The University of Texas at Austin is the latest school to ban TikTok from its WiFi and other wired networks. They’re following the lead of other state schools like The University of Georgia system, Auburn University and many others.I am very intrigued by the impact that this forbiddance could have on brands who heavily rely on the social media app for its advertising spend—specifically brands who target college students. According to one TikTok Research Study, ads created specifically for the app in partnership with a creator result in 83% higher engagement rates than those without. In other words, this policy could have serious ramifications for brands relying on influencer marketing. It isn’t just the audience that’s valuable, either—it’s how the audience is accessing their content. According to neuromarketing and neuroanalytics firm Neuro-Insight, in-feed ads have a 23% higher detail memory than television ads.
While students may find clever workarounds for accessing the app, I imagine that this will still have a significant impact on a brand’s social media KPIs like views, impressions and reach, which could in turn have negative consequences for ROAS (Return on Ad Spend) and CAC (Cost to Acquire Customer). I could also see this having implications for the NCAA’s NIL rule and therefore athletic recruitment. For example, if a top athlete has a choice between a school that allows TikTok versus one that does not, will he/she opt for the school that allows TikTok so that they can earn money by partnering with brands on the popular social media platform? Brands will also suffer because if the athlete’s audience who they are targeting are concentrated in a certain region (e.g. the school the athlete attends), then brand’s might miss out on the huge returns that TikTok promises its advertisers.
Sources: https://www.morningbrew.com/daily/stories/university-of-texas-austinban-tiktok, https://www.tiktok.com/business/en-US/blog/tiktok-drives-greater-audience-engagement
https://www.tiktok.com/business/en/blog/brand-collaborations-tiktok-creators-drive-big-results
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