As the COVID-19 crisis continues to keep people home and physically distant from each other, more people are turning to TikTok for lighthearted content and mental relief. However, while the audience has grown, advertisers are still hesitant about the platform, according to Digiday. PMG’s Miranda Haynie added her thoughts to the story, which details that while ad supply is available, demand hasn’t followed to the same degree, partly because of large price tags on high-impact ad formats.
“The bigger barrier to entry now isn’t an advertiser’s relevance to the TikTok audience, but whether they can afford the cost, which seems to be growing as rapidly as the app’s user base,” said Haynie.
Certainly, the financial uncertainty during this time is a factor behind brands’ reluctance. However, the future looks good for TikTok, according to Haynie, who said, “Whether brands are in a place to spend now or are instead optimistically planning for future campaigns, TikTok is now in consideration alongside always-on media channels, especially for driving awareness of big brand moments.” She added, “As advertising budgets begin to recover post-pandemic, I expect we’ll see more and more brands ready to claim their share of voice on the platform.”