From Storytelling to Sales: Short and Long-Term ROI of TikTok Advertising
In today’s fast-moving digital landscape, brands need to balance short-term sales impact with long-term brand growth. TikTok, with its unique blend of entertainment and engagement, has proven to be a powerful tool for both. A new Marketing Mix Modeling (MMM) study by Dentsu, in collaboration with TikTok and 15 Nordic brands, provides fresh insights into how advertisers can leverage the platform for maximum ROI in the Nordic markets.
Measuring TikTok’s Total Contribution to Sales
Sales modeling has long been the gold standard for measuring marketing effectiveness, but most models focus only on short-term impact. To fully capture TikTok’s potential, Dentsu developed the Total Contribution of Marketing framework – analyzing both short-term sales effects (1-6 weeks) and long-term brand-driven sales impact (1-10 months). The study examined 15 brands advertising on TikTok across Norway, Denmark, Sweden and Finland, utilizing three distinct models to measure impact.
The Short-Term Sales Impact of TikTok Advertising
The initial phase of the study focused on measuring TikTok’s ability to drive immediate sales, revealing impressive performance. With an average short-term ROI of 11.8, TikTok ranks among the most effective media channels for generating revenue. The findings showed that 75% of advertisers achieved the highest ROI on TikTok compared to other media channels, and the platform’s impact extended beyond the campaign period, with sales effects persisting for three to four weeks post-exposure.
Notably, advertisers who maintained a continuous presence on TikTok saw the greatest benefits. User-generated content (UGC) featuring creators was particularly effective in driving conversions, reinforcing the idea that engaging, authentic content resonates best with audiences.
The Power of Always-On Strategies
One of the most compelling takeaways from the study was the effectiveness of TikTok as an always-on platform. Brands that engaged with their audiences consistently saw sustained sales growth over time. Rather than relying on sporadic campaign bursts, advertisers who maintained a steady presence on TikTok increased brand familiarity and recall, ensuring they remained top of mind when consumers were ready to make a purchase. By using engaging storytelling-driven content instead of purely promotional messaging, brands were able to build stronger connections with their audiences.
Long-Term Effects: TikTok as a Brand-Building Platform
Beyond short-term ROI, the study also explored TikTok’s long-term impact by analyzing how ad exposure influenced brand metrics and subsequent sales. The results confirmed that TikTok is more than just a performance-driven platform – it also drives brand loyalty and recognition over time.
While the platform’s primary sales effect occurs within the first six weeks, brands benefited from an additional long-term ROI of 4.5, reinforcing TikTok’s ability to contribute to sustained business growth. Advertisers who invested in creative storytelling saw stronger brand-building effects, demonstrating that TikTok has a role in both lower-funnel conversion strategies and upper-funnel brand marketing.
Content Matters: Storytelling vs. Tactical UGC
To better understand the role of content in sales performance, the study categorized TikTok ads into three types:
Professionally Produced Ads – Typically created for TV or YouTube.
UGC Tactical – User-generated content designed to look like native TikTok content but focused on promotional messaging with a clear intent to drive sales.
UGC Storytelling – User-generated content with a narrative approach, avoiding explicit promotional messages or offers.
The results were clear – storytelling UGC significantly outperformed tactical UGC, delivering a 70% higher ROI. Storytelling ads, which avoided direct promotional messages, generated longer average view times and higher engagement rates, making them more memorable and effective in influencing purchase decisions over time.
Key Takeaways
1. TikTok delivers the strongest short-term ROI (1-6 weeks) compared to other media channels.
2. 75% of advertisers in the study saw TikTok as their highest-performing media channel.
3. TikTok’s impact extends beyond immediate sales, with a long-term ROI of 4.5.
4. Always-on advertising strategies generate higher returns compared to one-off campaigns.
5. Engaging storytelling content outperforms direct-response promotional ads.
This study reinforces TikTok’s growing role as both a performance and brand-building platform. With the right strategy – leveraging always-on campaigns, creator-driven storytelling, and engaging content – advertisers can maximize their ROI and drive long-term business success. By focusing on resonance and engagement, brands can ensure TikTok remains a powerful channel for sustained growth.
Want to learn more? Read the full report here.
