TikTok Works: Studies show ads on TikTok are efficient and effective

With over one billion monthly active users globally, TikTok is where communities come together to create culture and engage with their favourite brands. And all of that interaction isn't just helping users discover new businesses and products, it's also driving results for advertisers, both globally and in Canada.

TikTok recently partnered with Nielsen Canada on a Marketing Mix Model (MMM) meta-analysis study called Nielsen Compass that compares all of the MMMs that Canadian advertisers have run through Nielsen from 2020 to 2022, specifically in the CPG category. The results of the study show how different media channels perform across several key metrics, including efficiency (return on ad spend), effectiveness, and sales contribution.

So what do these results reveal about TikTok and Canadian businesses specifically?

TikTok ads are becoming more efficient and effective

According to the Nielsen Canada MMM meta-analysis, TikTok ads are not only seeing efficiency improvements, but also achieving increased effectiveness. In 2022, TikTok ads achieved a 30% improvement in ROAS and a 58% lift in total incremental sales per 1,000 impressions compared to 2021. Put differently, TikTok investment dollars are working harder, as every impression generated creates more value and drives more sales, with advertisers now seeing an average return of $2 per $1 spent.¹

TikTok is seeing the highest growth rate of all media channels

TikTok is delivering across marketing objectives, fueling brand discovery, boosting consideration of products, and driving tangible results. Due to ad efficiency and effectiveness gains, TikTok’s media sales contribution grew by 2.3 times. This marks the highest year-over-year growth rate compared to all other media channels in 2022, including Linear TV, Digital Display, Online Video, Paid Social and Paid Search.¹

We know the TikTok community has a special relationship with brands on the platform and that video entertainment is fluid and ever-evolving—and marketers need to be, too. Specifically, when looking at Linear TV, the MMM meta-analysis found that TikTok ads pack a punch and are 1.6 times more powerful at driving both sales effectiveness and efficiency. In fact, when diving deeper into the results across all Nielsen MMMs, on average, TikTok ROAS outperformed TV by 63%.¹

See our friends @ASAPScience chat about what these stats mean for driving brand impact:

TikTok ads drive real results

The bottom line? TikTok works impressively hard for your brand in Canada, delivering real and impactful business results for Canadian marketers through effective and efficient advertising.

To learn more about the Nielsen Canada MMM meta-analysis, reach out to your TikTok Canada representative. And to explore more of our TikTok measurement tools, and how they have been designed to cover every touchpoint in the customer journey, visit our measurement solutions page here.

1. Source: TikTok Canada MMM Compass Norms - Meta analysis conducted with Nielsen, 2020-2022