BID® Daily Newsletter
Mar 17, 2023

BID® Daily Newsletter

Mar 17, 2023

Using TikTok to Grow Your Brand with Gen Z

Summary: TikTok is more than just a site filled with entertaining videos. It has also become a go-to source of financial advice for younger consumers. We provide five tips on how to leverage this social media platform to connect with Gen Z.

Pastry chef Amaury Gichon, who sculpts in chocolate, thought it would be a good idea to create an eight-foot-tall chocolate giraffe. He videotaped himself making it and posted it on TikTok with just piano music in the background. It turned out to be TikTok’s most-watched video of last year, with 23.6MM views.
Before you shake your head at the kind of content that captures the attention of TikTokers today, you might want to take a closer look at who’s doing the watching. TikTok is the platform prized by Gen Z, the up-and-coming generation that so many community financial institutions (CFI) are trying to reach as the customer base of the future.
TikTok now has over 2B downloads, and 60% of those who participate are from Gen Z. Nearly half of those 16-19 years of age use TikTok daily.
TikTok as a Source of Financial Advice

Those on the platform are not just looking to be entertained. Many are also looking to be informed, including about banking and financial subjects. A recent survey found that 34% of Gen Z consumers got their financial advice from TikTok or YouTube. Only 24% turned to financial institutions or advisors. So, if you think traditional methods like financial websites or branches are the best ways to reach this younger generation, think again.
Although friends and family are still the most-often cited source of financial advice for Gen Z at almost 50%, these younger consumers are increasingly turning to platforms like TikTok or YouTube to get financial advice. But keep in mind, friends of Gen Zers probably source their financial knowledge off these two powerhouse social media platforms.
The Need for a TikTok Marketing Strategy

Effective TikTok marketing can help CFIs raise brand awareness and attract attention. For example, a CFI in Oklahoma has embraced TikTok and other social media networks, generating tens of thousands of views. One TikTok post about not leaving balances in Venmo accounts garnered half a million views. Bottom line: If a CFI wants to reach and influence Gen Z, it probably needs an up-to-date social marketing game plan that includes effective use of this growing video platform.

Here are five tips about marketing effectively through TikTok:
  1. Get creative with your video content. The platform prioritizes short-form videos under three minutes, so capturing your audience’s attention quickly with creative content is the best approach.
  2. People are the currency of TikTok. The platform is not full of actors, but real people who have charisma and are comfortable in front of a camera. Make sure you use people who are presentable and likable, and ideally can convey humor.
  3. Authenticity is key. TikTokers like to be entertained, but they want content that they view as authentic, so try to avoid looking too staged or stuffy. They like to feel that the content is personalized for them, since the platform’s algorithms help them tailor their “For You” feed to only show videos that align with their interests.
  4. Warp-speed presentation. Gen Z has a short attention span and, as we mentioned earlier, this video platform rewards short video content, so whatever you post needs to get to the point very, very quickly.
  5. Do your research. Before you launch a channel on the platform, make sure you understand how it works and exactly how it can be used to help your CFI. Do your research and take your time creating your content.
TikTok is a remarkably fast-growing platform that has managed to capture the hearts and minds of Gen Z. It works for entertainment and for infotainment, and it can help reach a population segment that is a challenge for financial institutions. If you invest time into researching and creating engaging content for this platform, your CFI can gain considerable traction with this generation.
Subscribe to the BID Daily Newsletter to have it delivered by email daily.

Related Articles:

Why Truly Understanding Generation Z Is Key
Attracting Generation Z customers requires a thorough understanding of the unique needs and challenges of this group, as well as the ability to demonstrate such knowledge in ways that will resonate.
Ways to Convert Loyalty Programs to Customer Loyalty
Customer rewards programs matter. Converting loyalty programs to loyal customers necessitates simplicity, creative thinking, and ongoing awards. Anything short of this will leave customers flat and see them jump ship for other financial institutions with more appealing rewards programs.