February 1, 2023

A TikTok Economy?

“Lesson learned: TikTok trends and other social trends document what we are buying”

A TikTok Economy?

“Lesson learned: Tiktok trends and other social trends document what we are buying”

From promoting popular discourse on the “Great Resignation” and “quiet quitting” to spearing “revenge travel,” TikTok is helping us interpret how purchasing is shifting post COVID-19. Many consumers are interacting with the app before making a purchase, which is a key piece of data for marketing and business.

The important lesson here is TikTok is documenting how consumers are making purchases in the wake of big financial events. What used to be an app where teens popularized dance trends is also now showing businesses where and how consumers are spending their hard earned money.

Because of high inflation, heftier mortgage rates and high home prices, less homes are being bought. And as the world opened up post-pandemic, more consumers engaged in purchasing experiences, such as vacations or restaurant visits, all which are documented through quick, snapshot esque videos.

Make TikToks, not ads, seems to be the rallying cry for anyone hoping to start a new business. Fast, easy-to-circulate content like TikToks can do wonders for product promotion. Also, because trends live on TikTok, the impulse to buy is closely associated with FOMO, making buying trends easier to follow and pay attention to.