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Key findings

$2.3

Strong ROAS in both short- and long-term

The study yielded $1.7 short-term return for every advertising dollar spent in Southeast Asia from TikTok Paid ads. Compared to other channels* in the study, TikTok gave 2.0 times better results. 

Beyond direct sales outcome, TikTok delivered 2.2 times more long-term sales for brands via its impact on brand equity than other channels* measured in this study. 

When taking into account both short-term ROI and long-term brand equity, TikTok outperformed other channels* by 1.4 times, with a total ROAS of $2.3 for every advertising dollar.

9.4%

Synergistic impact between television and TikTok advertising

Nielsen found 9.4% incremental sales when TikTok ads are executed together with television ads for at least 4 weeks in Southeast Asia, which is highest among all other media channels* in this study. 

$2.3

Leverage In-Feed ads as core and boost with high-impact formats during key moments

Nielsen measured TikTok ad products, revealing that In-Feed ads drove high short-term ROAS of $2, long-term ROAS of $2.8, and showed the highest sales response against other ad products. Thus, In-Feed ads should be preferred as the base ad product on TikTok platform.

For key moments, consider high-impact reservation formats like Branded Effect, which revealed short-term ROAS of $2.3, and long-term ROAS of $3.0, driving amplification with higher efficiency.

$2.0

Utilize a combination of creator and brand ads to maximize effectiveness

Both creator and brand ads drove returns more than their spends, with brand ads delivering short-term ROAS of $1.5, and creator ads driving even higher ROAS at $2. 

Note: Modeled with two year historical data in 2023.
*Other Nielsen measured media includes TV, Radio, OOH, Cinema, Digital Display & Video (excluding Facebook & Google).
Non-TikTok spends are based on rate card (monitored) and not actual spends from advertisers.

How it works

Nielsen Marketing Mix Modeling offered a comprehensive evaluation of TikTok’s campaigns through tailored econometric models. These models established connections between detailed sales data spanning 2-3 years and a wide range of TikTok’s campaign activities, as well as other media platforms such as TV, digital video, digital display, print, out-of-home (OOH), and non-marketing factors like distribution, price, competition, seasonality, macroeconomic effects, and more.

The complete Marketing Mix Modeling solution involves data validation, metric calculation (e.g., revenue and profit), and a final insights presentation with recommendations to enhance marketing return on investment. Additionally, Nielsen executes several secondary modeling solutions including synergy analysis and long-term effects.

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