Failure to comply can result in content being pulled from the platform or even a permanent ban, so the impact can be significant if you’re a small business looking to invest in social media or influencer marketing.

We’ll look at what the latest guidelines mean for you, and how you might even capitalise on them. Let’s jump in.

What are TikTok’s content guidelines?

TikTok’s policies reflect the requirements of the European Digital Services Act, which is in place for Very Large Online Platforms (VLOPs) with over 45 million monthly users in the EU.

We’ll cover the three main areas one by one, starting with the most timely.

AI-generated content

So-called “deepfakes” are facing the strongest crackdown. In short, all AI-generated content (including images, audio, and video) must be clearly labelled to avoid confusion.

Deepfakes are media generated by AI to depict someone saying or doing something they never actually did. For example, a deepfake will clone a celebrity or politician and then use this to manipulate their audience.

If your business does use AI-generated content, you must indicate this by applying the label “AI-generated content”. This not only safeguards you against compliance violations, but also builds trust with your audience.

LIVE streaming

Creators are expected to take responsibility for their content, making sure it adheres to strict advertising standards when promoting products and/or services in real-time.

For example, much like with AI-generated content, ads and sponsors must now be labelled or demarcated in some way.

There are also strict rules around what you can and can’t advertise, too. For example, you’re usually prohibited from promoting high-risk, age-restricted goods – like tobacco or adult services. Advertising alcohol also comes with strict rules that include age-gating and business authorisation.

Eligibility to go live has also become stricter, with only users aged 18 and above being allowed to do this and monetise streams.

What this means for you is extra due diligence when working with any creators or influencers, including ensuring they are 18 or older, and following TikTok’s guidelines.

Transparency and safety

The responsibilities creators have also include taking care around misinformation and trends that TikTok deems unsafe or even harmful, such as misleading health or financial advice.

Increased responsibility also means increased accountability, and as the business running the campaign, the buck ultimately stops with you. Vet potential partners, and only work with people who are eligible and demonstrate compliance.

What your marketing team needs to know

Let’s look at some numbers.

• Upwards of 30 million people in the UK now use TikTok
• Over two-thirds (67%) of UK brands run influencer marketing campaigns on the platform

As such, compliance with the new rules shouldn’t just be treated as a formality; it can actually give you a strategic advantage over your competitors, allowing you to grow your reach and ultimately expand your client base.

Finding your target audience

Running a social media page of any kind will require a time investment in order to make it worthwhile, and so you want to ensure you’re on the same platform as the people who would be interested in what you have to offer.

This is where it’s useful to consider whether or not your business even needs a TikTok account. Otherwise, you simply won’t see the results you want.

Adapting to the rules

Every business needs some kind of niche to stand out in an increasingly competitive marketplace, but simply positioning yourself as trustworthy and responsible may in fact achieve the same outcome, as many creators will be slow to adapt to these new changes.

To be on the safe side, start incorporating AI disclosure and LIVE safety requirements into marketing campaigns, briefs, and contracts for potential partners.

This will also future proof your campaigns, setting you up for long-term success.

 
Find more help in our online accounting hub, and learn more about how to find the right accountant for your business.

The post Everything Small Businesses Need to Know About TikTok’s Guidelines appeared first on The Cheap Accountants.

Some businesses also use referral incentives as part of their wider marketing strategy, rewarding clients who recommend them.

What are referral incentives?

A referral incentive is something you offer to an existing customer to encourage them to recommend your product or service to their network in exchange for a reward. This strategy turns your existing customers into brand advocates. For example, you might reward them with:

• Cash
• Account credit
• Gift vouchers
• Lower fees
• Money off
• Points in a loyalty scheme

The reward you offer for recommendations depends on the type of referral programme you want to run.

Do referral incentives work?

Recommendations from friends are often touted as one of the most reliable forms of advertising, with many of us allowing this to influence our purchases.

