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An exploration of advertisements on the fastest-growing social media platform.

Let’s

about

Consumer Behavior

By: Kailie Ryan, Gabrielle Long, Tiffany Berryman, Kate Hahn, Alejandra Gomez, Mohamad-Zain Abusharekh

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Background

“TikTok is a social media app that enables users to create and view short videos set to music or original soundtracks”

Who uses it?

41% users are 16-24 (Gen Z)
Minimum age is 13
Hype House - ages 15-22

Influential Spotify
Grew incredibly fast--and it’s still growing

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Background

So then why are these ads present?

Ads found by a 13 y/o user:

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Business Problem

How do we solve the problem of children being exposed to age-inappropriate content due to lack of age regulation of users by Tik Tok and lack of content regulation by content providers?

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Why Should We Care?

Misallocating company funds/budget towards unnecessary audiences
Creates a sense of “all ads apply to all”
Catering ads to specific users is important to get data for companies

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Current Business Practices

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How TikTok Sends Ads

TikTok Ads: Extension that marketers can utilize

Target by gender, location, age, interest etc.

Age is often inaccurate (users under 13)

Custom Audiences & Lookalike Audiences

“Reach more people similar to your existing customers.”
For large businesses, TikTok appeals to the fact that they are busy by saying, “TikTok Ads feels your pain and that's why we created... "Automated Creative Optimization”...[to] manage your ads more efficiently and effectively by automatically finding high-performing combinations of your creative assets.”

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Automated Creative Optimization

Algorithm that creates ad combinations based on ad content and tags
Optimizes based on performance; not manual
Sells itself based on ease of use; extensive background in marketing or data science not required
“Multiple ad combination within an ad group”

Machine learning

“The system will automatically help you match the target audience and your creatives, thus improving traffic quality.”
Leads to inaccuracy as machine learning is not always equal to human learning

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Interest Targeting

Interest targeting (travel, gaming, education)

If a user is interested in a certain category, they will have ads in that category targeted toward them
However, these users usually have multiple interests, and when they view, click on or otherwise interact with these ads, their data goes back to the advertisers
So, for example, if a user is interested in games and travel, a game company might receive data from that user and more of their ads will be seen by people who like travel.

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Implications

Businesses

“As we consider the characteristics of social media and their impact, it’s clear that companies now must consider the fact there are new rules for customers, business functions, and growth strategies” (Smith 5).

Consumers

Society

Gabrielle

Within all three of these groups there is an issue with safety
Safety on TikTik has already been questioned as “The United States government has opened a national security review of a Chinese company’s acquisition of the American company that became TikTok” (Nicas)
There is not enough regulation on TikTik especially when it comes to exposing children and teens to age-inappropriate content

Businesses

Social media has a huge impact on businesses today
This issue impacts businesses who advertise on TikTik

If content is being shown to wrong segment or age-group then it is not successful marketing and it it is inapprpriate for the views it could result in a negative image of the company
Additionally, TikTik allowing this to happen allows for TikTik as a company itself to gain a negative image

Consumers

This problem first and foremost affects the consumers
Better regulation is critical as children and teens are affected as “social media is happiness by likes and hatred by trolls, and intrusions into our privacy, that we can never seem to control” (Fenton). It shows that it is not only growth and learning that is impacted but also self-image and mental health. In fact social media has an effect on consumer’s emotions and the more time they spend on social media “the worse they feel” (Solomon 163). Inappropriate ads do not need to be added to the pre-existing negative effect of social media on teens as they contribute further to their learning and things they should not being exposed to at that age.

Society

Social media also impacts society as a whole, because it is having a negative impact on entire generations. It changes norms is society and not for the better.
The impact is so real and part of our “…our every day, [that it is] punctuating all other habits,” as social media has the power to change habits (Fenton).
This issue also brings on more stress for parents to regulate children on social media. Social media changes norms and a kid seeing age inappropriate contact affects the growth and habits of society.

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Directly From TikTok

“

Targeting Your Potential Customers Precisely

It has never been easier to reach potential customers by precisely targeting your audience. Using Tik Tok Ads, you can target your audience by gender, location, age, interest, and other unique variables.

For more advanced users who want to take their ads to the next level, you can create "Custom Audiences" and "Lookalike Audiences" to reach more people similar to your existing customers.”

Advertising Policy

To ensure that all content is running in a brand-safe environment for both advertisers and partners, TikTok has a dedicated Ad Review team to ensure your ad complies with our ad policies and applicable laws and regulations in corresponding countries/regions.

”

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Solutions + Suggestions

Change the Ad Targeting Range from 13-17

-> 13-14 and 15-17

Fix the algorithm to correctly dividing up demographics not just interest targeting

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Solutions + Suggestions

3. The Tik Tok Ad Review team should give recommended age groups for each advertiser.

4. Implement the Assembly Bill 1138 of California

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Under 13?

Younger Tik Tok users can access the mature content portion of Tik Tok by putting in a false birthdate.

Example: I personally tried to make a Tik Tok account as a minor and it did not ask me my age at all.

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What We Learned

View before research: TikTok ads are too broadly targeted and there is a lack of oversight and awareness about this problem

What we think now: This is true, and can be fixed by combining their current interest targeting method with a stronger emphasis on demographics targeting, specifically creating a difference between the ages of 13 and 17

Analysis: Our view has largely stayed the same, but we’ve learned that the problem does not stem from a general lack of advertising and data oversight; it stems from a flaw in their targeting system that allows false or misleading interests to arise.