If your customers are under 25, the answer is probably yes, as an experiment with a small budget and a willingness to look different from the rest of your marketing. If they are over 35, the honest answer in 2019 is not yet: the reach is not there, the ad tools are immature, and your money works harder on Instagram and YouTube. The rest of this piece is the decision framework, what the platform actually offers brands right now, and how to start without embarrassing yourself.
TikTok for brands: should you be there yet?
TikTok has passed a billion downloads and opened self-serve ads in beta. A decision framework for whether your business should be on it in 2019, and how to start.
Overview
Where TikTok stands in 2019
Growth & Digital · 2019
TikTok, owned by Beijing-based ByteDance, absorbed Musical.ly a year ago and has since become the most downloaded non-game app in the Apple App Store for several quarters running. Sensor Tower estimates more than a billion downloads worldwide, with over 100 million in the United States. The company itself has cited around 500 million monthly active users globally.
What makes it different from Instagram or Snapchat is the feed. The "For You" page is algorithmic rather than follower-based, so a video from an account with 50 followers can reach millions if people watch it to the end. That is exciting for brands with no audience, and it also means consistency is harder: reach is earned video by video.
On the commercial side, things are early. The official ad products launched this year and are sold mostly through sales reps: brand takeovers, in-feed video ads, branded hashtag challenges and branded lenses. A self-serve ad platform is in beta and has been opening to more advertisers over the summer. There is no shopping integration, no retargeting pixel comparable to Facebook's, and reporting is basic.
The decision in four questions
Growth & Digital · 2019
Run through these before spending anything.
1. Is your buyer there? TikTok's US audience is overwhelmingly Gen Z and younger millennials. If you sell to teens, college students or parents buying for them, yes. If you sell B2B software or retirement planning, no amount of cleverness changes the math.
2. Can you make native video weekly? The platform rewards frequency and participation in trends. A brand that posts one polished video a month will not get traction. You need someone who can shoot and edit a 15-second vertical clip on a phone in an afternoon, several times a week.
3. Can you tolerate looking unpolished? The content that works is playful, fast and often self-deprecating. Brands that insist every post go through three rounds of legal and brand review will not keep up, and the output will look like an ad.
4. What is the cost of being early versus late? Early brands on Instagram in 2012 built audiences cheaply before organic reach tightened. The same window may exist here. Against that, platforms do fail, and the regulatory climate for a Chinese-owned app with a young audience is not calm: TikTok paid a $5.7 million FTC settlement in February over children's data.
If you answered yes to the first three, a three-month test is reasonable. If you answered no to the first, stop here and revisit next year.
What is working for brands this year
Growth & Digital · 2019
A handful of early campaigns show the pattern.
| Brand | What they did | Why it worked |
|---|---|---|
| Chipotle | #GuacDance challenge around National Avocado Day in July | Simple, repeatable action tied to a real promotion |
| The Washington Post | Behind-the-scenes newsroom skits | A serious brand being funny on the platform's terms |
| Guess | #InMyDenim challenge, the first US branded challenge last year | Transformation format that fits the product |
| NFL | Multi-year content partnership announced this summer | Repurposing highlights into native formats |
The common thread is participation, not broadcasting. Challenges give users something to do, and brands succeed when they supply the prompt and then get out of the way. Chipotle reported more than 250,000 video submissions and over 400 million views for its challenge in six days, numbers that would cost millions on other channels.
The decisions behind the topic.
Every piece we publish starts with the questions a business owner actually asks. The full answers are at the end of the page.
A sensible first 90 days
Growth & Digital · 2019
For a small or mid-sized business, treat this as a content experiment, not a media buy.
- Spend two weeks only watching. Follow 50 accounts in and around your category. Note which formats, sounds and jokes recur. Save examples.
- Set up a business account and post three times a week for a month. Short, vertical, native-feeling clips: product in use, team moments, answers to real customer questions. Use trending sounds where it fits.
- Measure watch-through and shares, not followers. The algorithm rewards completion rate. A video watched to the end by 5,000 people is worth more than one skipped by 50,000.
- Test one creator partnership at $500 to $2,000. Mid-tier creators with 50,000 to 500,000 followers are affordable and often more effective than big names. Brief them on the product and let them make the video. You will hate the first draft and it will outperform yours.
- Try paid only if the self-serve beta is open to you. Start with in-feed ads using your best-performing organic video, at a few hundred dollars, driving to a mobile-fast landing page. Do not expect Facebook-grade targeting.
- Review at 90 days. Decide based on cost per engaged view and any attributable traffic or sales, not on whether it was fun.
Budget for the test: $3,000 to $10,000 including staff time, one creator and a small paid test. That is a reasonable price to learn whether the channel has a place in next year's plan.
Mistakes to avoid
Growth & Digital · 2019
- Reposting polished ads. They are identifiable within half a second and get swiped away.
- Chasing every trend. Participate where it fits the brand; sitting out is fine.
- Ignoring music licensing. Sounds available in the app's commercial library are cleared for business accounts; popular songs often are not. Check before you build a campaign around one.
- Forgetting the under-13 problem. The platform's age rules exist for a reason. Do not target or feature children in brand content.
- Treating it as a sales channel. There is no checkout, limited link placement and weak attribution. Judge it on reach and attention this year.
- Starting without someone who uses the app. If nobody on your team scrolls it daily, hire or partner with someone who does.
Platforms this usually involves
We work with the stack that fits the journey rather than forcing a fixed toolset.
How Sigma Extreme approaches this
Growth & Digital · 2019
A new channel is only worth entering if it fits a connected plan across brand, growth, web and technology, so we start by asking what role it would play rather than whether it is trendy. Discover establishes who your buyers are, where they already spend attention and what the brand can credibly sound like in a looser format. Plan defines the experiment: audience, content pillars, posting cadence, a small creator budget, the landing experience and the metrics that will decide whether to continue. Build is production, account setup, creator briefs and the paid test where the tools allow it. Improve is a monthly review of watch-through, cost per engaged view and downstream traffic, feeding back into the wider social and content plan.
How we've done it before
Growth & Digital · 2019
The product launch engagement is the representative pattern. A consumer brand launching to a young audience needed attention it could not afford to buy on established channels. After a discovery that confirmed the audience's platform habits, we built a native short-video content program alongside a small set of creator partnerships and a mobile-first landing experience, with paid support only where it proved efficient. The launch reached its target audience at a fraction of the cost per view of the brand's existing channels, and the learnings shaped how the brand produced video everywhere else.
Related case studies
Representative delivery patterns showing how this connects with the rest of the system.
If you are deciding whether TikTok belongs in next year's plan, we can run the discovery and a 90-day test with clear decision criteria. Request a proposal and tell us who your customers are and what video you already produce.
Frequently asked
How much do TikTok ads cost right now?
The official ad products are priced for large brands. A branded hashtag challenge runs around $150,000 for six days, a brand takeover can be $50,000 or more a day, and in-feed ads are sold on a CPM basis with campaign minimums in the tens of thousands. The self-serve platform is in beta with a reported $500 minimum campaign budget, but access is still limited.
Who is actually on TikTok?
Mostly people under 30. Estimates this year put around 40 percent of US users between 16 and 24, with the app reporting more than 26 million monthly US users and 500 million worldwide. The audience is growing fast and skewing slightly older each quarter, but if your buyer is over 40 the reach is still thin.
Can I just repost my Instagram videos?
You can, but they will underperform. TikTok's culture rewards native, often lo-fi vertical video that uses trending sounds and formats. Polished ads and repurposed Stories tend to get scrolled past. If you are going to be there, make content for it or work with creators who already know what the platform rewards.
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