Over 60% of TikTok users are Gen Z, and the platform generated an estimated $1.9 billion in revenue in 2020, a 457% increase from $350 million in 2019. For businesses that harness its power, it can be an incredible source of engagement with the generation that comprises around 40% of consumers and wields staggering clout for buying ($143 billion). It’s no wonder companies are asking themselves ‘how do I market my business to Gen Z?’ or perhaps more specifically, ‘how do I market my business with TikTok?’
If you want to know the answers to these questions, Timothy Armoo is the man to ask. Having started his career as an entrepreneur when he was 14 on a bet with a friend, and sold his second business for six figures aged 17, he is now on his third venture, Fanbytes – a multi-award-winning social and influencer agency. His particular genius, however, is understanding and appealing to the powerful Gen Z demographic. You can listen to his story on my podcast, but here we look at the key takeaways on how to use TikTok to attract Gen Z to your business.
Do you understand Gen Z?
Gen Z, to clarify, is currently aged between approximately 13 and 24. There’s a lot of information out there that tries to distil this generation down to a set of values and characteristics – notably, they care more about the world, they’re less brand loyal and they’re more value-driven than previous generations.
Armoo doesn’t talk about them like that. He thinks what distinguishes Gen Z is something far more practical – they have grown up with the mobile phone as the remote control for the world. They know they can amplify the things they like and dial down things they aren’t interested in.
For Armoo, that knowledge means that he doesn’t think specifically about how to market a business to Gen Z with TikTok, but more generally about how to target Gen Z customers by creating content that interests them. He points out that finding a meme funny isn’t a Gen Z thing – if it’s a meme with content that’s of interest to a Boomer, then they will find it engaging and Gen Z probably won’t.
However, as Gen Z is more likely to use Tiktok, it pays to create content that they will like because they are digital natives more likely to like, share and engage. That’s what it means to understand Gen Z, as well as Tiktok itself – go to the place where they’re hanging out online and create content that is specifically for them.
Work is what you know: How do you target Gen Z customers?
Armoo says that at the tender age of 14 when he decided he wanted to make money, he saw a quote that said ‘Work is what you know’, and what he knew was how to do maths. That led him into tutoring, or more accurately, linking tutors with students. Authenticity remains a powerful driver on social media, helping people to break through the white noise, find their audience and add value. The first step in how to target Gen Z customers? Understand where your value lies and be authentic.
What’s the value of social media to Gen Z?
Armoo is very down to earth when he talks about social media. He knows we all talk about it like it’s God’s gift, but asks why? Do you and your business actually know why you do it?
He and his business use social media across the board, but Tiktok has become a key platform because of its prevalence amongst Gen Z. He doesn’t conflate it with the likes of Instagram however, which is what many people compare it to – he thinks it’s more of a competitor for the likes of YouTube.
Put simply, it’s an entertainment platform rather than a social platform, where people go to be interested and amused. So for Gen Z, and therefore businesses, the value is in engagement.
How do I get Gen Z customers? Grow with the times.
When Armoo started Fanbytes, TikTok wasn’t such a big deal. Now it’s the platform for Gen Z, so he has focused on growing that part of his business in the last two years. The point is, he’s good at evolving and you should be willing to do the same. His specialist area is not just Tiktok (although he definitely knows what he’s doing in that space now) – it’s Gen Z. He’s good at helping business leaders who aren’t part of that world to understand the value of the platform of the day by showing them the numbers (most business owners want to know how the marketing of any sort ultimately impacts the bottom line). That’s where Gen Z are spending time, and he has the data to show that he knows what creative content will work, saying he can pretty much guarantee that if he takes £50k he can turn it into £100k in revenue.
How businesses should use TikTok? Own the talent
Where Armoo has cornered the market is in knowing it’s not enough to create the content for social media – you need to own the talent. His marketing agency has three parts:
- Brands go to them and they run their campaigns
- They own the funnel – they have a talent agency where they manage the biggest social media stars in the UK
- The Bytehouse – the world’s first ever UK TikTok house – is like Big Brother, but for influencers. They create entertaining ‘Big Brother’ style content for Gen Z and their 15 million + combined fans to enjoy on Youtube, TikTok & Instagram for a whole three months. And guess who owns and operates all the IP? That content can then be used to launch books, blogs, and TV shows – the opportunities are endless.
How do I market my business to Gen Z? Keep an eye on the future
Armoo is convinced that the next billion-dollar brand will be built entirely off social entirely, by an influencer, such is their reach. Influencer audiences have grown exponentially in recent years, with macro-influencers (like celebrities) often having between 100,000 and 1 million followers, and micro-influencers having between 1,000 and 100,000 followers. If you can sell through an audience then the influencer is the brand and the brand is the influencer – the two are synonymous. He believes there are some who will make a million this year because their personal brand is so strong – much more so than many businesses – and he’s investing in individual influencers as a result. Something to keep in mind when you’re considering your influencer marketing strategy.
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