A recent study by TikTok and brand tracking platform Tracksuit, titled The Awareness Advantage, reveals that brand building and performance marketing work together to fuel business growth on TikTok. The research challenges the belief that these strategies are separate, showing how brand awareness can enhance the effectiveness of performance marketing.
The study, which analyzed data from 147 brands across Australia and New Zealand between 2021 and 2024, focused on 11 key brands to uncover significant insights. Key findings include:
- Brands with high awareness saw a 2.86 times higher conversion rate compared to low-awareness brands on TikTok.
- Brands known by four out of ten consumers were 43% more efficient at driving performance outcomes than those known by three out of ten.
- The most notable efficiency gains occurred when brands built awareness up to 37%, beyond which improvements were more gradual.
James Hurman, Co-Founder of Tracksuit, emphasized the need for a balanced approach: “Brand awareness is crucial for sustaining performance marketing efficiency as businesses grow.”
The study’s key takeaways for marketers include the importance of integrating brand building with performance efforts, focusing on long-term growth, and regularly adjusting resources to optimize both strategies.
