Economic impact of TikTok highlighted in new report

(Source: Inside Small Business)

A new report highlights how TikTok has grown to be a powerful tool for big and small businesses alike, revealing that more than 8.5 million Australians and more than 350,000 Aussie businesses are on the platform.

The inaugural TikTok Economic Impact Report by Oxford Economics has found that in the last financial year, TikTok contributed $1.1 billion to Australia’s GDP and supported nearly 13,000 jobs. 

The report found that investments in advertising and marketing on TikTok during FY23 generated $1 billion in direct revenue for Australian businesses, and with flow-on impacts, the GDP contribution grew to $1.1 billion. 

An Oxford Economics spokesperson said TikTok can act as a ‘signpost’ to the real world, offering people a way to discover new places to visit and new products and services. 

“In fact, millions of people have visited a restaurant or shop, or purchased music or bought concert tickets after watching TikToks. This means businesses can, and do, really leverage the platform to grow,” the spokesperson said.

The report also found that 78 per cent of business respondents said that TikTok had a positive impact on expanding their business’s reach and 77 per cent saying the platform allowed them to reach new Australian audiences.

In detail, 38 per cent of users, or up to 3.2M people, reported purchasing a product or service recommended on the platform at least once a month during FY23 (which is based on the review period and TikTok’s AU user base of 8.5m), 3.5M people (around 41 per cent) visited a TikTok-recommended restaurant or shop at least once, and 1.8M (around 21 per cent) purchased music or concert tickets of artists whose works were shared on TikTok.

With regards to charity, 1.6 million (around 19 per cent) have donated to a charity or cause highlighted on the platform and 1.5 million (around 18 per cent) committed their time to volunteer. Those aged between 35-44 had the highest levels of donating (42 per cent) and volunteering (43 per cent) to charities with a TikTok presence.

How people engage with TikTok is fairly similar across the country, with entertainment coming in as the number one reason. People in regional centres tend to lean into DIY and home content, while those in metro areas lean into the arts, sports and politics a little more.

Using TikTok for business has been embraced by younger businesses, with 54 per cent of businesses aged between five and nine years reported using TikTok at least once a month for advertising and marketing purposes, followed by 42 per cent of businesses under five years old. 

TikTok’s GM of global business solutions Brett Armstrong said that the platform has become an integral part of the social fabric of Australia.

“TikTok has become a platform that is loved by millions of Australians and used by more than 350,000 businesses, of all shapes and sizes, to reach new customers and markets,” Armstrong said. “This helps to create jobs and put money back into the economy. Our unique recommendation system focuses on engagement and interests, rather than follower numbers. This allows both new and established businesses to tap into popular trends and culture without the need for big marketing resources.”

This story was originally published on Inside Small Business.

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