If you haven’t launched a TikTok strategy, you aren’t too late.

If you have but

aren’t getting the results you want … you’re not alone.

TikTok hit a billion users faster than any social media app in history. And its
growth continues to skyrocket — 650,000 new users every day, enough people
to fill the largest football stadium in the US six times over. Plus, it overtook
Google late last year to become the most-visited domain in the world.

Still, none of that makes capitalizing on TikTok’s record-breaking

momentum easy for ecommerce brands.

To create viral organic hits and ad campaigns with mega returns, you need
a one-stop, all-inclusive guide. That’s exactly what we’ve prepared.
 2

Here’s everything to craft your TikTok ecommerce strategy:

1. TikTok Basics & the Value to Ecommerce

2. Your Crash Course on TikTok Content Creation

3. Building an Organic TikTok Marketing Strategy

4. How to Use TikTok Advertising for DTC Business

5. #TikTokMadeMeBuyIt = Opportunity + Uncertainty

TikTok Basics & the Value to

Ecommerce Businesses
TikTok originated in China as an app named Douyin in 2017. Parent company
ByteDance introduced it to global markets as TikTok after a merger with now-
defunct social network Musical.ly.
 3

Once dominated by Gen Z, its reach now goes much further. About 48%
percent of US adults ages 18-29 and 20% of those ages 30-49 use TikTok.

What’s more, 89% of Americans recognize the TikTok brand — a cultural

impact far beyond its user base.

People are not only using the app, they’re deeply connected while browsing.
Known for its signature short, viral videos, the app keeps users glued to their
phones for hours.

Engagement rates on TikTok lean higher than on any other social platform.
Nine out of 10 users log into the app multiple times per day, each racking up
over 850 minutes per month.

Why? Because the success of TikTok’s immersive experience points to a single

ingredient.

Exploring The TikTok Experience

That ingredient is simplicity. And it’s revolutionary.

When you open the app, you immediately land on the For You Page (FYP).
 4

Displaying one audio-on video at a time, TikTok’s algorithm monitors every

interaction, then tailors your feed with content based on predictions about
what you engage with most.

Thus, the name: “For You” Page.

Alternate content feeds, the “Following” and “Live” pages, pale in comparison
to the appeal of the FYP. This personalized, one-video-at-a-time format
makes TikTok a powerful content channel.

The key is to create a video that lands on your ideal audience’s FYP.

TikTok Versus Other Social Media Platforms

Managing multiple social media accounts demands a lot of resources.
Certain online platforms are better for achieving specific objectives than
others.

Where does TikTok fit into the bigger picture?

Search-based platforms (like Google and Amazon) serve better for capturing
demand. Traditional social platforms (like Facebook and Instagram) fare
better for generating demand.

Viewed through this lens, TikTok’s ability to generate awareness

stomps its rivals.

Unlike other social media platforms, TikTok supports widespread content

virality, regardless of follower count. Imitators? Of course. But none with
comparable organic reach.
5
 6

Facebook vs TikTok
The average engagement rate on a Facebook post is 0.18%. The average post
for influencers on TikTok boasts an engagement rate of 18%.

Combine this with the average reach per post and you can see why an
organic TikTok strategy carries higher potential ROI than one for Facebook.

Facebook isn’t dead.

It stands to be said, though, that an organic strategy built on repurposing

content from other channels may be more worthwhile at the moment.
Organic video sharing on TikTok currently sees better performance.
 7

Instagram vs. TikTok

The thing that makes TikTok such a huge opportunity for brands?

One word: discoverability.

Image via Instagram

Instagram really identifies as the all-in-one platform, offering photos, videos,

stories, and more. Potential audience growth (organically) on Instagram can’t
compete with TikTok yet.
 8

YouTube vs TikTok
YouTube ranks as the second most popular search engine in the world, right
behind Google. Long-form YouTube videos are usually suggested based on
titles, keywords, thumbnails, and tags.

10 Ecommerce Trends You Must Know in 2022 (Backed By Data)

On the YouTube homepage, users see only a handful of videos. This creates a
high barrier of entry for brands compared to other platforms, especially when
the likelihood of reaching a wider audience is quite low.
 9

TikTok Imitators and Other Social Platforms

TikTok generated widespread demand for a new style of content that
expands beyond its platform. Short video moved from a nice-to-have to a
non-negotiable because of this surge in interest.