A global marketing study carried out by Radius suggests word-of-mouth is particularly powerful amongst millennials. This group placed word-of-mouth at the top of the list of what influences them when it comes to purchasing apparel, financial products, travel, electronics, and consumer packaged goods.

Is a referral incentive an allowable marketing expense?

Yes, referral incentives do qualify as an allowable expense which you can deduct from your profits before tax.

In short, including allowable expenses on your tax return means you pay less tax. Other allowable marketing expenses might include:

• Website costs, such as development, hosting, and domain name
• Print advertising
• Mail shots
• Free samples

Just be aware that entertainment and hospitality, on the other hand, are not allowable marketing expenses because they’re not business critical.

How to record referral incentives for accounting purposes

You’ll need to document the referral incentives you issue as part of your regular bookkeeping process. Experts at The Accountancy Partnership recommend the best way to do this is by setting up a new expenses category specifically for referral fees.

That way you can clearly see what it costs you (so you can check it’s worth it!), as well as making it easier to claim everything against your tax bill later. It’s just another reason why accountants are so keen on good bookkeeping!

Advice on managing a referral programme

Not sure whether you should be considering running a referral programme to help promote your business? We’ve gathered some of our top tips on how to run a referral campaign efficiently, and successfully.

Set clear goals around what you want to achieve

Are you looking to accelerate business growth? Perhaps you want to supercharge revenue? Maybe you’re searching for ways to improve customer retention? Whatever your goal might be, keep it in mind when you’re thinking about your referral scheme. It might affect what sort of incentive you offer, and who you offer it to. Some people might not offer the sort of brand rep you want!

Regularly report and review progress

Like any aspect of running a business, it’s essential to take stock of where you’re at on a regular basis, so you can see what’s performing well and what’s not. That way, you can adjust your strategy moving forward.

Setting up some sort of tracking for your referral campaign will show you the progress and success of each referral incentive. There are lots of ways to do this, such as issuing specific people with a discount code which identifies customers they’ve referred, or getting technical with unique referral links or coded URLs on your website.

This sort of tracking will also help you understand what a new customer is worth in comparison to the referral costs you incurred to engage them in the first place.

Involve your accountant in the process

Whenever money coming in or going out is involved, it’s always a good idea to ensure your accountant is involved too. Where referral incentives are concerned, they’ll be able to advise on what kind of reward is affordable and make sure you remain tax-efficient and compliant in the process.

Show your appreciation

Okay, so, a customer might be getting a nice little reward for any recommendations they make but still, it’s polite to show your gratitude for their efforts. Contact your referees to say thank you – it’s a small gesture that will have a big impact.

Are referral incentives the same as affiliate marketing?

It’s easy to see how referrals and affiliate marketing can be confused or used interchangeably because both use incentives to drive new customer engagement. When it comes to strategy and management, the two are quite different.

The main difference is the audience who drives this new engagement. While referral incentives call upon existing customers to entice their friends, family, and contacts to purchase your product or service, affiliate marketing campaigns rely on third-party activity.

This third-party comes in the form of brand advocates who are paid a fee to drum up business for you. Normally, the brand advocate will be recommending your brand to an audience which doesn’t know them in person, but who may be influenced by their opinion.

They’re often paid in commission, which comes from a percentage of each sale they directly motivate. This commission is something that can be agreed upon between you and any affiliate you deploy. Yep, this is how influencers make money!

Although it is a different form of marketing from referral incentives, the fees attached to any affiliate campaign you run will also be classed as an allowable expense.

 
Find more help in our guides and faqs, or ask a tax question for free!

The post Are Referral Incentives a Marketing Expense? appeared first on The Cheap Accountants.

More importantly, what’s the best way to go about it if you’re on a budget?

Well, more and more people are taking the route of outsourcing their marketing (as opposed to handling it in-house with a dedicated team). This can be a great, cost-effective option for start-ups though it’s not without its downsides, too.

