Why TikTok Ads Are the Future of Franchise Marketing
The Best TikTok ad strategy combines authentic content with strategic targeting to reach the platform’s massive user base. Here’s what works:
Key Elements of the Best TikTok Ad Strategy:
- Authenticity First – Create content that feels native to the platform
- Hook in 3 Seconds – 90% of ad recall happens in the first six seconds
- Use Trending Sounds – Leverage viral audio to boost engagement
- Focus on User-Generated Content – UGC outperforms traditional ads by 50%
- Test Multiple Creatives – Refresh ad content every 7 days to avoid fatigue
- Target Broad Initially – Let TikTok’s algorithm find your audience
- Optimize for Mobile – Use vertical 9:16 video format
With over 2.25 billion users expected by 2027, TikTok is a powerhouse. More importantly, TikTok users are 1.5 times more likely to purchase after seeing a product advertised on the platform. This is a massive opportunity for franchises aiming for consistent revenue across multiple locations.
Unlike traditional ads, TikTok rewards entertainment over polished commercials. The platform thrives on authentic, trend-driven content, allowing franchises to connect with younger audiences genuinely. For franchise marketing managers, this means creating scalable content templates that individual locations can customize while maintaining brand consistency.
I’m Rusty Rich, President and founder of Latitude Park. Since 2009, our digital advertising agency has helped businesses master multi-channel advertising. By developing the Best TikTok ad strategy for franchise clients, I’ve seen how the right approach transforms campaigns into profit-generating machines.
Understanding the TikTok Ad Ecosystem
TikTok advertising is a different world from other social media. It’s an entertainment-first platform where authenticity reigns and users expect to be entertained, not sold to.
TikTok’s user base is growing rapidly, projected to hit 2.25 billion by 2027. For franchises, the key is its massive Gen Z audience (73% of users are 10-29), a demographic hard to reach traditionally. They don’t just watch; they engage, create, and shop based on what they see.
At Latitude Park, we’ve seen how TikTok’s unique ecosystem requires a different approach than Meta advertising. The platform rewards user-generated content and authentic storytelling over polished corporate messaging, which is a powerful opportunity for franchise brands.
For more insights on how TikTok fits into your broader social media strategy, check out our guide on social media advertising.
Key TikTok Ad Formats Explained
Understanding TikTok’s ad formats is crucial for the Best TikTok ad strategy. Each serves a different purpose:
- In-Feed Video Ads: The standard format. These 9-15 second videos appear in the “For You” feed, feeling like organic content. They are ideal for driving traffic and leads.
- Spark Ads: Boost existing organic posts from your account or a creator’s. This format leverages authentic content, like turning a customer’s review into a targeted ad.
- TopView Ads: Premium, full-screen ads that appear when users first open the app. They are excellent for major brand awareness campaigns but come at a higher cost.
- Branded Hashtag Challenges: Encourage user-generated content around a theme, creating viral potential for your franchise.
- Branded Effects: Allow users to interact with your brand through custom filters and stickers.
- Video Shopping Ads: Streamline the path to purchase by letting users buy products directly within the app.
- Carousel Ads: A more traditional format using up to 10 images to showcase products or services.
Why TikTok Advertising is Different
TikTok operates on different principles than other platforms:
- Entertainment Value: Users come to be entertained, not sold to. Your ads must tell stories, share behind-the-scenes moments, or provide value.
- Sound-On Environment: Trending sounds and music are crucial. Unlike other platforms, TikTok users expect audio, which can dramatically boost ad performance.
- Fast-Paced Trends: Trends emerge and disappear within days. Your strategy must be agile enough to capitalize on them while maintaining your brand message.
- Community Engagement: Interaction is expected. Brands that engage with comments, shares, and response videos see better results.
- Algorithmic “For You” Page: The algorithm can make any content go viral, regardless of follower count. This levels the playing field, rewarding authentic, engaging content that keeps users watching.
Building Your First Campaign in TikTok Ads Manager
Launching your first TikTok campaign is straightforward once you know the steps. TikTok Ads Manager is your mission control for account setup, campaign optimization, and more.
The Best TikTok ad strategy starts with a solid foundation. This guide will walk you through setting up your business account, installing the TikTok Pixel, defining objectives, targeting your audience, and setting your budget. At Latitude Park, we’ve found the fundamentals are similar to Meta advertising, just with more focus on TikTok’s unique creative style.
Step 1: Account and Pixel Setup
First, create your TikTok Ads Manager account by signing up for a business account at TikTok Ads Manager. The interface is user-friendly and the setup is smooth.
Next, and most importantly, install the TikTok Pixel. This piece of code is crucial for tracking conversions like purchases, sign-ups, or calls that happen after a user clicks your ad. The pixel feeds this data back to TikTok’s algorithm, helping it find more people like your best customers. For franchises, this helps each location attract high-value customers.
