You may know of Facebook, Instagram, Snapchat, Google, and YouTube as internet services you use for information and entertainment, but they make their money from the millions of small businesses around the world who use these platforms to sell their products and services.
In 2016, the world was hit with yet another social media app but this one did not come out of Silicon Valley. It was made in China and they were calling it TikTok.
When TikTok was first launched, the perception towards the app was that it would be strongly popular among Gen Z, with its short videos of dancing challenges. Truth be told, TikTok is madly popular among Gen Z and Gen Alpha, so the general conception of it being yet another app with brain rot content was not entirely flawed. According to statistics published by Social Shepherd, about 48% of TikTok users are below 29 years of age, 23% are Gen Z and 25% are Gen Alpha. But that is not all there is.
Initially TikTok simply featured lip syncing music and dancing videos, however eventually with its rising popularity and usage, it now features all types of content catering to diverse communities.
What is more interesting, however, is the evolution of these social media platforms. They do not simply exist for entertainment anymore. These platforms now carry revolutionary traits that not only influence behaviours and trends, but have also become a means to a living. It is no secret that creators directly earn revenues from posting content on social media apps like Instagram and Youtube. While others like Facebook have evolved into an e-commerce platform, hosting groups that function as online stores for sellers, service providers and buyers. All sizes of stores and businesses also use these platforms to run ads, often morphing a traditional advertising message into a reel that is much more interesting to watch than an old school TV commercial.
What stood out to us, prompting us to write this article, was one particular community on TikTok– the small businesses community. Let us scroll through TikTok’s journey to becoming a significant platform for brands to engage potential customers directly and the app tweaking its offering to double down on this market.
A new app on the block
In 2016 Chinese tech giant ByteDance launched TikTok. It operates as Douyin in China, functioning as a separate entity. The app’s roots can be traced back to Musical.ly, a Chinese platform launched in 2014 that gained global popularity with its 15-second music and lip-sync videos, quite similar to Dubsmash, which was also launched in 2014 and later acquired by Reddit in 2020.
In 2017, ByteDance acquired Musical.ly and merged it with TikTok. This strategic move propelled TikTok’s growth, resulting in over 1 billion active monthly users today, unlike Dubsmash’s acquisition, which led to its complete closure in 2022.
The platform quickly rose to fame, becoming a revolutionary social media tool, specialising in sharing short form videos across diverse topics. Primarily designed to be mobile-based, the platform did not restrict itself to just that, offering web accessibility as well. The app’s meteoric rise can be attributed to its unique features, including customisable background music, filters, an extensive library of licensed soundtracks, and voice-over effects, features Instagram had not been offering back in 2017. Despite what old grumpy politicians had to say about the threateningly popular Chinese app, a Nielsen study commissioned by TikTok revealed that users perceive the platform as authentic, engaging, and trend-setting.
Today TikTok’s global footprint spans more than 200 countries, with offices in major cities worldwide, including Beijing, Los Angeles, New York, Moscow, Seoul, and Tokyo. Despite facing significant political challenges due to data security concerns in countries like the USA and EU, and even a complete ban in India, TikTok’s growth remains unabated. In 2023, Hubspot predicted TikTok’s growth to be massive, with an estimated 53% of marketers planning to increase their investment in the platform.
Eight years later, TikTok now stands among some of the world’s most popular and widely used applications, hosting a large demographic of users, cutting through social classes and not limiting its platform to the initial Gen Z target market.
Within Pakistan, TikTok is still the newcomer. While digital advertising attracted Rs26.5 billion ($105 million) in spending in fiscal year 2023, according to Dawn’s Aurora magazine, TikTok accounted for just about 10% of that, or Rs2.65 billion ($10.5 million). TikTok is new enough that 2023 – the latest year for which advertising spending data is available – is the first year for which spending data on TikTok is even broken out.
That $10.5 million, however, represents just the direct advertising budgets spent on TikTok. It does not account for the total economic activity generated on that platform, which is likely considerably higher.
