A new marketing mix modeling study conducted by Dentsu reveals that TikTok delivers the strongest short-term return on investment (ROI) among all media channels for the majority of brands analyzed across Nordic markets.
The research examines both short-term and long-term sales effects from TikTok advertising in Norway, Denmark, Sweden, and Finland.
Short-Term Impact Outpaces Other Digital Channels
With a short-term ROI of 11.8, TikTok ranks among the most effective media channels for driving immediate sales, according to Dentsu’s benchmark data.
Within six weeks, the platform generated nearly 12 times the initial investment in sales revenue for the brands studied. This performance significantly exceeds the average short-term ROI of 8.7 across all media.
For 75% of the advertisers in the study (11 out of 15 brands), TikTok demonstrated the highest ROI among all channels. Despite representing only 2.4% of media spend, TikTok delivered 5.0% of sales effects, indicating disproportionate effectiveness per dollar invested.
The study also notes that TikTok’s sales effect typically lasts 3-4 weeks after campaign completion, with all advertisers experiencing a significant increase in short-term sales effects from using the platform.
The research identifies a clear pattern in investment strategy effectiveness. Brands using TikTok consistently as an “always-on” channel, rather than in isolated campaign bursts, experienced significantly higher sales impact and overall higher ROI.
“While our study confirms that TikTok delivers both short- and long-term sales effects, it is evident that the platform is most effective when used consistently in an always-on strategy,” the report states.
Source: Dentsu
Analysis shows that sustained activity builds cumulative impact over time compared to sporadic campaign periods.
The ROI curve analysis indicates that most brands are currently underinvesting on TikTok, suggesting that increased spending would improve returns up to an optimal level shown in the research.
The study examines different content approaches, categorizing the ads into three distinct groups: professionally produced ads, tactical user-generated content (UGC), and storytelling UGC.
Among the UGC formats, storytelling content without explicit promotional messages delivered markedly higher sales impact—70% higher than tactical ads.
Specifically, tactical UGC yielded an ROI of 10.1, while storytelling UGC yielded an ROI of 17.8. Despite this performance difference, tactical content currently represents 65% of the analyzed spend versus 35% for storytelling content.
The researchers suggest that storytelling ads tend to generate longer average view times and higher attention rates, making the content more memorable and increasing the likelihood of future purchase decisions.
Long-Term Brand Effects Complement Performance
Beyond short-term sales, the study measures long-term effects occurring between 1 and 10 months after exposure. TikTok demonstrated a long-term ROI of 4.5, exceeding the average long-term ROI of 3.2 for all media channels.
Seven out of 15 studied brands found that TikTok provides significant long-term ROI, positioning the platform between traditional brand-building channels like TV and purely performance-focused digital media.
“TikTok can, therefore, function as more than just a lower-funnel performance channel,” the report notes. “With the right creative content that enhances brand perception, it can also serve as a powerful brand-building platform, driving sustained growth and long-term sales.”
The research utilized Dentsu’s “Total Contribution of Marketing” methodology framework, which incorporates three different statistical models: one measuring media’s direct effect on revenue, another identifying brand’s effect on revenue, and a third determining media’s effect on brand performance metrics.
The total dataset included 15 brands that had advertised on TikTok across the Nordic region over the past 2-3 years, providing what Dentsu describes as a robust dataset for assessing sales performance in these markets.
Nii A. Ahene is the founder and managing director of Net Influencer, a website dedicated to offering insights into the influencer marketing industry. Together with its newsletter, Influencer Weekly, Net Influencer provides news, commentary, and analysis of the events shaping the creator and influencer marketing space. Through interviews with startups, influencers, brands, and platforms, Nii and his team explore how influencer marketing is being effectively used to benefit businesses and personal brands alike.
A new marketing mix modeling study conducted by Dentsu reveals that TikTok delivers the strongest short-term return on investment (ROI) among all media channels for the majority of brands analyzed across Nordic markets.
The research examines both short-term and long-term sales effects from TikTok advertising in Norway, Denmark, Sweden, and Finland.
Short-Term Impact Outpaces Other Digital Channels
With a short-term ROI of 11.8, TikTok ranks among the most effective media channels for driving immediate sales, according to Dentsu’s benchmark data.
Within six weeks, the platform generated nearly 12 times the initial investment in sales revenue for the brands studied. This performance significantly exceeds the average short-term ROI of 8.7 across all media.
For 75% of the advertisers in the study (11 out of 15 brands), TikTok demonstrated the highest ROI among all channels. Despite representing only 2.4% of media spend, TikTok delivered 5.0% of sales effects, indicating disproportionate effectiveness per dollar invested.
The study also notes that TikTok’s sales effect typically lasts 3-4 weeks after campaign completion, with all advertisers experiencing a significant increase in short-term sales effects from using the platform.
Consistent Investment Strategy Yields Better Results
The research identifies a clear pattern in investment strategy effectiveness. Brands using TikTok consistently as an “always-on” channel, rather than in isolated campaign bursts, experienced significantly higher sales impact and overall higher ROI.
“While our study confirms that TikTok delivers both short- and long-term sales effects, it is evident that the platform is most effective when used consistently in an always-on strategy,” the report states.
Source: Dentsu
Analysis shows that sustained activity builds cumulative impact over time compared to sporadic campaign periods.
The ROI curve analysis indicates that most brands are currently underinvesting on TikTok, suggesting that increased spending would improve returns up to an optimal level shown in the research.
Storytelling Content Outperforms Tactical Messaging
The study examines different content approaches, categorizing the ads into three distinct groups: professionally produced ads, tactical user-generated content (UGC), and storytelling UGC.
Among the UGC formats, storytelling content without explicit promotional messages delivered markedly higher sales impact—70% higher than tactical ads.
Specifically, tactical UGC yielded an ROI of 10.1, while storytelling UGC yielded an ROI of 17.8. Despite this performance difference, tactical content currently represents 65% of the analyzed spend versus 35% for storytelling content.
The researchers suggest that storytelling ads tend to generate longer average view times and higher attention rates, making the content more memorable and increasing the likelihood of future purchase decisions.
Long-Term Brand Effects Complement Performance
Beyond short-term sales, the study measures long-term effects occurring between 1 and 10 months after exposure. TikTok demonstrated a long-term ROI of 4.5, exceeding the average long-term ROI of 3.2 for all media channels.
Seven out of 15 studied brands found that TikTok provides significant long-term ROI, positioning the platform between traditional brand-building channels like TV and purely performance-focused digital media.
“TikTok can, therefore, function as more than just a lower-funnel performance channel,” the report notes. “With the right creative content that enhances brand perception, it can also serve as a powerful brand-building platform, driving sustained growth and long-term sales.”
The research utilized Dentsu’s “Total Contribution of Marketing” methodology framework, which incorporates three different statistical models: one measuring media’s direct effect on revenue, another identifying brand’s effect on revenue, and a third determining media’s effect on brand performance metrics.
The total dataset included 15 brands that had advertised on TikTok across the Nordic region over the past 2-3 years, providing what Dentsu describes as a robust dataset for assessing sales performance in these markets.
Read the full report here.