Let’s take a look at the pros and cons, as well as what to look out for when choosing a marketing agency. But first…

What is outsourced marketing?

Outsourced marketing basically involves using an external agency to manage your business’s marketing activities.

You can either get them to oversee all aspects of your marketing, in which case they’ll likely develop a strategy for you, or just a few select areas that may require specialist knowledge (e.g. your social media presence or SEO and website development).

What’s the difference between in-house and outsourced marketing?

It’s important to understand how the two differ so that you can make an informed choice, and ultimately one that’s right for you and your business.

In comparison to outsourced marketing, marketing which is in-house typically involves a small, dedicated team – or even a single person. It might even be you, as the business owner!

This means you’ll either need to employ someone to do the job (yes, even if you’re a sole trader), or find time to fit it into your schedule.

What are some of the pros of outsourcing marketing?

One of the main benefits is being able to work closely with an agency that has access to the latest marketing tools and technologies. Your business will benefit from all this without you needing to purchase any of it yourself.

You’ll also get access to different perspectives than if you were to simply do it yourself. This can be really beneficial, as being too close to the business can mean you lose the ability to be objective and spot potential issues.

Outsourcing to freelancers or other companies also frees you of the duties and responsibilities you would have if you chose to employ a dedicated marketing team instead. These include things like recruitment laws, registration, insurance, various health, safety and equality duties, payroll and the legalities of sick and maternity pay.

What’s more, outsourcing allows you to adopt a more flexible approach, as when you start working with an agency, you have the benefit of being able to increase or decrease the number of services you require as and when you need to.

And the cons?

First and foremost, it may be hard to find an agency that understands the unique needs of your business. You want an agency with different perspectives, but, at the same time, these could actually cause them to try and take your marketing in a direction you’re not entirely comfortable with (or ready for).

Learning to trust their direction could take time – time that you may not have if you’re hoping to grow your business quickly.

You may also notice a lack of loyalty and/or commitment when working with freelancers or other companies, and this is because they (understandably) don’t feel the same level of investment as a permanent employee would.

If you’re hiring a freelancer, one other thing to watch out for is that they don’t fall under IR35. This is when someone is working for a client (you) on a supposedly self-employed basis, but the relationship is actually more like they are an employee, or an employee-in-disguise.

Failing to comply with IR35 rules can result in financial penalties.

What to look for in a marketing agency

Broadly speaking, you want to look for one which offers a diverse range of services, from digital and social media marketing to web design and copywriting.

Whether you have an immediate need for all of these right now or not, it’s still good to have the option – just in case.

A proven track record (and the accompanying experience) is also a crucial factor, as you’re effectively placing your trust in someone you don’t know, and so you need to see evidence they’re capable of getting the job done.

Otherwise, it’s a complete shot in the dark.

Good communication is also important, so that you’re kept in the loop and can track the progress you’re making (via things like monthly reports or meetings).

And, again, you ideally want someone who just “gets” your business, as this will make the whole process much smoother, allowing you to scale at a faster rate.

 
Find more help in our online accounting hub, and learn more about how to find the right accountant for your business.

The post Should My Small Business Outsource Marketing? appeared first on The Cheap Accountants.

It may even feel like a personal attack.

In reality, though, bad reviews are pretty much par for the course if you’re offering a service of any kind to paying customers. People will be people. That’s not to suggest that all negative feedback is unwarranted, of course, and you’ll want to be on the lookout for ways to improve your business and how it operates.

Still, bad reviews which come up with a quick Google search don’t help when you’re trying to make the best possible first impression and build customer loyalty, and so you’ll no doubt be left wondering if there’s anything you can do to improve the situation.

Let’s look at exactly how bad reviews affect your business – and what you can do to keep them at bay.

Do bad reviews matter?

Well… yes. They discourage potential customers by informing them about bad experiences, ultimately influencing their purchasing decisions.

