At Business Insider Intelligence, our mission is to bring you the most important insights, data and analysis from the digital world. So when we come across outstanding research from our partners that we think our audience can benefit from, we like to make sure you hear about it. That's why we're giving you a preview of eMarketer's new report: Marketing on TikTok. You can purchase and download the full report here.
It's now been more than a year since TikTok launched in the US, and in that short period, the Chinese-owned video app has capitalized on the viral nature of its platform by partnering with a number of brands and slowly unveiling a slew of advertising capabilities. Cosmetics brand e.l.f. is one of the latest advertisers to launch a paid campaign targeting TikTok's Gen Z user base. Using the popular "Hashtag Challenge" ad unit, the brand recently launched its #eyeslipsface campaign, encouraging TikTok users to create videos showing off their makeup using an original song created for the activation. e.l.f. Beauty also purchased a 24-hour takeover ad, which prompted users to participate in the challenge upon opening the app. "Gen Z is a huge audience for us," said Kory Marchisotto, CMO of e.l.f., in an interview with eMarketer about the news of the partnership. "It's of critical importance to make sure we're not only where they are, but also serving up content that's relevant to them." Marchisotto says it's not just TikTok's demographic that has e.l.f interested in the platform. "I think [TikTok] is bringing something very different. Instagram has become highly polished, it's still the coffee table book, it's very curated. On TikTok, everybody's out there to have fun and express themselves in unique ways." Below is a roundup of TikTok's current ad offerings and some of its biggest brand partnerships to date. Ad Formats Though the video app has yet to roll out all its ad capabilities—such as augmented reality lenses and full-screen video ads, as listed on its website—some early adopters are testing select formats. Brands like Guess and Chipotle Mexican Grill partnered with TikTok on sponsored "Hashtag Challenges," which placed branded hashtags on the app's Discover page. Food delivery app Grubhub was reportedly testing video ads on TikTok as early as January 2019, and fashion retailer Hollister Co. ran a series of in-feed video ads last spring. TikTok has also become a popular platform for influencer marketing, especially for brands looking to work with the platform's up-and-coming video creators. A representative from TikTok confirmed that its hashtag unit was still the only ad product officially available in the US, but it is conducting early experiments with other models. Last month, sponsored hashtags were expanded under the name Hashtag Challenge Plus and now include an in-app shoppable component. Walmart Walmart TikTok's list of advertisers also includes the largest company in the world. Walmart launched its #SavingsShuffle hashtag challenge in late September and promoted the campaign using a roster of TikTok influencers. "It's kind of one of those seminal moments when you start seeing those kinds of brands," said TikTok vice president Blake Chandlee at Advertising Week in New York City. The brand used the hashtag challenge Explore tab—which pops up when a user taps on a hashtag—to advertise a variety of shoppable products and ask users to guess Walmart's best-selling item. (The answer: toilet paper.) NFL In perhaps the largest US branding effort to date, TikTok announced a multiyear partnership with the NFL that will allow third-party brands to sponsor content on the NFL's TikTok account. When the announcement was made prior to the 2019 season, the NFL began posting using the hashtag #WeReady. Although the NFL told AdAge that it did not pay to promote the hashtag, the organization plans to use the Hashtag Challenge feature in the future. The NFL also hopes to generate user engagement by inviting fans to create TikTok-centric content to support their favorite teams and players. Ralph Lauren As the official outfitter of the US Open Tennis Championships, Ralph Lauren was one of the first brands to use TikTok's shoppable Hashtag Challenge Plus feature to show off its collection for the 2019 tournament. The challenge asked TikTok users to post a video wearing Ralph Lauren products using the hashtag #WinningRL. At the end of the contest, creators of the top three videos with the highest engagement were awarded free US Open gear. Macy's The department store kicked off the back-to-school shopping season by bringing its omnichannel "All Brand New" campaign to TikTok using the platform's Hashtag Challenge. The challenge encouraged students to post videos wearing back-to-school outfits, and if users tapped on the hashtag, a "Shop Now" prompt appeared above Macy's