At its current growth rate, TikTok’s popularity has outstripped Instagram by a long shot, and it is slated to surpass Snapchat. Brands, content creators, and marketers must now make it a top priority to stay on top of TikTok trends to monetize TikTok users.
TikTok was the most downloaded app in 2022 and the average TikTok user spends 95 minutes a day watching videos.
SproutSocial
Trends on TikTok shift as quickly as they begin, so content creators must stay on top of what’s hot at the moment if they hope to make money from their profiles.
Kids spent 62% more time watching TikTok videos than YouTube.
Qustodio
While it’s true that there are mixed opinions about the platform overall, there is no denying that it has earned a place among the top social media channels available.
It’s also worth noting that Gen Z is the app’s largest demographic, with well over 45 million users in that age range accessing TikTok at least once per month.
eMarketer
As we move into 2023, let’s take a look at a few TikTok trends creators and brands should be aware of:
TikTok Monetization Is Still A Long Way From Reaching Total Saturation.
Content creators and influencers have been using platforms like YouTube and Instagram for years, so they know precisely what steps are needed to create a sales funnel and turn a profit through their profiles. Any newcomers to these monetization models can find endless blogs, webinars, articles, and tutorials on how to capitalize on the platforms’ money-making potential.
However, the same is yet to be true for TikTok. This is partly because its popularity is still a relatively new phenomenon. Another reason it is not yet oversaturated is that the ways that influencers can make money are more complex than those of Instagram or YouTube.
For instance, on other platforms, there are lots of opportunities to place a clickable link somewhere, streamlining the selling process and making monetization simpler and more manageable. By contrast, most TikTok creators must rely on heavily promoting their affiliate codes or frequently changing a link in their profile to funnel viewers to the product or service they’re promoting.
Another major trend that goes hand-in-hand with this is an increase in brand partnerships. Recent ConvertSocial data shows that TikTok bloggers’ income from brand partnerships has grown by 58% in the past year. This points to the fact that influencers are figuring out the benefits of utilizing a well-known brand’s name power as a part of their marketing strategy.
TikTok Is Becoming The Go-To Sales Hub For Influencers and Brands.
TikTok’s sales numbers have increased by approximately 400%.
ConvertSocial
These unprecedented numbers can be at least partly attributed to influencers on the platform finally grasping how to take full advantage of sales and advertising opportunities. This is especially true for paid partnerships and affiliate marketing prospects.
Another crucial point regarding this impressive sales growth is that TikTok’s primary user base has grown older, aging into a group of young adults in possession of considerable spending power. Breakdowns of the TikTok user base show:
- The 10 to 19-year-old age group makes up 32.5% of TikTok’s users
- Users age 20 to 39-year-old age group comprise just under 46% of active users.
This translates to more than just simple purchasing power. Older users also tend to be more interested in products or services with a higher ticket value and are often willing to spend more for perceived quality or luxury.
A final contributing factor here is that small businesses have begun turning to TikTok as a way to actively establish sales chains specifically targeted to younger audiences. These small businesses are creating a memorable brand identity based on what appeals to these younger users and leveraging that to expand their customer base.
Female Spending Power Is More Significant Than Ever On TikTok.
A survey from January found that nearly 54% of the global TikTok user base is female.
Statistica
With over a billion users and 670 million downloads in 2022, this is a vast and largely untapped market, meaning brands and influencers are leaving considerable money on the table. In fact, the data points to the startling fact that only about 18% of marketers fully utilize TikTok as an advertising channel.
When you add to this the fact that women have substantial control or influence over nearly 85% of consumer spending, it’s clear that brands should be paying more attention to what female TikTok consumers are interested in buying. This is especially compelling considering that the numbers show that women account for about $10 trillion of U.S. financial assets.
Fortunately for brands, there is a large and growing pool of talented social media influencers who are willing to collaborate with brands in an effort to gain a more extensive follower base and turn a bigger profit. This means that it is essential for marketers to start taking TikTok more seriously as a way to generate revenue.
So, Where is TikTok Headed in 2023?
Despite certain regulatory risks some governments, particularly the United States, have raised, TikTok does not seem to be going away anytime soon. While it is important to understand that TikTok is a Chinese creation (owned by a Chinese company called ByteDance), the data shows that brands would be wise to take TikTok more seriously when it comes to the extensive spending power of its user base.
The overwhelming majority of TikTok users are willing and able to pay for goods and services they find in paid partnerships and targeted ads, so brands can and should capitalize on TikTok’s popularity, as long as this is done with eyes wide open and plenty of protections in place.
The platform continues to grow and expand, adding new features and releasing improved advertising tools. Additionally, influencers are quickly gaining a firmer grasp of marketing mechanics, encouraging more brands to enter the space. TikTok’s popularity is slated to continue its impressive rise, and tremendous revenue-generating opportunities await.