According to a survey conducted by Bright Local, 77% of people look at reviews when browsing for local businesses online, and only 3% of respondents said they would be willing to use a business with a 2* rating or below.

This demonstrates the power of customer reviews over consumer decisions, to say nothing of the impact word of mouth can have.

When do bad reviews become a problem?

While bad reviews are obviously never a good thing, they can be particularly bad in certain circumstances. A business with a long list of not-so-nice reviews is likely to find this scares off prospective customers, who will doubt the quality of service offered.

On the flipside, though, an overabundance of positive reviews can come off as inauthentic, and you run the risk of not being believed.

It’s a careful balancing act, with between 4 and 4.9* being the Goldilocks range in terms of appealing to potential customers while still seeming genuine. Basically, you want a healthy mix of good and bad reviews, as this signals that you’re open to constructive feedback and have nothing to hide.

What if my bad reviews are fake?

First of all, if you suspect a review might not be real, you should do your best to verify that this is the case. Check your records and try to get in touch with the user who left the review. If you still believe the review to be fake, you can flag it with the platform and request it be taken down.

Alternatively, you could opt to use a closed-review platform, which can convert bad reviews from slants against the business into opportunities for improvement, while also allowing businesses to respond directly and engage the consumer.

You should aim to treat ‘fake’ reviews as professionally as possible, no matter how or where they appear. Respond to them even if you have your doubts about their validity (or know for a fact they aren’t real), as this demonstrates an active interest in the experience of your customers, which obviously looks good.

There’s currently no precedent for a business successfully suing over a fake review, but there’s a first time for everything!

How to fix bad reviews

Responding to negative reviews is an essential part of online engagement. Apologising, offering explanations for what happened, and attempting to make further contact can all help.

It’s important to bear in mind that, when doing this, you’re not just writing to the unhappy customer in question (who you’re unlikely to hear back from anyway), but also to all future and existing customers, who will form judgments based on your response.

In general, though, don’t just write off bad reviews. Some of them may actually have a point or two, providing valuable insights that can be used to make improvements to your business and defend against such reviews in the future.

 
Visit our accounting support hub for more help, or to ask a free tax question!

The post How Do Bad Reviews Affect Your Business? appeared first on The Cheap Accountants.

You may even know that the solution to this problem is an effective marketing campaign, but the question is, how soon should this be implemented for the best results?

What is a marketing campaign?

In case you don’t know (or as a friendly reminder), a marketing campaign is basically just a series of activities linked by a plan of action which all contribute towards a larger defined business goal.

These activities may be simultaneous or done in a particular order, and can encompass virtually any course of action a business might choose to take.

The nature of a campaign means it’s not defined by any one activity, but rather by the larger goals to be achieved and the plan put in place to achieve them. Importantly, these goals are well-defined and plausibly achievable. Their success (or failure) can be measured, and they can range from marketing objectives to brand awareness, to specific business reforms.

A well thought-out marketing campaign will also consider cost, helping the business to get the best possible return on its spending. You might even decide to outsource your marketing.

Why do I need a marketing campaign?

Essentially, a marketing campaign is a form of organising and giving structure to your marketing activities. This is different from, say, an ‘initiative,’ which is vague and unactionable, lacking a clear roadmap.

How soon should I start planning my marketing campaign?

Okay. So… The reality is that a business needs metrics and methodology in place from the start in order to be able to track the progress of its campaign, so the sooner the better really.

You should come up with a plan at the outset and monitor it throughout. If you feel it would be more sensible to abandon it, make this decision based on as many facts as possible.

Can an accountant help me with my marketing budget?

Absolutely. An accountant can assist you in creating a realistic budget that helps keep your cash flow positive and considers include all the necessary costs, like agency fees, wages, ad space, etc.

Visit our accounting support hub for more help or to ask a free tax question!

The post How Soon Should I Start Planning My Marketing Campaign? appeared first on The Cheap Accountants.

But is influencer gifting right for your business? It may very well be the key to taking your brand to the next level, but this type of marketing strategy or promotion won’t make sense for all business types.

