TikTok has surged past its competitors, becoming the premier platform for small to midsize businesses (SMBs) aiming for high engagement and a robust return on investment. According to Capterra’s TikTok Marketing Survey, 71% of small businesses, including retailers and restaurants, will increase their TikTok marketing spend next year—up from 52% last year.
The survey underscores a pivotal shift in digital marketing, highlighting TikTok’s effectiveness in engaging audiences, especially among Gen Z and Gen Alpha consumers. A staggering 96% of SMBs who market themselves on TikTok report the most engagement on TikTok compared to Meta platforms. The average small business on TikTok maintains a follower count between 10,000 to 25,000 with posts receiving an average of 1,000 to 10,000 views, illustrating the platform’s expansive reach. Additionally, 65% of SMBs post content daily, a testament to TikTok’s popularity.
In 2024, TikTok’s user-centric, diverse content and authentic engagement opportunities are prompting businesses to rethink their marketing budgets. Most SMBs plan to increase their TikTok marketing spend while around one-third will concurrently reduce their investment in Facebook (37%) and Instagram (32%). This strategic shift comes as businesses recognize the unique appeal of TikTok’s content, which fosters a blend of entertainment and utility unseen on other platforms. Moreover, this engagement is not just superficial; over half of SMBs using TikTok’s paid ads report a positive ROI.
The platform’s role in supporting businesses isn’t limited to organic content. The introduction of TikTok’s advertising suite, especially its popular Smart Targeting feature, changes the game by enabling SMBs to achieve rapid ROI, often within just five months. The efficiency of TikTok’s ad tools is so compelling that 85% of successful SMBs are gearing up to increase their TikTok advertising spend in 2024.
However, building a TikTok presence isn’t without its challenges. As TikTok expands into eCommerce with TikTok Shop, SMBs face logistical hurdles, including inventory management and fulfillment complexities. Around 45% of businesses have found that deriving ROI from TikTok Shop is challenging, signaling a need for strategic adoption.
“SMB performance on TikTok is strong. Most are seeing a positive return on ad spend, rising sales attributable to TikTok, and engagement above and beyond what they receive on any other social media app, including Instagram and Facebook,” says Molly Burke, senior retail analyst at Capterra. “However, as TikTok’s eCommerce marketplace evolves, businesses must focus on creating content that is entertaining and helpful to avoid adding to users’ growing ad fatigue.”
TikTok is set to dominate social media in 2024, and it’s clear that SMBs have much to gain from this platform. While challenges in eCommerce persist, the overall benefits of TikTok present a way for businesses to thrive through engaging content and effective advertising strategies.
Check out Capterra’s reviews of management tools and service providers to evaluate your options for social media marketing and content creation. For full survey findings and actionable recommendations, please visit Capterra.com.
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