How TikTok Ads are performing in the Canadian market

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TikTok has emerged as a powerful contender, particularly in the Canadian market. A recent marketing mix model analysis conducted by Nielsen sheds light on TikTok’s growing influence, providing valuable insights into its performance compared to other platforms.

tiktok ads in canadian market
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The topline findings reveal a significant surge in TikTok’s Return on Advertising Spend (ROAS) and incremental sales in 2022. According to TikTok, there was a remarkable 30% improvement in ROAS and a staggering 58% lift in total incremental sales per 1,000 impressions compared to the previous year. This indicates that advertisers on TikTok are witnessing substantial returns, with an average return of $2 for every $1 spent.

What’s particularly interesting is the relative growth of TikTok in the Canadian market. TikTok’s media sales contribution in Canada witnessed a remarkable 2.3x increase in 2022, marking the highest year-over-year growth rate among all media channels. While this might not be surprising given TikTok’s global ascent, it underscores the platform’s increasing relevance for advertisers targeting Canadian audiences.

Outperforming TV

In a direct comparison with traditional TV campaigns, TikTok ads emerge as 1.6 times more powerful in driving both sales effectiveness and efficiency. Delving deeper into Nielsen’s Marketing Mix Models (MMMs), TikTok’s ROAS consistently outperformed TV by an impressive 63%, highlighting its effectiveness as an advertising medium.

What sets TikTok apart is its role as a key entertainment platform, particularly for younger users. Unlike traditional social networks, TikTok positions itself as a genuine rival for user attention on par with television. This is particularly evident among younger audiences who have shifted their attention away from traditional TV channels towards platforms like TikTok, YouTube, and Instagram.

Understanding TikTok’s unique positioning is crucial for brands. Rather than competing directly with Facebook, TikTok aims to challenge TV for broader resonance. Advertisers should approach TikTok promotions akin to TV campaigns, aligning messaging and content with user trends for widespread exposure. This strategic approach acknowledges TikTok’s role as a primary source of entertainment for younger demographics, who have largely abandoned traditional television in favor of online platforms.

Less Production Costs

One notable advantage for advertisers on TikTok is the reduced production costs compared to TV content. The platform thrives on organic-style content, and advertisers can leverage common standout techniques and trends showcased in TikTok’s “Top Ads” to create compelling, engaging promotions without the need for extravagant production budgets.

TikTok’s performance in the Canadian market, as highlighted by Nielsen’s research, reinforces its growing significance for advertisers. As it continues to challenge traditional advertising mediums, TikTok offers a unique opportunity for brands to connect with younger audiences in a dynamic and cost-effective manner. The data underscores the platform’s potential as a transformative force in the ever-evolving landscape of digital advertising.

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Author: Francis Rey

Francis is a voracious reader and prolific writer. He has been writing about social media and technology for more than 10 years. During off hours, he relishes moments with his wife and daughter.

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