TikTok has long secured its niche in the production and distribution of short videos online. Today, it is actively used for promotion by both major brands and small businesses. However, some users may encounter a situation where reach and engagement are high, but sales remain low or nonexistent. This scenario requires a comprehensive approach to revising the strategy and analyzing communication as a whole. Additionally, the sales funnel must be thoroughly examined.
Despite low or absent sales, brands continue to expand their presence on the platform. Let’s analyze TikTok itself and the possible reasons behind this phenomenon.
TikTok is a social media platform for short-form videos, where users create, share, and discover content ranging from dance challenges and comedy skits to educational clips and trending memes. Its powerful algorithm personalizes content, making it highly addictive and engaging.
For Gen Z (born 1997–2012), TikTok is more than just an app — it’s a cultural hub.
Today, we have sufficient data to determine TikTok’s audience. According to SocialInsider, the primary TikTok audience in the U.S. consists of people aged 25–35. Marketers consider this the most solvent demographic, accustomed to modern sales methods like subscriptions. They are open to monthly or annual subscription payments.
For comparison, according to Datareportal YouTube Shorts also has a significant audience aged 25–34, making up 21.7% of its total user base.
Views are contested not only by companies but also by individual creators. Views primarily impact brand awareness and platform algorithms. The more people watch a video, the more recognizable the brand becomes. Platforms, in turn, promote content more aggressively in recommendations as views increase.
According to SocialInsider, TikTok surpasses YouTube Shorts and Instagram in view counts, a finding supported by StrikeSocial. However, views without engagement are just “empty eyes.” The ultimate goal of high views is to increase engagement and guide users toward the desired action — a purchase.
Engagement is one of the most critical metrics for evaluating content on social platforms. It reflects audience interest and helps build brand trust. TikTok’s engagement rate is higher than on other platforms, as confirmed by SocialInsider. Yet, high engagement does not always translate into sales or conversions.
TikTok also leads in comment activity, surpassing competitors. The comment sections often turn into forum-like discussions, resembling Reddit. These discussions attract new users who contribute their opinions, further boosting engagement.
Advertisers vote with their money — investing in ads on specific platforms. Statista data shows that YouTube Shorts is catching up in the race for ad revenue. However, TikTok still maintains a lead.
Regarding sales, available data shows that 22% of U.S. TikTok users (surveyed March-April 2024) sell products or services via their profiles or TikTok Shop. This suggests that most businesses use TikTok primarily for brand awareness rather than direct sales.
Another Statista study reveals that 77% of small and medium businesses (SMBs) use TikTok for content posting, while only 33% use it for direct sales. Despite high engagement, many entrepreneurs avoid TikTok as a sales channel.
While a deep case-by-case analysis is needed, common problems include:
TikTok thrives on trends, but they are short-lived and unpredictable. Corporations, with their slow approval processes, often miss these windows, making their content seem outdated.
Unlike Amazon, TikTok lacks a user-friendly shopping experience, making direct sales difficult.
TikTok is seen as an entertainment platform, not a shopping destination. Users trust Amazon and Shopify more for purchases.
Viral memes can boost views but attract the wrong audience. Example: A company selling professional window-cleaning chemicals posts a cat meme — attracting pet lovers but zero buyers.
TikTok’s recommendation algorithm works well, but its search function is flawed. Searching for “banana” might show unrelated cat videos, making it hard to find business profiles or products.
Users often lose track of interesting videos if they don’t like, save, or follow immediately. Without a searchable history, they can’t rediscover products they wanted to buy.
TikTok excels in reach, engagement, and brand awareness, but converting these metrics into sales remains a challenge. Key obstacles include fast trends, poor shopping UX, audience mismatch, and low user trust in TikTok as an e-commerce platform. Brands must refine their strategies — focusing on targeted content, seamless purchasing, and leveraging TikTok’s viral potential while addressing its limitations. As the platform evolves, businesses that adapt will likely see better sales outcomes. For now, TikTok is more effective for brand building than direct conversions.