Cart to Heart
Introduction
In today’s marketing climate, pressure is mounting. Budgets are tighter, consumer behavior is shifting, and the demand for measurable ROI has never been greater. As economic headwinds loom, many marketers rely on short-term tactics to drive conversions. However, prioritizing performance alone risks sacrificing long-term brand equity and sustainable growth.
Here we explore why TikTok is uniquely positioned to meet the demands of modern marketing, delivering immediate business results while contributing to sustained brand growth. What was once considered transactional-clicks, sales, and short-term metrics can now be transformational. When performance campaigns on TikTok are executed with creativity, cultural relevance, and entertainment, they not only convert, they connect.
In the recent TikTok and System1 paper ‘The Long and the Short (form) of it’, it was demonstrated that ads rooted in entertainment have the ability to drive both short and long-term outcomes.
Brands like Manscaped and Hair Syrup have shown that product-focused campaigns when rooted in platform-native storytelling can simultaneously deliver both short and long-term outcomes.
Here you will find clear, actionable recommendations to help you maximize ROIdelivering strong short-term results while laying the foundation for long-term brand growth.
In uncertain times, the strongest brands are those that adapt without retreating. Nowadays it is not just a test of efficiency, it’s a chance to lead. And to turn every cart into a heart.
The tide has turned
Warren Buffett once observed: Only when the tide goes out do you discover who’s been swimming naked.
In the world of marketing today, the tide is most certainly receding - and many businesses are starting to get exposed. In 2025 global advertising spend has taken a significant hit. According to industry estimates, trade tariffs and macroeconomic instability have contributed to a near $20 billion downgrade in projected global marketing expenditure(1) This isn’t a routine correction, it’s a structural shift driven by a combination of economic headwinds: inflation, supply chain disruptions, political instability, and cautious capital markets.
Gartner’s 2025 CMO Spend Survey reveals that marketing budgets as a share of company revenue have declined year over year: from 11% in 2020, to 9.5% in 2022, to just 7.7% in 2025. As Ewan McIntyre, VP Analyst at Gartner, put it:
Given the looming macroeconomic uncertainties, CMOs are now confronting the prospect of in-year budget cuts.”
Faced with this uncertainty, companies are defaulting to defensive playbooks. Marketing budgets are no longer growth engines- they’re seen as cost centers to trim.
The result? Deferred investments and a sharp pivot toward trackable, immediate-return activities like discounting and lower-funnel performance marketing. According to a recent survey from Duke University’s Fuqua School of Business, over 60% of CMOs now report intense pressure from CEOs and CFOs to deliver short-term results and justify every marketing dollar.
This reactive mindset is reshaping marketing priorities. Creativity, storytelling, and brand-building - once considered essential for long-term differentiation are now too often framed as 'nice to have'. Strategic thinking is being replaced with seasonal planning.
More marketers are budgeting for Black Friday, but not for brand equity.
But while brands scale back, consumers are changing too and not in ways that performance marketing alone can solve.
Shorter conversion window, longer decision making
Today’s consumers are more cautious, deliberate and slower to convert than ever before. As economic uncertainty persists, consumer confidence is starting to erode. According to Ipsos, the Global Consumer Confidence Index declined for the second consecutive month in April 2025-down 1.2 points year-over-year with all four sub-indices registering declines(2). This erosion in sentiment is reflected in tangible behavioral shifts: extended decision-making cycles, increased time spent evaluating options, and a noticeable rise in cart abandonment rates. In today’s climate, people are thinking twice before they buy, taking more time to consider their spending.
Half of all consumers now spend more time researching products than they did a year ago.
Among Gen Z (16–24 year olds), that number climbs to
And perhaps most tellingly of consumers say they’re not in a purchasing mindset when they first see product-related content (4) 67% 60% (3)
They’re browsing, not buying. Observing, not acting.
In more stable times, there was a predictable window where performance marketing hit hardest, but in uncertain times that window is shrinking. This creates a troubling paradox: at the very moment when performance marketing is being asked to do more, the environment is making it less effective.
While it’s understandable that brands prioritise short-term tactics during periods of uncertainty, the reality is clear:
Immediate results may satisfy short-term pressures but it’s long-term strategy that determines sustained success.
In volatile times, the brands that endure are those that invest beyond the quarter.
Why strong brands win, especially in tough times
Brand is not a discretionary spend- it’s a core driver of sustained business growth and competitive advantage. Across sectors and economic conditions, the data is clear: strong brands consistently outperform. While they deliver value in stable times, their true advantage emerges when the market is under pressure.
