making it an indispensable tool for advertisers looking to enhance their marketing strategies.
With an impressive short-term ROI and sustained long-term returns, TikTok has solidified itself as a platform that excels in both performance marketing and brand-building efforts.
The key takeaway for advertisers is the importance of crafting engaging, narrative-driven content that resonates with audiences—especially through Storytelling UGC—while maintaining a consistent, always-on presence.
Brands like Gymshark exemplify the success of this approach, consistently staying in front of their audience with engaging content, and they’ve seen impressive growth on the platform, with their TikTok account amassing over 5.7 million followers and nearly 113 million likes. By integrating their