From lip-sync underdog to marketing powerhouse
TikTok, which was once the quirky kid on the social media block has had quite the glow up. Faster than you can say “viral dance challenge,” the app morphed into a marketing colossus that has the Big Four marketing agencies sitting up and taking notes.
But what is the reason behind TikTok’s meteoric rise?
Of course, its algorithm.
One of the most salient qualities of TikTok is its power of virality. Even the most unknown creator can become an overnight sensation, thanks to TikTok’s algorithm which is not just smart, but almost like a digital Sherlock Holmes. Every swipe, every lingering glance, every “not interested,” is filed away in TikTok’s grand plan to hijack your attention.
The result?
A personalised rabbit hole of content so perfectly tailored, it is like TikTok hired a team of psychics to predict your every whim. It is not just giving you what you want; it is showing you what you did not even know you needed.
How does TikTok actually do it? The key insight is that machine learning algorithms improve the more data you provide them. YouTube is also a video platform, but it has longer form videos, which means that, over a given 30-minute period of the user being on YouTube, they may only watch four or five videos or even less. That means YouTube only knows what you think of four or five videos.
On TikTok, however, that same 30-minute period might involve the user viewing over 25 videos, which means five times more data, or even more. That makes the algorithm get smarter about each individual user, and makes it even better at predicting what each incremental user will like, a cascading effect of strengthening the algorithm made possible by getting users to offer more data on their own preferences.
And as it turns out, this was the perfect setup for TikTok to be utilised as a marketing and branding tool.
But TikTok did not do this on its own. It was TikTokers who unlocked the true potential of the app, using it in ways the company had never imagined.
Creators were quick to pick up on TikTok’s ability to make things go viral, especially for precisely targeted audiences. They did not require finding an audience anymore, rather simply focusing on creating content and the audience interested in said content would find it themselves, through TikTok’s scary accurate algorithm.
But what made TikTok stand out from other social media platforms?
To answer simply, it was the nature of its content, where marketing material did not translate to users as forceful advertising, unlike Youtube ads that are largely described as insufferable.
Faiza Zafar, Partnership Manager, Global Business Solutions for South Asia at TikTok started by debunking a belief we had expressed in the beginning of this article, “The marketing industry has been experiencing a renaissance for the past few years. It is shifting away from outdated beliefs that consumers are time deprived and have short attention spans. In reality, consumers spend hours daily on digital entertainment, where they learn, unwind and explore. We see consumers binge watching entire series and binge reading books or gaming for hours, which makes it clear that attention spans aren’t shrinking, but consumers have more choices for how to spend their down time.”
According to Zafar, by embracing this, the industry is returning to entertainment focused marketing, where creativity is used for the relevant engagement and entertainment of consumers.
“After years of ads that focus on interrupting consumers, leading them to spend their money on ad blockers and premium subscriptions, we are finally going back to entertaining them with our marketing messages. This signifies a refreshing return to entertainment in the industry and creators and creativity play a huge role in bringing this to life,” she added.
TikTok was always a platform that was meant to influence, with many who jumped on it early and quickly rising to fame as influencers, such as Charli D’Amelio. However, it was intentionally created as a platform to influence consumer behaviours, but became one by accident.
Zafar agrees with this assertion, highlighting how, “Platforms like TikTok have played a crucial role in ushering in this new era by combining content and commerce, and through this, revolutionising how brands interact with their communities and reshape the path to purchase. It has become the platform of choice for marketers to creatively bring back entertainment as part of the value proposition of their brand. By switching from interrupting to entertaining consumers, ads are effectively moving from being a nuisance, to becoming a content type to which consumers actually enjoy attributing time.”
“Thanks to the combination of native and creative content in marketing campaigns on TikTok, the community perceives ads very positively. According to Kantar research, 74% of our users rate ads on the platform as creative, and 67% consider advertising on TikTok unique.”
TikTok has become a space where commerce meets creativity, helping brands thrive. “We call this unique blend Shoppertainment – commerce powered by quality content that is designed to entertain and educate firstly, and, secondly, to inspire purchases,” said Zafar.
