Grow your business with TikTok & Media Mix Modeling

How TikTok drives strong sales for CPG Advertisers in the Middle East

Savvy advertisers need performance metrics in order to know how best to optimize their media plans and grow their businesses. One of the key solutions for generating these metrics is Market Mix Modeling, or MMx for short. This long-standing, privacy-friendly approach gives a clear understanding of the impact each of their marketing levers has on sales outcomes.

TikTok and Nielsen have partnered to investigate what impact TikTok ads have on driving sales of CPG products in the Middle East using Media Mix Modeling, or MMx. Nielsen, is a trusted, and long-standing measurement vendor that has expertise in CPG MMx. Nielsen has a proven history of being able to quantify marketing's effectiveness on sales and shining a light on key business insights.

With this partnership, TikTok and Nielsen set out to uncover these key business insights for the Middle East:

↪️ Does TikTok drive Return on Ads Spend (RoAS) for CPG advertisers?

🛒 Does TikTok drive offline sales for CPG advertisers?

📈 Is TikTok an efficient* driver of CPG sales?

📝 What campaign strategies can improve performance on TikTok?

Here's what we found:

TikTok provides a measurable and significant impact on brand sales

TikTok paid ads drove a ROAS of $1.83 in MEA which is 3.5 times higher than other Nielsen measured media.*

TikTok ROAS is also 56% higher than other digital** ROAS (excluding TikTok) and exceeds ROAS for all other media across the measured projects.

The ROAS doubled to $3.7 with the impact from incremental earned impressions.

The Food & Beverage category saw the highest ROAS for TikTok vs all other Media

For the F&B category, TikTok paid ROAS is 66% higher than total digital and 4x higher than other media.

Health & Personal Care also achieved a ROAS of 1.92x vs other media and 1.67x vs digital media.

Household achieved ROAS which is 58% higher than total digital and 3.2x higher than other media.

TikTok paid ads for all categories modelled exceeded the CPG benchmarks as well.

Drive additional ROAS by running multiple TikTok ad formats at a time when running your campaigns

It is recommended that advertisers execute multiple ad formats simultaneously within their TikTok campaigns to leverage the synergistic impact.

Brands executing multiple ad formats for their TikTok campaigns drove as much as 10% higher ROAS, compared with brands that focused only on an individual ad format. In UAE, brands executing multiple ad formats for their TikTok campaigns drove 31% higher ROAS ($2.1), compared with brands that focused only on an individual ad format ($1.6).

Whereas from a category lens, multiple formats running simultaneously vs. single ad formats have a stronger ROAS for Food & Beverage (16% higher) and Health & Personal Care (18% higher).

Drive incremental ROAS by maintaining in-feed ads for higher weeks on air on TikTok

Running in-feed ads for 20+ weeks over 2 years drives 16% higher ROAS than brands with less than 20 weeks of in-feed ads.

These findings align with prior insights that were uncovered in North America, EU, and Southeast Asia MMx meta analyses. Read more about those here. And if you're interested in including TikTok data in your Media Mix Models, please reach out to your account representation to get the process started!

Download report here

Index:*

ROAS (Return on Ad Spend) is the sales revenue generated per every media dollar; efficiency is the %contribution to incremental sales volume per million dollars media spend.

**Total Digital includes social, display, video, and programmatic; excluding TikTok.

***Total Media includes total digital and other media channels (e.g., TV, OOH, Print); excluding TikTok.