official videos linking to its website. Kroger For its own back-to-school campaign, Kroger became the one of the first brands to use TikTok's shoppable Hashtag Challenge Plus feature. The grocery chain promoted its #TransformUrDorm campaign, which encouraged college students to show off their decorated dorm rooms. Similar to Macy's, the campaign allowed users to tap on the sponsored hashtag, which led to a separate Explore tab showcasing Kroger products and direct links to its ecommerce channel. Chipotle One of TikTok's most notable US partnerships was with Chipotle, which worked with the video platform twice on hashtag challenges. For Cinco de Mayo, the restaurant chain asked fans to post their best "lid flip"—where users flipped an aluminum dish lid onto a Chipotle plate and then used the hashtag #ChipotleLidFlip—to promote its free delivery offer. The brand went viral on TikTok in August when it announced a new challenge, #GuacDance, which became TikTok's highest-performing branded challenge in the US. Want to Learn More? eMarketer has put together a detailed report, Marketing on TikTok, which discusses the growth of TikTok around the world and what marketers should know about the Chinese-owned short-video app. Topics discussed in this report include:
TikTok in a Minute: Why It's Getting All the Buzz Who's Using TikTok? What Makes TikTok Tick as a Marketing Vehicle? How Is Advertising on TikTok Evolving? Advice and Best Practices for Using TikTok
In full, this report contains:
3 Detailed files: Exportable files for easy reading, analysis and sharing. 31 Data-rich charts: Reliable data in simple displays for presentations and quick decision making. 19 Expert perspectives: Insights from industry and company leaders.
Purchase and download the full report here.Join the conversation about this story »
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Influencer merch has surged during the pandemic. Here are the top companies helping YouTube, Instagram, and TikTok creators make and sell it.
Summary List Placement Hi, this is Amanda Perelli. Welcome back to Insider Influencers, our weekly rundown on...Summary List Placement Hi, this is Amanda Perelli. Welcome back to Insider Influencers, our weekly rundown on the influencer and creator economy. Sign up for the newsletter here. Selling merchandise is a major business for top creators like David Dobrik, who said his custom merch with Fanjoy makes up the majority of his income. And as ad deals have faltered during the pandemic, direct sales have become increasingly important for influencers looking to diversify their income streams. This week, I highlighted the 7 most prominent merchandise companies working with creators on YouTube, Instagram, and TikTok. These companies work with influencers to design, manufacture, and sell branded merchandise, from T-shirts and hoodies to other branded accessories. Reed Duchscher, the CEO of the talent management firm Night Media, told Business Insider that partnering with an outside company is usually the best bet for any creator looking to start selling merch. "To outsource it is probably a better business than doing it in-house," Duchscher said. "You'll get a higher margin without any of the headache of things like having customer service and fulfillment, or hundreds of thousands of units somewhere in a warehouse. If it becomes a big enough business and you're really selling it a higher volume, then you can talk about what that process would look like selling in-house." But which companies lead the way in the industry? Read the full story here. Dunkin's TikTok marketing strategy includes paying employees to post videos at work and it's part of a growing trend Some major retailers like Dunkin', Wendy's, Arby's, and Walmart have begun inviting employees to post videos on TikTok at work as a new marketing push. My colleague Dan Whateley wrote that some retail employees have gained large audiences on TikTok by posting videos of life behind the counter at major chains. Dunkin' recently created a new "crew ambassadors" program where it's paying employees to post videos while on the job. Dunkin' told Business Insider that it launched its ambassador program after seeing TikTok videos showing "enthusiastic organic engagement of Dunkin' restaurant crew members sharing their experiences of working at a store." "Tell me what content you guys want to receive from me," Morgan Massaker said in a TikTok video announcing his ambassadorship on Monday. "Coffee combinations. Sandwich combinations. What donut should I have this week?" Read more about brands like Dunkin' hiring workers to post on TikTok here. Inside the TikTok influencer house that uses comedy to land deals with brands like Chipotle and Tinder and reach millions of viewers The TikTok collab house "The House Nobody Asked For" is a group of