How TikTok drives business results in LATAM

TikTok is an entertainment platform where brands can create meaningful connections with people. These are connections that generate a measurable business impact throughout the customer's shopping journey. Yes, TikTok works.

This is what Adjust, one of our global partners, helped us prove in a new study. According to the meta-analysis conducted by TikTok with data from the mobile marketing platform, our app tends to be more efficient in generating value for each real spent on media by advertisers in Brazil and throughout Latin America.

Come and see the findings of this analysis and discover the answer to a golden question:

How to engage a distracted audience?

Latin America has more than 500 million active smartphones today. The forecast is that, by 2025, 81% of the population here will have one of these in their pocket.(1) In addition, data from an analysis by GWI consultancy show that in Brazil, Colombia and Argentina, the three most populous countries in South America, those who have a smartphone spend more than 5 hours a day using the Internet. In Mexico, the second largest Latin power, the average is slightly lower, but still exceeds 4:30 hours (2).

It is already an audience very engaged online, which spends a lot of time connected, consuming content. And this becomes an opportunity for brands that are willing to experiment and test new ways of advertising to stand out in this environment. At that point, TikTok can help a lot with an approach that puts entertainment first.

New opportunities to entertain on TikTok

Short videos on TikTok have changed online entertainment, creating entirely new opportunities for engagement that drives business results.

What is the key to this success? It's that our entertainment ecosystem stimulates action and is the ideal stage for what the industry calls Shoppertainment, an English-language junction of shopping and entertainment.

By bringing together informative content with experiences that truly entertain, our platform has great appeal among today's digital native consumers. It is an online audience that expects more authentic and emotional content from brands, driven by experiences to engage.

At TikTok, we define “Shoppertainment” as a content-driven commerce that prioritizes entertainment and education. At the same time, the concept integrates content and community to create highly immersive shopping experiences. And thanks to this mix of informative and fun entertainment, Shoppertainment on TikTok creates an opportunity for brands to retain loyal consumers by increasing lifetime value (LTV) and return on investment (ROI).

Does this entertainment-focused tactic work?

In a Latin American context, of online users for many hours a day, does this TikTok approach of putting entertainment first work? How do you compare to other platforms? Below, let's take a look together at four discoveries we made with Adjust – and that prove some points that we at TikTok are always reinforcing.

Finding #1: TikTok works for e-commerce apps

Tiktok is the channel for acquiring engaged users who potentially become paying users in e-commerce applications.

Our platform is able to outperform other paid channels when we look at the average time spent by our users on e-commerce apps, retention and paying user rates, and revenue generated per person. This indicates that TikTok is a tool capable of reaching more engaged audiences with the brands' apps and potentially also spending more on these apps – whether with in-app purchases or subscriptions.

TikTok brings more engaged users to e-commerce apps compared to other media:

• Average time spent on e-commerce apps by TikTok users: +20%

• Retention rate of users coming from TikTok:

  • 1 day: +11%

  • 7 days: +3%

  • 30 days: +19%

• Retention rate of paying users coming from TikTok: +30%

Finding #2: TikTok works for entertainment apps

For entertainment-focused apps, TikTok is the key to acquiring and activating new users.

In this type of app, the story is similar to those of e-commerce. Users who come to these apps through TikTok are more likely to become paying customers: the rate is 33% higher than the average for other paid channels. And more than bringing customers and subscribers, our platform does this at a better cost: the CPI (cost per installation) for Android is 60% lower, while for iOS it is 40% lower than in other media.

Finding #3: TikTok works for financial services apps

TikTok is a profitable channel, able to outperform other media channels in terms of CPI and paying user rate for financial services apps, positioning the platform as one of the key channels for sustainable growth.

In apps of the financial sector, the rate of paying users coming from TikTok is 54% higher than the average of other media in Brazil. There, the CPI is also 7% lower. That is, TikTok brings more users, at a better cost.

And this is repeated – and gets even more remarkable – in other countries in Latin America, with the numbers reaching +54% in the rate of paying users and a CPI almost 80% lower. Yes: almost 80% lower than the other platforms.

Finding #4: TikTok works for gaming

Gaming apps find TikTok an effective tool for retargeting and find many more qualified users who can become payers while maintaining a lower cost per acquisition.

In gaming, CPI on TikTok is 67% lower for Android users and 77% lower for iOS compared to the average for other platforms measured by Adjust. But do you know what that means? That, in terms of cost, the platform is a great channel for acquiring new users with campaigns optimized for app installation.

But, in addition to the better cost per installation, there is more: on Android, the rate of paying users going from our mobile gaming app is 35% higher than on other channels, while the reacquisition rate is 32% above the average in Brazil and 26% in other countries in Latin America. Even to bring people back, Tiktok is in the advantage.

In short: entertainment on TikTok works for brands

TikTok is where entertainment comes first. It's where content and community come together to create immersive shopping experiences that engage and entertain audiences, generating action even at the end of the buyer’s journey, as you can see in the findings above.

Our platform brings, proportionally, more paying users to applications of different verticals, at a lower cost. And you can explore this potential with some solutions that we have to encourage the installation of apps, such as:

• In-app events & Value Tracking via Adjust- Do you know the TikTok pixel? That piece of code that you include on your website to identify actions taken by visitors – the events? So, you can also do this with apps, working with Mobile Measurement Partners (the MMPs) to identify both the events and the value of purchases made within your app. This is the basis for the next items on this list.

• App installation campaigns - With the events set up correctly, you can move on to app installation announcements. Just set that as the goal when setting up your campaign. Thus, TikTok will optimize your ads to reach people more likely to download your app and perform the action you expect.

• Otimização por valor para app (Value-based optimization, ou VBO) - Quer ir além dos eventos? Você também pode aproveitar a otimização por valor na sua campanha. Com ela, dá pra alcançar pessoas com mais potencial de gerar receita pra sua marca – e aumentar o ROAS.

• Value-based optimization (VBO) for app - Do you want to go beyond events? You can also take advantage of value-based optimization in your campaign. With it, you can reach people with more potential to generate revenue for your brand – and increase ROAS.

So, what are you waiting for to take advantage of this opportunity and bring your brand here?

Sources:

(1) The Mobile Economy, GSMA, 2021

(2) Digital 2022 Global Overview Report, GWI, we are social e Hootsuite, 2022