Today was the second webinar in The Retail Reset series where we discussed all things social with our Summit experts, plus a guest speaker from TikTok.
Darren Wright, Product Strategy Director at Summit, hosted the session and was also key in the Voice of the Customer survey we conducted to better understand customer attitudes and usage of different online platforms.
Carl Hutchinson, Head of Paid Media at Summit, then took us through Summit’s background in Paid Social, why brands should be focusing on this channel, and then explored our survey insights and how brands can think about and use these practically.
Joel Williams, Performance Partnerships Manager at TikTok, then joined the panel to talk about all things TikTok and how brands can use this platform as part of their social proposition.
The full webinar is below in case you missed it and if you have any questions about anything Paid Social, please send them to [email protected]. If you would like to join the next webinar, sign up here.
Why are we talking about paid social?
The reason everybody is talking about social is because of its growth over the last few years. People are using social media differently, shown by significant increases in product searches within the social space (8% of UK product searches now take place across social media) and consequently the amount of time that people are spending on the platforms is increasing (this has been particularly significant over the past 12-18 months.). There has also been an increase in paid social ad spend, but this does not necessarily mean that their performance is improving.
We at Summit are Changemakers in Paid Social.
- Managed, built and delivered over 300 paid social campaigns for our clients over the past 2 years, equating to £250million in revenue.
- 40+ Awards for Paid Search, Paid Social and Marketing Technology
- £6 Average ROI driven through Paid Social.
The UK digital advertising landscape is increasingly diverse
There are a plethora of platforms available, but it is still dominated by Facebook and Instagram when we talk about social, which is not fundamentally the case for the consumer. There are platforms which do not have the same level of penetration, but have great audience relevance and integrated formats, creating a more enjoyable experience for the consumer. It is important to consider how you incorporate that type of information into your campaigns.
Determining the right tool for the job can be difficult
It is not just what platforms are being used, it is also who is using those platforms.
It is good to remember that the 34 year olds and under are the spenders of the future. How do you get your brand recognised now with that demographic, and engrain it as YOUR category, to ensure you are the first port-of-call when they are in the market to purchase?
It is most interesting to see how the consumer views themselves as using the platforms, and it is important for the brand to incorporate their content in-line with how the consumers use the platforms.
We have also been working closely with Eye Tracking Specialists, Lumen, and they shared some important data on the attention time that advertising formats get from the consumer. And as you can see, you only have a couple of seconds to grab your customers’ attention!
We found out that YouTube’s non-skippable ads are a very similar format to that of traditional TV, whilst the other social platform formats behave similarly to that of Out-Of-Home and Digital Out-Of-Home, where you have a very small period of time to grab the attention of the user. Are you putting your distinctive assets such as your brand image and everything you value as a retailer in front of the consumer quickly and in a way that is easy to consume?
Customers do not care about your ads!
We found that:
- 55% of customers find ads annoying.
- 49% of customers only trust adverts from well-known brands.
- 52% of customers prefer to see ads for products that they are already interested in.
- 47% of customers are happy to see ads in exchange for free access to a platform.
How best to use social differs by stage in the customer journey.
We spoke to consumers to find out how they use their social platforms, asking where they seek inspiration, where they research and where they go to make their purchase. It is no surprise that the consumer themselves use platforms such as YouTube, Instagram and Facebook when seeking inspiration, but what is interesting is the TikTok element. The moves they have made within the social ecosystem is impressive and it is now being absorbed by the consumer as a place to go to seek inspiration.
It is also no real surprise that Amazon and Google dominate the purchase phase of the funnel, however nobody goes to Amazon for inspiration. This is why it is important to join both ends of the funnel, and this is offered by the social ecosystem. There is a huge opportunity for social platforms to pivot and become more of a commerce offering. An example of this is Facebook releasing their shops within the US as an attempt to narrow the gap from inspiration through to research and purchase in as few moves as possible.
The rules differ depending on the category you are selling.
It is extremely important to understand the consumer at a category level. For example, a consumer is 38% more likely to use social media and 30% less likely to use amazon to research fashion.
Use this category level information to form the wider picture of your consumer and create new segments that are going to be valuable to you both now and in the future.
So, how do you get closer to your customer?
- Profile the social media usage of shoppers in your category to understand where to reach them.
- Tailor your content & targeting to the context & customers mindset when using each platform.
- Leverage distinct brand assets to capture customers’ attention within 2 seconds.
- Test, learn and optimise your approach to maximise ROI.
We can help YOU realise your potential.
We often find we can more than double the ROI for the same budget. Our audits of new client accounts typically show there’s significant sales opportunities left on the table:
- Fix the Basics
- Implement Best Practice
- Focus on Audience
- Continually Optimise
- Creative Excellence
For more information or for a copy of our audit, email [email protected]
The TikTok community is ever-growing
“Don’t make Ads, make TikToks.”
The TikTok community is active & attentive. YouTube is the only platform close to TikTok when looking at the average amount of time a user spends in-app each session. TikTok is also sound on, and therefore users have to be fully immersed into the content they are consuming.
The community is unique & unduplicated, and a lot of users aren’t on other platforms so ultimately, if you are looking to diversify your marketing mix or support your new customer acquisition strategy, TikTok is invaluable. There is a unique audience waiting to be tapped into, in a climate far less diluted that the usual Instagram or Facebook.
Fundamentals to success on TikTok:
- Leverage creators – be your most authentic self.
- Think about how you use sound.
- Be creative and bold. Do not be afraid to show a different side to your brand’s personality.
- Keep it simple and make it fun!
- Bring elements to your brand and product to life.
- Quality of content beats quantity of followers.
The creator marketplace is an influencer portal, which allows businesses to reach the best performing creators, split by market and split by vertical. There are over 10,000 top vetted and approved creators in 20 different countries who you can directly get in touch with and start discussing your campaign goals.
New Collection Format
Collection Ads enable advertisers to use a multiple product card and instant storefront/instant product page for their business. Seamless shopping experience for users and better discovery mechanism for products.
Dynamic Product Ads
Dynamic product ads are one of the many advertising objectives in TikTok which enables advertisers to serve catalogs of the most relevant product ads to the most relevant audiences.
Princess Polly Case Study
Princess Polly is an online fashion retailer beloved among fashion-forward Australians, delivering apparel and accessories to customers domestically and around the world. As a trailblazer in the digital marketing space, Princess Polly was one of the first brands to trial TikTok’s new Collection Ads format globally.
As a retailer, the main goal to use collection ads is to drive more users for sale sand lift brand awareness at the same time. Collection ads help Princess Polly drive users through the purchase journey quickly by creating a fast-loading native experience combined with the capability to showcase relevant products from the catalog.
- 5.98x return on ad spend.
- +5.95% higher CTR compared to control group.
- +53.84% increase in product page visits.
So, the opportunities on TikTok are definitely something to include within your performance marketing strategy if you haven’t already.