SmallBusinessDigitalMarketingTrends

HowSmallBusinessOwnersareLeveragingDigitalPlatformsforBusinessGrowth

TableofContents

3ExecutiveSummary

4Demographics

5KeyTrendsandInsights

5Affordabilityisatopconcernforsmallbusinessownerschoosingaplatform.

7Creativestorytellingiskeyforsmallbusinesses.

8Platformsentimentsareshifting.

11AnEmergingPlayer:TheTikTokShift

11Overview

12WhyisTikTokBecomingtheDigitalMarketingPreferenceamongSmallBusinesses?

19HowcanTikTokImprovetoFurtherSupportSmallBusinessOwners?

24TikTok:AnEmergingFront-RunnerinDigitalMarketing

26Methodology

27References

28AboutHelloAlice

HelloAlice

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03

ExecutiveSummary

Smallandmedium-sizedbusinesses(SMBs)nowmakeup99.9%oftheoverallUSbusinesslandscape,withanestimated32.5MSMBsnationwide.Giventheenormityofthispopulationanditsimpactonoureconomy,itisimportanttobetterunderstandtheirplansforgrowthandthetoolstheyusetoachievethem1.

Todothis,wesurveyedsmallbusinessesacrossthecountryandwithinnumerousindustriesandidentifiedthreekeytrendsforhowsmallbusinessesleveragedigitalmarketingtoachievegrowth.First,SMBsprioritizeaffordabilitywhendecidingtouseadigitalmarketingplatform.Second,creativestorytellingisemergingasanimportantfactorregardingthevalueaplatformbringstoasmallbusinessowner.Thisleads,naturally,toourthirdfinding:platformsentimentsarestartingtoshiftfrommoreestablishedplatformslikeFacebookandInstagramtowardalternatives,likeYouTubeandTikTok.

Infact,throughoutourresearch,weuncoveredoverwhelmingoptimismamongsmallbusinessownersaboutTikTok’spotentialasadigitalmarketingplatform.Tobetterunderstandthesourceofthisoptimism,wetookadeepdiveintotheperspectivesandexperiencesofsmallbusinessownerswhoareusingTikTok,throughbothorganicandpaidadvertising,topromotetheirproductsandservices.

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Inthisreport,we’veelaboratedontheselearningsandsharedactionableinsightsforoursmallbusinessreaderswhoarelookingtogrowtheirreachandresultsbyleveragingdigitalmarketingplatforms.Fordetailsonhowthisresearchwasconducted,pleaserefertotheMethodologysection.

04

Demographics

CommonthemesamongSMBswhousedigitalmarketingplatforms

topromotetheirbusinesseshaveemerged.Tostart,theyarerelatively

youngbusinesses:mosthavebeeninoperationfortwotofiveyears,

indicatingmanyolderbusinessesarenotleveragingdigitalmarketing

platformsasreadily.Further,businessesthatsellproducts,particularly

inthebeautyandself-careindustries,aremorelikelytousedigital

platformsthantheirservice-basedcounterparts.

Amongallbusinessesusingdigitalmarketingplatforms,mostusemore

thanone,andtheyusetheplatformsfrequently.Acrosstoday’schannels,

FacebookandInstagramaremostcommonlyused,butvideo-focused

channelslikeYouTubeandTikTokaresteadilygainingground.

Whichofthefollowingdigitalmarketingplatformsdoyouuseforyourbusiness?

Facebook

87%

Instagram

75%

YouTube

28%

TikTok

26%

Snapchat

7%

It’salsoimportanttoconsidertimeontheplatform,asthiscanimpact

perceptionsandresults.Ofthebusinessessurveyed,49%ofFacebook

users,35%ofInstagramusers,35%ofYouTubeusers,and23%of

Snapchatuserssaidtheyhavebeenusingtheplatformformorethan

fouryears.Comparatively,58%ofTikTokuserssaidtheyhavebeen

usingtheplatformforsixmonthsorless.

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KeyTrendsandInsights

KEYTREND#1

Affordabilityisatopconcernforsmall

businessownerschoosingaplatform.

ThemajorityofSMBsleveragingdigitalmarketingplatformsarenewor

emergingbusinesses;it’snosurpriseaffordabilityistopofmindwhen

consideringtheiroptions.Amongthemostcommonlyusedplatforms,

FacebookcamefirstintermsofSMBs’perceivedvaluefortheir

marketingdollar.

