A recent study by Dentsu shows that TikTok ads generate the highest short-term return on investment compared to other platforms. The findings highlight TikTok’s effectiveness in driving quick results, making it a top choice for marketers seeking fast ROI.
Additional Key Insights from the Dentsu Study:
- 75% of advertisers reported TikTok delivered the highest return on investment (ROI) compared to other marketing channels.
- All advertisers experienced a significant increase in short-term sales driven by TikTok campaigns.
- The most effective short-term results were achieved by pairing lower-funnel platforms with TikTok.
- TikTok’s sales influence extends 3 to 4 weeks beyond the end of a campaign.
- Advertisers who achieved the highest ROI remained consistently active on TikTok.
- User-generated content featuring creators proved to have the most substantial impact on sales.
Considering the Long-Term Impact
While the data shows an impressive 11.8 ROI within the first six weeks, a sustained 4.5 ROI is also observed over the 10 months following initial exposure.
This highlights TikTok’s potential not only as a performance-driven channel for short-term gains but also as a strategic platform for long-term brand building. That said, as illustrated in the chart below, several other advertising platforms outperform TikTok in terms of long-term ROI.
Storytelling Ads Deliver Superior Results
A recent study analyzed two key forms of user-generated content (UGC):
Storytelling UGC: Content that emphasizes narrative and emotional connection without overt promotional messaging.
Tactical UGC – Content focused on pricing, discounts, or direct product pitches.
According to research from Dentsu, storytelling-driven UGC significantly outperformed its tactical counterpart. Campaigns using narrative content achieved stronger audience engagement and memory retention, ultimately delivering a 70% higher return on investment (ROI) compared to sales-focused promotions.
What This Means
According to Dentsu’s data, TikTok proves effective in driving both immediate sales and long-term brand growth.
Adoption of TikTok into a media strategy could be a smart move for advertisers aiming to boost short-term conversions while also building brand equity.
Methodology
Dentsu employed a comprehensive three-step framework to evaluate the full impact of TikTok advertising:
Short-Term Sales Impact
Assessed immediate revenue generated within six weeks of ad exposure while adjusting for external market influences.
Brand Perception Shifts
Measured changes in consumer attitudes and perceptions as a result of TikTok campaigns.
Long-Term Sales Contribution
Linked the shifts in brand perception to incremental sales occurring 1 to 10 months after the ads ran.
The study examined real-world sales and marketing data from 15 Nordic brands over a 2–3 year period. Advanced statistical modeling was used to isolate TikTok’s specific impact, controlling for variables such as seasonality, competitive activity, and other marketing efforts. This approach provided a unified view of both short-term performance and long-term brand-building effects.
FAQ’s
What did the Dentsu study reveal about TikTok’s short-term ROI?
The study found that TikTok delivers the highest short-term return on investment (ROI) compared to other marketing platforms, with a notable 11.8 ROI within the first six weeks.
How long does TikTok’s sales impact last after a campaign ends?
TikTok ads continue to influence sales for 3 to 4 weeks beyond the campaign period.
What type of content delivers the best results on TikTok?
Storytelling-driven user-generated content (UGC) significantly outperformed tactical UGC, offering up to 70% higher ROI.
Does TikTok also provide long-term brand benefits?
Yes, while TikTok excels at short-term sales, it also supports long-term brand growth, with a sustained ROI of 4.5 over 10 months.
What strategy enhances TikTok ad effectiveness?
Pairing TikTok with lower-funnel platforms and staying consistently active yields the highest returns, especially when leveraging creator-led storytelling content.
Conclusion
The Dentsu study underscores TikTok’s powerful role in delivering superior short-term ROI while also contributing meaningfully to long-term brand growth. By utilizing creator-driven storytelling content and maintaining consistent activity, advertisers can unlock both immediate and sustained value from their TikTok campaigns. Though some platforms may outperform TikTok in long-term ROI, its unique blend of engagement and influence makes it a compelling choice for marketers looking to balance performance and brand-building in a fast-evolving digital landscape.