For a cosmetics ecommerce business, for example, it’s perfect but for a family solicitor, influencer gifting isn’t quite so relevant. That’s why it’s so important to consider your options before hopping on the bandwagon.

We look at what influencer gifting involves as well as the pros and cons so you can decide whether or not it’s something you want to pursue.
 

What is influencer gifting?

Influencer gifting is a specific strand within the wider realm of influencer marketing. This is where businesses collaborate with content creators with sizeable online followings to help spread brand awareness and, ultimately, boost sales.

Influencer gifting is where a brand sends its products, or provides services, to an influencer (AKA content creator) in the hopes they will like it enough to share it with their online audience. This is what’s known as ‘product seeding’ in marketing lingo.

If a brand doesn’t have physical products to send influencers, they can share other gifts or experiences instead. So, what does the influencer do with that?
 

User-generated content

When an influencer creates content about a brand or product to share on their own platforms, this is what’s known as UGC marketing, which stands for user-generated content.

This means the brand hasn’t created the content on behalf of the influencer and therefore has less control over what is being shared but it does boost authenticity and trust among audiences.

Examples of popular UGC styles that are relevant to influencer gifting include:

• ‘Unboxing’: The influencer opens (‘unboxes’) and talks through the gift on camera, mentioning your brand.
• ‘Get ready with me’: The influencer shows a video of themselves getting ready for the day. This daily routine could incorporate your product or experience.
• ‘Spend the day with me’: The influencer films (‘vlogs’) their day. This could include an experience or product gifted by your brand.
• ‘Outfit of the day’ (OOTD): The influencer shares what they’re wearing. If you are a fashion or cosmetic brand, this could feature your product.
• ‘What I eat in a day’ (WIEIAD): The influencer shares what they have eaten or cooked that day. If your product or experience is relevant, this could include your offering.

Pro tip: If you plan to use an influencer’s UGC content on your own brand channels, make sure to figure out a copyright agreement with the content creator before doing so. Be aware that they may request payment for this part.
 

Influencer gifting vs. paid influencer collaborations

The difference between influencer gifting and paid influencer collaborations is that with gifting, there’s no obligation for the content creator to promote the product, gift or experience.

Paid collaborations are transactional agreements where a content creator promotes a brand’s offering in exchange for pay. With influencer gifting, there isn’t the same agreement or guarantee that the content creator will share the brand’s offering across their online platform(s).
 

The pros and cons of influencer gifting

Before deciding whether or not you want to invest your time, gifts and energy into this type of marketing, it helps to understand the pros and cons.

Explore the possible advantages of influencer gifting for your business, as well as some key things to consider before going full steam ahead.

• Expanding your reach: Making more people aware of your brand and your offering.
• A more engaged audience that is more likely to trust in your brand: Research from Marketing Dive revealed that 69% of consumers trust influencers, friends and family over information coming directly from a brand.
• Meeting consumers where they’re at instead of relying on them finding you: The same research also saw 81% of consumers embraced influencer marketing in the past year.
• A great alternative to annoying ads: 42% of customers are now using ad-blocking to prevent ads and pop-ups. Influencers are an effective way to still reach them.
• Keeping up with the competition: 94% of small businesses planned to increase their budgets, which demonstrates how hot influencer marketing tactics are right now.
• Tapping into new markets: If you want to test demand for your offering in a new marketing (a different age demographic or geographical location, for example), promoting through an influencer in this niche is a good way to gauge reception. Influencers can explain and demo your product or service by speaking in the target audience’s language.

Things to consider before gifting items to influencers

Like every business decision, there are other factors to consider too.
 

Less control over the content being shared

Because you aren’t paying for the content like you would in a paid collaboration, you don’t get much say over how it’s made or what it contains – or when it’s posted, if it’s posted at all.

You can’t guarantee the quality of the content or that the influencer is going to love your gift and say all the things you’d like them to say.
 

