Ad spending on TikTok is poised for another substantial increase in the coming year, with an even more rapid influx of capital fueling the growth.
According to ad execs, those rises for next year are set to be as much as 25% more than they have been this year.
What you need to know
- Shray Joshi, founder and CEO of the Good Peeps, which has clients including protein snack brand Chomps, and Chinese chilli hot sauce Fly By Jing, said his team’s goal is to get marketers spending at least 20% to 25% of their budget on TikTok in 2024. The same goes for Power Digital, which works for clients such as Procter & Gamble, Uniqlo and Casper.
- Meanwhile Ryan Detert, CEO of Influential, expects most of his clients, which include Fortune 500 companies, to spend around 10% to 15% more on TikTok in 2024.
- TikTok is expected to take up 2.2% of total digital ad spend worldwide this year, rising to 2.6% in 2024 and 3% in 2025, according to forecasted data from Insider Intelligence.
Behind the numbers
While these gains are notable, there are some important things to keep in mind. One big one is that the money advertisers are pouring into TikTok is just a drop in the ocean compared to what they’re spending on tech giants like Meta. When it comes to TikTok, the cash is mainly split into two areas, as Tucker Matheson, managing partner of Markacy, pointed out: there’s the investment in creating TikTok content, and then there’s the effort to make ads more efficient or meet specific goals. Marketers are used to working like this, and until they do their advertising on TikTok will always be capped.