TikTok vs. Instagram: Where Should Your Paid Media Budget Go?

Is all your hard-earned money going to waste? We know how frustrating it can be to feel like you're giving everything you have to your business, but not reaping the benefits. An effective social media marketing strategy is one of the best ways to boost your sales. It will also help you keep customers and reach more people. 

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Deciding the best way to post online is critical. You must keep Instagram followers and reach your target market with your Facebook ads. This is crucial to improving search visibility, raising brand awareness, and building your brand online. Create content that resonates with your audience. Exciting content can grow your brand awareness and expand your consumer base. 

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So, what social media platforms should you use to get the most bang for your buck? Instead of posting hundreds of times per day on Twitter, or trying to use Facebook stories, we have a better solution.

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TikTok and Instagram are the two most popular social platforms for users and businesses alike. We help you compare TikTok vs. Instagram to determine where your paid media budget should be allocated. 

Overview of TikTok and Instagram

The age-old debate — TikTok vs. Instagram. Which is better for reaching a widespread audience, increasing your brand awareness, selling products, and increasing the chances that people will notice your services? Keep reading to find out where you should focus your budget. 

TikTok

TikTok began as an app that had teens and young adults doing dance moves, singing along to popular hit tunes, and keeping up to date with the latest celebrity news during the COVID-19 pandemic in 2020. Now, TikTok has become a top app and platform in social media marketing. It controls a huge part of the digital marketing sector. 

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But, why is TikTok so popular compared to other apps and platforms? TikTok uses short videos and snippets to grab a user’s attention with sound and visuals. It outperforms platforms like Facebook, which uses longer posts, and Twitter, which is typically text-only. 

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Plus, TikTok users can be creative and follow trends. By keeping current with dance trends, phrases, and products, businesses can easily reach the majority of consumers. Companies can also showcase their unique personalities, making them seem more human and personable than big, sales-focused companies.

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Businesses also focus on TikTok due to its users and demographics. Most TikTok users are Generation Alpha, Generation Z, and Millennials, so companies can cater to a younger audience when broadcasting their products or services. 

Instagram

Instagram has evolved over the years from a photo-sharing app where people used Sepia filters to a comprehensive social media platform. It is the second-most used network worldwide, with over one billion monthly active users. It is no wonder that companies flock to Instagram to post their products for their target market. 

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90% of users follow at least one business. Thus, companies can take advantage of identifying their target audience, building a consistent brand, and boosting their Instagram follower base. 

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Compared to TikTok, the demographics of Instagram users are more widespread. 48% of people aged 30-49 have Instagram, combined with 29% of people aged 50-64, broadening a business’ reach. 

TikTok Advertising Options

In addition to cute dances and following current trends, businesses can improve their company through the many advertising options on TikTok: 

Types of Ads

• In-feed ads — This type of ad works well for companies that are looking to integrate their videos into a user’s For You page while they are scrolling on the app. In-feed ads directly link to external web pages, like a business’ home page. The perks of in-feed ads are the ease of set-up and increased brand exposure. 
• Branded hashtag challenges — This type of ad increases brand awareness, boosts engagement, and expands a fan base. Businesses can use this ad type to stand out from the competition by seeming more personable and approachable. 
• TopView ads — TopView is a video ad that users see when opening the app, making it an effective way to reach your target audience since users cannot skip the ad. 
• Branded effects — This type of effect is sponsored by companies to be used in correlation with advertising campaigns to adhere to specific branding needs. 

Advantages

• High engagement rates – Personalized content feeds, interactive tools, and short-format videos make it the best platform for addictive user engagement. 
• Creative and viral potential — Promotion, engagement, and trends make it easy for businesses to go viral, push their videos, and reach a broad audience. 
• The strong presence among Gen Z — TikTok uses cultural trends, brand loyalty, and niche engagement, such as humor and dance challenges, to connect with a younger demographic. 

Challenges

• New platform — The foolproof methods of using TikTok for marketing are largely unknown for a long-term plan, as it is a new social media platform compared to Instagram, Facebook, or Twitter. 
• Niche - TikTok lets businesses connect with niche markets. However, that means targeting 'micro-audiences' of Gen Z, Gen Alpha, and Millenial watchers. 

Instagram Advertising Options

Compared to TikTok, there are different advertising options on Instagram for businesses to choose from:

Types of Ads

• Feed ads — Feed ads appear in a user’s Instagram feed, often used to showcase a product and redirect the user to an external website. 
• Story ads — These are useful for businesses to use their creativity and provide an immersive experience for the viewer. 
• Explore ads — Helps businesses reach a new audience by playing an ad on the ‘Explore’ page for users. 
• IGTV ads — Short video ads <15 seconds that are less than 15 seconds, ideal for high-intent audiences. 
• Reels ads — Longer ads that are helpful for businesses to connect with a niche, younger audience. 

Advantages

• Established platforms with diverse demographics — Instagram has a much higher engagement rate than competing platforms, such as Facebook. In addition, Instagram allows you to humanize your brand and build long-lasting consumer relationships. 
• Integration with Facebook Ads for advanced targeting — Instagram provides paid advertising for businesses to grow their accounts.  
• Various ad formats catering to different marketing goals — IG helps businesses reach mobile users, engage with consumers, boost their visibility, partner with brand influencers, and personalize their companies by using different types of ads and formats. 

Challenges

• Potential ad fatigue — As a business's advertisement circulates on Instagram, users can stop engaging with the ads. 
• Higher competition - Since most companies use Instagram to promote their products or services, the level of competition is higher than that of TikTok.  

