TikTok accelerates growth for beauty brands: insights from KIKO Milano's Marketing Mix Model by GroupM

A groundbreaking study conducted by GroupM Choreograph reveals how Kiko Milano, a global leader in the beauty industry, harnessed TikTok to drive sales and brand growth through data-driven strategies.

TikTok Drives Measurable Success for Beauty Brands

The beauty industry thrives on visual appeal and audience engagement, and TikTok has become an essential platform for connecting with consumers in highly interactive ways. The 40% of TikTok users (1) show an active interest in beauty and cosmetics, with Beauty & Personal Care ranking as the #3 most-viewed category (2) in Italy based on video views in H1 2024. The 'Beauty' hashtag (3) has experienced impressive growth, with organic video views up by +70% and organic video creation increasing by +103% YoY.

This growth underscores TikTok’s role as a transformative channel for beauty brands, uniquely combining efficient paid media performance with extensive organic reach.

However, quantifying TikTok's impact on sales and ROI has posed challenges for brands navigating a complex media ecosystem.

To address this, Kiko leveraged a sophisticated Marketing Mix Model (MMM) developed by GroupM to decode TikTok’s contributions to their omnichannel marketing strategy. The results highlight TikTok’s exceptional performance in driving incremental sales and enhancing both paid and organic reach.

"At Kiko Milano, the effectiveness of platforms like TikTok is evaluated not only through metrics such as views and engagement but primarily through their direct impact on sales and store traffic. Thanks to the Marketing Mix Model developed with GroupM, it is now possible to precisely measure the effect of TikTok campaigns on omnichannel sales and organic traffic. This approach enables more informed investment decisions that align with goals around brand awareness, customer engagement, and sales. With advanced analytics, Kiko Milano can strategically optimize budgets, adapt to key periods, and strengthen brand positioning on social media, enhancing the overall effectiveness of its digital presence."

Cecilia Schena - Chief Marketing Officer KIKO Milano

Key Findings: TikTok’s Impact on Sales and ROI

Paid Media Efficiency

TikTok accounted for only 6% of Kiko’s total media spend but drove an impressive 11.5% of e-commerce media driven sales, showcasing its efficiency as a paid advertising channel.Additionally, 5.7% of in-store media driven sales were directly attributed to TikTok campaigns, reinforcing the platform’s role in omnichannel success.

Superior ROI Performance

Compared to other platforms, TikTok delivered:

• 32% higher ROI for retail sales compared to social media.

• 60% higher ROI for e-commerce compared to digital video.

These results demonstrate TikTok's ability to maximize marketing investments by converting high-intent audiences across both online and offline channels.

Organic Traffic Leadership

Beyond paid media, TikTok outpaced other platforms by generating 45% more organic traffic, highlighting its capacity to drive unpaid engagement and strengthen long-term brand equity.

Solving the Attribution Challenge

Historically, beauty brands like Kiko have struggled to measure TikTok's indirect effects on sales and traffic due to attribution model limitations. Last-click attribution, for example, undervalued platforms like TikTok, where discovery and engagement often precede the final conversion. GroupM’s MMM approach resolved this by incorporating multivariate regression analysis, enabling Kiko to isolate TikTok's impact from other channels. This rigorous methodology revealed that TikTok is not only a driver of direct conversions but also a catalyst for organic and cross-platform engagement.

"Marketing Mix Modelling is a key statistical approach to optimize marketing levers and get the most from communication investments. By combining the strengths of MMM, our TikTok partnership, and our analytical expertise, we created a measurement framework that’s tailored to KIKO's specific business goals."

Andrea Limberti - Head of Measurement GroupM

Strategic Recommendations for Beauty Brand

1. Maximize Promo Campaigns on TikTok During Peak Seasons

TikTok’s promo campaigns are 48% more efficient than those on other digital platforms. Beauty brands should leverage TikTok for promotions during high-traffic periods like Black Friday to capture organic traffic and maximize conversions during peak shopping moments.

2. Double Down on TikTok for Product and Collection Launches

With a proven +11% higher efficiency for collection launches and a +34% higher efficiency for product campaigns, TikTok is highly effective in driving both direct conversions and organic engagement. Brands should exploit TikTok power launching new products and collections, particularly during periods of high consumer attention.

3. Optimize Media Spend with Data-Driven Insights

Use saturation analysis to determine the optimal TikTok investment level before diminishing returns set in. Kiko Milano analysis suggested that there was still room for spend to grow without reducing efficiency, indicating untapped potential for further investment on TikTok.

4. Long-Term Strategic Focus

Beyond short-term promotions, brands should maintain a long-term presence on TikTok to benefit from its ability to drive sustained organic traffic and brand engagement.

Conclusion: TikTok as a Game-Changer for Beauty Marketing

The Kiko case study illustrates TikTok's transformative role in driving both immediate and long-term value for beauty brands. With strategic media investments backed by robust data analysis, TikTok enables brands to achieve superior sales, stronger brand engagement, and higher ROI across channels.

For beauty brands aiming to stay ahead in a competitive market, TikTok represents an essential channel for growth. With the right data-driven approach, CEOs and CMOs can confidently allocate budgets that maximize both short term sales and long-term brand equity.

"For beauty brands, going beyond engagement metrics and last-click attribution on TikTok is essential to measure true sales impact across e-commerce and physical stores. Advanced solutions like MMM provide clarity on budget allocation, enabling marketers to measure the real return on investment (ROI) of their media efforts across multiple platforms. This empowers CEOs and CMOs to identify where their budgets deliver the greatest sales lift, both online and in retail environments."

Alice Porrati - Head of Measurement Southern Europe - TikTok

As this case study with Kiko Milano reveals, the future of beauty marketing lies in mastering TikTok, combining paid and organic reach, delivering high-impact business results.

To learn more, download here the full research paper.

Source: GroupM Italy MMM analysis for KIKO Milano, 2024; (1) GWI, IT, Q323-Q224, TikTok Users 18+, TikTok's use of this data does not equate to an endorsement; (2)TikTok MarSci internal data H124; (3) TikTok MarSci internal data 2023.