Unlocking TikTok's True ROI: Insights from a Nordic E-commerce Study | TikTok For Business Blog

Summary

A collaborative study between TikTok, Precis, and Alvie analyzed ten Nordic e-commerce brands across fashion, home goods, and consumer products. The research demonstrates that traditional last-click attribution models significantly undervalue TikTok's contribution, underestimating ROI by an average of 10.7x. TikTok drives performance across the full funnel: brand awareness campaigns achieve a median ROI of 2.6, consideration campaigns 3.9, and conversion campaigns 3.1.

Notably, brands observed a 26% increase in branded search activity within 1-2 months post-campaign, indicating a strong halo effect. High-performing brands adopt an always-on approach, leverage authentic user-generated content, employ storytelling frameworks like 'Results First & Work Backwards' and 'Built into Routine,' and produce videos longer than 15 seconds with compelling hooks. For ad ops decision-makers, the key takeaway is to move beyond last-click metrics and embrace advanced attribution tools like Alvie to accurately measure TikTok's impact on the customer journey.

This enables better budget allocation, optimization of creative strategies, and unlocking of TikTok's potential as a growth engine. The study also highlights that TikTok excels in upper- and mid-funnel growth, making it essential for brand discovery and consideration.