Reels, Shorts and TikTok: how do Advertisers Divide Spend?
“People who have built big followings on Instagram have seen the platform shift, and maybe their investment they put into Instagram has shifted, because they have seen the algorithm on TikTok really work for them outside of paid media deals,” says Sadie Miller, SVP of social media strategy and partnerships at Reprise. TikTok has gained the trust of advertisers by investing in third-party measurement partnerships and adopting industry standards. This allows our clients to test new ad formats and performance before investing in custom creative content for hyper-specific formats,” Baron says. Ad performance and efficiency is another key factor for media buyers, who say TikTok and YouTube have higher engagement than Instagram because they are content-led platforms. 10 to 19 years old, while 30% are 20 to 29 years old. YouTube is the most popular platform among kids aged 13 to 17, according to the Pew Research Center, while Instagram attracts a lower proportion (8.5%) of teens. Until recently, brand safety considerations would have elevated Instagram and YouTube, more established platforms, above TikTok. Post was gen erat ed by GSA Content Gen erator DEMO!
While Instagram has shifted its algorithm to favor the kind of short videos that attract billions of views on TikTok, this has caused engagement rates to drop for brands and influencers on the photo content that Instagram was once synonymous with. While this is far smaller than Google’s $210 billion and Meta’s $115 billion annual ad revenues, TikTok is commanding the highest share of budgets allocated specifically to short video, according to media buyers Campaign US spoke with. This influences ad performance, a key factor in how media buyers select where to allocate spend. Since it is easier to nurture an organic audience on TikTok than on other platforms, media buyers say, advertisers often create campaigns specifically for TikTok and then repurpose it for other platforms. The scale and demographic of each platform’s user base is one of the first things media buyers review when looking to allocate spend. Until this year, we had brands tiptoeing and testing one campaign, but now we are seeing more brands adopt more of an evergreen presence which has led to increased investment,” she says. Meta responded to TikTok’s rise in August 2020 with Reels, and YouTube Shorts followed one month later. Th is article has been created with GSA Conten t Gene rator DEMO.
A third of TikTok’s U.S. But YouTube has the largest userbase of more than 2 billion monthly actives, compared to Instagram’s roughly 1.44 billion and TikTok’s 1 billion. 2.1 billion to $5.96 billion, according to EMarketer and Insider Intelligence. TikTok was the fourth most downloaded non-gaming app worldwide in 2018. The COVID-19 pandemic further catalyzed growth, and by 2021 it had surpassed a billion users, with more than 100 million in the U.S. “YouTube have a good opportunity to shift users from the main app into Shorts,” says Melles. “There's been a significant shift towards TikTok for a lot of brands,” says Nikki Melless, media director at Byte/Dept. Products like the Branded Hashtag Challenge and TopView, in which advertisers buy the first video users see when they open the app, represent new ways to “bring the community closer to brands,” Melles says. See our analysis of how creators monetize across Reels, Shorts and TikTok. YouTube ad salespeople similarly pitch the full breadth of its ad offerings rather than specifically selling Shorts. As monetization lags at Reels and Shorts, Campaign US delves into the factors informing how ad spend flows between short video offerings from performance to audience, maturity and trust.
Without a concerted push, however, monetization headwinds may persist, according to Jon Morgenstern, SVP, head of investment at VaynerMedia. The more time a user spends on a platform, the more ads they will be exposed to. Ads were brought to Reels in January 2021, but only recently to Shorts. This headwind is costing Meta more than $500 million in lost revenue per quarter, while Shorts dragged YouTube’s ad revenue into the red in Q3, possibly for the first time. He added that while TikTok has invested in brand metrics, Shorts are limited to performance marketing outcomes. While all three platforms attract a young audience, they are thought to be most active on TikTok. “The content people are getting served on TikTok is really relevant to them, which has provided really impactful results for us and our clients,” says Melles. “We are also always looking for opportunities to run cost-efficient testing so we can keep learning and stay ahead of the curve. Many remain reluctant to implement the TikTok pixel, a piece of code that they can install on their websites to track user actions and conversions. TikTok offers fewer but more innovative ad buys, according to Melles.
Post a Comment for "Reels, Shorts and TikTok: how do Advertisers Divide Spend?"