TikTok has repeatedly explained that it’s not a social media app, it’s an entertainment platform, with a focus on showcasing the best video content, not building a social graph to connect users with friends, as such.
That approach also extends to advertising in the app, and facilitating connection between users and products, via what TikTok calls ‘Shoppertainment’, which seeks to align these two key elements.
And that can lead to significant opportunities – as per TikTok:
“According to research, shoppertainment could uncover $1 trillion in market value for brands in the Asia Pacific (APAC) region by 2025, up from $500 billion today.”
To glean more insight into the potential value of the ‘shoppertainment’ approach, TikTok recently commissioned Boston Consulting Group to conduct a survey of users across six APAC markets (Indonesia, Thailand, Vietnam, Australia, South Korea and Japan), in order to get their views on TikTok’s shopping options and ad tools, and how they view brand engagement in the app.
You can download TikTok’s full ‘Shoppertainment’ overview here, but in this post, we’ll take a look at some of the key notes.
First off, the survey data shows that the consumer path to purchase is changing, making it harder to track direct results to campaigns.
As per the report:
“46% of people buy on a different day, and 85% switch apps while going through the consumer journey. Combine these behaviors with a growing skepticism towards branded content (34%), and you can see why brands are looking for better ways to connect with consumers.”
The reduced influence of ads has been a key element in TikTok’s rise in this respect, with advertisers effectively forced to create TikTok native content, which is less promotional, and more aligned with the usage behaviors in the app. The easiest way to do this is to partner with established creators, an angle that TikTok’s seeking to underline with this insight.
Building on these initial notes, TikTok says that customers have six key needs when shopping.
“These six needs can be divided into two main groups that shape how brands engage with consumers: functional needs and emotional needs.”
TikTok says that it’s important for brands to meet these essential, functional needs, while also reaching to connect with the emotional requirements too. In combination, that’s how brands can create a more resonant presence, that better connects with modern consumers.
So how, exactly, do you go about it?
As you can see here, TikTok has also shared some actionable, practical notes on how you can align with these requirements in your content, which it says is key to maximizing your brand’s ‘shoppertainment’ value.
The report also includes key market insights, including this note that Indonesia is the top focus in the APAC region, with the highest potential for growth.
That’s why Meta is also making Indonesia a priority, and it’s interesting to consider the potential of these emerging markets, which are in many ways, only just now tapping into the full potential of the digital marketing shift.
There are some interesting, valuable notes, with a focus on the APAC region, but tips that translate to any market.
You can download TikTok’s full, 28-page Shoppertainment Guide here.
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