Jan 25, 2023
Chemistry Unfiltered: January
Did you miss the latest edition of our newsletter, Chemistry Unfiltered? Or do you want to learn more about the experiments we dissected? Don’t worry – we’ve got you covered. This month is all about brands, people, and ads taking on 2023 with a new perspective. Here is what you missed in the ad world.
Is TikTok Ready to Challenge Google & Meta in the Ad Space?
Online ad spending might be slowing down on some platforms, but for TikTok, it’s just heating up. According to Campaign US, the platform witnessed the highest growth in US ad spending in the third quarter of 2022. Just look at Disney increasing their TikTok spend to a whopping $17.9 million compared to the $3 million they spent in the first quarter. While a lower CPM is what all advertisers are looking for, what does this really mean for advertising on TikTok?
According to Michael Sweeny, head of marketing at Clearcode, this lower CPM can likely be attributed to the fact that TikTok is still a relatively new social media platform, and not every brand is turning to TikTok for advertising. As a result, there is likely less competition on TikTok than on other well-established social media platforms.
Sweeny told Campaign Asia-Pacific that “from an advertiser’s perspective, they can reach the same audiences on TikTok pretty much as they would on other social media platforms but can do so at a lower cost. Reaching the same audience at a lower cost helps drive ROI.”
TikTok is really trying to change the game and do things differently than their platform competitors. They look to be taking a more accommodating approach when working with advertisers. One such example is its flexible payment options for brands that closely relate to the platform or are part of its partner program.
According to Campaign US, TikTok will provide funding for a campaign and give the agency 30 days after serving the final ad to pay it back, rather than requiring immediate payment linked to a bank account or credit card.
Chemistry isn’t saying to dump your full spend budget into TikTok (or even any if it doesn’t make sense for your brand), but we are saying don’t be afraid to look at different mediums for your brand. What you’re experimenting with right now may be your next always-on channel.
Trend Spotlight: Personalization & Curation
There are endless products, services, and information being fed to people every single day, and people are exhausted by too many choices. Fatigued by the choices they need to make in their everyday lives, people want the choices they make for pleasure to be as easy as possible, which is where curation comes in. This isn’t necessarily a new idea, but demand and technology can provide curated services and experiences like never before.
This need for personalization has a lot of Gen-Zers saying mainstream culture is dead. People don’t want what everyone has just because everyone has it anymore, which means the need to craft a personal and seamless experience is essential.
Look at Spotify; last year they teamed up with EasyJet to help those experiencing wanderlust — but feeling a little wander-lost — find their next travel destination. They created Listen&Book, where listeners are given travel destinations they should visit based on what they listen to while also making a curated playlist for you to jam to throughout your travels.
This initiative goes to show that people are longing for new experiences, but they don’t know what they want. It’s our job as advertisers and brands to help them make the right decision in a way that feels effortless to consumers.
If you want to talk about how we can help you start fresh this year, just reach out! Or if you think we forgot anything major let us know on our socials so we can keep this convo going.
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