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What’s all the hype about TikTok, is it a viable marketing channel yet?

TikTok Article

You’ve heard about TikTok before, but how can we use the platform as marketers to expand our reach? In this blog we cover the basics of TikTok and different ways how ads can be executed on the app.

What is TikTok?

In case you have been living under a rock, TikTok is a simple to use mobile app that allows users to upload and edit short form videos ranging from one second up to three minutes. It has become what SnapChat and Instagram had hoped they could become: The next best and biggest thing in video creation – the first of its kind on Western platforms that is arguably the perfect adaptation of YouTube in a short mobile form.

Who uses TikTok?

A Vox report suggests that in 2018-2019, the app was largely used by users based in the U.S.A. with teenagers (10-19 years old) dominating the app. However, the user base is expanding as can been seen this graph published by Statista which shows user-by-age stats in the U.S.A. in March 2021 which shows that older people are beginning to access the app,

and users can take any approach from storytelling, DIY-ing to mundane everyday life.

Distibution of TikTok users

Source: https://www.statista.com/statistics/1095186/tiktok-us-users-age/

 

Why is TikTok so popular?

The platform offers instant gratification. The app itself is both fun and easy to use. TikTok’s in-app tools allow users to easily add music, filters, captions and hashtags which inspires them to be creative and set trends of their own. What makes it even more exciting is the ability to go viral overnight. Going viral is what makes TikTok’s “duet” feature quite exciting. Users also use this tool to post reactions to other users’ videos. This leads to a chain reaction of duets and has made for some hilarious content and has also contributed to how content becomes trendy. What is also quite gripping about TikTok is how easy it is to join trends as users often post tutorials on how others can execute trending dances.

Source: https://media.giphy.com/media/eKNvgaaBcNJQ9y4OyD/source.mp4

TikTok Ads: Is it viable (and if so, how)?

But is it a viable marketing channel yet? Definitely. The platform works so incredibly fast that in a matter of just 3 days, Dior’s 001 Rose Blush went viral – thousands of users purchased, reviewed and applauded the product under the assumption it was famous billionaire Kylie Jenner’s go-to. Likewise, many other brands in the beauty industry have seen the same surge in sales due to TikTok. It seems the opportunities are limitless and there is room for every industry to thrive. The chances of going organically viral on the app are endless, but the question remains, “how do we as marketers make use of the platform in paid TikTok Ads?”

Here are a few simple ways:

  1. Brand Takeover
    A 3-second static image or 3-5 second video without audio that shows on app launch. This is great for brand awareness videos but can be very expensive.
    TikTok Challenge
  2. Top View Ads
    60-second ads that appear after 3 seconds as your first in feed post and include audio and a custom link.
  3. In Feed Ads
    As the name implies is an ad that appears in the users “for you” feed.
  4. Branded Hashtags
    This format encourages user generated content by using the product in a unique way and adding the branded hashtag. (Note this may not actually be the brand name but will likely be related to the brand e.g. #imlovinit). The video is added to the hashtag challenge page which other users can view. According to NoGood, this format of advertising on TikTok has seen an average engagement rate of 8.5%.
    Branded Hashtags
  5. Branded Effects, Sounds and Filters
    This form of advertising is not new to social media platforms. Long before TikTok, brands were using their own branded filters and effects on SnapChat and Instagram. Branded stickers, filters and special effects are created for users to add to their own videos.

Conclusion

Instantly gratifying, always new, incredibly addictive. TikTokers are highly engaged and user generated content is the order of the day. The real question is not should you be marketing on TikTok but rather why are you not already?

 

Unprecedented disruption has reshaped the future of logistics

 

disruption

With the Covid-19 outbreak, a fundamental but unpredictable risk to the logistics industry has shown up. For many countries and companies, keeping up with the market has been nothing short of difficult and uncertain. The challenge Covid-19 presents has forced industry leaders to rethink the way forward and this includes analysing the risks and challenges of the supply chain in order to get back to business as usual.

take risksSupply Chain Risks and Challenges

According to Accenture, the pandemic has brought a new type of consumer to the market and while the demand for fast supply and delivery has increased, routes to markets have been blocked sporadically for unknown periods. Due to this, supply chains are becoming more costly and stakeholders expectations are not being met. The industry itself cannot hold onto sustainable agreements. To examine the impact of the Covid-19 pandemic on the logistics industry and its potential for the future, Cushman & Wakefield, a leading global real estate services firm, has released its 2021 Global Logistics Outlook. The report discusses the key drivers affecting growth, global leasing dynamics and provides an outlook for the logistics sector. According to the report, these key changes have been drawn out for each region.

 

 

APAC

The Asian Pacific regional market has shown to be resilient. Out of the 34 key markets covered within Asia Pacific, the status quo has largely been maintained year-to-date, with only Singapore showing any real change to potentially becoming more tenant friendly, although this is restricted to certain parts of the industrial market, despite the pressure of a weakening export demand.

APAC

This is a major difference to the office sector within the region, which has seen a much more definitive shift towards being more tenant-friendly. In China, the logistics industry as a whole has seen a 2.5% increase due to new consumer demands and the rise in online shopping. The table below (which can also be found here) puts this into perspective:

Logistic Table

EMEA

Europe’s logistics sector is said to be struggling with supply constraints, stemming from a combination of a lack of developable land and strict planning regimes. Lisa Graham, Head of EMEA Industrial Research for Cushman & Wakefield, explains that, “In contrast to the pre-Global Financial Crisis (GFC) when speculative development represented roughly 80% of new construction, post-GFC has been characterised by predominantly ‘built-to-suit’ development that has led to severe supply shortages in most of Europe’s core logistics markets. As speculative construction resumed post-lockdowns, more product came to market, pent up demand was released and leasing activity accelerated.”

Truck in Road

North America

Proving to be one of the strongest markets, the North American market experienced growth despite the pandemic and other local disruptions to the industry due to hurricanes and wildfires.

But how do we address this issue and overcome it?

Construction MenFive Key Ways to Address Covid-19’s Impact on Logistics

  1. Improving visibility into operations.
  2. Increasing flexibility of inventory and assets to balance supply and demand.
  3. Communicating effectively with onsite and remote employees, suppliers, carriers and customers.
  4. Supporting the labour force by protecting the wellbeing of workers within the supply chain as well as that of the logistics staff.
  5. Being creative in your approach to understanding how to find resolution to the issue at hand and how to address it moving forward.

Conclusion

The pandemic has set a hurdle in all industries, but the world depends on the logistics industry to stay afloat. It’s imperative that these hurdles be overcome as best as possible. To read more about the ways in which logistic companies and leaders can improve their approach into delivering better, despite what the pandemic has presented, click here.