No wonder, then, that social media has been among the leading drivers of small businesses. But in the war between TikTok and Instagram, increasingly, U.S. small businesses are gravitating toward TikTok as their platform of choice. And the cherry on top: TikTok is more than a destination to be a viral hit on dance and silly videos; it's a marketing machine for small brands wanting to grow and engage with their audiences in a new, authentic way.
While Instagram may still be the social media king, TikTok marketing has become the small business disruptor. In fact, increasingly more are experiencing quicker growth, less ad expenditure, and better engagement on TikTok than Instagram. So, why is TikTok so special? Let's discover why increasingly more small businesses are succeeding on TikTok, and how working with a TikTok marketing agency or TikTok shop partner agency can make them successful.

Smaller Brands Flourishing on TikTok

Small businesses never had the opportunity to penetrate dense markets, especially on platforms like Instagram, where competition is fierce and the audience is often shut off by buying ad space and algorithmic obstacles. TikTok has turned this on its head by offering smaller brands a more level playing ground on which to engage with colossal numbers of people through organic content.
Creativity wins over budget: TikTok prefers creative and authentic content over high-spending, high-production-value advertisements, which allows small businesses to compete with large corporations that have greater marketing spend.
Authenticity: Yes, people on TikTok are hungry for real, authentic content, and companies can give that to them in a less over-curated way than they can on Instagram.

TikTok vs. Instagram: Key Differences

Before we get into why TikTok is the obvious winner for small businesses, let's take a look at some of the main differences between TikTok and Instagram.

Algorithm Fairness

TikTok: Creativity and engagement are more important than followers. That is to say that an SME with a few hundred followers can become viral if they possess content that is good enough for the audience.
Instagram: Instagram's algorithm is biased towards large following accounts, i.e., small businesses or new businesses will not be seen without paying an arm and a leg for advertisements.

Video-First Experience

TikTok: The platform is short-form video through and through. Users scroll through humorous, brief videos, sometimes created to educate or entertain, providing brands with a faster means of reaching users.
Instagram: While Instagram has shifted toward video (especially with Reels), it is still extremely image-focused and static content-friendly, which doesn't necessarily engage users the same way.

Why TikTok is Successful with Small Business

That being said, let us proceed to what makes TikTok the platform to be used for small businesses nowadays:

Sudden Growth

Viral potential: The TikTok algorithm is designed to get your videos to viral status overnight. Your video can be shown to thousands of users without you ever having to subscribe to your own channel. That's some level of exposure Instagram just can't provide.
TikTok's "For You" Page: It is a feed that provides users with content that is most useful to their interest, allowing small businesses to address very niche populations without having to pay for their ads.

Low Advertising Costs

Low-budget advertisements: Although the advertisements on Instagram are costly, TikTok is highly affordable to promote on but with high Return on Investment value. Small businesses can promote on TikTok at a very low fraction of what they invest on Instagram with exposure to many users.
Affordable influencer partnerships: TikTok micro-influencers are being partnered with by certain small businesses. Micro-influencers are cheaper as well as have more engaged followers than Instagram influencers and that allows businesses to stretch their marketing budget.

Organic Reach

Unpaid visibility: Another great thing about TikTok is that it has the capability to provide a boost to organic content. Companies do not need to pay for advertising to go viral. With the creation of pertinent and compelling content, companies are able to become visible organically and attract new customers.
More user engagement: TikTok users will probably like, comment, or share your post and this is most likely to make your business go viral even when you have a small following.

Case Studies

Examples of Success for Small Brands
1. Duolingo
Duolingo, a language learning app, took a cue from the lighthearted, playful atmosphere of TikTok and accumulated millions of fans and record-breaking app downloads. They created lighthearted, humorous content that was aligned with their brand personality and attracted a younger demographic that considers lighthearted and humorous content.
Outcome: Increased brand visibility, increased usage, and increased downloads.
2. The Sill
Sill, an online plant delivery business, used TikTok to share plant care tips and fun plant content. Most of their videos incorporate user-generated content, which makes the brand appear more human and authentic.
Impact: Increased customer loyalty, increased website traffic, and enhanced sales.