In today’s competitive consumer landscape, it is important for brands to not only satisfy their customers’ basic needs, but also aim at a higher, emotional level. This is where the concept of “shoppertainment” comes into play. Zafar explained that shoppertainment puts content at the forefront of its advertising strategy, which helps entertain and inform users while immersing them in a narrative around the brand and its products.
We spoke to Bilal Munir, a Youtuber who goes by the name of Videowalisarkar and has also made it big on TikTok. Munir told us the success story behind his e-commerce platform and how TikTok played a huge role in it.
In 2008, Munir embarked on a journey to review cutting-edge gadgets. However, he faced a major hurdle: the products he wanted to showcase were not available in Pakistan. Frustrated by this limitation, he took matters into his own hands.
“What began as a simple solution to source review products soon blossomed into something much bigger. I created Saman.pk, an e-commerce platform that brought innovative tech to Pakistan. From bone conduction earphones to quirky kitchen gadgets, I curated a collection of unique items that were previously out of reach for local consumers.”
Initially, the platform served as a personal inventory for his YouTube channel. But as his following grew, so did the demand for these fascinating gadgets. Without intending to, Munir had become an e-commerce pioneer, bridging the gap between his content creation and his audience’s desire for cutting-edge technology.
But this did not happen without TikTok.
“I was among the early adopters of TikTok and I created an account with high hopes. However, I soon discovered that the landscape was dominated by dance moves and pure entertainment. My informative tech content felt out of place, struggling to compete with the viral dance challenges and comedy sketches. Discouraged, I decided to pivot. “What if I take snippets from my YouTube videos and repurpose them for TikTok?” I thought. It seemed like a low-effort solution to maintain a presence on the platform. But alas, this strategy fell flat, and my TikTok account lay dormant for years,” Munir recalled.
“Then around two years ago, I noticed a shift. The quality of content on TikTok’s “For You” page had drastically improved. Intrigued, I decided to give it another shot. This time, I approached it differently. No more repurposed content – TikTok deserved its own unique, tailored videos and the results were explosive.”
After just two posts, Munir realised the error of his ways. TikTok required a completely different approach to content creation. Gone were the long introductions and detailed explanations of his YouTube videos. “TikTok demanded immediacy – jumping straight into the heart of the matter.”
“I discovered a whole new world of content possibilities. Trick videos became my specialty – how to get a PTA-approved phone, connecting multiple earbuds, or downloading the latest software. These bite-sized, practical tips resonated with TikTok’s audience, many of whom were just beginning to explore the digital world.”
The lesson Munir learnt from this was that adapting to the platform is key. What works on YouTube or Facebook might fall flat on TikTok. By embracing TikTok’s unique style and audience, he found his niche and watched his content flourish in ways he had never imagined.
Cracking the content code
TikTok managed to amass 1 billion active monthly users in just three years, a milestone that took Instagram and Facebook nearly twice as long to achieve. This unprecedented growth prompted TikTok to commission Nielsen for a comprehensive study to uncover the driving forces behind its success.
The findings revealed a combination of factors propelling TikTok’s popularity. At its core, the platform’s appeal lies in its unique, authentic, and joyful content, delivered in an unfiltered manner that resonates strongly with users. This approach helped revolutionise how people interact with social media and marketing content online.
Creators on TikTok have managed to transform the traditionally fraught relationship between users and advertising. The study uncovered that 54% of users perceive brands promoted on TikTok as authentic, while 53% express trust in the quality of these brands. This level of trust is unprecedented in the social media landscape and speaks volumes about TikTok’s ability to create a space where commercial content seamlessly integrates with user experiences.
The platform has achieved what many thought impossible; making advertisements palatable, even enjoyable. A striking 71% of users report being unbothered by ads, provided they’re entertained in the process. This shift in perception has led to the creation of new avenues for marketers and challenged long-held assumptions about digital advertising.
And all of this happened because of the nature of its content.
TikTokers’ marketing approach stands out for its highly personalised, non-intrusive nature. The platform offers a diverse array of innovative ad formats that seamlessly blend with user-generated content. Oftentimes it’s humour and entertainment that creates an environment where promotional content feels organic rather than pushy.