ROI can be tricky to track

Due to the lack of control over content and timeline and the lack of obligation for the influencer to post content, it can be hard to monitor or forecast the performance of the campaign.

If the influencer does share your gift on their platform, it’s not always easy to attribute sales to this channel without tracking links or promo codes. This also leads to inconsistency in tracking your marketing metrics, which can be a struggle to navigate.
 

Knowing which influencers to work with

To get the most value from your influencer gifting campaign, you need to find the best content creators to work with. Finding these can take a lot of time, research and a bit of trial and error.
 

How to run a successful influencer gifting campaign

Fancy seeing how an influencer gifting campaign could impact your marketing strategy? Follow the tips and tricks below to set yourself up for success.
 

Work with the best influencers

In this context, ‘the best’ doesn’t necessarily mean the ones with the highest number of followers. Look for the influencers with the most engaged and active followers instead. When outreaching to influencers, you could ask to see their media pack, which should provide you with details about their engagement metrics.

Check out what other brands influencers are working with or promoting to see if you’re in the right ballpark. Also, assess which channels the influencer is most active on and choose the ones with high engagement on the platforms your target customer uses most.
 

Make sure your gift aligns

A poorly aligned influencer gift is like silly socks at Christmas. They may put a smile on their face but they aren’t likely to be a good long-term investment. So, make sure whatever you plan to send to an influencer is something they’re going to enjoy and want to talk about to their audience.
 

Consider your target audience

When finding the influencers you want to gift, focus on content creators that your own target audience is going to be watching and following to ensure your brand reaches the right people.

Don’t just think about what the content creator would love to receive – also think about what your target customer will want to buy and let this steer your gifting strategy.

 
Check out our accounting support hub for more help and resources, or to ask a tax question!

The post Should I Add Influencer Gifting to my Marketing Strategy? appeared first on The Cheap Accountants.

But as always, it’s crucial to make sure you’re doing everything by the book. We explain how to run your competition within legal guidelines (the boring but essential bits) to ensure it’s a flying success and won’t get you into any kind of trouble.

Do I need a license to run a prize competition in the UK?

You’re free to run as many contests as you like but you do need to make sure your competition meets all the requirements of the Gambling Act 2005.

What is the Gambling Act 2005?

The Gambling Act 2005 is essentially the key set of rules for anything gambling-related in the UK, which covers:

• Lotteries
• Betting
• Gaming, if playing the game means you could win a prize

If your social competition falls within any of these categories, you’ll need the right operating licences to stay on the right side of the law or you could find yourself facing financial penalties or, in more serious cases, prison.

The good news is if your competition is a skill-based challenge or a free prize draw, you probably won’t need to worry about the Gambling Act at all. You’ll just need to ensure that your competition is free to enter (no payment required for people to participate) or if it’s paid, that it passes the ‘Skills Test’.

What is the Skills Test?

For your competition to pass the Skills Test with flying colours and therefore be outside the Gambling Act 2005, it needs to require enough skill, experience or knowledge to:

• Be able to put a high percentage of people off entering
• Be tough enough that the prize isn’t easy to win, even for those who are skilled, experienced or knowledgeable enough to enter

How challenging the competition needs to be depends on who you’re aiming it at (i.e. your target audience).

If the questions are too easy and most people can breeze through them, it probably won’t pass the Skills Test, in which case, you’ll need to make it harder. Or alternatively, you can just make the competition free to enter.

Ways for people to enter a social media competition

Okay, so if people aren’t paying to participate in your prize contest, how should they enter? Below are some great ways to get people engaged and boost your business at the same time.

Tag someone in a comment or caption

For example, if they can win dinner for two at a restaurant, get them to tag the friend they would like to go with. You could even offer a bonus entry if the friend they tag tags them back on your post.

‘Like and share’ your post

Get the person to like your post and then share it to their own story or feed. That way, they’re in with a chance of snagging the prize and you get great engagement and reach on your original post. Win, win!

