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TikTok reveals insights on e-commerce success

Date posted on DIARY directory: Tuesday 17th June 2025

TikTok reveals insights on e-commerce success

TikTok has collaborated with digital agency Precis and measurement platform Alvie to shed light on how traditional attribution models may significantly undervalue TikTok's contribution to e-commerce success.

Rethinking Attribution: Beyond the Last Click

  • Traditional attribution models, like the Last Non-Direct Click (LNDC), often credit the final touchpoint before a conversion, overlooking the influence of upper and mid-funnel activities. This approach can misrepresent the effectiveness of platforms that excel in brand discovery and consideration phases.
  • The study analysed data from ten Nordic e-commerce brands across fashion, home goods, and consumer products. By deploying advanced attribution methods, the research revealed that TikTok's Return on Investment (ROI) is, on average, 10.7 times higher than what LNDC models suggest.

TikTok's Full-Funnel Impact

The study's findings highlight TikTok's effectiveness across various campaign objectives:

  • Brand Awareness Campaigns: Achieved a median ROI of 2.6.
  • Consideration Campaigns: Yielded a median ROI of 3.9.
  • Conversion Campaigns: Delivered a median ROI of 3.1.

Additionally, brands observed a 26% increase in branded search activity within one to two months following TikTok campaign activations, indicating a significant halo effect.

Strategies of High-Performing Brands

The study identified key practices among brands that maximised their TikTok ROI:

  • Always-On Approach: Maintaining a consistent presence rather than sporadic campaigns.
  • Authentic Content: Utilising User-Generated Content (UGC) and native-style creatives that resonate with the TikTok community.
  • Engaging Storytelling: Crafting narratives that align with TikTok's storytelling frameworks, such as "Results First & Work Backwards" and "Built into Routine."
  • Optimised Video Length: Producing videos longer than 15 seconds with compelling hooks to capture and retain viewer attention.

 

For more information, visit tiktok.com. 


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TikTok reveals insights on e-commerce success
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