Thisplatformhaspaidadvertisingoptionsthatareaffordableandeffectiveformybusiness.

%AGREEORSTRONGLYAGREE

Facebook

59%

Instagram

53%

YouTube

36%

TikTok

35%

Snapchat

26%

Evenwithorganicmarketing,it’scriticalforSMBstogetareturnontheir

investedefforts.Infact,45%ofSMBswhousedigitalplatformsdon’t

engageinanypaidmarketing,whichmeansthey’rerelyingentirelyon

theirorganictractiontogeneratetheresultstheyneed.Consequently,

theymustbeverydiscerningaboutwhichplatformstheyuseandhow.

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Intermsoforganicresults,SMBsreportfindingthemostsuccess

onFacebookandInstagram.Interestingly,however,althoughthe

businessessurveyedhavehadcomparativelymuchlesstimeonTikTok,

theirorganicresultshavealreadybeguntoclimbswiftlytowardthese

historicindustryleaders.

06

Onthisplatform,Icangetresultsbypromotingmyproductsorganically,notjustthroughpaidadvertising.%AGREEORSTRONGLYAGREE

68%

66%

52%

51%

39%

InstagramFacebook

TikTok

YouTube

Snapchat

InsightsforSmallBusinessOwners

Ifaffordabilityisaprimaryconcern,smallbusinessownersshoulddeterminewhichplatformsofferthebestchancesoforganicsuccess.Forthoseconsideringpaidadvertising,thekeyistoassesstheadsolutionsandpricingofdifferentplatformstodeterminewhichcanmeetboththeirgoalsandtheirbudget.

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Thisplatformhelpsmetellmysmallbusinessstoryinacreativeway.

TikTok

Instagram

YouTube

07

KEYTREND#2

Creativestorytellingiskeyforsmall

businesses.

Whensmallbusinessestelltheirstoriesincreativeways,magic

happens.That’slargelybecauseconsumersarenotjustseeking

productsandservicesfromtoday’sbrands;theywanttoconnectwith

thosebrands.

Therefore,platformssupportingthiscreativityandconnectionhave

gainedquicktractioninthemarketplace.Easy-to-usefeaturesthat

enabledynamicstorytellinginavarietyofformatsiskey.Forexample,

YouTubeisnowgrowingitsfeaturestoprovidemoreshort-form

contentopportunitiesandisseeingagaininthedigitalmarketing

space.Andalthougharelativelynewplatform,TikTokisconsidered

amongsmallbusinessestobethebestplatformfortellingtheirstory

inacreativeway.

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Facebook

Snapchat

08

Onthisplatform,Icangetresultsbypromotingmyproductsorganically,notjustthroughpaidadvertising.

%AgreeorStronglyAgree

InsightsforSmallBusinessOwners

Storytellingisahighlyeffectivemarketingtool,especiallyforsmallbusinesses.It’sanopportunitytonotsimplypromotetheirproductsandservices,buttoshowcasetheirvalues,personality,andcreativity.Recenttrendshaveshownthatconsumersareseekingthismorepersonalizedcontentfrombrands.3Consequently,smallbusinessesshouldleveragemarketingplatformsthatenablethemtotelltheiruniquestoriesinaninnovative,engagingwaytotakeadvantageofthisconsumershift.

KEYTREND#3

Platformsentimentsareshifting.

WhileFacebookandInstagramhavebeenthego-tomarketingplatformsformostSMBstodate,there’snowashiftunderwayforbothbusinessesandusers.Accordingtoarecentsurvey,Facebookusagehasgonedowndramatically(33%)andemergentplatformslikeTikTokhaveseendramaticgrowth(a105%usergrowthrateoverthepasttwoyears)2.Businessownersaretakingnoteandshiftingtheirplatformstrategiestomeetcustomerswheretheyare.

FacebookandInstagramarestillperceivedtohavemoretools,features,effectivepaidadvertisinginitiatives,andintegrationswithotherservicesusedbybusinesses.However,whileSMBsreporttheselegacyplatformsmayhavehelpedthemestablishadigitalpresence,they’renowlookingtonewerchannelstogrowtheirreachandrevenue.Withinthisdata,welookedspecificallyathowSMBsseeboththecurrentvaluetheseplatformsbringtotheirbusinessaswellastheiroutlookonfutureuseandinvestment.

