TikTok, a powerhouse in the social media realm, is facing notable shifts in its advertising dynamics and user engagement. Here’s an in-depth look at the current trends:
Ad Spending Trends
Ad spending on TikTok has grown year-over-year but has recently shown signs of slowing. March saw a 19% increase in ad spending compared to the previous year, but by April, growth had cooled to 11% and further dipped to 6% in May. Despite significant increases in some categories, like consumer services, the average daily spend on TikTok dropped by 2% in April. Major advertisers, including Target and DoorDash, have reduced their spending.
Changing Advertising Goals
The announcement of a potential U.S. ban on TikTok in March has prompted advertisers to shift their focus from brand awareness to performance-driven goals. This strategic shift has contributed to the deceleration in ad spending growth. Meanwhile, TikTok’s CPMs (cost per thousand impressions) for upper-funnel metrics have risen by 15% year-to-date, reflecting the increasing cost of advertising on the platform.
User Growth and Engagement
TikTok’s user growth is experiencing stagnation, particularly among younger demographics. The percentage of weekly users aged 18-24 has decreased from 35% in 2022 to 25% in 2024. Conversely, the 35-44 age group has seen a slight increase. Additionally, the average daily time spent on TikTok has slightly decreased from 52 minutes to 51 minutes.
Conclusion
TikTok is navigating a challenging period with slowing ad spend growth, rising advertising costs, and shifting user demographics. Brands and marketers must stay agile and adapt their strategies to the evolving landscape to maximize their reach and engagement on the platform. Follow for more blog content. Contact us to manage your online presence.
Source: Tod Maffin
