Boosting telco ROI with effective TikTok advertising in the Nordics
In today’s connected world, TikTok has emerged as a go-to destination for telco consumers, revolutionizing the way brands engage with audiences. TikTok thrives on delivering creativity, authenticity and impactful storytelling, with 68% of potential customers 'loving' content featuring real users¹. This has been amplified through a new category of 'edutainment' content which perfectly aligns with needs of the ever-evolving, highly competitive telecommunications industry.
For telco brands, TikTok represents a unique opportunity to connect with digitally savvy consumers who demand more than just functional services. Consumers seek experiences, innovative solutions and brands that resonate with their lifestyles. 3 in 4 users stated that TikTok allows marketers to build a strong connection and community with users.² By leveraging TikTok’s ad product suite, telcos can showcase their offerings in an entertaining and relatable way.
Advertisers are naturally looking to demonstrate the impact these growing communities are having on their advertising spend on TikTok. One way in which they are doing this is through the use of Marketing Mix Modelling (MMM), which allows them to get a strategic and holistic view on TikTok’s impact on sales revenue in the marketing mix.
Choreograph Nordics (GroupM, EssenceMediacom) and Comviq wanted to better understand TikTok’s role in their media mix, their return on investment from the platform, and the campaign elements that drive success on TikTok. To gain more insight into these questions, they conducted an MMM study, focusing on assessing the impact of TikTok ad products and product bundles. Read on to find out what they discovered.
TikTok boosts ROI and business growth potential
Campaign Performance: TikTok provides highest channel ROI and 3.5x improvement with optimized objectives
TikTok provided the highest ROI compared to all other social and online media channels for Comviq's campaign activity. Indexing 25 points higher than the nearest social media competitor, this study shows that TikTok has a considerable impact on driving efficient returns across digital media campaigns.
Comviq demonstrated that TikTok can drive high efficiency and achieve demanding ROI goals for campaign performance across short term sales activity with lower funnel performance activity, driving a 3.5x improvement versus brand objective media. This was especially notable in the case of boosting mobile subscriptions and hardware sales.
Growth Potential: 3x current investment
While performance results were beyond expectations for Comviq, there was also a question of how much this performance activity should be scaled before reaching a point of diminishing returns. Working with Choreograph, it was determined that there was headroom for 3x higher weekly spend across the Comviq campaign activity to take advantage of the high efficiency sales phase.
Our Marketing Mix Modeling reveals TikTok as a very efficient channel driving short-term sales. With an ROI index of 134, the platform demonstrates clear efficiency in converting social media presence into business results. More importantly, our analysis reveals headroom for growth – suggesting the potential to triple current investment levels while maintaining performance.
These results from Comviq MMM demonstrate the significant business impact possible when brands fully leverage TikTok's capabilities. The 3.5x performance improvement from purchase-optimized campaigns particularly stands out, showing how crucial it is to align campaign objectives with business goals. Not only was Comviq able to demonstrate lower funnel performance improvements, but there was still further headroom for Comviq to scale their investment by almost 3x. We aim to continue testing with our Nordic partners to understand media impact across the full marketing funnel.
Sources
[1] Source: TikTok Marketing Science EUI Elevating your TikTok ads: Tech & Telco 2024 (UK Results) conducted by OI (Semiotics) and PA Consulting (Quant test).
[2] Source: TikTok Marketing Science Telco Survey April 2024 conducted via AYTM, n=1000