How TikTok Drives Offline Sales Impact For Advertisers

How TikTok Drives Offline Sales Impact For Advertisers
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TikTok has worked with 3rd parties to validate the ability of TikTok ads to drive offline sales for advertisers.

This work was undertaken to answer the all-important question of whether TikTok can drive offline sale outcomes and provide a positive return on advertising spend.

To get an accurate result, TikTok executed a series of NCSolutions offline sales lift studies in the US and a suite of marketing mix modelling meta-analyses across the globe in partnership with Nielsen.

Marketing Mix Modelling

Marketing mix modelling results (shown below) show that TikTok drove positive paid media return on advertising spend (ROAS) across the consumer-packaged-goods (CPG) vertical.

The Nielsen Mix Model Meta-Analysis commissioned by TikTok showed in-feed videos as the most efficient performer in marketing mix Models.

In-feed campaigns also have further opportunities to scale.

As shown below, Nielsen’s model also indicates that advertisers in this analysis could increase in-feed impression volume by 50 per cent while maintaining efficient offline sales lift.

NCSolutions Sales Lift Studies

In order to find out what the numbers could look like for real, in-market campaign sales lift, TikTok commissioned a series of NCSolutions sales lift studies.

According to the results, TikTok has shown an ability to generate incremental sales and positive ROAS for CPG advertisers.

As shown above, among the 16 commissioned studies, 14 generated significant sales lift.

The average ROAS for these studies was 2X the NCS median campaign performance benchmark.

Both of the studies demonstrate the ability of TikTok ads to drive offline sales, especially for CPG advertisers.

*Source: TikTok Marketing Science CPG Media Mix Model Meta-Analyses, US, Conducted by Nielsen 2020

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