Comparing Ad Performance

So, which one is better in the Instagram vs. TikTok debate? Let’s check out some stats to see which social platform reigns supreme:

Engagement Rates

TikTok’s engagement rate is 2.65%, and based on views, it offers an average engagement rate of just over 4%. However, over the last couple of years, TikTok's engagement rate has continued to drop. 

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Compared to Instagram, TikTok is declining more so than its competitors. Instagram’s engagement remains steadfast yearly, coming in at 0.70%. Instagram's numbers are lower than TikTok. However, their consistent viewership and engagement are promising for Instagram's long-term success. 

Cost-Effectiveness

For both platforms, the cost-per-click and cost-per-thousand were high. They had an imbalance: many views, but few clicks. 

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However, Instagram Reels came out on top when compared to TikTok. They cost online businesses just over $28 for CPC, compared to $35.72. This means that Instagram reaches a wider audience at a lower price than TikTok. 

Conversion Rates

Instagram features a conversion rate between 0.3% and 2.6%, whereas TikTok has a lower conversion rate, but can often reach a broader audience. TikTok content is more likely to go viral than IG Reels or Stories. But, it could be less reliable and cheap for content and views. 

Audience and Targeting Capabilities

When debating between Instagram vs. TikTok, knowing how to reach your audience and identify your target market is key:

Audience Demographics

A much younger audience uses TikTok than Instagram, with more than 52% of TikTok’s users between the ages of 18 and 24. More than 60% of Gen Z social media users scroll on TikTok, with this platform being the most used of any social network for this age group. 

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In comparison, Instagram has almost an even number of users (30%) between 18 and 24 and 25 to 34, showing a wider age range. There is also a slight difference in female vs. male use, with Instagram featuring 51.8% male users and 48.2% female users. 

Targeting Options

TikTok utilizes short and catchy content to appeal to a younger audience with a shorter attention span. Most TikTok content is exciting, in-your-face, and bold, targeting the 16-24-year-old demographic. On the other hand, Instagram has more relaxed and thought-out content that appeals to a broader demographic. 

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Despite both platforms using authentic and visually appealing content, TikTok targets trends, viral challenges, music, and creative ideas, whereas Instagram uses storytelling, influencers, and narratives. 

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For example, Hyundai used TikTok to engage its target audience. They created exciting content and connected with a younger demographic than on their website.

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On the other hand, Airbnb utilized Instagram’s targeting strategies to create its "Accepts" campaign, which promotes the acceptance of all people. This campaign demonstrates that Airbnb is a global platform that caters to everyone. 

Case Studies and Success Stories

Don’t take our word for it - check out these success stories of brands using TikTok or Instagram to boost their business:

Brands Succeeding on TikTok

TikTok is one of the best ways for entrepreneurs and small businesses to make it big in no time by going viral. 

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Lala Hijabs is a small company. They tie-dye hijabs for women to wear as a fun and stylish alternative to the plain, traditional options. Lala Hijabs posted a viral video on TikTok, leading to more than 50,000 followers overnight. 

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Another viral sensation from TikTok was Klassy Network, a fashion and style company that produces women’s tops with built-in padding that reduces the need for an extra bra. After posting a video of her ‘halter brami’ top, she went viral, leading to a successful, six-figure company. 

Brands Succeeding on Instagram

Taco Bell is a popular Mexican chain restaurant that has utilized Instagram to create content specific to its brand. It uses engaging content, such as humor, colorful text, unique photos, and creative ads. These methods let it reach its target market, connect with its Instagram followers, and build a cool brand identity.

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Another successful Instagram campaign was launched by the energy drink and sports company Red Bull. Red Bull is a popular soft drink company renowned for its adrenaline-fueled activities, thrilling athletes, and trendy content. They used Instagram to post GoPro footage from heart-pumping activities that will keep people entertained.  

Recommendations

Before you begin marketing your company on Instagram or TikTok, there are a few things to remember. 

Factors to Consider

• Brand goals and objectives: Create SMART marketing goals that dictate your business's short-term and long-term plan of action. 
• Target audience alignment: Consider what platforms your target audience spends the most time on and how you can best engage with your niche group. 
• Budget constraints: Instagram is less expensive to use than TikTok, which could be helpful for those who need to spend less money upfront. 

When to Use TikTok

For businesses that want to grow their business using a variety of ad types, TikTok offers tons of creativity and personality for companies that can help them reach their target audience.

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Furthermore, companies that want to relate to a younger demographic should use TikTok to receive the most engagement and views on their videos. 

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Lastly, TikTok is usually the best option for companies that enjoy creating viral content, following the trends, and using creativity to grab someone’s attention. Although it is a lot of work, staying up-to-date and current with the latest and greatest online can be smart for companies that want to use TikTok to reach 18-24-year-olds. 

When to Use Instagram

Instagram is the best platform for businesses that want to reach a broader target audience than Gen Z or Millennial users. 

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Furthermore, Instagram Reels offers a higher impression and view rate for a lower price than TikTok. This means you can spend less upfront and get a higher engagement rate for a broader audience.

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Lastly, companies that pride themselves on a consistent brand voice and an authentic viewpoint should use Instagram. It is a more genuine way to promote their business.  

Final Thoughts

As you can see, the debate of TikTok vs. Instagram is a draw. Both platforms effectively reach their target audience, but companies must make their own decisions based on their goals, budget, marketing plans, and desired target audience. 

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Instead of doing the guesswork all on your own, guidance from elk Marketing can help you make the best decision for your paid media budget based on your unique business needs and marketing goals.

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We can help you earn a much higher increase in revenue from paid media as well as an increase in conversions from paid media. Our results speak for themselves. Check out our website today to read our case studies, subscribe to our newsletter, and start a free trial for your business.