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Why TikTok is a Must-Invest Channel During Peak Periods
Learn from luxury footwear retailer Fairfax & Favor on how to capitalise on your TikTok strategy in the run-up to Christmas
Fospha's TikTok Playbook reveals why TikTok is an essential channel for marketers, particularly during peak periods like Black Friday and Cyber Monday.
Here’s why investing in TikTok during these critical times can significantly boost your brand’s performance.
1. Unmatched Potential During High-Traffic Periods
TikTok’s explosive growth has made it a powerhouse for eCommerce, especially during peak. As brands increase their TikTok spending, the platform has shown exceptional return on ad spend (ROAS), particularly during high-traffic times.
Fospha’s data shows that TikTok is becoming a crucial part of the marketing mix, with an average of 10% of brands’ marketing budgets now allocated to the platform.
By capitalizing on TikTok's unique ability to capture consumer attention during peak, brands can enhance visibility, drive conversions, and outpace the competition.
🎄 Preparing for Christmas
Connecting with high-value customers is paramount, especially during peak shopping seasons. Fairfax & Favor, a British luxury footwear and accessories brand established in 2013, recognized this opportunity and launched a TikTok campaign during the crucial Christmas period of 2022.
🎯 Results:
217% increase in Return on Ad Spend (ROAS)
73% reduction in Cost Per Acquisition (CPA)
113% increase in Conversion Rate
💡 Strategy:
Implemented Value-Based Optimization (VBO) to target high-value customers
Combined always-on ad campaigns with both prospecting and remarketing approaches
Expanded product mix in ads to include multi-product sets via dynamic destination execution
Leveraged custom audiences, lead generation, engagement, key page event, and business account audiences for remarketing
Focused on identifying potential customers who exited the purchase journey at various stages
🗝️ Key Takeaways: VBO proved effective in identifying and converting high-value purchases and the campaign's success reaffirmed TikTok's importance in the brand's marketing mix.
2. Effective Full-Funnel Strategy for Sustained Growth
Investing in TikTok during peak periods requires a comprehensive full-funnel strategy. Fospha’s playbook emphasizes the importance of engaging consumers at every stage—from awareness to conversion.
During high-traffic events, utilizing a full-funnel approach ensures that your brand not only captures immediate demand but also nurtures potential customers for future growth. By investing in TikTok's entire funnel, brands can sustain their momentum beyond the peak period, driving continued engagement and sales.
Learning from Crocs
In 2019, Crocs saw instant success with its #ThousandDollarCrocs challenge. The footwear brand was among the first to jump on the platform.
Featuring rapper Post Malone and referencing his lyrics, Crocs invited users to customise their Crocs and post videos using its ‘Come As You Are’ slogan. The campaign generated more than 2.5 billion views and fans have continued to post memes since, even after the challenge came to an end.
Creator: Picasa 2.7
Crocs jumped to above 100,000 followers within a week thanks to the concept. CMO Terence Rilley attributes part of the brand’s 20% lift year-on-year to its TikTok strategy.
3. Maximizing New Customer Acquisition
TikTok excels at attracting new customers, with a significant percentage of purchases coming from first-time buyers. The platform’s broad reach and engaging content format make it ideal for product discovery.
By investing in TikTok during these high-traffic times, brands can tap into a vast audience of potential new customers, maximizing their acquisition efforts and driving long-term growth.
4. Creative Optimization for Peak Engagement
TikTok’s success hinges on creating content that resonates with its audience. During peak periods, the competition for attention is fierce, making creative optimization more critical than ever.
Fospha’s playbook highlights the need for platform-native, trend-driven content that feels organic to TikTok users. By focusing on creative optimization, brands can enhance their visibility and engagement, ensuring that their campaigns stand out when it matters most.
5. Accurate Measurement for Informed Investment
Investing in TikTok during peak periods is only effective if backed by accurate measurement. Traditional metrics often undervalue TikTok’s impact, leading to underinvestment.
Fospha’s advanced measurement approach reveals that TikTok deserves far more credit than it typically receives. By accurately measuring TikTok’s performance, brands can make informed decisions, optimizing their budgets and strategies to maximize ROI during peak periods.
ClickZ is a Contentive publication in the DTC Ecommerce division