Beyond ROI: Understanding the Factors Driving TikTok Performance

Beyond ROI: understanding whatdrives TikTok performance Contents •Analysis across a rangeof brands reveals thecost and impact •Practical guidance onmeasurement best Framing ROI: The starting point, not the destination The performance picture: What the numbers say Understanding the dynamics: The cost vs impact story The memory effect: How long does TikTok stick? The synergy story: TikTok in the media mix Measurement excellence: Your practical guide From insight to action: Strategic implementation Introduction Media investment has never been under morescrutiny. CFOs want proof of every poundspent. Shareholders demand growth At the same time, we're drowning in data.We've gone from tracking 15 metrics across ahandful of channels to managing 50+ metricsacross 15+ platforms. Each platform has its You'd think more data would mean betterdecisions. It hasn't. Two-thirds of marketingleaders now say they're unclear on investmentimpact. That's the highest uncertainty level on This study takes a different approach. It's notabout adding more metrics or repeatingplatform claims. It's about understanding what What this study covers We analysed a range of UK brands, with a focuson Retail and Telco, reviewing the most recent12 months of results from econometric studiesconducted through 2024 and 2025, to create arobust understanding of TikTok's efficiency and This is measurement in service of Effective andResponsible Advertising. It's aboutunderstanding the why behind the ROI. Weexamine TikTok performance through two What makes this study different This isn't tracking data or attribution models. It's econometric analysis that isolates TikTok'sactual incremental contribution to sales, separate from other marketing activities and business We used granular data direct from TikTok, tested through econometrics. This shows not justwhat performed, but why it performed and what that means for your next decision. How to use this document üSection 1 explains why ROI alone isn't enough to guide optimisation decisions üSection 2 shows what performed, with benchmarks for TikTok overall and by sector üSection 3 is the core analysis, breaking down cost versus uplift dynamics by format,campaign type, and objective. This is where you'll find actionable insights about whatactually drives results üSection 4 covers how long TikTok's effects last, which matters for budget pacing andcampaign planningüSection 5 looks at how TikTok works with other channels, particularly TV üSection 6 provides practical measurement guidance üSection 7 translates everything into strategic recommendations Executive summary Beyond ROI: Cost vs quality balance ROI alone does not tell the full performancestory. Results must be viewed holistically,weighing not just cost and ROI, but also quality Premium formats (TopView,TopFeed, Pulse)carry higher CPMs and lower ROIs thanstandard formats. However, they deliver 3-4x The choice, therefore, depends on yourobjective: premium formats for breakthrough Creative quality: The primary performance Strong correlation exists between average playduration and revenue per thousand impression, Critical best practices: •Hook users within first few seconds•Show brand identity within 2 seconds •Keep duration under 25 seconds •Create platform-native content or adaptexisting creative for TikTok's format and •Design for sound-on viewing Following the platforms best practicesimproves retention, strengthens recall, anddrives revenue. Creative quality is not optional Context matters: Not all views are equal Premium formats show stronger impact per video view than standard activity. Pulse and standard formats achieved nearly identical video view-through rates, but revenuegenerated per video view for Pulse significantly surpassed standard formats. Ads served alongside relevant content (Pulse's contextual placement) drive stronger impactthan those in the standard feed. Platform engagement metrics matter, but contextual Channel synergy effects For retail brands, TikTok ROI increased when running alongside TV, suggesting synergy effects. This does not mean exclusively running TikTok when TV is active, but aligning key messaging For telco brands, no measurable synergy was detected, though the data was limited. If youhave not detected synergy, plan based on standalone TikTok performance. Important context: This study shows correlation, not definitive causation. Multiple factors couldexplain patterns (seasonality, creative quality, campaign intensity). The data suggests possible Measurement best practices Model metric selection: impressions proved most statistically robust for modelling TikTokperformance across the brands covered. Selecting the right metric increases accuracy and Omnichannel attribution is essential: TikTok drives both online and offline sales. Digital-onlyattribution substantially understates true business contribution. Retail showed significant Granular platform data enables format-l