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Onthisplatform,Icangetresultsbypromotingmyproductsorganically,notjustthroughpaidadvertising.

%AgreeorStronglyAgree

?BusinessGrowth&Potential

Intermsofhelpinggrowrevenue,FacebookandInstagramwerecited

asthetopperformers.Smallbusinessesalsoreporteddigitalmarketing

platformshaveenabledbusinessexpansioninotherforms,suchas

hiringnewemployees,openingnewlocations,andreachingnew

audiences.

Successonthisplatformhasallowedmetoexpandmybusinesinsomeway(hireemployees,opennewlocation/s,reachnewaudiences,etc.)

%AGREEORSTRONGLYAGREE

Facebook

57%

Instagram

56%

YouTube

30%

TikTok

26%

Snapchat

24%

Again,lengthoftimeusingaplatformisanimportantfactortoconsider

wheninterpretingthisdata.SinceSMBshavemuchlongerhistorieson

FacebookandInstagram,theseplatformshaveadistinctadvantagein

thisarea.Timewilltelliftheotherswillcatchup,butsentimentindicates

they’reontheirway.

?FutureUse

HelloAliceResearchReport

Bigplansseemtobeonthehorizonforthefutureuseofdigital

marketingplatformsbysmallbusinessowners.Over63%ofowners

whodonotcurrentlyuseFacebook,Instagram,orYouTubeplanto

start;meanwhile,59%plantouseTikTok.Intermsofthereasoning

behindthesefutureplans,manybusinessownerscited“wordofmouth”

recommendations.Inthiscategory,TikTokcameoutontopwith43%

ofSMBssayingthey’renowlikelytojointheplatformbecausethey’ve

heardreportsofefficacyfromfellowbusinessowners.

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ReasonsforStartingorIncreasingInvestmentonThisPlatform:Iheardfromothersmallbusinessesthatthisplatformiseffective.

43%

33%

30%

23%

TikTok

YouTubeSnapchatInstagram

Facebook

39%

Outsideofpeerrecommendations,smallbusinessownersappear

drivenbyadesiretointroducetheirbrandsandengagetheiraudiences

inmoredynamicways.Therefore,it’sunsurprisingthat72%and67%of

SMBsindicatedthattheyaremostexcitedabouttheirgrowthpotential

onInstagramandTikTok,respectively.Theseplatformsarewell-known

forfeaturessupportingaudienceengagementandstorytelling.

InsightsforSmallBusinessOwners

DigitalmarketingplatformscangenerateconsiderabletangiblevalueforSMBs.However,torealizethisvalue,businessownersmustplanandbuildstrategiesaroundeachplatform’suniquefeatures,styles,andaudiences.SMBsmustalsoplantoinvestenoughtimetoallowthemtolearn,adjust,andsucceed.

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AnEmergingPlayer:

TheTikTokShift

Overview

Lookingatsmallbusinessowners’currentuseandperceptionsofdigital

marketingplatforms,TikTokoverwhelminglystandsoutasanemerging

keyplayer.WhenaskedwhichplatformSMBsweremostexcitedtouse

inthefuture,TikTokovercamebothFacebookandInstagramtoleadin

thiscategory.

Whichdigitalmarketingplatformareyoumostexcitedaboutforbusinessuse?

TikTok

Facebook

Instagram

Youtube

Snapchat

1%

16%

30%

26%

28%

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Anditseemsthissurgeininterestiswarranted.SMBscurrentlyusingTikTokhavethemostoptimisticoutlookfortheirgrowthpotentialcomparedtoSMBoutlooksforotherplatforms.Whenaskedaboutfutureplanstouseeachoftheplatformsforbusinesses,animpressive78%ofownerscurrentlyusingTikToksaidtheyplannedtoincreasetheirinvestment.Thiswasthehighestofallplatforms,withInstagramcominginsecondat67%.

ThisisaparticularlynoteworthysentimentgiventhatTikTokisstillsuchanascentplatform.Forexample,49%ofthesmallbusinessownersusingtheplatformfororganicmarketingpurposeshaveonlybeenonTikTokforthreemonthsorless.

Clearly,they’regainingenoughquicktractionontheplatformtoinspireapositiveoutlookonfutureperformance.

