- Circana
- Jan 4, 2024
- 2 min read
Cross-channel sales lift measurement gives a holistic understanding of advertising performance.
Is your CPG brand crushing it on TikTok? Are you converting your TikTok views to sales? If so, our hats off to you. 👏 Whether you've achieved TikTok stardom or are on your way, this guide outlines how to leverage this success to drive performance.
The logical next question is this: how did this success impact incremental sales for your brand? What was the return for what you spent on the campaign?
Brand Innovators and Circana found that 67% of CPG brand marketers said return on ad spend (ROAS) is the most important KPI, and 71% use sales lift to measure campaign outcomes. In addition, 55% said they are placing a greater emphasis on measuring ROAS due to privacy changes by Google and Apple. (Of course, all of this also applies to brands who haven’t had digital success. And we’re here rooting for you to be the next big thing.)
Sales lift measurement has been the most effective way for CPG advertisers to understand their campaigns' performance. In the face of media inflation and budget cuts, more than ever, marketers need reliable metrics to help guide their decision-making. To support brands in measuring the sales effect of their advertising, TikTok announced NCSolutions, a Circana company as a badged Measurement partner in the TikTok Marketing Partners Program for Sales Lift. And since a holistic view of sales lift across all media types is critical for planning the best set of media, sales lift from TikTok advertising can be measured and compared across platforms.
“Partnering with our cross-channel and lift measurement experts provides better visibility into consumer behavior beyond the last click," explains TikTok's Global Head of Marketing Partnerships and Industry Education, Melissa Yang. "Working with our partners reveals the true impact of TikTok marketing campaigns while also providing strategic insight that can be leveraged to drive meaningful growth for businesses.”
To see how TikTok ads perform when paired with TV, we completed a meta-study, a combination of cross-media sales lift studies over a period of time, across CPG brands. The results were clear: TikTok is a very effective platform for winning over the most challenging audiences. Non-brand buyers and new category buyers are known to be expensive to convert, requiring much more advertising to influence a purchase than a brand loyalist. But ads delivered to non-brand buyers on TikTok saw 3.4X higher ROAS than TV. And ads delivered to new category buyers were even more effective: 4.3X the ROAS.
Not only is TikTok effective at winning new buyers but drives its fair share of incremental sales when paired with TV advertising. Take a look at how some of these brands drove sales when households were exposed to the ad on TikTok and TV.
The ability to measure sales lift across platforms, campaigns and buyer groups is a valuable part of better planning the next campaign. Want to deliver the most effective creative to the right buyer group to meet your goals this quarter? Learn more about NCS, a Circana company's cross-media measurement on TikTok.
