TikTok is still missing from too many media plans — despite its fast-growing, cross-generational audience. Precis' CEO, Jess Merry, dives into new insights from Precis’ Media Mix Model study to reveal why brands struggle with TikTok, and how to unlock its full potential.

TikTok is still missing from far too many media plans. Granted, some brands treat it like a core channel — right up there with Google and Meta. But others run small tests, see mixed results, and move on.

But consumer behavior is shifting fast. 40% of Gen Z now use TikTok to search for a lunch spot instead of Google Maps. And it’s not just for Gen Z: 45% of TikTok’s UK audience is over 35. This is a highly engaged, discovery-driven audience — watching the equivalent of a movie’s worth of content in a day.

So why does TikTok remain such a puzzle for advertisers? Using insights from Precis’ recent Media Mix Model study, I’ll deep dive into winning strategies for unlocking media effectiveness on TikTok. You can also find the full study at http://bit.ly/3I9lA3J

Pitfall one: Creatives that don’t feel native

TikTok is a platform for creativity and your assets need to be designed with the audience in mind. The most successful ads feel organic and are less commercialised. It feels counterintuitive to avoid overly branded or promotional content, but this actually drives +81% higher ROI compared to ads that have branded overlays and transactional cues.

One possible reason for this is ad-blindness. We are exposed to 100s of ads in a single day and are very good at subconsciously filtering them out. When content on TikTok feels native, we are less likely to filter it out.

Another reason could be the platform’s culture of authenticity and peer-to-peer influence. In fact, User-generated content drives 55% higher ROI than non-UGC. When that UGC is also unbranded, ROI rises a further 19%.

Pitfall two: You’re relying on last-click measurement

It’s well accepted that social media channels are undervalued by Last-Click measurement. What’s often disputed is how much “extra credit” these channels should receive. Using an MMM-attributed view, Precis found that TikTok ROI was 10.7x higher compared to that reported in Google Analytics.

You don’t need an MMM to unpick the truth behind performance. Running a causal impact analysis — which compares actual outcomes with a synthetic control scenario — helps quantify what would’ve happened without TikTok in the mix. The results showed, on average, branded search increased +26% in the 2 months after an advertiser launched on TikTok. You can find free resources for causal impact studies on GitHub.

If you’re not running experiments, you’re just guessing! If you have a set and forget strategy, it’s hard to understand what contributes to performance. But, if you test different budgets, targeting and creatives, you’re more likely to unpick the key performance levers for your brand.

Pitfall three: You’re only focused on the bottom line

The study found TikTok demonstrated superior performance in brand awareness activities when compared to other social platforms. Clear ROI was demonstrated across the funnel: brand awareness (2.6 ROI), consideration (3.9 ROI), and conversion (3.1 ROI).

Many advertisers skip consideration campaigns in favor of direct conversions, but this can backfire. Consideration delivered the highest ROI in the study, likely because TikTok users are in a discovery mindset, not ready to buy on impulse. 

The top performing brands in the study had a consistent, full-funnel strategy. They achieved higher attributed ROIs across the funnel.

Winning on TikTok requires a mindset shift. What works elsewhere won’t always work here. Native, authentic creative matters, as does looking beyond last-click metrics and embracing more holistic measurement. And to truly unlock ROI, brands need to think full-funnel and not just about conversions.

Now’s the time to stop dabbling, and start investing with intent.