eight influencers who moved to Las Vegas over the summer and relies on comedy instead of viral dances to land brand deals. THNAF now has over two million followers on TikTok and has secured brand deals with Chipotle and Tinder. My colleague Sydney Bradley spoke with the group's founder and its manager about why the group moved to Las Vegas and how it pitched and landed these brand deals. "Believe it or not, we're paying less to be here than we would for student housing," house member Caroline Ricke said in the group's announcement TikTok video about their new home. The group signed the Las Vegas lease for four months with the assistance of some of their parents and legal advisors, and the group's first sponsor, the brand MSCHF, signed on as a guarantor. MSCHF, a company that sells products and is known for viral stunts, is sponsoring the group through the end of October, which has helped cover the rent and utilities for the house. Read more on THNAF here. A TikTok star with 1.5 million followers explains how much money she makes from brand sponsorships Dana Hasson, 23, launched her TikTok account last summer after slowly building a following on Instagram. Her account started to grow rapidly after her recipe videos trended and gained attention on TikTok's "For You" page. Hasson now has over 1.5 million followers on TikTok and over 100,000 followers on Instagram. I spoke with Hasson who said she treats her TikTok account like a full-time job. She broke down how she makes money and how much she charges for a sponsorship. "It was pretty much a dancing app at that time," she said of TikTok when she got started. "So when I joined and started posting food, beauty, and fashion videos, no one else was really doing that." Back then her goal was simply to use TikTok to grow her Instagram page, which had about 30,000 followers. But Hasson started making real money on TikTok when she reached 100,000 followers. At the time, she charged about $1,000 for a sponsored video, she said. But her rates have climbed since then. Read more on her rates here. More creator industry coverage from Business Insider: Snapchat Snapchat adds new audio features to compete with TikTok (Dan Whateley) TikTok A TikTok VP shares 3 topics brands ask about when considering TikTok as a marketing platform (Dan Whateley) Inside TikTok creator group Sway LA's podcast push (Dan Whateley) Instagram How much money Instagram influencers are asking brands to pay for sponsored content in 2020 (Sydney Bradley) Instagram is ramping up its e-commerce features as interest in video surges on the app (Sydney Bradley) Industry updates: Talent agency CAA signs esports organization 100 Thieves. Greg Goodfried, the cohead of United Talent Agency's digital talent division, is leaving at the end of the month to become president of D'Amelio Family Enterprises. President and cofounder of Studio71 Dan Weinstein is leaving. The 10th annual Streamy Award nominations are back, and nominees for this year's "Breakout Creator" include TikTok stars Addison Rae, Spencer X, and Charli D'Amelio, along with YouTube creators ZHC and Dream. The Streamys will be held on YouTube December 13. This week from Insider's digital culture team: The era of A-list YouTube celebrities is over. Now, the people cancelling them are on top. YouTube creator D'Angelo Wallace makes videos explaining why the YouTubers you used to love are actually not worth your time. Kat Tenbarge from Insider spoke with Wallace about his popular commentary channel, which has 1.6 million subscribers, and his creative process. Wallace, 22, and others in the "drama community" have built massive followings online devoted to critiquing YouTube celebrities, and working to create a new level of accountability in the culture. His deep dive into the beauty YouTube drama of May 2019 deconstructed each YouTuber's role in the feud, exploring how it came back to negatively impact each of their careers, and his videos about Jeffree Star and Shane Dawson have a combined 20 million views. That series also helped his subscriber count grow from under 500,000 to over a million within one month. Read the full interview here. More from Insider: The biggest trends around TikTok's "Time Warp Scan" effects (Palmer Haasch) 36 of the best memes of 2020 (so far), from toilet paper to "Tiger King" (Insider's Digital Culture Team) A balloon artist went viral on TikTok after revealing that she charged $300 for her creations (Margot Harris) TikTok star Bryce Hall is under investigation for fighting restaurant staff who told him to leave for vaping (Kat Tenbarge) Here's what else we're reading: A TikTok star is highlighting BIPOC-owned Seattle restaurants with viral videos (Colleen Stinchcombe, from Eater) Shaming influencers for not social distancing could reinforce wrongful behavior instead (Morgan Sung, from Mashable) VidCon plans for a post-pandemic future with both in-person and virtual elements (Lucas Shaw, from Bloomberg) TikTok has become the platform of choice to discuss the presidential election and advocate for a candidate (Kalhan Rosenblatt, from NBC News) Thanks for reading! Send me your tips, comments, or questions: firstname.lastname@example.org Subscribe to the newsletter here.Join the conversation about this story » NOW WATCH: July 15 is Tax Day — here's what it's like to do your own taxes for the very first time