The fusion of engaging visuals and catchy sounds further enhances this effect, making ads feel like part of the overall entertainment experience. Moreover, TikTok’s algorithm democratises content distribution, giving all creators an equal opportunity to go viral based solely on the quality and engagement of their content. This levelled playing field keeps users engaged, white also providing brands with unprecedented opportunities to reach wide audiences through creative, authentic messaging.
Resonating with assertion, Munir shared, “Since I began creating TikTok-specific content, my audience has grown dramatically. In just two months, we saw a staggering 108% increase in viewership, essentially doubling our reach. But it’s not just about the numbers. The impact is tangible in real life too. I’m being recognised more frequently in public, which speaks to TikTok’s incredible penetration and reach. Even though my follower count is around 700 to 800 thousand, the platform’s superior discoverability means my content is reaching far beyond my immediate audience. This experience really highlights TikTok’s power as a platform for rapid growth and widespread visibility, given that you post the right content.”
Research shows that products that are actively advertised on TikTok become popular, and the advertising itself, in an organic format for the platform, is positively perceived by the audience. According to a global survey by Marketcast, 80% of users found content on TikTok incredibly interesting. More than 90% of respondents said that the platform helps them discover something new, including new products and brands. More than 70% of TikTok users who were inspired by the platform to make a purchase, for example, said that they relied on TikTok creators more than on influencers on any other platform when choosing.
Advertising on the platform is so organically perceived by the audience that the #TikTokMadeMeBuyIt hashtag has already become a social phenomenon and inspired more than 10 million posts on TikTok as of now. Users from all over the world use the tag to share their purchases and recommendations, unbox products and talk about what they can’t wait to buy. Unlike product reviews on a brand’s website, which are often suspected to be paid reviews, TikTok users sharing their experiences with a certain brand or product are considered to be more authentic.
Commenting on this phenomenon, Zafar said, “Due to such engagement and organic interest, brands often see absolutely incredible sales results. For example, among global advertising campaigns, there was a case when Maybelline’s Sky High mascara went viral among users so much that for a month the mascara was constantly going out-of-stock due to high demand.”
Adding to this, Munir shared that, “TikTok excels in promoting lesser-known products that users didn’t know they wanted. Unlike platforms where established brands dominate, TikTok’s powerful discovery algorithm connects niche items with potential buyers. This makes it extremely valuable for content creators and businesses introducing unique products, offering unmatched visibility and engagement opportunities.”
How to make money off TikTok?
Unlike Youtube and Instagram, content creators in Pakistan cannot monetise their content on TikTok, or directly earn revenues by simply posting on the platform.
Content creators on YouTube can generate income primarily through advertising. When viewers watch ads displayed on videos, it produces revenue. This ad revenue is split between YouTube and the creator, allowing creators to monetise their content directly.
To access advertising income from their videos and live streams, creators must qualify for the YouTube Partner Program (YPP). YouTube considers monetisation a privilege and reserves it for trusted creators who meet specific criteria, aligning with the platform’s commitment to responsible practices.
Munir explains how TikTok works quite differently than Youtube.
“Unlike YouTube and Facebook, TikTok doesn’t directly pay us for views here. For me, being a tech influencer, I found two main ways to earn. First, there’s the classic sponsored content route. Brands see my viewership numbers and come knocking, asking me to make videos for them. That’s where the big bucks are, honestly.”
He added, “But here’s where it gets interesting. Since I also have my own online store and keep in mind that TikTok Shops aren’t a thing in Pakistan yet, so there’s no direct linking. You’d think that’d be a problem, right? But let me tell you about this power bank I once promoted. I made this simple video on my phone, I didn’t even show my face, just showcasing this power bank from a brand called Beanie. I thought we’d sell maybe a couple hundred units. Boy, was I wrong! That video hit 7.3 million views, and we ended up selling thousands of these power banks!”
So, even without all the fancy features, TikTok’s reach is incredible. People will go out of their way to find and buy products they see on the platform. It’s all about creating that buzz and making your content irresistible.
