Can TikTok revolutionize your small business, or will you be at the mercy of the algorithm?

When Karim Ullah decided to open his restaurant in March 2020, little did he know that he would have to shut down just 11 days later. Karim, the owner of Brohmon restaurant in Essex, recently joined TikTok as a way to promote his business. During the pandemic, he had to rely on takeaways to stay afloat, and now the restaurant has even launched its own craft beer and gin. Inspired by the success of his daughter’s musical venture on TikTok, Karim is now hopeful that the platform can help bring his business to a wider audience.

In the current challenging economic climate for small businesses, entrepreneurs like Karim are searching for new channels to promote their products. Social media platforms like Instagram, Facebook, and Twitter have already proven to be effective for reaching a large audience, with both big and small businesses benefiting from them. Success stories like Joe Wicks, who gained fame during the pandemic with his PE lessons and turned it into a fitness app, and Grace Beverley, another fitness influencer who launched her own clothing line and secured investment, demonstrate the power of social media in building businesses.

TikTok, being the newest player in the social media landscape, has quickly gained popularity. It now has 1 billion active users worldwide and was launched in the UK in 2018. Unlike other platforms that prioritize connections, TikTok’s unique algorithm presents users with videos based on their interests through its “For You Page”. It also offers a shopping feature where creators and businesses can sell their products, with TikTok taking a small commission.

Although TikTok may not be the most obvious choice for advertising a business, many entrepreneurs have found it to be a worthwhile risk. Candice Mason, the founder of Mother Cuppa, joined TikTok shortly after launching her business and experienced instant success. A report by Oxford Economics revealed that 47% of TikTok users have purchased a product or service on the platform, and 45% have visited a restaurant or tourist attraction after seeing it on TikTok.

Karim, who recently started posting on TikTok, admits that he hasn’t seen much success yet but remains optimistic about the platform’s potential for his business. He believes that TikTok is not just for young people and that businesses of all types should consider using it as a marketing tool.

Compared to other platforms, one of TikTok’s distinctive features is its algorithm, which focuses on users’ interests rather than follower count. This presents a great opportunity for small businesses to reach a new audience. Additionally, TikTok favors shorter videos between 15 and 30 seconds, unlike Facebook’s preference for longer videos. However, some digital marketing experts suggest that platforms like Facebook offer more flexibility in terms of creative options like images, videos, carousel posts, and text. They also point out that Facebook tends to provide a higher return on ad spend for small businesses compared to TikTok, where prices of products are generally lower.

In the end, the success of TikTok for your business depends on the nature of your product and your target audience. It works particularly well for businesses targeting a younger demographic and offering lower-cost services or products. However, some businesses have struggled to sell higher-priced items on TikTok’s flooded discount-oriented shopping feature.

Despite its algorithm’s quirks, TikTok remains a powerful platform for reaching a wide audience. It’s important to note that the algorithm can be unpredictable, and creators often find themselves having to post frequently to maintain visibility. Some creators have also faced unwanted attention from irrelevant audiences. Nevertheless, with dedication and persistence, TikTok can be a valuable tool for businesses looking to expand their reach and attract new customers.

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