Pinterest Video, Snapchat Spotlight, Instagram Reels, and YouTube Shorts

formed in response to the appetite for TikTok-style content. This means your
brand should understand the benefits of creating this content on TikTok and
repurposing it across all platforms.

Your Crash Course on TikTok

Content Creation
The top goal of any video on TikTok? Reaching new audiences on the FYP. Only
two ways exist to arrive in that coveted space: (1) Make a video that users
can’t help but watch and share, or (2) pay.

Let’s cover making a video that keeps viewers salivating for more.

Why Does a Video Go Viral on TikTok?

For our purposes, we’ll call a viral video “one that reaches more people than it
should based on organic follower count.”

If you create a video that receives far more views than the average account
within your audience range, then your content most likely landed on
someone’s FYP.
 10

TikTok’s primary goals are to …

1. Increase its number of daily active users

2. Increase its user’s time on the platform

TikTok elevates the visibility of any content that achieves them.

A video goes "viral" when TikTok analysis shows high likelihood to get shares
(drawing more users to the app) and increase watch time (creating more
time spent on the app).

TikTok’s analytics dashboard gives you direct access to these metrics.

 11

What Metrics Are Available?

Three TikTok Analytics metrics matter most:

1. Average Time Watched

2. Watched Full Video
3. Reached Audience

When you nail the first two, TikTok prioritizes your video and the third explodes.
Think of them like compounding effects. Or, like a snowball, picking up size
and speed as the first two metrics accelerate the third.

Let me give you three examples: good, bad, and viral.

Here’s a video from my personal TikTok account that reached 641.5k people.
Average Time Watched is approximately 20 seconds and the Watched Full
Video is 61.2%.

Now, here’s one with less than 4,000 views — the bad one.

Notice: Average Time Watched is 16 seconds and Watched Full Video, 41.9%.
Four seconds less than the good example doesn’t seem like a lot, but that
might as well be an hour in TikTok time. Worse, 20% fewer people watched the
whole thing.
 12

Lower watch time and fewer full video views equals ridiculously
less audience reach.

Lastly, let’s look at a viral video with over 1.2 million views. Average Time
Watched is 24.3 seconds — four seconds more than the good video. And yet,
Watched Full Video is about 1.3% lower.

Why did this video get nearly double the views of the first?

That’s where trends come in.

 13

How Do You Leverage Trends?

The good video, with 641.5k views, related to a seasonal trend (the Super
Bowl). The viral video, with 1.2 million, related to both a season trend
(Thanksgiving) and an evergreen trend (couples).

Two features help the most.

Hashtags
TikTok users label videos with specific topical hashtags, such as #dogs and
#beauty. When users engage with a video that has certain hashtags, TikTok
continues showing them similar content.

By going to the “Discover” page on TikTok, you can easily find out which
hashtags are trending. Cross-reference those to find more topics your ideal
audience could be interested in.

This increases the likelihood that you’ll show up on their FYP.

 14

Sounds
Sounds work the same way as hashtags. These are audio clips from movies,
songs, or other users’ videos you can add to your own content. If users
engage with videos featuring a specific sound, TikTok shows them more
videos that use that sound.

To find trending sounds in-app, tap the “+” icon, select “Sounds,” and then
“TikTok Viral.” Viral 100 TikTok Sounds lists the most popular sounds and lets
you download them for easy placement.
 15

How Can UGC Support Content Creation?

TikTok already has a low barrier to entry, but why add to your content creation
workload if you don’t have to?

The easiest way for ecommerce brands to get started on TikTok is to take
user-generated content (UGC) they’re already making for paid ads and post
them on TikTok with relevant hashtags and trending sounds.

Additionally, perform social listening and monitor mentions of your brand or

products on social media. This helps you find creators who are already
familiar with and sharing content about you on TikTok.

It’s a great way to support your organic and paid efforts.

Organic Marketing Strategy for TikTok

There are three key components of an effective organic marketing strategy
on TikTok:

TikTok Influencers
TikTok influencers are the lifeblood of the app. They shape and define its
culture. With millions of followers, TikTokers like Charli and Dixie D’Amelio,
Addison Rae, and Khabane Lame represent the new celebrities of the digital
era. They’re important for brands looking to market on the platform, too.

User-generated content (UGC) performs better than anything else on TikTok.

It feels native and authentic, which makes it easier to connect with.
Influencers who post UGC on behalf of brands secure impressive organic
results beyond what a brand could achieve on its own.
 16

Existing star power within key communities as well as familiarity with

developing high-quality content carries a higher potential for virality.

