New research from Tracksuit and TikTok demonstrates a strong correlation between brand awareness and advertising conversion rates on TikTok’s platform.
The study, which analyzed data from 147 brands across Australia and New Zealand between January 2021 and April 2024, identifies a clear relationship between prompted brand awareness and marketing performance metrics. Brands with 60% awareness levels show conversion rates 2.86 times higher than those with 20% awareness.
Source: Tracksuit, TikTok
The research reveals a key inflection point at 37% brand awareness, after which improvements in conversion efficiency continue but become more gradual. Brands with 40% prompted awareness demonstrate 43% higher efficiency in driving conversions compared to those with 30% awareness, while brands with 50% awareness show a 29% improvement over those at 40%.
Notably, the study finds no significant correlation between click-through rates (CTR) and brand awareness, suggesting that engagement metrics alone may not indicate overall brand health or customer acquisition potential.
Source: Tracksuit, TikTok
The research examines two distinct types of conversion metrics. Website conversions measure the percentage of website visitors completing specific goal actions, while conversion objective-related campaigns track the success rates of marketing campaigns designed specifically to drive conversions.
James Hurman, co-founder of Tracksuit, points to a common pattern among young brands: quick initial growth followed by plateaus as performance marketing costs increase and returns diminish.
“There are few customers who’ll buy a brand without first being familiar with it,” he says. “Once we’ve tapped out those ‘early adopters,’ we need to do the critical marketing job of building our brand among those who’ll enter our category in the future.”
Rory Dolan, Head of Marketing Science at TikTok AUNZ, JP, KR, points out that brand building need not involve large-scale campaigns. “Brand is built consumer by consumer, exposure by exposure, no matter how small,” he states.
To ensure data reliability, the methodology required valid performance data with positive cost per acquisition, impressions, and conversions, along with consistent monthly advertising spend.
Researchers only included brands with at least ten consecutive months of data and brand awareness between 10-60% to avoid skewing results. After applying these filters, the final analysis included 11 brands, providing 60 data points. The researchers used logarithmic regression and an ADBUG model to measure diminishing returns.
Dragomir is a Serbian freelance blog writer and translator. He is passionate about covering insightful stories and exploring topics such as influencer marketing, the creator economy, technology, business, and cyber fraud.
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New research from Tracksuit and TikTok demonstrates a strong correlation between brand awareness and advertising conversion rates on TikTok’s platform.
The study, which analyzed data from 147 brands across Australia and New Zealand between January 2021 and April 2024, identifies a clear relationship between prompted brand awareness and marketing performance metrics. Brands with 60% awareness levels show conversion rates 2.86 times higher than those with 20% awareness.
Source: Tracksuit, TikTok
The research reveals a key inflection point at 37% brand awareness, after which improvements in conversion efficiency continue but become more gradual. Brands with 40% prompted awareness demonstrate 43% higher efficiency in driving conversions compared to those with 30% awareness, while brands with 50% awareness show a 29% improvement over those at 40%.
Notably, the study finds no significant correlation between click-through rates (CTR) and brand awareness, suggesting that engagement metrics alone may not indicate overall brand health or customer acquisition potential.
Source: Tracksuit, TikTok
The research examines two distinct types of conversion metrics. Website conversions measure the percentage of website visitors completing specific goal actions, while conversion objective-related campaigns track the success rates of marketing campaigns designed specifically to drive conversions.
James Hurman, co-founder of Tracksuit, points to a common pattern among young brands: quick initial growth followed by plateaus as performance marketing costs increase and returns diminish.
“There are few customers who’ll buy a brand without first being familiar with it,” he says. “Once we’ve tapped out those ‘early adopters,’ we need to do the critical marketing job of building our brand among those who’ll enter our category in the future.”
Rory Dolan, Head of Marketing Science at TikTok AUNZ, JP, KR, points out that brand building need not involve large-scale campaigns. “Brand is built consumer by consumer, exposure by exposure, no matter how small,” he states.
To ensure data reliability, the methodology required valid performance data with positive cost per acquisition, impressions, and conversions, along with consistent monthly advertising spend.
Researchers only included brands with at least ten consecutive months of data and brand awareness between 10-60% to avoid skewing results. After applying these filters, the final analysis included 11 brands, providing 60 data points. The researchers used logarithmic regression and an ADBUG model to measure diminishing returns.
The full report is available here.