Follow your business

Request that the person follows you on some or all of your chosen social media platforms in order to enter the competition. If you’re asking them to tag someone in the comments, you could also stipulate that the person they tag needs to be following your business too.

The CAP Code

The other formality you need to be aware of and compliant with when hosting a competition on your social media pages is the CAP Code.

This was put in place by the Committee of Advertising Practice (hence the name) and exists to make sure UK advertising is fair, transparent and responsible. This includes competitions run by businesses on their social media platforms.

The CAP Code means you need to do things like:

• Have a clear start and end date for your competition
• Give clear instructions on how to enter
• Explain any restrictions around who can participate (e.g. age, geographical location)
• Provide information on when (and where, if relevant) the winner(s) will be announced
• Describe exactly what method you’ll be using to select your winner(s)
• Detail your Terms & Conditions

All of this just ensures that the people who want to get involved with your competition can’t be misled in any way.

You’ll need to make all of this info easy to access, either within the competition’s social media content itself or by linking to a dedicated web page or blog post.

Top tips for running a social media competition

Now we’ve set you on the straight and narrow with all things legal, here are some pearls of wisdom to make sure your competition is a solid business decision.

Set clear rules

Not only will clear rules and regulations mean you’re keeping to the CAP Code, but it will also make your life a whole lot easier. When entrants are clear about the dos and don’ts, it means less hassle for you.

Have a goal in mind

Competitions are all fun and games but don’t forget about setting a business objective. After all, your competition should be part of a smart marketing strategy. That’s why it’s important to measure its success, whether you want to grow your social media followers, boost your brand reputation or something else.

Pick a good time

For your competition to be beneficial for your business, you need to consider timing carefully. When you launch and run your competition can make or break its engagement.

Using the example of dinner for two as a prize, this would be great in the run-up to February 14th, when people will have Valentine’s Day on their minds. However, it might drive less engagement in January when people are focusing on eating out less, starting a healthy diet, and cutting back after Christmas.

Need more expert business support? Head over to our info hub, where you’ll find a whole host of helpful bits and pieces.

The post How to Run a Prize-Giving Competition on Your UK Business Socials appeared first on The Cheap Accountants.

Believe it or not, there’s even heaps of valuable expert advice for business owners on the platform if you’re looking in the right places.

Even if you’re not a TikTok user yourself, it’s easy to see that the popular social media platform has some serious traction so it’s completely understandable if you’re worried about missing out if your business isn’t on there.

The truth is though, TikTok isn’t suitable for every business or audience. Plus, you don’t need to be on every social media platform to run a solid marketing strategy – it’s about finding the ones that will work for you.

Let’s put TikTok under the spotlight and discuss whether or not it’s right for you, your business and your target audiences.

How does TikTok work?

TikTok is predominantly a video-based social media platform. Although Blake Chandlee, president of global business solutions for Bytedance, would say TikTok is “an entertainment platform” not a social media app.

Images can be posted but the vast majority of its content consists of short-form videos between 3 seconds and 30 minutes long, although not all video lengths are available to everyone everywhere.

The app is made up of a home feed, which features content from users you follow and a ‘For You’ page showing other content you might like based on an intuitive algorithm and sophisticated engagement metrics. There is also a user profile page, a direct message inbox and a search function with trending topics.

TikTok offers users the ability to upload videos or film and edit videos in-app with a whole host of different tools and features such as sounds, filters, stickers, subtitles, transitions, and beyond. The platform also offers users live streaming and paid content features (TikTok ads).

Is your target audience on TikTok?

Any social media platform you use for your business will require time and effort to maintain and grow. That’s why it’s important to understand if a particular platform is going to be worth the investment.

One of the most critical things to consider is whether or not your target audience is actually on TikTok. If they’re not, you’ll simply be sharing content with an audience who aren’t interested in your brand or offering and almost certainly won’t convert into paying customers.

