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That Fun TikTok Video? It’s Actually an Ad

The New York Times – “Brands are flocking to the platform like never before, drawn by its more than 1 billion users and its algorithm, which can make an ad seem like just another video…TikTok has been working to make the platform more lucrative for marketers and the creators they work with. And TikTok’s popularity with Generation Z and millennials, who are lured by its addictive algorithm and its setup as an entertainment destination versus a social network, has made the appeal undeniable for retailers. “The growth that we’ve seen is insane,” said Krishna Subramanian, a founder of the influencer marketing firm Captiv8, where roughly a dozen employees are focused on TikTok. “Brands have moved from just testing out TikTok to making it a budget line item or creating dedicated campaigns for TikTok specifically.”…Since August, at least 18 public retail brands, in apparel, footwear, makeup and accessories, have referred to their efforts on TikTok on calls with analysts and investors. Competitors have also taken notice. Instagram, for instance, has developed a TikTok-like feature called Reels and has been working to lure creators. In reports shared with advertisers and obtained by The New York Times, TikTok said Gen Z users, defined as 18- to 24-year-olds, watched an average of more than 233 TikToks a day and spent 14 percent more time on the app than millennials or Gen Xers on a daily basis. TikTok also told one agency that 48 percent of millennial mothers were on the platform, and that women ages 25 to 34 spent an average of 60 minutes on the TikTok app a day…”

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