The surge in popularity of video content across social media platforms has led to it being labelled as the "new billboards and television". This means that business owners get to have access to large audiences without having to invest a lot in advertising, as they would in traditional media for a similar or larger audience. In essence, they get to “play for less”.

With over one billion monthly users globally and still expanding, TikTok is the fourth most popular social site in the digital world.

Demystifying TikTok's user base

Despite the prevalent perception that TikTok is largely a Gen Z app, the 2023 Holiday Season Shopping Report by Redseer Strategy Consultants showed that the platform is now the leading digital media channel for product discovery by a variety of users, with 71% of adult users in South Africa, making it the country’s most influential platform for purchasing – food for thought when it comes to making business decisions where social-media advertising is concerned.

In 2022, at a press event launching the What’s Next 2023 trends report, Sofia Hernandez, the Global Head of Business Marketing at TikTok, said: “On TikTok, communities are the new demographics, and brands need to explore the platform by being part of it.”

This puts into perspective how businesses can approach marketing to an audience that’s not only diverse but segmented into smaller specialised communities. These communities can be turned into loyal customers. However, for them to be successful, businesses will need to be part of that community.

That means tapping into and creating content around the interests of that community. If you own a restaurant, for example, you’d ideally want to create content within the #FoodTok space, using popular audio, trends and challenges – thus being part of the community.

While jumping on trends can seem easy it’s key to ensure that the content is authentic, otherwise your business may look opportunistic and the strategy could ultimately fail to yield results. This approach, however, does not limit businesses to only one specific community and allows them to show up in different communities in ways that speak to those specific ones­ – not a one-size-fits-all approach.

Lessons from a hair business

Enchanted Scrunch, a hair scrunch business from the USA run by a 16-year-old Arizona entrepreneur called Dasha Derkach, has experienced tremendous growth in awareness and sales thanks to TikTok. A total of 90% of its revenue comes directly from the platform and it has increased orders from two to 100 and then 500 orders per week.

This comes as a result of carefully thought-out content speaking to the hair community, authentic content illustrating the unique selling points of the products creatively and engagingly.

In South Africa, RedSeer Strategy Consultants found that 40% of local consumers use TikTok to search for products in comparison to other platforms. Also, TikTok inspires 95% of local users to make purchases with almost 70% of them expecting to increase their spending during holiday seasons.

Content that sticks with your audience

Leveraging TikTok's diverse audiences can be a game-changer. With a user base that spans various age groups and interests, leaning into the communities that align with your business is one of the key growth strategies for TikTok.

Creating original and engaging content that these audiences can relate to helps build trust and credibility. This in turn translates to a customer base, revenue, loyalty and brand advocacy.

Other tactics, like utilising hashtags and challenges which have become an integral part of TikTok's culture, increase visibility and engagement – ensuring that a sense of community is fostered around your brand, as well as increased brand awareness and affinity.

In conclusion, TikTok provides a unique chance for small and medium-sized businesses to reach and engage with a variety of niche audiences. A considered approach and tactics on this platform can significantly impact the growth of your business.