During this stage, set up your conversion events, such as “contact form submitted” or “purchase completed.” This data is the foundation of your optimization strategy.
Step 2: Defining Your Campaign Objective and Audience
Now, decide what you want to achieve and who you want to reach.
Campaign objectives guide your strategy. Traffic campaigns drive people to your website, while Conversion campaigns focus on actions like purchases. Community Interaction grows your following, and Lead Generation captures contact info within the app. For franchises, we often start with conversion campaigns to drive real business results.
Audience targeting is a powerful feature. You can target by:
- Demographics: While TikTok skews young, 50% of users are over 30.
- Geographics: Crucial for franchises to reach people near specific locations.
- Interests: Reach users passionate about relevant topics (e.g., fitness, food).
- Custom Audiences: Upload customer lists to retarget or create lookalike audiences to find new users who share traits with your best customers.
- Behaviors: Target users based on how they interact with content in your industry.
Step 3: Setting Your Budget and Schedule
You have two main budgeting options: daily or lifetime. Daily budgets offer consistent daily spending (TikTok recommends $20-50), while Lifetime budgets set a total for the campaign’s duration.
TikTok’s algorithm needs about 50 conversions per ad group to optimize effectively, so patience is key during the learning phase. It can take a week or more to find a winning creative approach.
Bidding strategies work on an auction model. You can optimize for clicks, conversions, or impressions. Start with automatic bidding, as TikTok’s algorithm is smart and will optimize based on your objective.
Ad scheduling lets you control when ads run. For local businesses, consider scheduling ads during peak hours for your target audience. The key is to start conservatively, let the algorithm learn, and then scale what works.
Crafting the Best TikTok Ad Strategy: Creative and Content
On TikTok, your creative is everything. You must present your product or service in a way that feels natural and engaging, thinking more like a creator than a traditional advertiser.
The Best TikTok ad strategy creates content that feels native to the platform, blending seamlessly into a user’s feed. TikTok users are savvy and will instantly scroll past a forced, overly promotional ad.
What’s exciting is that TikTok rewards entertainment value over polish. A shaky phone video with authentic energy often outperforms a studio production. The first six seconds are critical for impact, as this is when viewers decide whether to watch or swipe.
How to Create Content That Converts
Creating content that drives results on TikTok means throwing out the traditional ad playbook. Here’s what works:
- Lead with a powerful hook in the first three seconds. Use a surprising statement, an intriguing visual, or a question to stop thumbs from scrolling.
- Keep videos short and punchy. The sweet spot for ads is 9 to 15 seconds. Use rapid cuts and dynamic visuals to maintain energy.
- Use TikTok’s native tools. Built-in text overlays, transitions, and effects make your ads feel authentic and signal they belong on the platform.
- Include a clear call-to-action (CTA). Use direct language like “Shop Now” or “Sign Up” instead of vague phrases.
- Optimize for sound-on viewing. Trending sounds and music improve impact, but always include subtitles for silent viewers.
We’ve seen this approach work. One brand’s humorous, influencer-led ads outperformed polished ones, while another found that upbeat, trending sounds resonated far better than their editorial-style content.
The key is to refresh creative regularly—ideally every seven days—to prevent ad fatigue. Here are eight proven ad formulas:
- “TikTok Made Me Buy It”: Taps into organic word-of-mouth.
- Unboxing: Showcases the excitement of receiving your product.
- Before & After: Visually proves your product’s impact.
- Reply-to-Comment Videos: Feels personal and interactive.
- “Three Reasons Why”: Presents benefits concisely.
- Product Tutorials: Shows functionality in action.
- Comedy Sketches: Entertains while subtly promoting.
- Customer Testimonials: Lets satisfied users do the selling.
Leveraging Trends, Sounds, and Influencers
TikTok’s trend-driven culture creates incredible opportunities for nimble brands.
Find trending sounds by spending time on the app’s “For You” page and exploring TikTok’s Creative Center. Using popular audio makes ads feel more native.
Participate in relevant challenges to show your brand is engaged with the community. This can generate significant organic reach.
The TikTok Creator Marketplace helps you connect with influencers, but remember: authenticity matters more than follower count. Micro-influencers with highly engaged audiences often deliver better results. One company saw 2.1 million views and a $0.23 cost per app install by working with just 10 micro-influencers.
User-generated content (UGC) is the holy grail. UGC outperforms traditional ads by up to 50% because consumers trust real users. Use Spark Ads to amplify genuine customer content. The goal is to stop interrupting entertainment and start becoming part of it.
Measuring, Optimizing, and Scaling Your Campaigns
Launching your ads is just the beginning. The real work happens when you dive into the data, understand what’s working, and refine your approach. This is where your Best TikTok ad strategy comes to life.
At Latitude Park, we focus on this crucial optimization phase to turn campaigns into profit-generators, especially for multi-location franchises. Understanding creative performance across regions can inform your broader marketing strategy.