Forfurtherinsightintothisindustryshift,wesurveyedsmallbusinessownerscurrentlyusingTikTokforbothorganicandpaidmarketingtounderstanditsuniqueappealandimpact.

WhyisTikTokBecomingtheDigitalMarketingPreferenceamongSmallBusinesses?

SMBsfindcreatingandsharingtheirstoryonTikToktoberewardingfrombothabusinessandpersonalperspective.Withitseaseofuseanduniquestorytellingcapabilities,coupledwithitshighlyengagedaudienceandfocusondiscoverability,SMBsareleveragingthisfast-growingplatformtogeneraterealresults.

Inourresearch,weuncoveredanumberofuniquedigitalmarketingstrengthsreportedby

13

smallbusinessesregardingTikTok.First,smallbusinessownersenjoy

usingTikTokasatoolfortheirbusiness,findingiteasyandfun.Second,

smallbusinessownersstatedreachingnewaudiencesasoneofthe

mostvaluableaspectsoftheplatform.Andlastbutnotleast,TikTokis

drivingtangibleimpactforsmallbusinesses,spanningfromsuccessful

newproductideasandsalesincreasestoprofessionalgrowth

opportunities.

Bestapptogrowsmallbusiness

andengagewith

potentialcustomersandclients.

DigitalMarketing:EasyandFun?

Interestingly,32%ofsmallbusinessownerswhohavenotyetusedTikTok

perceivetheplatformastoocomplicatedtotry.Smallbusinessowners

currentlyusingTikTok,however,citetheirtopfactorsforadoptionas

“easeofuse”and“funtouse.”Saysonebusinessowner,“Iloveusing

TikTok.Itiseasytouse,nottimeconsuming,andthevideosareeasyto

makeandshare.”Clearly,theperceptionofcomplicationisahurdlefor

somesmallbusinessowners,butoncetheygetstarted,theydiscover

usabilityisoneofTikTok’sgreatestandmostdistinctivestrengths.

SentimentAmongCurrentTikTokUsers

Agreeit’seasytouse

Agreeit’sfuntouse

81%

73%

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BusinessImpact

ThemajorityofSMBownersonTikToksurveyedbelievetheplatformhaspositivelyaffectedtheirbusinessestodate.Whenwelookeddeeperintowhatwasdrivingthispositiveimpact,wefoundfourcommonthemes:visibility,audiencereachandengagement,businessgrowth,andprofessionaldevelopment.

?Visibility

DuetotheuniquenatureofTikTok’splatformanduserbase,SMBsaregeneratingquickandfar-reachingexposurefortheirbusinesses.ForSMBsstrugglingtocutthroughthebroadermarketing“noise”withgenerallylimitedbudgets,theeaseandimpactofthisincreasedvisibilityisgame-changing.Infact,whenaskedifTikTokhadimprovedtheirSMBs’marketingperformance,49%ofownersreportedtheplatformhelpedgeneratepublicityfortheirbusiness.

58%

TikTokhaspositively

affectedmybusiness.

49%

Generatedpublicity

formybusiness.

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?AudienceReach&

Engagement

WhenrankingthemostvaluableaspectsofusingTikToktopromotetheirbusinesses,“reachingnewaudiences”cameoutontop,followedbythe“abilitytogetdiscovered”and“reachingtherightaudienceforthebusiness.”

47%

Helpedtoexpand

marketingreachinnew

geographicmarkets.

Overall,ownersusingTikTokare

pleasedwiththeaudiencethey’re

findingontheplatform,with70%

reportingadiverseaudienceand

47%reportingithelpedexpand

theirmarketingreachinnew

geographicmarkets.What’smore,

59%believeit’sanaudienceeager

todiscovernewproducts,services,

andbrands.

InthelastmonthorsoIhaveincreasedmy

followingonTikTokexponentially.

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Growmyrevenue

Launchmybusiness

Developnewideasforproducts/services

ofSMBsusingTikTok

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?BusinessGrowth

Impressively,40%oftheSMBssurveyedcreditTikTokforhelpingthem

launchtheirbusiness.Amongestablishedbusinesses,ownersindicate

TikTokhashelpedtheminseveralcriticalareasofoverallbusiness

growth,fromproductideationtoincreasedsales.