Summary List PlacementHi! Welcome to the Insider Advertising daily for September 14. I'm Lauren Johnson, a...Summary List PlacementHi! Welcome to the Insider Advertising daily for September 14. I'm Lauren Johnson, a senior advertising reporter at Business Insider. Subscribe here to get this newsletter in your inbox every weekday. Send me feedback or tips at email@example.com. Today's news: TikTok's ad pitch reveals new data, Pornhub's mysterious marketing executives, and how much influencers charge for sponsored Instagram Reels. Inside TikTok's latest big pitch to advertisers with new numbers showing time spent on the app and engagement metrics TikTok pitched its ad business during a digital event to Middle East and North Africa advertisers last week, reports Chris Stokel-Walker. A pitch deck presented at the event included new data about time spent and engagement rates within TikTok. Per the deck, Top View ads – which guarantee placement at the top of the For You feed – are engaged with six times more than the average in-feed ad. TikTok's pitch comes as the app faces a possible closure of its US business. TikTok has been in talks with Oracle, Microsoft and Walmart after President Trump's administration threatened to ban the app. Read the full story here. Pornhub has been widely covered for its marketing savvy. But its most-quoted executives are nearly invisible, and it's unclear if they actually exist. Pornbhub has accumulated lots of news coverage over the years for its savvy marketing but Business Insider could not verify whether one of its most-quoted executives exists, reports Patrick Coffee. Online searches for key employees led to dead ends, while contact information for Pornhub's director of communications led to an employee of the company's PR firm, 5W Public Relations. 5W said Pornhub guards employees' identities for "safety reasons." Parent company Mindgeek, which like many big porn sites flies under the radar, did not respond to a request for comment. Read the full story here. Instagram Reels copied TikTok's format. But influencers are already seeing clear differences between the two, especially in making money from brands. Sydney Bradley reports that creators are experimenting with sponsored content on Instagram Reels, the app's month-old video feature that is similar to TikTok. Reesa Lake, partner and executive vice president of brand partnerships at the talent agency Digital Brand Architects, said that creators with 100,000 or more followers charge between $5,000 and $40,000 for sponsored Reels. Fashion and lifestyle influencer Britney Turner with 27,000 Instagram followers prices her sponsored Reels rates at $2,000. "Brands are more aware of the returns of investment on Instagram," said an influencer who used both Instagram and TikTok, and asked not to be identified to speak more freely about brand deals. "It's very easy to convince a brand to do a Reel in addition to another package." Read the full story here. More stories we're reading: Insiders reveal how former McDonald's CEO Steve Easterbrook went from the chain's savior to its worst nightmare as sex-scandal accusations threaten to envelop the fast-food giant (Business Insider) Facebook will limit ad volume to take more control of campaign management (Business Insider) Entertainment digital ad spend will drop 6.9% this year, but gaming and SVOD growth will offset losses (Insider Intelligence) TikTok teams up with luxury brands like Louis Vuitton and Saint Laurent to livestream runway shows from fashion weeks around the globe (Business Insider) Facebook to continue IDFA collection after Apple's stay of execution (Adweek) How Walmart is advertising its new loyalty program, Walmart+ (Digiday) Thanks for reading and see you tomorrow! You can reach me in the meantime at firstname.lastname@example.org and subscribe to this daily email here. — LaurenJoin the conversation about this story » NOW WATCH: What living on Earth would be like without the moon
High-end designers like Louis Vuitton, Fendi, and Dior are flocking to TikTok to reach new shoppers ahead of what will be the bleakest fashion week in history