Another feature is TikTok’s localised approach for product marketing in Pakistan. When a video goes viral, it primarily reaches local audiences, ensuring higher conversion rates for businesses. This contrasts with platforms like Instagram, where global views might not translate to sales in specific regions.
Munir highlighted that brands prefer TikTok for targeted marketing, as they can collaborate with Pakistani content creators to reach their desired demographic efficiently. “This localisation strategy makes TikTok an invaluable tool for businesses aiming to connect with Pakistani consumers, offering more relevant and potentially profitable engagement than other social media platforms.”
And lastly, TikTok is not exclusionary. It cuts across language and class barriers, so making the right content for your desired audience is much easier on TikTok then on any other app.
“Unlike other social media, it doesn’t prioritise language skills or written content. The focus is purely on visual storytelling. If you can create engaging video content and handle a camera, you have the potential to go viral, regardless of your English proficiency. This low entry barrier is a key factor driving TikTok’s popularity. It’s democratising content creation, allowing people from diverse backgrounds to find success and reach large audiences, even without traditional communication skills,” Munir concluded.
We asked Zafar which specific types of businesses and business owners have seen the most success on TikTok.
She answered, “Brands of all sizes and across various industries have found success resonating with the TikTok community not because they had the glossiest ad or the biggest names in their campaign, but because of their ability to creatively engage and connect with users through feelings, actions and sounds. Huge international corporations, local companies, small and medium-sized businesses (SMBs); companies from a variety of industries: e-commerce, FMCG, retail, fashion & beauty, video game developers and many others – make their ideas come to life on TikTok.”
She added that the magic of TikTok is not just the chance to create, but the chance to discover and to be found. “With TikTok For Business, our goal is to give marketers the tools to discover and connect with the broader communities around them. According to Kantar, TikTok ranks number 1 globally for ad equity, becoming the preferred ad environment for both brands and consumers.
“Another one of the key reasons for this is the unique community on TikTok, having an audience that is more inclined to act than any other platform. International research shows that almost 90% of users take action within a week of watching an ad on TikTok and more than 70% are likely to recommend products and brands they bought,” Zafar highlighted.
According to an Oxford Economics Report, SMBs leveraging TikTok generated $24.2 billion for the U.S. economy in 2023.
Doubling down on TikTok marketers
When TikTok saw its own potential, it did what any other app trying to stay on top would do: it doubled down on this opportunity and started investing in expanding the market for TikTok as a branding tool.
We asked Zafar to talk about how TikTok focuses on marketers as a key market and gear its offerings to accommodate these individuals.
“SMBs play a crucial role in driving economic growth and generating employment. According to public sources, they represent approximately 90% of businesses worldwide, highlighting their significance in the global economy,” she relayed.
She explained that on TikTok, businesses are integrated into the platform’s creative ecosystem, benefiting from a variety of opportunities to showcase their brand through engaging content. “The platform offers innovative advertising solutions that enable SMBs to optimise their investments and maximise results. Our mission as a global digital platform is to empower SMBs to navigate competition, resource limitations, and budget constraints, levelling the playing field in an increasingly competitive online landscape.”
Additionally, TikTok offers a cost-effective marketing alternative, enabling SMBs to spread their message without a hefty budget. With just a smartphone and creativity, businesses can deliver key product messages and engage their target audience effectively.
TikTok also conducts workshops and classes to train creators, teaching them effective ways to utilise the tool to their advantage.
One such example is the Grow with TikTok Masterclass.
“The #GrowWithTikTok Masterclass aimed to equip Pakistani small and medium businesses (SMBs) with the knowledge and tools to thrive on TikTok. The program focused on teaching effective communication strategies, product promotion techniques, and showcasing success stories from other businesses,” Zafar told Profit.
“Participants learned practical skills such as using TikTok’s content creation tools, audience engagement tactics, and campaign optimization. The masterclass emphasised authentic storytelling over traditional product promotion and highlighted TikTok’s community guidelines and safety features,” she added.
