The social network TikTok has the fastest growing audience among all its competitors, and its application is one of the most popular worldwide.
Created in 2017 on the basis of the Douyin application, the Chinese social network already broke the record for downloads at the beginning of 2020. In the first quarter of that year, the application was downloaded 315 million times.
Number of TikTok users in 2023 reached 1.5 billion, which is 16% more than in the previous year. In total, the application has been downloaded more than 3 billion times.
In Ukraine, this social network has also become very popular, having collected more than 12 million active adult users.
Moreover, TikTok has become a popular platform for earning and promoting a business or personal brand. How can you make money with TikTok and how do the algorithms of the social network help in brand promotion?
How TikTok algorithms work
Essentially, TikTok algorithm is a recommendation system that determines which videos will be displayed on a user’s page. Such recommendations are unique, meaning that different users will not see the same videos on their own pages. Moreover, the subject of the videos that one user sees may change over time depending on his further preferences.
This is how TikTok itself determines the platform’s algorithm: “A stream of videos curated according to your interests, making it easy to find the content and creators you like… thanks to a recommendation system that provides each user with content that is likely to interest that particular user.”
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User interaction, video information, device and account settings are available the main factors that affect the algorithm TikTok.
The following actions influence the formation of recommendations:
- tracking other accounts;
- comments left under the video;
- liked and saved videos;
- videos that the user marked as “Not interested”;
- videos shared by the user in the application;
- share of watching a particular video.
Such a factor influencing the algorithm as video information includes search by subscription, sound, hashtag or effect.
At the same time, TikTok does not base its recommendations on the number of followers or the history of previous high-performing videos. This is what allows pages with a small number of subscribers to spread their videos to a larger audience.
TikTok as a way to promote a business
Social networks have already become an integral part of running any business. Regardless of its scale. And if Instagram is mainly used to create a “beautiful picture”, then TikTok can exist in a kind of “parallel dimension”.
For example, recently “Ukrzaliznytsia” started its own account in TikTok and creates videos for popular trends – while respecting its context. The page also has company newsoften presented in a humorous way.
@ukrainian_railways sorry not sorry🙃 Now tickets for the Kyiv – Warsaw train can only be bought using “Action.Signature” #укрзализница #ukrainianrailways #перекупы #квытки ♬ original sound – Ukrzaliznytsia
By the way, for data according to a survey by the non-governmental organization “Opora”, social networks remain the most popular source of information for Ukrainians, and 25% of respondents prefer TikTok.
Another example of how to successfully develop your own page on a social network was demonstrated by the UPG gas station network. Together with creative agency Bachysh, they filmed a series of videos for TikTok in which the chain compliments customers at its gas stations.
The first published video on the social network received more than 2.5 million views, and the total reach on all platforms was more than 4 million.
@upg.ua Hello, subscribe 💚 #upg #азк #комплименти ♬ original sound – upg.ua
“Our presence on TikTok is also important because it dispels stereotypes. Is this social network really about frivolity, and its target audience is children and teenagers? We have shown that it is not,” – told marketing director of UPG Nadiya Hanulich-Manukyan.
There is always the logic of large businesses entering TikTok, as well as any other popular platform, because such a step increases brand loyalty and recognition and brings it closer to its target audience.
And for small companies, this social network has a slightly different meaning. This is an opportunity to demonstrate your products/services to a wider range of people, increase your regular audience and, accordingly, customers.
However, even getting into the recommendations and collecting a large number of views does not guarantee a sharp increase in sales, says the owner of a small Instagram clothing store Natalia Skumin. “When I have a video, it’s always sales. My last video on TikTok gained 200 thousand views and brought about 150 sales,” Nataliya said.
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The owner of the store noted that nowadays there are many small businesses that start running their TikTok, but they do it “chaotically”, which is why they don’t get the desired result. And in order to get it, that is, to have transitions to the main page and, accordingly, sales, you need to build a whole strategy.
“Now, there are few stores that run TikTok well and have constant sales from it. They are usually large businesses. And there, the main flow of customers comes from TikTok,” says Nataliya.
In general, TikTok in this context is not about direct sales, but about recognition and consolidation of the brand in its market.
