Why your small business should be selling on TikTok this Christmas

Getting the most out of TikTok can help you reach a new audience and grow your business this Christmas.

If you run a small business, you’re probably eagerly anticipating the busiest shopping period of the year. With a billion active monthly users globally, TikTok offers many opportunities for SMEs to get on someone’s wish list this Christmas.

Indeed, 47 per cent of people on TikTok have already purchased something they like on the platform. According to 2022 TikTok app data, the hashtag #TikTokMadeMeBuyIt got more than 29bn views.

But with holiday shopping well underway, how can an SME make the most of TikTok to increase sales and grow their business? Try TikTok for Business.

What is TikTok for Business?

For SMEs looking to target more customers and drive results, TikTok for Business offers a suite of products that help small businesses grow. Even though it seems late in the season, it’s never too late to begin a campaign with TikTok For Business.

Take thortful, for example – the UK’s first greeting card marketplace. Earlier this year thortful needed to attract new customers and build awareness of its wide array of cards and gifts. The brand tapped into TikTok’s popular trends and used humour to showcase their products. They reached over 1.7m users, with their videos receiving over 4.4m views.

What are the benefits of TikTok for your SME this Christmas?

People all over the UK turn to TikTok to discover trends, recommendations and their next purchase throughout the year. It’s no surprise that Christmas shoppers go to TikTok for gift inspiration – 82 per cent of users say they have discovered an SMB on TikTok before seeing them elsewhere.

TikTok for Business is offering SMEs access to the Holiday Resource Hub, a one-stop shop filled with useful information to help SMEs win the holiday season, including a free playbook with a step-by-step guide to the season including their Christmas checklist.

5-step Christmas checklist:

Before the big day, take these steps to get your marketing plan in order.

#1 Refine creative strategy

Develop a voice on TikTok and determine what you want to show your audience.

It’s a light-hearted platform so it’s ideal for showing off the fun side of your business. Think tips, tricks and comedy shorts – TikTok stats show that three out of five users go to the platform for entertainment so keep that in mind when you’re doing your planning. If you want to keep it more informative, include short information in text overlays around the theme of your video. For example, how a particular child’s toy might be beneficial to their learning with five text overlays explaining why.

Remember, ads that look like native videos do well. Have a play with holiday trends – nothing too polished, though. Users like a casual, authentic image. You could offer fun giveaways or get in on Christmas trends such as decorating the Christmas tree, Christmas wish lists and easy holiday meals.

Turn the sound on too, so that users will feel more engaged!

#2 Find and define your audience

TikTok lets you set your parameters to target new users using Ads Manager. Ads Manager can guide the ad formats you use and target your audience based on age, location, gender, interests and other unique variables. 

What’s more, you can create custom and lookalike audiences (that share commonalities with your current audience) to expand your range.

#3 Set your budget and bidding strategies

Minimum ad spends apply but be clear from the start on how much you want to spend for your ads. If you’re satisfied with your performance, it’s recommended you increase your budget by 20-30 per cent every day.

You set your bidding strategy when you set up your ad group. Find out more about bidding strategies here.

#4 Build your ad format strategy

Over half (52 per cent) of TikTok users that have come across SMB content on TikTok have gone on to make a purchase.

Ads can take many forms on TikTok:

In-Feed Ads:  The standard ad format, embeds a video that plays automatically in the For You feed. This format runs up to a max of 60 seconds.

Spark Ads: A native ad format that allows businesses to boost posts from their own Business Accounts or Creator profiles as In-Feed Ads. Unlike other ad formats, users can interact with Spark Ads, just like organic videos. Users can comment, like and share but also visit the brand’s or the creator’s profile associated with the video. 

Collection Ads: Enable people to seamlessly discover and browse products in a full-screen mobile experience. Collection Ads lead to an Instant Gallery Page where people can explore a curated collection of your products.

Lead Generation: Allows you to create interest in your business and collect information to convert prospects into customers. Lead Generation Ads deliver qualified leads directly to you, saving your business time and money.

E-Commerce Integrations: TikTok integrates with e-commerce merchants allowing you to add TikTok as a sales and advertising channel to your website. The Integrations streamlines the process of creating or linking your TikTok Ads Manager account, syncing your product catalogue and installing the TikTok pixel to enable paid and organic visibility features.

#5 Optimise

Allow your campaign time to adjust before rushing into optimisations. Refreshing your creative can help, every seven days ideally. 

Make incremental changes to your bid and budget when you make adjustments. Don’t change your budget more than 30 per cent from the previous budget setting and don’t change your bid more than 20 per cent from the original setting.

Try and optimise before your Christmas ad campaign begins. Check you’re targeting the right audience, re-jigging your ads based on how users interact with them and test constantly to see what does and what doesn’t work.

Read more

5 tips to make your small business TikTok marketing a success

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Anna Jordan

Anna is Senior Reporter, covering topics affecting SMEs such as grant funding, managing employees and the day-to-day running of a business.

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