• Follow Us

Why are venture capital funds best used on TikTok?

Venture capital served as a key factor in the developmental stages of some of the largest companies in the world. However, in recent years, a trend has begun to emerge, where the funding has shifted from the regular streams to sources of instant results, such as Facebook and Google ads.

For the investors, the goal always remains to maximize the profits in a safe way that can be scalable regardless of the budget. TikTok is a social media platform that is relatively new but offers several benefits to investors that make it a cannot miss proposition.

Here are the reasons why TikTok will serve as an ideal platform for the investment of VC dollars for years to come.

TikTok offers the best results for the least amounts of money

When it comes down to the numbers, TikTok simply annihilates all competition when it comes to digital advertising results that can be achieved on a specific budget. With the costs of CPM starting at about $1, along with impressive click-through rates, and the ability to achieve conversion for single digit CPAs, the cost savings that TikTok offers are simply unattainable to any other platform.

On average, to achieve the same results on Facebook, you would need to raise your budget by more than 20%! Still, TikTok and Facebook can be used simultaneously at times, as some companies and venture capitalists like to establish a presence on all networks, and the ads may differ significantly, in order to encompass the users of all demographics.

The targeted advertising is becoming more precise and direct

As geo-targeting became available to brands on TikTok, the marketers finally received a chance to fully utilize all of the advantages that the platform possesses. Moreover, this move was a clear sign that TikTok is constantly refining its advertising features.

Along with the added possibilities for targeting and remarketing, such as Lead Generation ads and Dynamic Product ads, TikTok Agencies and brands can now reach their potential customers easier than ever. With these two options, TikTok users now don’t even have to exit the app and visit your landing page to find out more details about your offer. 

The entire process is now automated and the overall user experience is untouched. Targeting users based on their previous activity rounds up the whole package, as it offers brands a chance to reintroduce the audience to their products and services.

There is not much competition

While social media apps such as Instagram and Facebook are brimming with companies fighting to gain the attention of users, TikTok still presents a viable alternative network. Despite the proven legitimacy of TikTok, many brands are still haven’t made the move to leverage it.

Venture capital is all about exploring the situations that might prove to be profitable when no one else dares to give it a chance. TikTok is currently at that precise moment where the potential can turn to reality. That is every investor’s dream.

The average age of TikTok users is constantly increasing

In the beginning, TikTok was perceived as a social media app intended solely for young people. Truth be told, that might have even been true in the first couple of years, but as the number of users steadily grew, and people from all areas of the globe started to join, the user demographics shifted to a more mature audience.

With that came the influx of brands, who were brave enough to test the yet unproven social media platform. Fast forward to present times, and we can clearly notice that many brands now use TikTok as a viable marketing tool. Judging by all the clues, it is justifiable to think that this trend is only going to continue in the future.

It is possible to quickly build up a steady base of followers

Building up an audience usually takes time and effort, and these two things are rarely found in abundance with investors who are searching for quick results. Luckily, TikTok offers a way in which this entire process can be significantly sped up.

TikTok offers a neat feature, known as the Creator Marketplace. It allows brands easy access to influencers, alongside an abundance of data that showcases every influencer’s specific reach, demographics of their followers, their best performing campaigns, and many more valuable insights.

By collaborating with influencers, the brands get a chance to place their products and services to their target audience. Additionally, influencers have a unique power to start trends and can make your campaign viral, which opens the doors to millions of other users. If used properly, this is a powerful weapon that can turn a good campaign into a major success.

An agency with a proven track record can help you reach your goals

If you are looking for ways to put your VC dollars to good use, you want to make sure that you have the best team by your side. A digital agency that has explored every nuance of TikTok can help you figure out the best way to utilize all of the advantages of this platform while avoiding all major obstacles that can delay progress.

At GrowMojo, we have a team of professionals ready to make your business goals into reality. Contact us today and we will put you on the right track to success in the quickest time possible.

GrowMojo Corp GrowMojo Corp
Deep dive on digital marketing topics directly from our experts. Practical guides, tips and tricks and more.

Let’s keep in touch!