Advertising on TikTok
Another common way to make money on TikTok is advertising. As a rule, this method is suitable for people who have a large audience and an original presentation of the material.
At first glance, the algorithm is similar to advertising in other social networks, for example, Instagram. A company, brand, or person who personally provides services approaches a blogger to promote their product or service.
However, if on Instagram the blogger can provide statistics of views, audience engagement, and the client will be sure that this audience will see the advertisement, then TikTok has risks that do not guarantee the desired result – wide coverage of a certain audience.
The fact is that a TikTok video may or may not get into the recommendations, may or may not work for a different target audience, or the platform will simply block the video due to content requirements.
How much you can earn on YouTube, Instagram and TikTok
How much you can earn from advertising on TikTok is an individual question. Beginner bloggers charge for their services from 500-1000 UAH. Or they are simply limited to receiving the product that was sent for advertising.
Advertising with popular bloggers also depends on the idea, the company, the previous brief.
“We can consider specific requests for the integration of this or that brand/company, for a specific audience (having a brief/technical task for review) and accordingly discuss potentially relevant conditions for the current period,” the popular blogger’s team said Vlada Shevchenko.
Shevchenko creates various sketches and shoots content for brands, including Silpo, Uklon, Hotline.finance, Dnipro M, Staff, etc.
Another popular blogger is Oleg Mashukovsky in 2021 toldwhich in TikTok earns from 1.5 thousand dollars.
Monetizing TikTok Live Streams
Another way to make money on TikTok is to monetize live broadcasts. They are available to any network user who has reached a certain number of subscribers – from 1 thousand.
In this case, content creators are paid by other users – viewers of live broadcasts. During the broadcast, they have the opportunity to donate and give special gifts.
These special gifts are further transformed into diamonds, which can be converted into cash or other virtual gifts. If the broadcast turns out to be very popular, you can also get diamonds from TikTok itself.
For every 200 diamonds you can get about $1. In Ukraine, money can be withdrawn using the international payment system PayPal. The minimum withdrawal amount from TikTok is $10.
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You can also make money on live broadcasts by broadcasting on the topic of advertising products.
However, live broadcasts also have disadvantages, in particular, the lack of analytics. The user will not be able to track the number of visits to the site after the live broadcast or referral customers to monetize the TikTok account.
Content creators for TikTok
With the development of TikTok and the demand for advertising, in particular, creative, the specialty of a content creator began to gain popularity. That is, this is a person or a team that is engaged in creating relevant creative content.
Accordingly, brands and companies turn to such people and order content from them for their own pages. For example, an account becomes popular in TikTok Create for Jyskfor which the creative team shoots various short sketches directly in JYSK stores.
This channel was launched in November 2022, but it was not possible to reach a high level immediately. Already in May 2023, the creators were able to raise the channel and make it recognizable, in particular, thanks to the format of short entertaining videos, their own stories and the refusal to use other “sounds”.
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Yevgeny Navrotskyi from the KreatParni creative team, which creates content for JYSK, said that after the breakthrough in May, other brands began to approach them: “Currently, we work with 10 brands. We have been approached by both large and small companies, in general about 40”.
Citrus, Comfy, Hotline, FILM.UA, Apteka ANC are among the largest companies that contacted the creators.
@apteka_anc Admit it, would you like to do that in a pharmacy? 😂 #анц ♬ original sound – ANC Pharmacy
Such work can really become profitable if you develop and follow the trends. For example, a screenwriter who writes ideas for such videos can earn from 20-30 thousand UAH per month, working in a team, says Yevhenii.
“There is an option when a person works separately for brands, but few people need only one script – without shooting and editing. If you cannot complete all the tasks yourself, you can form a team – find a cameraman, another scriptwriter, and adjust all these processes.” – added the representative of KreatParni.
He said that there is no fixed price for their services. The cost of services depends on the complexity of the project, on supply and demand. Conditionally, if they are approached by 6 companies with different projects at the same time, they can increase the cost and hire only one customer.
“Popular agencies that are leaders in the market, such as Hooligan Buro Anton Murafa, they charge about 3-4 thousand dollars a month for their TikTok management services. They are approached by big brands, they have a large team of screenwriters,” Navrotskyi said.