TikTok’s Ads Manager provides robust analytics to track performance. The key is knowing which metrics matter and how to act on them. This iterative process separates successful campaigns from wasteful ones.
The Ultimate Guide to Social Media Marketing digs deeper, but here we’ll focus on what makes TikTok analytics unique and actionable.
Key Metrics to Track in TikTok Analytics
Your analytics dashboard is your campaign’s report card. Focus on these metrics:
- Impressions: How many people your ad reached. This is just a starting point.
- Click-through rate (CTR): The percentage of viewers who click. A low CTR may indicate a weak hook or creative that doesn’t resonate.
- Conversions and cost per acquisition (CPA): The most critical business metrics. CPA tells you the cost to acquire a customer. Return on ad spend (ROAS) measures revenue generated per dollar spent. We’ve seen clients achieve ROAS over 11x, proving even high-ticket products can thrive.
- Video completion rate: Reveals how captivating your content is. A high drop-off rate means your creative needs work.
- Engagement rate: Measures likes, comments, and shares. High engagement signals a genuine connection and is rewarded by the algorithm with broader reach.
- Follower growth: Important if community building is a primary goal.
How to Optimize for the Best TikTok Ad Strategy
Optimization is an ongoing conversation with your data and audience.
- A/B test everything. Create multiple ad versions, experimenting with different hooks, CTAs, music, and audiences. For new accounts, test wildly different “big swing” creatives to find what resonates.
- Fight creative fatigue. TikTok’s fast pace means ads get stale quickly. Refresh your ad creative every seven days to maintain performance.
- Analyze your winners. When an ad works, dissect it. What was the hook? The sound? The story? Weave those winning elements into new creatives and scrap losing concepts quickly.
- Scale successful campaigns gradually. Once you have a winner, increase budgets modestly (e.g., from $50 to $75 per day) and monitor performance. The algorithm needs time to adjust.
It can take weeks to find a video style that works, but once you crack the code, the scaling potential is enormous. This patience, combined with aggressive testing and rapid creative refresh, is the foundation of the Best TikTok ad strategy.
Frequently Asked Questions about TikTok Ads
Running TikTok ads can feel overwhelming when you’re just starting out. After helping countless franchise clients steer this platform, I’ve heard pretty much every question imaginable. Here are the answers to the most common ones.
How much do TikTok ads cost?
TikTok uses a bid model, so costs vary. It’s often more affordable than you might think.
Minimum daily budgets start around $20-$50 per campaign. While you can go lower, we don’t recommend it, as the algorithm needs enough budget to learn. TikTok’s average cost per thousand impressions (CPM) is competitive, often around $9.
Costs vary based on your targeting, industry, and objective. For our franchise clients, we recommend starting with at least $30-50 per day per location to gather sufficient data.
How long does it take for a TikTok ad to be approved?
Ad review typically takes up to 24 hours, though it can be faster. TikTok’s review process is thorough, which helps maintain platform quality.
Ensure compliance with TikTok’s ad policies to avoid delays. Common rejection reasons include misleading claims or incorrect video dimensions (use 9:16). Double-check everything before submitting to save time.
What makes a TikTok ad successful?
A successful ad feels native, grabs attention quickly, provides value, and has a clear call-to-action.
First, authenticity and leveraging trends are key. The best ads don’t feel like ads. They use trending sounds and native text, feeling conversational rather than corporate.
The Best TikTok ad strategy hinges on the first three seconds. If you haven’t hooked viewers by then, they’re gone. Start with a bold statement or an unexpected visual.
Entertainment value is crucial. Users are on TikTok to be entertained, so your ad must fit that mindset. Humor, behind-the-scenes content, or genuine testimonials work well.
Finally, include a strong call-to-action. Tell viewers exactly what to do next, like “Visit our location on Main Street” or “Try our new menu item today.”
Conclusion
We’ve covered the essentials of TikTok advertising, from its unique ecosystem to campaign setup, content creation, and optimization. The key takeaway is that the Best TikTok ad strategy prioritizes authenticity, entertainment, and agility over polished, traditional ads.
For franchises, TikTok presents a powerful opportunity to connect with audiences by thinking like a creator first. It’s about building genuine connections with content users want to watch.
The future of TikTok is bright, as it evolves into a search and social commerce engine. Users now turn to the platform for recommendations, and direct in-app purchasing turns viral moments into sales. This makes TikTok a direct path to revenue, not just a tool for brand awareness.
At Latitude Park, we specialize in digital marketing for multi-location businesses. We know success on TikTok requires continuous testing, a deep understanding of the audience, and a willingness to experiment. The brands that win are those that refresh creative frequently and learn from their community.
The principles in this guide are battle-tested strategies that can transform your advertising. Whether you’re a franchise driving local traffic or an e-commerce brand seeking viral growth, these fundamentals are your foundation for success.
Ready to turn TikTok’s engaged audience into your next growth engine? We can help you develop a winning strategy that delivers measurable results for your franchise.
