Brandformance: the TikTok strategy that drives conversions

Brandformance: the TikTok strategy that drives conversions

25 August 2022

TikTok For Business

Insights

When it comes to campaigns with brand and performance goals, TikTok is a game-changer. Our platform offers 100% share of voice, a sound-on experience that helps with emotional priming, and a full-funnel suite of optimisable ad solutions. Combined, these features make for marketing campaigns that can deliver big on all types of KPIs, from awareness to CPA.

That's why businesses that adopt a brandformance approach on TikTok, combining brand and performance objectives into single campaigns, see improved campaign performance compared to isolated single-objective campaigns¹.

To better understand how to activate your own brandformance strategy on TikTok, read on.

We analysed the campaigns of more than 80,000 advertisers in Europe and Israel to determine the effect grouping brand and performance campaigns has on conversion rates.

Our marketing science team developed a statistical model to weight the different factors that help to increase conversion rates when a brandformance strategy is in action.

We found that when focusing on the middle funnel, brand and performance-mixed campaigns performed 1.14 times better than isolated performance auction campaigns and 1.06 times better than performance auction campaigns that have lower-funnel objectives. We also found that engagement rate was an important factor when driving conversions. Conversion rates were two to three times larger for brandformance campaigns compared to performance campaigns.

So what does that mean? The study showed that on TikTok, taking a holistic approach and combining performance and brand objectives is the best way to drive incremental conversions. And brands that find the most success on the platform will have an active strategy that rotates between upper- and lower-funnel campaigns to meet customers on their infinite purchase path loops.

To build your own brandformance strategy, take inspiration from Ray-Ban, who leveraged this holistic approach to smash its own campaign targets.

For its recent summer campaign,Ray-Bancombined three TikTok ad products -TopView,Collection AdsandIn-Feed Ads- to target specific brand and conversion objectives in a single campaign.

The TopView Ad with a Reach & Frequency buying method allowed the brand to drive engagement and awareness globally, while also leveraging add-on solutions such as the Super Like and Display Card, and to drive consideration to a specific product on their website. It surpassed targets by raking in over 307 million video views, reaching an audience of over 70 million users, and hitting a cost-effective CPA that was 40% lower than previous campaigns.

Thanks to Ray-Ban's strategic brandformance approach, their Collection Ads also registered a low cost-per-action and drove quality traffic to their website, resulting in a 31% decrease in bounce rate.

The In-Feed Ads with Display Cards also registered a +20% increase in click-through rate when compared against pre-campaign estimates, driving further traffic to the website.

We've found that, regardless of funnel position, the brandformance strategy drives higher conversion rates. When planning brandformance campaigns on TikTok, focus on a holistic approach – for example, consider auction settings and creatives that drive higher engagement rates rather than simply bundling brand and performance objectives.

ConsiderAutomated Creative OptimisationandCampaign Budget Optimisationto supercharge mid-funnel brandformance campaigns, and utilisetargeting productsandengaging creativefor lower-funnel campaigns. Boost these withSpark Ads, which work across all funnel positions.

Get in touch with your TikTok rep to set up your own brandformance test.

Sources
1. Enhanced Learning for Brandformance, internal TikTok study