Does TikTok drive efficient and effective ROI in Central Europe?
(Spoiler alert: the answer's yes!)
As a Marketing Mix Modeling (MMM) provider, Business Science Warsaw, the analytics arm of EssenceMediacom Poland, has a broad overview of advertisers from five continents and multiple categories. They see TikTok becoming a part of the media mix in an increasing number of cases. With TikTok appearing more and more frequently in their MMM Return on Investment (ROI) results database, and with the increasing volume of questions from clients who are curious how their TikTok results compare to benchmarks, they decided to conduct a study themselves.
The dynamic growth of TikTok is evident not only from the perspective of its increasing user base and the time they spend on the platform but also in terms of the number of campaigns and the questions advertisers have about the effectiveness of this channel. Based on data from Western European and US markets, we see that TikTok has significant potential in terms of efficiency. However, until now, there has been a lack of evidence on how TikTok performs in the Central European region. The results from this report should facilitate advertisers in making decisions regarding the inclusion of TikTok in their media mix.
How effective is TikTok at driving ROI in Central Europe?
EssenceMediacom decided to review the TikTok sales results case by case and present one CPG and one Retail case in Central Europe. These were the key findings:
1. According to the Polish CPG case study, TikTok is 58% more efficient than other media, on average.
TikTok is more efficient than other media channel groups, meaning it has the highest return on investment of the groups. For this study, we grouped channels as: TikTok, Other Social, Other Digital and Offline.
2. According to the Polish retail case study, TikTok is 48% more efficient than other media, on average.
TikTok is more efficient than any other group of media channels. It’s 48% more efficient than the average for all media. It’s followed by other social media channels that are 31% more efficient than the average.
3. EssenceMediacom confidently recommends experimenting with a +50% weekly investment intensity vs the maximum weekly spend during the modelled period.
There’s no doubt, TikTok benefits from being early on the response curve and It would be recommended that FMCG and Retail advertisers increase investment to learn how the diminishing return effects kick in for TikTok compared to other media.
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