According to Zafar, the key message was that SMBs can leverage TikTok to build genuine connections and boost customer engagement without significant financial investment.
Some of the SMBs that are already successfully leveraging TikTok to grow their business in Pakistan include Scents N Stories, the first online perfume store selling duplicates of designer fragrances in the country. The brand harnessed the power of TikTok to drive incremental sales on their website. As they aimed to assess their TikTok campaigns’ impact and measured incremental conversions, the brand utilised In-Feed ads with diverse creatives and a conversion objective, conducting a conversion lift study. As a result, they saw a 66% relative lift on page view, 77% lift on placing online orders. This revealed a significant conversion boost, affirming TikTok’s efficacy as a winning brand strategy.
Another good example is Aljannat Sweets. A local sweets shop that wanted to attract a new audience and convert them into prospective customers. Focusing on creative elements, they launched a TikTok campaign which tempted users to make an order by completing a form. The campaign was a resounding success resulting in 8.1M reach in Pakistan and a 4.12% conversion rate.
Is TikTok the new Google?
We have been told to “Google it” before but has anyone ever told you to TikTok it?
As weird as it may sound, TikTok, X and Instagram have started serving as search engines.
According to Google’s senior VP Prabhakar Raghawan, younger users are increasingly turning to social media platforms like Instagram and TikTok for search functions, rather than traditional tools such as Google Search or Maps. TechCrunch reports that around 40% of Gen Z uses these platforms to find local dining recommendations.
This shift presents a significant opportunity for businesses to connect with younger audiences through TikTok’s search advertising, as this demographic can be challenging to reach via conventional advertising channels. The rapid rise of TikTok also has implications for YouTube. While YouTube currently maintains a larger market share, TikTok’s growth rate suggests it could become a serious competitor in the future.
Insider Intelligence predicts that by 2025, the United States will have approximately 24.2 million TikTok users compared to 26.6 million YouTube users. YouTube’s user base appears to be reaching saturation, while TikTok continues to experience remarkable growth.
A key factor in TikTok’s potential impact on internet search is pricing. If TikTok can offer competitive pricing and better return on investment compared to Google, it could potentially attract increased advertising spend.
However, despite its popularity, privacy concerns continue to be wide spanning, with many people on the Internet accusing TikTok of utilising their data for unethical purposes, similar to how Meta (Facebook) had come under fire for violating user data privacy.
So, will TikTok steal your data like Facebook and even Google does?
We asked Zafar how TikTok addresses concerns about data privacy and security, especially as it becomes more integral to business operations.
She explained, “Sustaining a safe environment both for users and for brands is the number one priority of TikTok. We believe that brand safety is something that every marketer has to make a priority when choosing an online platform to advertise on. This is why we are committed to staying ahead of industry expectations to provide a safe and inclusive experience.”
Brand safety on TikTok involves strategic ad placement in appropriate environments. Zafar explained that TikTok maintains community guidelines applicable to all users and content. Their content moderation approach removes violating content, implements age restrictions, and ensures recommendation system appropriateness.
TikTok empowers brands with control over their ad environments through tools like the Inventory Filter, allowing marketers to set content filtering levels. The platform partners with external organisations to comply with industry standards and improve brand safety measures.
Effectiveness can be evaluated using data from TikTok and partner Zefr, providing independent assessment based on Global Alliance for Responsible Media (GARM) standards. Double Verify and Integral Ad Science assist in ensuring ads reach the right audience in the right context. For data security, TikTok offers a Data Security Verification feature, providing an additional layer of protection for sensitive account information.
In conclusion, the use cases of this entertainment app, later coupled with the platform’s own efforts to incorporate creator friendly features have led it to become one of the most efficient tools for targeting the right audience at the right time.
The application has been instrumental in helping SMBs in several regions across the world adopt creative marketing strategies, reach wider audiences, and achieve business goals at every stage of the marketing funnel. The main strength of TikTok lies in its expansive and varied user base, providing SMBs with unparalleled access to a global audience of millions. Through TikTok, SMBs can transcend traditional regional limitations, allowing them to interact with consumers both in their local area and across international markets.
