With over 1 billion users, 92% of whom act after engaging with content, TikTok is vital for marketers in 2025. Its diverse ads, broad reach and innovations like TikTok Search Ads and Smart+ are redefining brand engagement and conversions. Sam Shennan, CEO of APAC at Incubeta, discusses how brands can optimise TikTok’s evolving advertising landscape. He offers insights into TikTok’s role in overall business growth and shares success stories of various brands.
Quietly revolutionising the way that businesses connect with audiences – TikTok is no longer a platform solely known for viral content and dance trends – it’s a valuable advertising hub that’s set to reach US$35.66 billion in ad revenue by 2026.
With over 1 billion users – 92% of which take some form of action after viewing TikTok content – it has the unique potential to drive sales and increase brand-audience connections, meaning the organisations that invest in and utilise TikTok in line with wider business KPIs will be the businesses that outperform.
The recent launch of TikTok’s ‘Search Ads’ and ‘Smart+’ only furthers business opportunities, offering enhanced control over search ad placements, allowing for better targeting and campaign management. Already we’ve seen advertisers that use these features, alongside in-feed ads, achieve a 20% conversion uplift at a similar, if not lower CPA.
Unmatched flexibility for advertisers
With a diverse set of ad formats and targeting capabilities, TikTok offers unmatched flexibility for advertisers. From in-feed ads that integrate into the user’s organic feed, to branded hashtag challenges and effects, advertisers can include call-to-actions that lead to landing pages or app downloads or amplify organically through branded features.
The introduction of TikTok Search Ads has only accelerated the platform’s versatility. This feature enables increased user intent targeting, allowing businesses to target consumers actively seeking out products or services in their search queries. This is significant considering 57% of TikTok users tap the application’s search functionality, with 23% searching for something within 30 seconds of opening the app. Through keyword-ads, TikTok ensures an SEO-like capability that adds a new layer of precision to TikTok’s advertising ecosystem.
Additionally, Search Ad’s allows for easy activation, editing and keyword and creative adjustment – both during campaign setup and while it’s live.
This flexibility allows businesses to react to campaigns in real-time – optimising performance and reaching high-intent audiences at crucial moments.
Maximising ROI with smarter spending
TikTok’s potential ad reach of more than 945 million adults offers a goldmine for ROI. By leveraging advanced budgeting, bidding and creative optimisation tools, smarter spending is easier than ever.
The launch of Smart+, TikTok’s answer to Google’s Performance Max and Meta’s Advantage+, has taken ad performance to the next level, delivering a 52% improvement in return on ad spend. This automated solution handles ad creation, placement and bidding, helping businesses reach the right users, minimize wasted spend, and drive higher engagement—all at lower costs.
Holistic business growth
TikTok generated an estimated US$16.1 billion in revenue in 2023 – a 67% increase from 2022. With 44% of users purchasing directly on TikTok, the platform is more than just a social app – it’s a growth accelerator.
Its viral trends and interactive features build authentic connections and foster brand loyalty, while targeted ads and social commerce tools streamline the path from discovery to conversion.
Understanding brand value
Visibility over channel performance is key to making smart marketing investments. Without this holistic view, businesses risk under-investing in high-potential platforms and missing growth opportunities.
CarParts is a great example of what happens when you get it right. By optimising its marketing strategy, it uncovered TikTok’s significant impact, achieving an 11.1 ROI to sales and a 43% higher return than other channels. This proves the power of understanding where your investments pay off.
TikTok’s emphasis on creative storytelling encourages brands to innovate, while real-time data insights help optimise strategies for sustained growth across all channels. The platform’s blend of visibility, engagement and conversion supports long-term business success.
CMOs who harness TikTok’s potential will not only reach vast audiences but also position their brands for sustained success and innovation.
Finding the right TikTok partner
As brands look to utilise TikTok’s immense growth potential, there’s a real risk of being trapped between multiple partners, conflicting strategies or competing technologies. The solution? Choosing a single, holistic partner.
Les Mills found the right TikTok partner in Incubeta, amplifying creatives through In-feed and TopView ad placements to drive awareness and reach amongst key audiences. This led to a 700% ROAS and the platform responsible for 14x as many sign-ups to LES MILLS+.
Incubeta’s partnership with TikTok empowers brands to tap into the platform’s potential, driving advanced brand visibility, deeper customer engagement and ultimately, business growth.
CMOs must focus on investing in the right TikTok partner to make the most of today’s fast-evolving digital landscape.
The implications of a potential TikTok ban
Marketers are constantly navigating new challenges, accentuating the need to remain agile. A prime example is the turbulent news of a potential ban on TikTok in the US. In light of an impending ban, some of the 170 million US users have already begun migrating to alternatives like Xiaohongshu (REDnote), signalling a shift in the social media landscape. However, with time running out on President Trump’s extension and a buyer yet to be confirmed for TikTok, brands need to be reminded of the importance of adaptability in a shifting social media landscape.
Should TikTok disappear from the US market, creators and their teams are likely to migrate to established platforms such as Instagram Reels and YouTube Shorts, potentially consolidating power further within a few dominant players. This migration highlights why brands must maintain a strong presence across multiple platforms now – ensuring they can pivot alongside their audience and remain visible in key spaces. Moreover, agility and a willingness to embrace alternative platforms that replicate TikTok’s seamless and engaging experience will be critical to maintaining audience connections.
While other platforms may rise to fill the void left by TikTok, their success will depend on their ability to replicate TikTok’s algorithm-driven discovery system and viral trends while ensuring data privacy and security. Ultimately, new platforms need to strike a balance between social media trends and online security, to continue engaging audiences and driving business growth.
Brands must navigate platform changes effectively, not only to adapt but also to seize new opportunities that drive growth. Whether leveraging TikTok’s unique features or exploring emerging platforms, the ability to adapt quickly ensures brands remain relevant and continue to foster meaningful connections with their audiences. Agility is the key to sustained success in the fast-paced world of digital marketing.
