TikTok’s latest good news: its ads are sticky and effective, and rich people spend a lot of time there

TikTok is having a very good week, it seems. It started with a Reuters story saying the social video platform has passed the 1 billion user mark in a shockingly short time. Next came the Bytedance property’s hosting its own event, TikTok World, at which it announced several new innovations to attract advertisers, creators and influencers.

The latest feather in its proverbial cap comes courtesy of research conducted by consumer insights platform Disqo, which found that TikTok ads are not only stickier than the average social platform, they also show a higher propensity to generate action taken because of the ad. Finally, the research also shows that affluent TikTok users are just as likely to spend a lot of time with it.

“Very often people say, ‘I don’t like ads or engage with them,’ as a social trope,” said Anne Hunter, Disqo’s vp of product marketing. “To see that this particular environment created ad formats that people are engaging with and enjoying is bigger than just the success of the platform — it speaks to the opportunity the ad industry has to shake things up in how advertising is delivered in a new way.”

Hunter explained that TikTok offers multiple types of ad opportunities, from in-feed ads to overlays, as well as takeover ads and influencer placements. That variety, and their integration into the content in a way that’s less interruptive than traditional ads, seems to contribute to their appeal to users. 

“In a lot of ways, these formats go back to original product placement in soap operas. It’s more aligned to a form of video digital product than it is to a digital display ad,” said Hunter. “Display ads don’t have the same emotional resonance as we’re seeing with TikTok formats in an environment where having fun and being playful is part of the raison d’être to be on the platform.”

The agency world is taking notice. “Consumers are also now creators — this was happening before the pandemic, but with companies like TikTok and Facebook paying influencers and individual creators directly, the creator economy has continued to grow,” said Scott Schiller, global chief commercial officer at Engine Group. “Platforms, advertisers, and brands have to maintain a two-way dialogue with consumers, because they have more power than ever, and their habits will continue to evolve.”