A recent Dentsu study, in partnership with TikTok, shows that advertisers on the platform achieve strong returns on investment (ROI) for both short-term and long-term sales.
The analysis (PDF link) focused on 15 brands in Norway, Denmark, Sweden, and Finland and compared TikTok’s performance with other media channels.
Dentsu found:
“With a short-term ROI of 11.8, TikTok ranks among the most effective media channels for driving immediate sales, according to dentsu benchmark data. In practical terms, this means that advertisers generate nearly 12 times their initial investment in sales revenue within just six weeks—establishing TikTok as one of the strongest performance marketing channels available.”
In other words, advertisers gained nearly 12 dollars in sales for every dollar spent in six weeks or less.
For comparison, Dentsu measured the average short-term ROI from all media at 8.7.
Other top findings from the Dentsu study include:
- 75% of advertisers found that TikTok provided the highest ROI compared to other channels.
- All advertisers saw a substantial boost in short-term sales from TikTok.
- To achieve the best short-term results, combine lower-funnel platforms with TikTok.
- TikTok’s sales impact lasts 3 to 4 weeks after a campaign ends.
- Advertisers with the best ROI stayed active on TikTok.
- User-generated content featuring creators had the strongest sales impact.
What About Long-Term Impact?
The data indicates that, in addition to the 11.8 ROI achieved in the first six weeks, a 4.5 ROI is observed within 10 months after exposure.
This suggests that TikTok can function as a performance channel for immediate results and a tool for building brand equity over the long term.
However, as you can see in the chart below, several ad platforms achieve better results than TikTok in the longer term.
Storytelling Ads Perform Better
The study examined two main types of user-generated content (UGC):
- Storytelling UGC: Content with a narrative focus and no direct promotional offers.
- Tactical UGC: Content centered on pricing, sales promotions, or direct product calls to action.
Dentsu found that storytelling-based UGC drove stronger sales results than tactical promotions.
The narrative approach generated better audience engagement and recall, translating to 70% higher ROI than promotional content.
What This Means
Dentsu’s data shows TikTok can help meet both short-term sales goals and long-term brand goals.
Advertisers looking for quick sales and lasting brand impact could consider including TikTok in their media strategy.
Methodology
Dentsu used a three-step approach to measure TikTok’s full impact:
- Short-Term Sales: Tracked direct revenue within 6 weeks of ads running while filtering out other market factors.
- Brand Metrics: Measured how TikTok advertising shifted consumer perceptions.
- Long-Term Sales: Connected those brand perception changes to additional sales 1-10 months later.
The study analyzed actual spending and sales data from 15 Nordic brands over 2-3 years. Statistical models isolated TikTok’s contribution from external factors like seasonality, competition, and other marketing channels.
This methodology captures both immediate performance and longer-term brand effects in a single framework.
Featured Image: Poetra.RH/Shutterstock
