TikTok has become the premier platform for small to midsize businesses (SMBs) and retailers aiming for high engagement and a robust return on investment.
According to Capterra’s survey, 71% of small businesses will increase their TikTok marketing spend in 2024, which is up from 52% in 2023.
A staggering 96% of SMBs who market themselves on TikTok report the most engagement compared to Meta platforms like Facebook or Instagram.
The average small retailer on TikTok maintains a follower count between 10,000 to 25,000 with posts receiving an average of 1,000 to 10,000 views, illustrating the platform’s expansive reach. Additionally, 65% of SMBs post content daily, a testament to TikTok’s popularity.
SMB’s plans for marketing budgets
In 2024, TikTok’s user-centric, diverse content and authentic engagement opportunities are prompting businesses to rethink their marketing budgets.
Most SMBs plan to increase their TikTok marketing spend while around one-third will concurrently reduce their investment in Facebook (37%) and Instagram (32%).
This strategic shift comes as businesses recognise the unique appeal of TikTok’s content, which fosters a blend of entertainment and utility arguably unseen on other platforms. Moreover, this engagement is not just superficial; over half of SMBs using TikTok’s paid ads report a positive ROI.
The platform’s role in supporting businesses isn't limited to organic content. The introduction of TikTok’s advertising suite, especially its popular Smart Targeting feature, changes the game by enabling SMBs to achieve rapid ROI, often within just five months.
The challenges of TikTok marketing
Building a TikTok presence isn’t without its challenges. As TikTok expands into eCommerce with TikTok Shop, SMBs face logistical hurdles, including inventory management and fulfilment complexities.
Around 45% of businesses have found that deriving ROI from TikTok Shop is challenging, signalling a need for strategic adoption.
Capterra senior retail analyst Molly Burke commented: “As TikTok’s eCommerce marketplace evolves, businesses must focus on creating content that is entertaining and helpful to avoid adding to users’ growing ad fatigue.”