High-equity brands consistently deliver effectiveness compared outsized results and drive up to greater marketing to lower-equity peers
They have significantly more pricing power-con sumers are willing to pay as much as 70%
6.5x (5) -
more for brands they trust(6)
And when disruption strikes, they recover faster. In the aftermath of the COVID-19 pandemic, companies where brand accounted for a larger share of enterprise value saw returns up to
higher than others(7) 80%
Why? Because brand is more than awareness, it’s trust, familiarity, and emotional security. In moments of uncertainty, consumers gravitate toward the known. Toward brands that feel safe. Brands that stand for something.
According to research from BERA.ai, a 1% increase in brand meaning leads to a 0.57% reduction in price sensitivity - a significant impact, particularly in categories where margins are narrow and commoditization pressures are high.
Strong brands mitigate downside risk while unlocking greater upside potential. They enhance marketing efficiency across the funnel, boost performance across channels, and create a halo effect that elevates the entire customer experience.
Short-term savings, long-term damage
Brands that reduce brand investment typically see declines not just in awareness or preference but in core business outcomes.
Recent global analysis puts the risk in perspective. The world’s top brands have collectively missed out on an estimated $3.5 trillion in cumulative brand value(8) largely due to an overemphasis on short-term efficiencies at the expense of long-term brand equity.
Reducing brand investment can have a direct and long-lasting impact on business performance. According to BCG’s 2022 Brand Impact Analysis, which examined 150 leading brands across 15 industries - reductions in brand spend were consistently associated with declines in critical performance indicators:
Total shareholder return decreased by
6%
0.8
Market share declined by Percentage points
13% Sales growth dropped by 18% Full-funnel conversion and brand health weakened by
Short-term savings, long-term damage.
Short-term savings, long-term damage
Kantar BrandZ data further reinforces the long-term impact of brand investment
Between 2019 and 2021, brands that strengthened their equity saw brand value grow by 72% while those with declining equity achieved only(9)
growth over the same period-underscoring how reduced brand focus can significantly limit growth potential(9) 20%
The most effective organizations recognize that brand and performance work best together.
A strong brand improves conversion, reduces price sensitivity, and creates long-term loyalty, making every performance dollar work harder.
Beyond the transaction
Back in 2013, Les Binet and Peter Field made it clear: short-term advertising delivers only short-term results. For the better part of a decade, that principle shaped how marketers viewed performance.
The media landscape of 2025 looks nothing like it did a decade ago. Today, entertainment, culture, and commerce converge within a single, continuous feed. And at the center of this transformation is TikTok. TikTok has fundamentally reshaped how content is created, shared, and consumed. It has empowered everyday people to produce and amplify their own narratives, reshaping culture in real time.
Far from simply joining the media mix, TikTok has redefined it. It rewards storytelling over selling - and the brands that thrive there understand this distinction.
This shift has expanded the role of performance marketing. It ’s no longer just about conversion, it ’s about connection, cultural relevance, and long-term brand impact . For years, performance marketing has been viewed as only transactional, designed to convert, track, and optimize for immediate results. But recent findings are challenging that assumption, showing that when executed with creativity and cultural relevance, performance campaigns on TikTok can do far more than drive short-term sales-they can contribute to brand growth.
On TikTok, campaigns community beyond sho
They play a di to long-term b loyalty, deepeni advocacy, and perception.
Entertainmen focused ads on Ti isolated transactions. Leveraging influencer partnerships, user-generated content and native storytelling formats, product focused campaigns on TikTok blur the line between conversion and connection transforming short-term actions into long-term brand equity.
Best-in-class performance advertising is no longer about marketing at consumers. It’s about marketing with them.
Driving the long and short of it
firmly established le of driving both and sustained a strategic asset for nnel effectiveness.
ears, TikTok has dia Reactions ntion and ts exceptional ers with relevant, . ults and stands out as a A Nielsen analysis red an average
d (ROAS) gital platforms(10) .
In a global Dentsu multi-brand, multi-market study, TikTok was proven to drive both short-term and long-term results outperforming other platforms, achieving an 11.8 short-term ROI (vs. an industry average of 8.7) and a 4.5 long-term ROI (vs. a 3.2 average)(11).
In the recent ad test by System1 we saw that 37% of tested ads demonstrated the dual ability to drive immediate conversions and build long-term brand equityan increasingly rare combination in today’s fragmented media environment.
From Cart to Heart
On TikTok, performance marketing is evolving. What was once seen as purely transactional can now, through the platform’s creativity, culture, and community, contribute to lasting brand impact alongside strong immediate results.