The TikTok Creator Marketplace offers a tool for brands to explore potential
creators to partner with.

Live Stream
TikTok LIVE lends itself to real-time engagement between an account holder
and other users. Prerequisites for unlocking this feature include being at least
16 years old and having at least 1,000 followers.

If viewers enjoy your live stream, they can send gifts that can be converted
into actual cash.
 17

Brand live streams cover topics like product FAQs, educational interviews
with industry experts, how-to demos, or even a behind-the-scenes of a
real-life event.

There’s no time limit, and your LIVE appears on the FYP when general users are
scrolling. Interacting with followers in real-time creates a stronger sense of
connection and recognition.
 18

TikTok Shopping Features

Brands or creators with a TikTok for Business account unlock the ability to host
a tab on their TikTok profile where others can browse or buy products. The
social commerce experience happens entirely within the app.

In 2021, Shopify announced a dedicated integration with TikTok that allows

merchants on this ecommerce platform to sell store products in app.

The solution simplifies the setup required by connecting Shopify inventory

with the TikTok storefront. Square, Ecwid, PrestaShop, and Wix are among
other current or future TikTok Shopping partners.
 19

Best Examples of Organic TikTok

Brand Strategy
Ruggable: Relatable, Not Salesy

Ruggable creates beautiful, machine-washable rugs. You wouldn’t think the

brand would be a TikTok hit. But its videos reach hundreds of thousands of
views on a fairly consistent basis.

The mix of relatable topics, such as rug recommendations based on popular

celebrities, perform better than average.
 20

Liquid Death: Creator Partnerships

Boasting over a million followers, DTC water company Liquid Death works with
a number of well-known influencers.

One video created in partnership with well-known TikToker Vanessa

Simeon achieved nearly 5M views. Her unique style helped capture more
attention than its organic videos usually garner.
 21

Purple: Branded Theme

Bed and mattress company Purple brands its TikTok videos using a theme
based around, well, the color purple (obviously).

Aside from the memorable aesthetic, the brand also knows how to showcase
products naturally. By pairing products with creators or trending styles, they
avoid seeming too promotional.
 22

How to Use TikTok Advertising for

DTC Business
Organic growth requires significant resources, including investment of time.

Paid opportunities make sense for ecommerce marketing strategies that seek
expansion beyond limited organic reach.

Facebook Ads vs TikTok Ads

Reach
Over 160 million businesses rely on Facebook. A survey of marketers found
that Facebook and Instagram take the top two spots when it comes to the
most-used social media advertising platforms.
 23

But, while competition is steep, audience reach provides a balanced benefit.

Over two billion people worldwide see ad content via the Facebook platform.
That includes over 6 out of 10 people in the US over the age of 13.

For comparison, TikTok ads currently reach an estimated 120 million people
over 18 in the U.S., representing the app’s largest audience of any country.

Cost
Price marks a key point of differentiation.

At a high level, the CPM on Facebook averages $13.83 for

ecommerce; $9.40 on TikTok, 32% less.

But TikTok requires a minimum spend of $500 per campaign, with a set
number of prepaid impressions. Certain ad types come with steeper price
tags. For example, brand takeovers run for $50,000 per day.

Content
Video reigns supreme on TikTok.

That’s quite unlike Facebook or Instagram advertising, which allows for a mix
of still imagery and video. Not to mention, many users watch videos on the
platforms with sound off, unlike the default behavior on TikTok. You have more
assurance your content will be experienced as intended.

The impact of iOS 14.5 on audience targeting extends to both Facebook and
TikTok ads since both rely on tracking mobile user activity.

Google Ads vs TikTok Ads

Reach
TikTok shocked the world when it overcame Google to become
late-2021’s most-visited website. That marked a shift in thinking about its
 24

future role in the marketing ecosystem. Still, people initiate over 5 billion
Google searches every day. Google video ads, by way of YouTube, have a
potential reach of over 2 billion.

Your target audience plays a role in the potential success of your digital
ads, too. YouTube Ads reach a slightly higher percentage of males over
18 compared to females, while TikTok trends toward higher usage
by female users.

Cost
Google cost per click (CPC) for ecommerce averages $0.86. The average
goes up to $3.21 when looking across industries at YouTube video ads, a 500%
increase over the TikTok average CPC of $0.51.