Howhasthisplatformsupportedtheoutcomesofyourbusiness?

%AGREEORSTRONGLYAGREE

59%

40%

37%

Assmallbusinesseshavecontinuedtobattleagainstthepandemic’s

manychallenges,thissupporthasbeenespeciallycritical.

42%

ofSMBsusingTikToksaidit

saidtheplatformhelped

themraisecapital.

helpedthemsafeguard

theirbusinessagainsttheimpact

ofthepandemic.

32%

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AthirdofSMBscreditTikTokforhelpingthemraisecapital,and42%of

SMBsreportedTikTokhasaidedinsustainingtheirbusinessesthrough

thisdifficultperiod.

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Tosupportgrowthandaddresschallenges,manySMBsonTikTokhave

neededtoinvestinoperations,whichincludeshiringmoreemployees

andexpandingintoanewphysicallocation.BetweenthoseusingTikTok

fororganic(non-admanagers)andpaidmarketing(admanagers)

purposes,therewasaslightdifferenceintheseareas;however,

outcomesforbothgroupsarenoteworthy,especiallygiventheir

relativelyshorthistoriesontheplatform.

OrganicAdvertisingOnly

HiredemployeesduetothesuccessofTikTok.

28%

21%

ExpandedtoanewphysicallocationduetothesuccessofTikTok.

31%

28%

PaidAdvertising

Somesmallbusinessownersevenindicatedthattheirexperienceson

TikTokhavefacilitatedprofessionalgrowth.

HowhasyourexperienceonTikTokimprovedyourbusinessmarketingperformance?

%AGREEORSTRONGLYAGREE

TikTokallowsmetotellmysmallbusinessstoryinanewandeffectiveway.

63%

TikTokhelpedmeconnectandlearnfromsmallbusinesses.

58%

MyskillshaveimprovedasadigitalmarketeronTikTok.

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53%

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Ihaveseenalotofsuccessinthelastthree

monthswithTikTokads.Ihopeto

continuegrowingrevenuefromTikTok.

OutlookandOpportunity

Overall,smallbusinessownerscurrentlyusingTikTokindicatea

strong,positiveoutlookontheplatformanditspotentialtogenerate

increasinglystrongreturnsfortheirbusinesses.

ForthoseSMBsusingpaidadvertisingontheplatform,84%planto

maintainorincreasetheportionoftheirmarketingbudgetallocatedfor

advertisingonTikTokthisyear.Thisalignscloselywithadditionaldata

showing79%ofSMBsusingTikTok’spaidadvertisingsolutionsfindTikTok

asvaluableasotherdigitalplatforms,ifnotmoreso.Fuelingthisoutlook

isSMBs’beliefthatboththeaudienceandgeneralpopularityofTikTok

willcontinuetogrow.

Lookingahead,whatisyouroutlookonTikTokas

amarketingchannelforyourbusiness?

%AGREEORSTRONGLYAGREE

Popularityisgoingtocontinuetogrow.

84%

Audienceisgoingtocontinuebecomingmorediverseacrossage,

demographics,interests,etc.

79%

Offersasmuchvaluetosmallbusinessesasotherdigitalmarketing

platforms,ifnotmore.

74%

Iplantodedicateaportion/alargerportionofmymarketingbudgetto

advertisingonTikTokthisyear.

62%

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HowcanTikTokImprove

toFurtherSupport

SmallBusinessOwners?

SmallbusinessownersregularlyusingTikTokhavefewcomplaintsabouttheplatform.Infact,46%believeTikTokisdedicatedtothesuccessofsmallbusinessesliketheirs.However,TikTokstillhassomeworktodoindismantlingcommonmisconceptionsamongsmallbusinessownersnotyetontheplatform,particularlythosewhoarenewertodigitalmarketingingeneral.

ThreekeystepsTikTokcantaketoaddresstheseconcernsare:1)moreeffectivelypromotingtheirlearningresourcestoeasethefearofcomplexity,2)betterdemonstratingthebreadthandengagementoftheirfast-growingaudience,and3)raisingawarenessamongSMBsofthemanyadvertisingtoolsandopportunitiesonTikTok.Overall,TikTokdoesnotlackresourcesbutratherhasroomforimprovementwhenitcomestobuildingawarenessaroundtheiravailableresources.

