TikTok Looks to Boost Brand and Retail Conversions With More Data

TikTok, eCommerce, retail, shopping

TikTok users not only browse TikTok but actively engage with its content. This trend has prompted brands and retailers of all scales to take notice and consider establishing their presence on the platform. 

In fact, earlier this month, PYMNTS spoke with Sujatha Mamidibathula, TikTok’s small- to medium-sized business head. During the conversation, she discussed tactics for helping smaller businesses become familiar with the platform, understand its functions, and analyze the key elements crucial for achieving success and gaining viral visibility. 

Today, in an effort to harness the comprehensive value offered by TikTok, the platform is introducing Attribution Analytics within TikTok Ads Manager. This new tool aims to assist advertisers in gauging the effectiveness of their TikTok advertising campaigns and obtain a deeper understanding of user behavior on TikTok. 

“TikTok delivers tangible value to businesses, inspiring discovery, product research and driving actions. To help showcase the true value of TikTok, we are excited to launch Attribution Analytics to give advertisers a transparent view of their ad impact,” said Ray (Jiayi) Cao, global head of monetization product strategy and operation in an email to PYMNTS. 

The decision to introduce Attribution Analytics stems from TikTok’s acknowledgment of the constraints associated with conventional measurement techniques. This recognition is particularly significant given that 79% of TikTok-induced purchases evade standard metrics, and relying solely on click-and-buy metrics undervalues conversions by 73%. 

Moreover, based on recent post-purchase data, it was found that 44% of buyers who attributed their product awareness to TikTok ads did not engage by clicking on the ad within the 28-day attribution window. In light of this, TikTok Ads Manager’s Attribution Analytics, as a first-party measurement solution, provides a holistic perspective of the customer journey. It includes features like Performance Comparison that enable the customization of attribution strategies. 

The Value of First-Party Data

While everyone wants to go viral on TikTok, growth on TikTok in general is more likely if brands, retailers and creators are consistent and authentic. 

“I think misconception or rather one mis-expectation is focused on virality versus focus on community,” Mamidibathula told PYMNTS. “My suggestion is for SMBs to focus on community. Focus on building that, and virality will come to you.” 

Creators and retailers who aim to produce content that strikes a chord with consumers may benefit from monitoring metrics to get the full picture of what captures users’ awareness, discovery and engagement. 

“TikTok’s algorithm truly gives everyone the option to have a viral moment — but your content must be good, engaging and worth people’s time and interaction. My business first went viral just two months after we launched and with greeting cards,” said Callie Goodwin, the founder of Sparks of Joy in a LinkedIn post. “Our latest viral moment was last month with over 8 million views on one specific product that resulted in $30k worth of sales.” 

Attribution Analytics’ Features 

TikTok is set to introduce a range of features within its Attribution Analytics tool.

One such feature is Performance Comparison, a measurement tool designed to illustrate conversions over various timeframes so advertisers can find a strategy that works best for them. 

Through Performance Comparison, brands and retailers can conduct in-depth analyses and compare different actions users take across various attribution windows, such as view content, add to cart, initiate checkout and purchase. This evaluation extends to assessing the impact of these attribution windows on critical performance metrics like cost per acquisition (CPA).  

Visual representations are also available for sellers to monitor shifts in click-through and view-through conversions, while simultaneously tracking changes in CPA across a range of click and view attribution window combinations. By utilizing this tool, brands and retailers can gain insights that reach beyond current attribution settings, ultimately helping them to create a future-proof measurement strategy for more effective and data-driven marketing campaigns. 

How it Works

Brands and retailers utilizing TikTok Ads Manager might face challenges with the default attribution windows — consisting of a 7-day click and 1-day view — as they might not accurately reflect the value generated from their marketing efforts due to varying durations buyers spend in the consideration phase across different industries. 

Brands and retailers can use this tool to analyze performance metrics across different attribution windows — for example, comparing conversions in 7-day click-through versus 28-day click-through. This data empowers merchants to make informed decisions when choosing the most effective attribution window for their objectives, ultimately enhancing the value of their marketing campaigns. 

Additionally, for brands and retailers, it is crucial to understand that click-based conversions alone fall short in capturing TikTok’s true impact. According to a TikTok conversion lift meta-study, click attribution undervalues TikTok conversions by 73%. 

To address this issue, performance comparison data offers the capability to monitor conversions that result from ad views or clicks and allows for a deeper understanding of the specific timeframes in which these conversions take place.