TikTok is a fairly new social network. The statistics on the platform are sometimes limited. Calculating the ROI on TikTok takes time and is nevertheless essential. Indeed, thanks to the latter, you can control your investment and decide whether the latter has been effective or not.
TikTok now has nearly a billion users worldwide, with 620 million dollars spent on the platform. The stakes are high for brands: visibility, notoriety... The key to TikTok remains creativity, and brands do not hesitate to use their imagination to offer unique and entertaining content to seduce users.
By demonstrating the TikTok ROI, you will be able to understand the relevant actions, and those not to be reproduced and will be able to adjust your strategy.
How to calculate ROI on TikTok?
1- Define your goals on TikTok
Starting a TikTok account? Great! But for what purpose? The idea is not to copy the competition or get started to be present on yet another social network.
By creating content for TikTok, launching advertising campaigns, or carrying out campaigns with influencers you would want to: increase your sales, boost your notoriety, generate UGC, etc.
When your goals are determined, you can move on to creating and measuring your ROI.
2- What are the KPIs on TikTok?
On TikTok, the key format is video. It is therefore essential to determine KPIs to follow on a regular basis. Here are the key data to follow on a regular basis:
Reach: On TikTok, your videos will be seen by X users. You need to determine the organic reach and the paid one, to see the contents that go viral in a natural way and those that are helped by advertising.
With the average engagement rate of likes, comments, and reshares, on TikTok, users can do many things. To determine whether the content is liked or not, the engagement rate is a very good indicator. To calculate this rate, you can take the number of likes, shares, and comments and divide the latter by the number of followers.
The number of subscribers: if your account grows, it's a good thing! Monitoring the evolution of your number of subscribers allows you to observe a peak linked to specific content, which you could for example duplicate in the future.
Hashtags: on TikTok, hashtags have a certain importance. Even if you shouldn't use too many of them, some are relevant to improve your reach. With each post, be sure to monitor the most relevant hashtags.
Playing time: knowing if your video is watched for only a few seconds or on the contrary until the end is important! This allows you to determine the contents that arouse the most interest of users.