While there is some trepidation among big companies, TikTok budgets continue to grow at every ad agency BNR has spoken to. The low cost and unmatched reach among young people are the most frequently cited reasons for advertising on the medium.
“It rather seems like all this hoopla is having the opposite effect,” says Joey Scheuffler, founder of Prappers Media Group, which provides campaigns for Rabobank and Intersport, among others. ‘Because it’s in the spotlight, companies think: that’s interesting too.’ Martijn de Kemp, chairman of the Influencer Marketing Committee of the trade association DDMA, also sees an overwhelming enthusiasm among the customers. “As an advertiser you can’t ignore that, especially if you want to reach Generation Z.”
Nicole Biesma, Lead Social Advertising at Rocket Digital, has also noticed a growing influx of new clients in recent months. ‘We see more and more advertisers want to make the leap. It’s where that target group is.’ The lower price also attracts many advertisers. Where a thousand impressions on Instagram and Facebook cost two to three euros, the price on TikTok is just under 50 cents, calculates Biesma.
The enthusiasm among Dutch advertisers contrasts with the mood in politics. Since last year, the national government has advised not to use the medium for communication with the public. Last week, Secretary of State for Digital Affairs, Alexandra van Huffelen, announced a ban on the app on civil servants’ work phones. In the US, President Joe Biden and his predecessor Donald Trump have already openly threatened a total ban on the app.
Shaking leads to even greater reach
This had no effect on the growth in the number of users in the Netherlands. Indeed, there are indications that the protest has increased TikTok’s reach, says Jeroen Nikkel, media research consultant at GfK. According to data from the research agency, TikTok has grown by nearly half a million regular users annually since 2021, and that number recently even surpassed two million. Visits to TikTok.com have nearly doubled in the past year. The website reached more than 4 million people by the end of 2022. “That’s really because of the buzz around it,” says Nikkel.
Even major brands like NS, ING, Albert Heijn can still be found on TikTok. The NS says it will of course keep a close eye on developments, but so far it sees no compelling reason to stop using the app. Reaching young people is important for NS to hire new staff. “And there are few other channels with which we can properly reach this target group,” said a spokesman. The platform is also an important channel for ING to communicate with a target group of young people, says a spokesperson.
“Budgets are only getting bigger”
However, some agencies are feeling some trepidation among larger companies that are not yet on the platform. “At A-brands, discussions about this are carried out in the boardroom,” says De Kemp. “But usually the result is positive. There is a lot of trust from the advertiser.’ Vivian Kowalski, creative director of Somention, suspects that the TikTok market would grow even faster if the political climate were more favorable. A possible ban “is on the mind” of advertisers considering bigger investments, Kowalski says. «I noticed that there is a dichotomy. There are parties that are a little more hesitant about it, but for customers who do something with it, budgets just go up.’
Despite the Ministry of General Affairs’ advice not to communicate on the medium, outside the national government, tax money continues to flow to the medium, especially where the need to reach young people is greatest. For example, Rocket Digital does a lot of work for universities of applied sciences. Outside the national government, there are also campaigns in the context of sex education and mobile-free driving.