TikTok is a unique social media application with vast and diverse content. From the ever-loved cat videos to new-age celebs dancing, lip-syncing, and performing viral challenges, this application has captured the world’s attention. With its implementation of the TikTok Creator Marketplace (TCM), the platform is now making its mark on the world of commerce, especially e-commerce.
What is TikTok and How Does it Work?
TikTok is a content platform that allows users and creators to upload short-form videos for others to watch, like, share, collaborate with, as well as sell and advertise products.
What began as 30-second snippets now has a cap of 10 minutes, and creators can have videos/posts with more information. Despite its short format, the average user spends around 95 minutes daily on the app, and about 1 million videos are viewed daily.
Most of the content on the application is trend-driven, meaning that content will never be as evergreen as creators would like. This forces content creators to have a regular posting schedule to stay relevant and top of mind with their viewers.
What Makes TikTok Different
TikTok has changed the way people consume media over the internet. Before, users could view pictures or long-form videos. Now content is shorter and geared towards high engagement. The days are numbered for the old ways of content creation.
To support this notion, we have seen other apps adopt similar, if not the same, features. Instagram has its ‘Reels,’ YouTube has ‘YouTube Shorts,’ and Twitter has a feature called ‘Twitter Explore.’
Not only does the length of the content matter in how it is consumed, but also how the ‘algorithm’ plays a role in who views the content. All social media platforms use interactions such as likes, shares, comments, and follows to influence an algorithm. One main differentiating factor comes when TikTok’s algorithm focuses on pushing content you have not seen within the same category rather than showing you content from creators you already follow or who are just popular.
With the influence this application has had on social media, it’s scary to think how it will change the way e-commerce, m-commerce (mobile commerce), and the promotion of products can be changed too. One feature is that content creators and businesses will have the opportunity to invite one another to promote or be promoted.
TikTok, like many other social media applications, helped influencer marketing grow to where it is today. The Influencer market is growing to a point where it will be worth $21 billion.
What is the TikTok Creator Marketplace?
The TCM is a section of the platform that helps creators and brands collaborate to promote and sell e-commerce products. Money or a reward-based payment allows for more non-traditional ways of collaboration.
With the application available worldwide, TCM will have access to over 150 marketplaces, be available in over 35 languages, and partner with companies like Shopify, Ecwid, Woocommerce, Big Commerce, and Salesforce Cloud Commerce. TikTok’s Presence seems to be such a disruption that Amazon will soon launch its product promotion version through its feature called ‘Inspired.’
Pros and Cons of TikTok Creator Marketplace (TCM)
Pros of TikTok Creator Marketplace
1) Optimized Product Promotion: TCM helps match products to the influencer and audience they have, making it easier to have your products land on the right ‘For You Page.’ They match based on a few criteria:
- Marketing Objectives
- Target Audience
These pre-determined matching criteria help e-commerce sellers unaware of the m-commerce space stick to a marketing plan when using TCM. On the other hand, sellers who are familiar with this allow their product to reach the niche segments they may have otherwise struggled to get.
2) Access to accurate data: Brands will have access to accurate data on the creators they wish to partner with. TCM allows you to view and check the channels’ engagement rates, demographics, and performance trends. Then when partnering with creators, brands can see the performance of the content and the statistical changes in the influencers’ channel. This helps brands make informed decisions about which creators to work with.
3) Comprehensive campaign metrics tracking: Both the content creator and the brand can closely monitor the campaign metrics (e.g., engagement rate, hashtag performance, and reach rate) throughout the duration of their collaboration, allowing for a comprehensive evaluation of the campaign’s performance. These metrics can provide valuable insights that extend beyond the influencer marketing campaign, potentially impacting other areas of the e-commerce business.
Applying these statistics in your e-commerce stores, for example, Amazon storefront, Shopify website, or a brand website, you can implement the findings into aspects such as keyword research and implementation or even use that information to determine if you want to bid for the different buy boxes you think are essential.
4) Access to a broader global pool: Content creators nowadays are international superstars; collaborating with them will enable global viewership and brand awareness to reach new levels. This opens up opportunities for brands to reach new audiences that they may not have been able to reach otherwise.
5) Opportunity to explore TikTok for Business and TCM: E-Commerce sellers have the luxury of exploring both TikTok for Business and TCM as this will help widen their audience.
Cons of TikTok Creator Marketplace
1) Tedious collaboration process: Even though there is an easy matching process for brands and content creators, there is still a process of accepting collaboration and being spammed by collaboration invitations that don’t suit your need as a brand or even creator. Once you have matched, there are also rigorous tasks of negotiating and contracting for both parties, and this process is only concluded once both parties agree. Many people are unwilling to compromise on what they want, making this process one of the trickiest to navigate.
2) Lack of direct communication: Parties cannot communicate directly in a dedicated chatroom/chat box when initiating and conducting the initial conversation. The only way now is to have a conversation through the comments of the content either the brand or content creator put out. This can lead to miscommunication or confusion during the collaboration process.
3) Promotional content may not reach the desired audience: As many consumers live in the fast lane and don’t have time for promotional content or ads, this practice of media consumption may cause promotional videos not to reach the number of views parties may be hoping for. This can be frustrating for brands looking for a significant return on their investment.
4) High minimum follower count requirement: Brands can only partner with content creators with at least 100 000 followers. Why is this a bad thing? Having many eyes look at your brand is excellent, but it comes with a high price since these content creators are modern-day celebrities. This can limit the number of creators that smaller brands can work with.
Should You Look Into Getting Your Brand on TCM?
With the popularity of TikTok and its growing user base, it would be wise to explore the avenue of brand representation through TCM. Offering potential access to a massive market and millions of users worldwide, even accessing 0.5% of the market gives your brand 5 million views.
A successful business means keeping up with industry trends regardless of your generation. Because boomers, millennials, and Gen Zers may not have much in common, one thing they do have in common is their affinity to share, create, and grow on TikTok. And maybe even compete for that internet fame with a cat.
Zee, we will assist your brand no matter the region or creator you choose. Our professional service and competitive rates mean we will be your delivery, compliance, and VAT collaborator.