Hello, OptiMIST People!
Back at it again with KaMIST! Your weekly dose of insights into the latest marketing trends. In this week’s KaMIST we explore the world of TikTok and how it has become a catalyst for change in the e-commerce world.
TikTok has taken the world by storm and whilst we awe at its content, sneaking by is its powerhouse marketplace. With creators beginning with innocent content, more and more TikTok creators are making unique content for their sponsored goods. Even more interesting, regular creators are also able to add yellow shopping buttons to their content. This has created a feast for companies battling to platform their products on today’s hottest new board. But, with the presence of Shopee, Tokopedia, Facebook and all major digital marketplaces, how has TikTok become a market leader?
Companies have discovered if a relevant ad is approved by a creator, half of customers are more inclined to engage with the product. Customers are reporting that the engagement of the content itself elevates the intrinsic value of the products being sold. This is shown as almost half of customers are highly likely to connect with a business if they see an advertisement featuring a creative. And this is all thanks to the colorful influencers sent out to sell.
The most fascinating and dynamic aspect of influencers are the remarkably diverse spectrum of qualities among accessible talent. Influencers vary greatly in branding and emphasis, follower base, engagement rates, monetary requirements for participation, and skill sets—all of which contribute to the package the influencer can give a company. These categories are determined not just by the number of followers, but also by perceived authenticity, accessibility, knowledge, and cultural capital.
Alongside that, with today’s sociocultural climate promoting ethos beyond previously championed individualism, consumers feel they need influencers. They look to these influencers to make consumeristic decisions, with many fans even going to the extreme of purchasing only what their idols have. Although traditional media such as Facebook and Twitter also utilize influencers, TikTok’s interaction ecosystem has put it on the apex. And, due to this consumers have more purchase intent than on Twitter, Facebook, and Instagram.
Still in doubt? We’ve seen many e-commerce stores follow TikTok such as Shopee’s introduction of Live shopping and Tokopedia’s utilization of affiliate marketing. Thus, we can put trust in the idea that TikTok has set itself in stone as an agent for change, and companies are already following.
Interestingly enough, the rise of TikTok e-commerce has mirrored China’s rapid rise as an economic superpower against the west. Following world economics, western media such as Twitter and Facebook have failed to provide as much economic value in today’s world as TikTok does. Is this connection too much of a reach? Let us know what you think.
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