Do some research into your target demographics to find out what their preferred social media platforms are. If that’s TikTok, great, but if not, you might struggle to get the results you want.

It could also help to see if your competitors are using TikTok and getting good engagement or not. Peek at the types of content they’re making and assess what seems to be the most popular.

Creating tip-top TikTok content

When considering whether you want your business to be on TikTok or not, it’s important to think about what kind of content you imagine creating and sharing. Below are three key things to keep in mind.

Is short-form, short-lived content your thing?

TikTok isn’t about creating long, evergreen videos that will have value for months or years. It’s all about short content that is engaging but will typically have a short shelf life.

Is this the kind of content you’re willing or able to produce? Some business owners will hire professional content creators or video editors to support them in generating a bank of rapid-fire videos.

If you’d prefer to take your time and create long videos that viewers will come back to time and time again, YouTube might be a more suitable video-based platform for you.

TikTok users love to laugh

Research by GWI found that 60% of TikTok users want to see humorous content, i.e. videos that are going to make them laugh.

Creative content (45%) and relaxing content (37%) made up the other categories in the top three.

Does your business lend itself to this kind of content? If so, TikTok could be the perfect place to flaunt your brand’s funny, creative or laidback side.

Some businesses will develop a kind of alter ego to explore their more light-hearted, humorous side on the platform (M&S does a great job of this). However, humour, creativity and relaxed content won’t compliment every business, product or service.

Are you willing to collaborate?

Many businesses that use TikTok as a promotional tool to market their product or service will work with influencers to produce sponsored content. This is where a TikTok user with a large following advertises something to their audience for a fee.

Is this something you’d be willing to do? Are influencer collaborations something you could afford to add to your marketing budget? If so, TikTok could be the perfect place to get started.

Selling on TikTok

If you have physical products to sell, you could consider selling them through TikTok Shop. This is an integrated ecommerce platform within the app that enables anybody (over the age of 18) to purchase products.

There are multiple ways you can direct customers to click through to purchase your products but whichever they choose, it means they don’t have to leave TikTok. This means they’re more likely to complete the checkout process than if they had to go to another website.

Is TikTok Shop right for you?

The basic logic is that the more places you sell products, the more money you make and to an extent, this is true. To sell enough products on TikTok shop, you need to invest enough time, energy, money and creativity to cut through the noise.

If you’re willing to dedicate yourself to the platform then it could certainly become a lucrative income stream for you.

Will you need a TikTok business account?

When you create a TikTok account, there are two different types you’ll need to choose from—a personal account or a business account.

As a casual user just looking for laughs or recipe ideas, a personal account is perfect. However, if you want to use the platform to support your professional goals or your marketing strategy, a business account could be beneficial.

TikTok business accounts are designed for users who want to:

• Promote a business, product or service.
• Grow their audience and raise awareness of a brand.
• Use commercial tools such as paid ads, branded hashtags, sponsored content or those in the Business Creative Hub (users with a large following who get paid for sharing content).

So, while you could try drumming up organic engagement with a personal TikTok account, a business account is the best bet if you really want to maximise the platform’s marketing potential.

If you already have a personal account and want to transition to a business account, all you need to do is go to Settings and Privacy, click ‘Manage account’ and then select ‘Switch to Business Account’.

How much do paid ads cost on TikTok?

How much you can expect to pay to advertise on TikTok really depends on what budget you’ve got to spend. As with any other paid media platform, the more you spend, the better chance you have of seeing ROI.

Advertising successfully on social media isn’t cheap, especially if you’re in a competitive industry like cosmetics or fashion. That’s why it’s so important to plan paid content strategically and be cautious with your budget.

Don’t forget, if you’re paying for marketing and advertising, you should check to see if any of the costs qualify as allowable expenses that you could be claiming tax relief for.

Check out our accounting support hub for help with your business finances, or to ask a tax question!

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