Summary List PlacementTikTok users took to the social platform to participate in the "Gucci Model Challenge"...Summary List PlacementTikTok users took to the social platform to participate in the "Gucci Model Challenge" at the end of August, posting videos of themselves posing in whimsically patterned, heavily layered outfits inspired by the company's aesthetic. Despite garnering more than 12 million views, the challenge was not a savvy marketing ploy from the luxury brand, but rather an organic effort built within the TikTok community. For Gucci and its luxury brand counterparts, the "Gucci Model Challenge was an example of the untapped power of the platform, which until recently, most fashion companies had left untouched. That is, until the pandemic hit. Louis Vuitton joined TikTok on Tuesday, becoming the latest in a smattering of high-end brands creating accounts in recent months. In July alone, TikTok welcomed Fendi, Balenciaga, Dior, and Stella McCartney, coming on the heels of newcomers like Burberry, YSL, and Gucci earlier this year. While the types of videos shared by these brands varies widely — as does the cadence, with some like Prada and Tiffany & Co. sitting idly with zero posts — experts told Business Insider it's clear their presence on the platform is integral to their survival. @louisvuitton Join ##LouisVuitton on TikTok ♬ Serene - Mansur Brown Luxury fashion looks to appeal to the youth According to a recent survey conducted by YPulse, a marketing firm specializing in Gen Z and millennial consumers, 54% of Gen Z respondents said that they currently use TikTok. This compares to 35% in February 2020. The uptick is largely a result of the pandemic, said YPulse's Vice President of Content MaryLeigh Bliss. "Luxury brands are beginning to join the platform and the reason is really clear: the growth of TikTok among the next generation of shoppers has been so enormous," Bliss told Business Insider. "Especially in the last six months, we've seen TikTok usage among Gen Z skyrocket and quarantines and the pandemic are certainly behind a lot of that activity." Bliss said that while these days it seems every brand wants to cash in TikTok's captive audience of 100 million active monthly users in the US, the mad dash among luxury brands is significant given their historical reticence to join such platforms. "Luxury brands are traditionally slower to adopt to new social media and this is also the case with TikTok because so many younger brands or smaller brands adopted it really quickly and have really embraced it," Bliss said. Still, some luxury retailers are already emerging as early winners on the platform. According to Thomas Rankin, cofounder and CEO of the visual marketing platform Dash Hudson, retailers like Balmain and Gucci — which have long proven to be favorites among younger shoppers — continue to outshine competitors on TikTok. Rankin said Gucci, in particular, has found success in light-hearted posts like its Gucci Moves series, which features a series of diverse, non-models dancing in Gucci attire. Since joining in February, Gucci has racked up nearly half a million followers, with many of its videos generating millions of views. @gucci Follow the Gucci moves💃🕺🏼 ♬ original sound - gucci TikTok as the fashion show of the future Jason Goldberg, chief commerce strategy officer at Publicis, said getting on TikTok is vital to fashion brands looking to weather the storm of the pandemic, a period that some have dubbed the "end of fashion." "Some of the other vehicles that brands have historically had for building their brand are less available to them during COVID. So they're looking for new mediums," Goldberg told Business Insider. "For luxury and fashion in particular, it mirrors this pivot in the way people shop and the way they become aware of products they want." Though global fashion weeks are still slated to take place this month — including a heavily modified, spectator-less version of New York Fashion Week — the concept and its antiquated delayed fashion calendar have long been in decline. As a result, high-end brands have struggled to keep up with the pace of e-commerce. "The fashion industry used to be about going to these heavily curated fashion shows you know and then the clothes got delivered six-to-nine months later," Goldberg said. "That model was dying and then its been accelerated by COVID. Instead, people are now influenced by an influencer in their circle." Rankin echoed Goldberg's point and said TikTok may ultimately become the fashion show of the future. "During the pandemic, and with fashion weeks currently a thing of the past, luxury brands must shift their perspectives on how to engage audiences, and deliver content that is not a replication of fashion weeks, but a reimagination of it that works on new channels like TikTok," he said.SEE ALSO: The pandemic is creating a reckoning for jeans Join the conversation about this story » NOW WATCH: Why thoroughbred horse semen is the world's most expensive liquid