Ovative Group has uncovered a revelation that could shake up the marketing industry: TikTok’s ROI is 23 times higher than what outdated last-click models suggest. A deep dive into two years’ worth of data from their retail clients shows TikTok as a goldmine for long-term revenue growth—way beyond its social media reputation.
Ovative’s proprietary technology, EMRge by Ovative Group™, brings their Enterprise Marketing Return (EMR) model to life. By using this, the team has unearthed TikTok’s untapped potential, positioning it as a multi-channel force. In contrast, traditional last-click models fail to see the full picture, missing how TikTok contributes across a brand’s entire marketing funnel.
“Marketers are being shortchanged by last-click models. These models only capture the tip of the iceberg,” said Beth McKigney, SVP of Measurement and Technology Solutions at Ovative. “With EMR, we show that TikTok doesn’t just work—it’s a revenue-driving machine across multiple stages.”
Debunking the Last-Click Model Myth
The last-click attribution model tends to focus only on that final step before a conversion. This oversimplification hides TikTok’s power. Ovative’s EMR model digs deeper, revealing how TikTok supports not just online sales but also in-store purchases, brand loyalty, and growth. The company’s recent 2024 EMR Power Rankings placed TikTok fifth among all media channels, with surprising highlights:
- 50% of TikTok-driven sales are happening in-store, surpassing other platforms.
- 40% of TikTok’s revenue is generated weeks after campaigns end, showcasing its long-lasting influence.
These numbers debunk the myth that TikTok is only for online engagement. Instead, the platform proves valuable across various sales channels.
The Paid Media 2024 Power Rankings
Ovative Group’s 2024 EMR Power Rankings reveal the top-performing paid media channels based on real brand data. These rankings help marketers identify which channels are driving the highest returns. It’s a handy guide for brands looking to optimize their media strategy with precision.
Here’s how Ovative scored the rankings:
- EMR Components: The rankings measure three key components: online sales, offline sales, and future customer value. Each channel is scored from 0-100 based on these factors.
- Weighted Average: Adjusting for scale and diminishing returns, Ovative calculated a weighted average to provide a comprehensive score. The higher the score, the more effective the channel is at driving overall EMR.
Big Movers and Channel Trends
The rankings also shed light on the biggest shifts in paid media:
TikTok and Influencer Marketing
TikTok, ranked fifth, and Influencer Marketing, ranked seventh, have climbed the ranks as they become more integrated into digital strategies. These channels, while still evolving, show increasing efficiency as budgets grow. Marketers are learning to navigate longer creative lead times, but it’s paying off. Both TikTok and Influencer Marketing present strong alternatives to traditional Meta and Google search channels, offering brands a fresh way to diversify their budgets.
Retail Media on the Rise
Retail media is making a mark, rising four spots to 15th in the rankings—more than any other channel this year. As more brands invest in this growing space, Ovative’s experts continue to validate its returns. Though it’s currently lower on the list, retail media’s influence is expected to grow as more brands tap into its potential.
Search Channels: A Mixed Bag
Search tactics show mixed results in the rankings:
- Google Non-Brand Search holds a comfortable #2 spot. Despite spending cuts, efficiency has improved as teams fine-tune their strategies.
- Google PLA ranks at #4 but faces slight efficiency drops as retailers figure out the best way to maximize its potential.
- Bing Paid Search is at the bottom, taking the 16th spot, as fewer brands invest in the platform.
Traditional Media: Fading Fast
No shock here—traditional, non-digital channels are losing traction as consumers move online. Linear TV, ranked 20th, and Direct Mail, ranked 17th, are seeing decreased value. Streaming and digital video channels, however, are rising to the challenge, driving more significant in-store traffic and cementing their place in the media mix.
How TikTok Drives Real Value
Ovative didn’t just crunch numbers—they tested strategies too. In one case, they boosted TikTok spending for a top women’s retail brand, driving a 68% increase in media investment and yielding over $5 iROAS. The brand saw its customer base grow significantly, all by stepping away from last-click metrics and looking at the bigger picture.
TikTok’s own marketing science expert, Jorge Ruiz, gave a nod to Ovative’s work: “Ovative is setting a new standard in measurement. Their expertise highlights how full-funnel analysis leads to better marketing decisions.”
Using TikTok Strategically
Ovative’s data shows that brands who embrace TikTok at every funnel stage achieve double the EMR compared to those using it for only upper-funnel tactics. By utilizing TikTok’s full suite of ad tools, brands can drive consumers through each step of their purchasing journey, ultimately reducing costs and increasing sales.
Tips for Marketers
Marketers ready to tap into TikTok’s full power should consider these steps:
- Explore TikTok’s Full-Funnel Ads: Don’t just stop at brand awareness; use TikTok to push customers through the entire purchase path.
- Use TikTok’s Attribution Tools: Gain deeper insights into consumer behavior and adjust campaigns for better results.
- Ditch Last-Click Models: Advanced media mix modeling, like EMRge by Ovative Group™, is essential to fully understand TikTok’s impact.
With TikTok dominating the short-form video space, it’s time for marketers to move beyond surface-level metrics and see TikTok for what it truly is—a powerful marketing engine.