YouTube and TikTok are two of the most popular social media platforms in 2022, with 2.29 billion and 1 billion monthly active users, respectively.
About 12.5% to over 25% of the global population uses these platforms. This usage rate makes them ripe for marketers and advertisers to reach their target audience worldwide.
However, are these social media giants useful for small businesses? Should small businesses market and advertise on these platforms?
If so, which is better for your small business?
In this article, we will answer these questions by looking further into how to use social media for business. By the end, you will know if advertising your business on YouTube vs. TikTok is worth it and which is better.
Let’s dive in.
Is TikTok Good for Small Businesses?
TikTok reminded the business world how important staying agile in an ever-changing world is.
TikTok carved out its place in the ultra-competitive social media landscape faster than any entrenched giants could react.
However, to stay relevant and profitable, social media platforms must be able to monetize predictably and consistently. This usually involves making it profitable for other businesses to advertise on their platform and gain organic exposure through their posts.
While TikTok specializes in helping businesses and social media influencers gain large-scale exposure, TikTok can be a powerful platform for small businesses to build brand awareness and drive local business revenue to young adult audiences.
TikTok’s algorithm is one of the best at targeting the right audience with the right content. Their ad platform allows businesses to choose their targeting or allow TikTok to deliver their ads to the best audience.
This can be helpful for small businesses that may not have the budget to outsource their advertising to an agency and want to keep things simple.
In addition, small businesses can find a lot of success with influencers to promote their brand and piggyback off the trust the influencer has developed with their following.
Ecommerce brands often work with TikTok influencers to promote clothing and other products and can sell out with one high-quality post.
So when it comes to TikTok vs. YouTube for business, both offer organic and paid options that can benefit small businesses.
How Do I Grow My Small Business on YouTube?
Contrary to TikTok, YouTube specializes in longer-form video content (however, YouTube Shorts are becoming more popular).
Small businesses can grow their business on YouTube in a few ways:
- Organic videos
- Video advertising
- YouTube Shorts
One of the best ways for small businesses to use YouTube is to create valuable long-form videos to educate and entertain their target audience.
These videos can educate your audience to do business with you and help build a relationship with your brand.
YouTube also offers one of the best online advertising platforms available. With the ability to target users by interests, demographics, affinity segments, and more, YouTube advertising is an excellent way for small businesses to reach their target audience.
Furthermore, to compete with TikTok, YouTube launched YouTube Shorts. YouTube Shorts allows creators to post short-form videos similar to TikTok videos. With 15 billion daily views, YouTube Shorts have been blowing up, allowing businesses to reach their audience through another organic medium.
Benefits of Advertising Your Business on YouTube vs. TikTok
While both YouTube and TikTok can help small businesses expand their reach, advertising your business on TikTok vs. YouTube depends on the ads you want to run and who you want to target.
Here are some of the benefits of advertising your business on YouTube vs. TikTok:
YouTube offers businesses the opportunity to advertise to a broader demographic. The age range of users spans all ages, from young adults to people in their 60s and older.
Therefore, if your business typically markets to an older crowd in their late 20s and above, YouTube is likely to be the better option for you.
Listing your business on Google may seem like the best idea. However, YouTube is likely a better option if your audience is looking for “how-to” content. As the second-largest search engine in the world, many people turn to YouTube to learn new information and skills.
If your market is trying to learn something, you have a good chance of getting on their radar using YouTube.
On the other hand, if your business primarily markets to a younger audience, or if younger people are an important audience segment, there is no better platform to advertise on than TikTok.
TikTok has blown up with the younger market, and TikTok ads typically look almost the same as regular TikTok posts. Your ads can fit seamlessly into the TikTok community while driving brand awareness and clicks to your website.
TikTok thrives on short-form, highly engaging content that delivers a unique blend of trendiness, entertainment, and education. If you run a more modern brand that wants to set itself apart, TikTok can be an excellent platform to build a presence on.
Pros & Cons YouTube vs. TikTok
The pros of advertising your business on YouTube include:
- Long-form video content to have more time to engage your audience
- Precise targeting based on interests and demographics
- A global audience
The cons of advertising your business on YouTube include:
- Higher advertising costs than some of the small platforms
- You are limited to video ads
The pros of advertising your business on TikTok include:
- Short videos don’t require lots of time or investment to create
- Influencer marketing is highly effective
- A robust advertising algorithm to increase advertising effectiveness
- A vast younger audience that is likely to age up over time
The cons of advertising your business on TikTok include:
- The audience is mostly in their late 20s and younger, so if you’re business markets to older people, there might not be enough on the platform yet
YouTube vs. TikTok - Who Wins?
In the debate between YouTube vs. TikTok for small businesses, the winner depends on who your company is trying to market to and what type of content (long-form or short-form) you are better at.
YouTube wins for long-form content targeting any age group, demographic, or interest. TikTok wins for short-form content targeting young adults.
About the Author, Madison Taylor
Madison Taylor is the Brand Ambassador at ROK Financial. She is responsible for raising brand awareness and business relationships with business owners across the country. Madison loves that she plays a small role in getting Business Back To Business Through Simple Business Financing and looks forward to hearing what you think about the blogs she creates! Madison has been working in the financial space for six years, and loves it! When she is not at work, you will find her at home learning a new recipe to test out on her family or going on new adventures with her friends.