The comparison isn’t exactly apples to apples, though. TikTok falls more on
the awareness side of the customer journey, whereas ecommerce brands rely
on Google more frequently for demand capture. Awareness campaigns
average a lower return on ad spend (ROAS) because the customer isn’t at a
high intent stage of the buying process.

Content
Google ad types consist of video, text-based, and display. When it comes to
search ads — and Google Shopping for ecommerce in particular — the
benefit is a higher CTR because shoppers have high intent. They’re actively
looking for something, a solution, or a product.

Nearly half of consumers report buying something they saw on a YouTube ad,
and the same is true on TikTok.

In further support of TikTok, early surveys show Tiktok users are more likely to
be high intent Internet shoppers and to make a purchase from a brand after
seeing it on social media.
 25

Types of TikTok Ads

Like Facebook, TikTok advertising offers campaign and ad group
segmentation, demographic targeting, pixel-driven analytics, and cost caps.
Advertisers manage all activity, such as budget setting and content
uploading, through the TikTok Ad Manager.

The style of content itself varies from other channels, though. Entertainment
and advertising content are more collaborative and indistinguishable,
making ads feel less disruptive.

Plus, TikTok offers a variety of formats to choose from beyond basic video ads.

Native In-Feed Ads

 26

Brands have the option of running either still images or videos as native
content. That means the ad appears on the user’s FYP. Users can like, leave
comments, share, follow, or even re-use the sound for their own videos.

Different placements are available. For instance, Topview ads present a

unique opportunity because users see these videos first when they open the
app. That’s prime real estate for brands looking to be top of mind (and feed).

Brand Takeovers

This type of TikTok ad takes over the full screen with a dynamic video. The
entire screen is clickable, increasing the chance of engagement. Videos tend
to be short and snappy, with a maximum duration of 3.5 seconds, and users
only see one Brand Takeover per day.

Premium placements come with higher costs, though. Expect to pay slightly
more to secure this positioning.
 27

Sponsored Hashtag Challenges

A hashtag challenge enables brands to sponsor a dedicated hashtag around

a desired theme. Anyone who takes interest adds their own videos to the
challenge collection.

Contributions aggregate on both the FYP and separately on the Discover

page. Major trends often arise from sponsored hashtags, propelling branded
content to viral view counts.
 28

Video Shopping Ads

As a supplement to organic social commerce, TikTok Video Shopping Ads

focus on product discovery and purchases and feature just like organic
content to ensure they retain a natural feel.

Advertisers tag products featured in a video with a card to highlight relevant

information. The product cards link back to specific SKUs from the in-app
shop or your online store, driving traffic directly from the ad to a native
purchasing environment.

Dynamic Showcase Ads (DSA)

TikTok serves dynamic showcase ads to app users based on their activity and
interests. That makes them more personalized than some of the other types
of ads listed.
 29

These provide a great way to balance awareness or prospecting campaigns

with retargeting. If someone has lurked on your TikTok profile or brand
website, they’ll be served with your content.

Examples of TikTok Advertising by

Ecommerce Brands
Chomps: Trends Plus Best Practices

Chomp’s ads combine the latest trends on TikTok with performance

advertising best practices. That creates ads that both blend seamlessly into
the TikTok feed and optimize for direct response purchase.
 30

Kosas Cosmetics:
Prominent Sale Feature
Kosas Cosmetics does a couple of
things right with this TikTok video.
Highlighting an exciting offer provides
a prominent call-to-action. The quick
transitions grab attention and match
the fast pace of movement in most
native content.

Crown and Paw:

Use of Viral Sound
The sounds you use for TikTok ads
matter a lot. This video ad not only
features an authentic-looking creator
alongside the product, it also revolves
around a viral, trending sound.
 31

#TikTokMadeMeBuyIt = Opportunity
+ Uncertainty
Marketing on TikTok lacks set standards because of the novelty of the
channel, which leaves lots of flexibility for you to craft your own path forward.

Brands interested in adding the platform to a marketing strategy need to

carefully evaluate options to determine the best approach.

Support is available, though.

Our team works with a variety of clients to help them navigate the challenges
of joining a new platform. Learn more about the benefits of a partnership with
us here, especially ad creative!

Common Thread Collective is an ecommerce growth agency that exists to

help entrepreneurs achieve their dreams.

Being owner-operators of in-house brands — with 400.56% year-over-year

growth — gives us a frontline playbook to bring learnings to our clients. The
“common thread” we found between successful entrepreneurs is the strength
of their dreams.

If you’d like to learn more, connect with us here.