Advertising is usually thought of as one company paying another to reach a larger audience. For example, TikTok paid FOX to stream its advertisements during the Super Bowl.
But what if advertisements weren’t such a zero-sum game? What if marketing teams could join forces to help both companies?
This is exactly what TikTok has done with its “hashtag challenges.” The challenges allow brands to buy advertisement slots on TikTok’s own platform, generating views for both the brand and the social media company.
According to the Wall Street Journal, “Hashtag challenges get prominent placement on the TikTok app, according to ad agency executives, and can generate hundreds of millions of views on the platform if successful. As of last fall, TikTok was charging brands $150,000 for a sponsored ‘hashtag challenge’…”
One of those brands was Kind, the popular snack bar. Kind launched a contest with the hashtag #kindsimplecrunchcontest, encouraging TikTok users to post videos emphasizing the snack bar’s “crunch.” Within 24 hours, Kind’s original post had received 18 million views.
As the site AdAge reveals, TikTok “has mostly attracted entertainment brands like Radio Disney (1.5 million followers) and Netflix (575,400 followers).” Other brands include Kind, Red Bull, Kit-Kat, Coca-Cola Japan, Mountain Dew, Hyundai, and Chipotle, just to name a handful of the brands that have begun marketing on the video-sharing app.