Support from Partner Agencies

Although TikTok is a very good platform for small enterprises, having a TikTok marketing agency or a TikTok shop partner agency handle your TikTok strategy for you can bring it to even greater heights.

TikTok Content and Strategy Marketing Agency

  • Content creation: We can assist in creating content that will fit into the specific environment of TikTok and become engaging, meaningful, and algorithm-friendly.
  • Targeting and analytics: Agencies understand how to target the right audience with the right demographics and interests and utilize TikTok's strong analytics to monitor performance and make changes.
  • Campaign management: Your TikTok campaigns will be managed by a TikTok agency, kept on track, and generating measurable results.

TikTok Shop Setup Scale Partner Agency

Shop configuration: TikTok Shop enables companies to sell products directly in the app, with an end-to-end shopping process. You can get your shop configured by a TikTok Shop partner agency, connect your shop to your product catalog, and optimize your shop for conversions.

Scaling and growth: After you have your TikTok shop up and running, an agency can help scale your efforts by making paid ads, promotions, and keeping your business in front of the right users at all times.

Conclusion: TikTok is the New Small Business Champion

If you are an entrepreneur looking for quick growth, organic reach, and low-cost promotion, then TikTok is the platform to watch out for. With its virality, lower ad spend, and higher engagement, TikTok is giving small businesses the tools to succeed in an over-saturated market. TikTok has leveled the ground for businesses so that they can compete and even outperform large and established businesses.
With a TikTok marketing agency or TikTok shop partner agency, businesses can utilize the full potential of the platform and push their businesses to newer heights.
CTA: Get Your Small Business TikTok-Friendly with The Short Media
Ready to tap into the power of TikTok for your small business?
New to TikTok or wanting to take your efforts to new levels? The Short Media is your one-stop TikTok marketing agency. We'll assist you in creating viral content, maximizing your TikTok Shop, and developing a strategy that resonates with your brand. We'll assist your TikTok presence in generating actual returns!
👉 Book your free consultation and we'll get your business trending like the next big TikTok hit!

FAQ's

1. Why is TikTok more suitable for small businesses than Instagram?

TikTok provides a lot of organic reach without having to pay to boost posts. Its algorithm prefers new creators, unlike Instagram's algorithm, which prefers highly followed accounts. TikTok content is also raw and real, which resonates more with today's shoppers wanting real brand storytelling over over-produced ads.

2. What kind of content performs best for small businesses on TikTok?

Small businesses rock on TikTok with behind-the-scenes looks at product creation or how they're packaged, testimonials, and real customer feedback. How-to tutorials, product hacks, or creative ways people use your products will get the most engagement. Joining popular TikTok challenges or using popular sound also inspires engagement and gets your content pulled into users' For You Pages.

3. Would my business get more out of an agency that's specialized in TikTok marketing?

A TikTok marketing agency will help your business create scroll-stopping, trend-conscious content that's native to the platform's aesthetic and feel. They employ data-driven strategies to get the most out of your posts and provide in-depth analytics to monitor what's working. They also manage influencer partnerships, paid campaign strategies, and overall growth strategies to get ROI.

4. What is a TikTok Shop partner agency, and do I need to use one?

A TikTok Shop partner agency is committed to helping businesses get set up and running their TikTok shops. They can help integrate your product catalog, in-app advertising, and running effective promotions. If you wish to sell directly from TikTok and scale quickly, such an agency can make that easy and make you a social commerce pioneer.

5. Can I really scale on TikTok with a huge budget?

Yes. TikTok makes the playing field level by celebrating creative content, not spending heavily on advertising. Low-budget videos can go viral and create lots of sales.


Saeed Shaik
Saeed Shaik

Skilled in Ecommerce Strategy, TikTok Ads, Search Engine Marketing (SEM), Facebook Ads, Social Media Marketing and DoubleClick. A strategic leader who built high performance teams grounds up generating multi-million dollar revenue streams in several startups.

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