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PromotionofLearningResources

forEaseofUse

While73%ofbusinessesusingTikTokfindtheplatformeasytouse,the

32%ofSMBsnotyetonTikTokindicateareluctancetojoinbecauseit

seemstoocomplicatedortimeconsuming.However,roughlyhalfof

SMBsonTikTokacknowledgetheplatformofferslearningresources

tohelpthemleverageitmoreeffectively.ItthereforeappearsTikTok

needstoimprovepromotionoftheseresources,enablingmoreSMBsto

accesstheguidancetheyneedtostartandgrowontheplatform.

BecauseofTikTok’srelativenascency,manySMBsusingtheplatform

arestillbuildingtheirpresenceandexpertise.OfSMBssurveyed,80%

reportneedingmoretimetodetermineTikTok’spotentialfortheir

businesses.ThisrepresentsanurgentopportunityforTikToktoproperly

supporttheseownersduringthiscriticalphaseandprovidereasonfor

ownerstodeepentheirinvestmentintheplatform.

Needmoretimeonplatformtoestablishmybusinesspresenceeffectivelyanddetermineimpact.

%AGREEORSTRONGLYAGREE

TikTok

82%

YouTube

80%

Instagram

72%

Snapchat

70%

Facebook

65%

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EducatingSmallBusinessOwnersAbout

AudienceReach

Ingeneral,smallbusinessownerscitethesizeofaplatform’saudience

astheprimaryfactordrivingtheirdecisiontouseitornot.Butwhen

askedwhytheydon’tuseaspecificplatform,theyoftenindicate

perceivingtheplatformdoesn’thavetherightaudiencefortheir

business.BothTikTokandSnapchatstoodoutinthisregard;ahigher

percentageofbusinessownerswhodidnotplantousetheseplatforms

indicatedtheymadethisdecisionduetoincorrectaudience.

ReasonsforNotUsingandDon’tPlantoStartUsingThisPlatform:Itdoesnothavetherightaudiencedemographicsformybusiness.

Snapchat

18%

TikTok

14%

YouTube

11%

Facebook

8%

Instagram

7%

Conversely,themajorityofSMBusersonTikTokaregenerally

enthusiasticabouttheaudiencesthey’refindingthere.Thisindicatesa

needforTikToktobetterpromotethediversityanddynamismofitsuser

communityamongbusinesseslookingtoexpandtheircustomerbase

andchoosingotherplatformstodoso.

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ToolsandAdvertisingOpportunities

SmallbusinessownersonTikTokhaveindicatedtoolsontheplatformhavehelpedthempromotetheirbusinessmoresuccessfullyandefficiently.Inparticular,SMBsfindTikTok’sanalyticstoolsvaluableforunderstandingkeyperformancemetricsandaudiencebehaviors,helpingthemtooptimizetheircontentforgreaterimpact.Forexample,34%ofSMBsreportusingPromote,TikTok’slightweightadsolution,toboostvisibilityoforganiccontent.However,bothcurrentandnon-usersofTikTokindicateaneedformoretools,updatedpolicies,andadditionalfeaturestobetterfacilitatethegrowthandsuccessoftheirbusinesses.TikTokcouldbenefit

50%

AGREE

TikTok’sbusinesstoolsand

features(analytics,post

scheduler,creativetools,etc.)

helpmepromotemy

businessmoreefficiently

andsuccessfully.

fromconsideringtheseneeds

carefullyandensuringplatform

andproductdevelopmentinways

alignedwithSMBs’needsacross

theirlifecycles.

WhichTikToktoolshaveyouusedsofar?

AnalyticsCreativeTools

Promote

47%

40%

34%

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Istillhaven’tlearnedallthetrickstoTikTokbutIdefinitely

thinkitisagreatwaytobuildyourbusiness.Lovehowyou

cannowmanagethevideosandputthemintodifferent

folders!Thatwasoneofthesmartestthingstodo!Allinall,

IamhappywithTikTokandplantouseittomyfull

advantageonceIlearnwhatallthatentails.

PaidMarketingPerspective

TogetafullviewoftheSMBexperienceonTikTok,HelloAlicesurveyed

businessownerswhousetheplatformforbothorganicandpaid

marketing.Thosewhousetheplatformforpaidmarketingdoso

throughTikTokAdsManager.

WhilethemajorityofSMBsus