The Power of Trust in Advertising and the Rise of TikTok

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Aug 31, 2023
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The Power of Trust in Advertising and the Rise of TikTok
In 2015, a study titled "Global Trust in Advertising" revealed that the most credible form of advertising comes from the people we know and trust. The study found that 83% of global respondents completely or somewhat trust the recommendations of friends and family. Additionally, 66% of respondents trust consumer opinions posted online, making it the third most trusted advertising format.
Fast forward to today, and we see the rise of TikTok, a social media platform that has taken the world by storm. According to SVP Prabhakar Raghavan, 40% of young people now turn to TikTok or Instagram when looking for a place to have lunch, instead of relying on traditional search engines like Google Maps or Search. This shift in behavior highlights the potential power of video search and its impact on in-app commerce.
Whoever can master video search will have a significant advantage in unlocking new monetization opportunities. By keeping users' actions within their app, social companies can expand their business into commerce, payments, and other lucrative features. TikTok, with its algorithm-driven content recommendations, now boasts over a billion global monthly active users. Kids and teens reportedly spend an average of 91 minutes per day on TikTok, surpassing the average time spent on YouTube.
One unique aspect of TikTok is the potential for location-based advertising. Imagine if every user-generated video had a location tag that could redirect viewers to vouchers or other deals. Merchants would benefit greatly from this, as they would have access to a vast number of new, free, and seemingly less biased user-generated content for their products or offerings. This would provide them with daily "ads" courtesy of their own customers.
The success of location-based advertising can be seen on Douyin, the Chinese version of TikTok, which boasts 600 million daily active users. Search on Douyin has been a mainstream and popular behavior for years. Through its algorithms and user behavior analysis, the app can push new places to users that they would have never thought to search for. The short-video format effectively enables continuous discovery of the best places nearby, improving with every swipe as the platform better understands users' interests.
Combining the power of trust in advertising with the rise of TikTok, there are several actionable insights and advice for businesses:
- 1. Leverage the power of user-generated content: Encourage customers to share their experiences and recommendations. User-generated content is trusted and can serve as a powerful advertising tool.
- 2. Embrace video as a marketing medium: Video content has become increasingly popular, and platforms like TikTok offer unique opportunities for reaching a young and engaged audience. Consider incorporating video into your marketing strategy.
- 3. Explore location-based advertising: If applicable to your business, consider using location tags to drive foot traffic and offer exclusive deals to customers. Location-based advertising can be a powerful way to attract new customers and increase engagement.
In conclusion, trust in advertising and the rise of TikTok present exciting opportunities for businesses to connect with their target audience in new and innovative ways. By understanding the power of user-generated content, embracing video marketing, and exploring location-based advertising, businesses can stay ahead of the curve and unlock new growth potential.
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