Ovative Group Reveals TikTok's Hidden Value: 23x Higher ROI vs. Last-Click Models

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Oct 22, 2024, 16:27 ET

MINNEAPOLIS, Oct. 22, 2024 /PRNewswire/ -- Ovative Group, a leading independent media and measurement firm, has uncovered a game-changing insight for marketers: TikTok delivers an average return on investment (ROI) that is 23x higher than what last-click models suggest. By analyzing a cohort of retail clients' media mix models, platform KPIs, and last-click models over the past two years, Ovative identified TikTok as an underutilized full-funnel powerhouse that significantly contributes to long-term revenue growth.

According to Ovative Group's unified measurement framework, Enterprise Marketing Return (EMR), TikTok delivers an average return on investment (ROI) that is 23x higher than what last-click models suggest.

To unlock TikTok's true potential, Ovative leveraged its proprietary technology, EMRge by Ovative Group™, which includes Modern MMM+ and powers its unified measurement framework, Enterprise Marketing Return (EMR). This approach provides a holistic view of marketing effectiveness, enabling brands to understand TikTok's full-funnel impact—an insight often missed by traditional last-click models.

"Marketers have long been misled by last-click models, which capture only a fraction of the true value platforms like TikTok bring," said Beth McKigney, SVP, Measurement and Technology Solutions at Ovative. "With EMR, we're able to reveal the full picture, showcasing TikTok's significant revenue-driving power across channels and its critical role in building a long-term, profitable customer base."

Debunking the Last-Click Model Myth

Last-click attribution overlooks critical marketing contributions, focusing solely on the final conversion point. Ovative's EMR model captures the full scope of a brand's performance across channels, including in-store sales, customer retention, and brand growth. This approach highlights TikTok's underappreciated role in driving both short- and long-term business outcomes.

In Ovative's 2024 EMR Power Rankings, TikTok ranked fifth among all media channels, delivering standout results, including:

Over 50% of TikTok-driven revenue occurs in-store, a significantly higher proportion than other platforms.
40% of TikTok's incremental revenue occurs weeks after media investments, highlighting its future media value.

These findings debunk the misconception that TikTok primarily drives online sales, illustrating the platform's ability to contribute across multiple sales channels and stages of the funnel.

TikTok's Hidden Value Revealed

Through incrementality testing, Ovative demonstrated TikTok's effectiveness for a leading women's retail brand, achieving more than $5 iROAS and driving a 68% increase in TikTok media investment. This resulted in profitable revenue growth and a larger customer base, all made possible by looking beyond traditional last-click metrics.

Jorge Ruiz, Global Head of Marketing Science at TikTok, praised Ovative's innovative approach, saying, "Ovative's work with TikTok showcases the importance of measurement resilience and reveals how TikTok delivers for brands. Their expertise is pushing the industry forward by showing how full-funnel measurement leads to smarter investments and better outcomes."

Maximizing TikTok's Impact with Full-Funnel Strategy

Ovative's research reveals that brands focusing on TikTok across all stages of the funnel achieve 2x higher EMR than those limiting it to upper-funnel tactics. By leveraging TikTok's full-funnel ad products, brands can drive customers through every stage of the purchase journey, ultimately improving performance, decreasing CPAs, and increasing conversions.

Next Steps for Marketers

For marketers looking to maximize TikTok's potential:

Utilize TikTok's Full-Funnel Ad Products to drive purchases and attract new audiences.
Leverage TikTok's Attribution Analytics to gain better insights into consumer behavior and enhance campaign optimization.
Move Beyond Last-Click Models by adopting advanced media mix modeling tools like EMRge by Ovative Group™ to unlock TikTok's full-funnel value.

As TikTok continues to dominate the short-form video space, now is the time for marketers to rethink their measurement strategies and embrace TikTok's full potential.

About Ovative Group: Ovative Group is an independent media and measurement firm focused on driving customer and enterprise value for its clients. Using cutting-edge measurement technology like EMRge by Ovative Group™, Ovative provides actionable insights and innovative strategies to maximize media performance and business impact.

Media Contact:
Courtney Stoesz
Sr. Manager, Brand Marketing and Events
715-307-2255
[email protected]

SOURCE Ovative Group