In the recent TikTok and System1 paper 'The Long and the Short (form) of it,’ it was demonstrated that ads rooted in entertainment have the ability to drive both shortand long-term outcomes. Selling and performance don’t have to be purely transactional; they can also put on a show and connect emotionally. When they do, both brands and consumers win. Ads that manage to entertain viewers not only convert more, but also see a significant uplift in brand-building. By stopping the scroll, holding attention longer, reaching more people, and leaving them feeling great, TikTok's entertaining short-form ads don’t just sell, they create long-lasting effects.
Analysis conducted via System1’s Test Your Ad: Social with 84,788 respondents (TikTok users) across eight markets (US, UK, Germany, France, Italy, Spain, Brazil, and Mexico), matched with 358 locally run TikTok Brand and Conversion Lift studies.ogy.
This dual impact was also observed by our clients. UK-based brand Hair Syrup shared similar results in their published case study.(13)
TikTok played a pivotal role in transforming Hair Syrup’s exposure into long-term brand growth. The brand saw a surge in new customers, increased organic engagement, and strengthened loyalty within the haircare community. User-generated content exploded as creators shared their Hair Syrup discoveries, turning everyday moments into viral brand love.”(13)
ncrease in CR The Results
125%
Increase in ROAs
130%
Increase in CR
Similar results were observed by our clients. U.S. grooming brand Manscaped noticed this dual impact in their similar outcomes were observed by our clients. U.S. grooming brand Manscaped highlighted this dual impact in a recent case study.
While their Smart+ campaign was designed to drive immediate conversions, it also delivered measurable long-term brand benefits. According to the case study, TikTok helped achieve not only higher conversions but also solidified brand loyalty and recognition, proving the effectiveness of TikTok’s Smart+ in delivering substantial and multidimensional campaign success.(12)
The Results
38%
Increase in conversion volume
37%
Higher ROAS vs. Control
Lucie Macleod, Hair Syrup founder
Unlocking the performance power of TikTok
What sets TikTok apart and why do performance campaigns on the platform have the unique ability to contribute to brand growth? It comes down to a few key factors.
Creativity worth watching
According to WARC Media Global Ad Trends, creativity is the second strongest driver of marketing effectiveness, delivering up to 12x greater ROI. TikTok is built for this: users find the platform 1.3x more creative and 1.5x more engaging than others(14).
In an era of constant content, TikTok stands apart by making ads feel like content, not interruptions. The platform’s native, culturally driven environment allows brands to blend seamlessly into the user experience with 59% saying ads blend naturally with organic content.(15) .
That impact extends to commerce. 68% of users say TikTok makes shopping more engaging, turning product discovery into an interactive and entertaining experience(16) .
Sol de Janeiro’s body spray campaign(25) is a prime example of how TikToknative creativity can drive both cultural buzz and commercial results. The product went viral last summer,
generating over 850 million views by inviting creators to their product campaign to bring the fragrance to life in ways that felt personal and sensory—making people feel and smell the scent through the screen.
As a result, sales tripled, reaching $1 billion that season. More than a viral moment, it was a clear demonstration of how creatively led product campaigns on TikTok can resonate with the beauty community.
Community you trust
At the heart of TikTok’s marketing effectiveness is a powerful differentiator: authenticity. Unlike traditional advertising environments, TikTok thrives on real people sharing real experiences-with creators serving as the bridge between brands and audiences.
These creators aren’t just influencers, they are trusted voices embedded in the platform’s cultural landscape. They engage directly with their audiences by responding to comments, co-creating content and sharing stories that feel personal and spontaneous. This behavior fosters a participatory environment where 61% of users say brands on TikTok feel like part of the community(17), not outsiders trying to sell.
This trust translates directly into behavior. 63% of users say relatable creator content increases their likelihood to purchase from a brand(18). Consumers have declared
creators they already follow and trust that TikTok campaigns featuring perform up to three times better than those on other platforms. It’s a level of impact rooted in credibility, not just visibility.
but also high-performing touchpoints in the conversion funnel.
When TikTok creator Emily Mariko sparked the viral #samonricebowl trend, sushi brand Itsu recognized more than just a food moment-it saw a powerful wave of comunity engagement. By aligning its seaweed thins with the trend and joining the conversation with timely, creator-style content, Itsu tapped directly into a cultural moment driven by user passion and participation. The result was significant: a 108% increase in sales of Itsu’s seaweed thins. The impact extended beyond TikTok, with mentions of #salmonricebowl appearing in Tesco product reviews, showing how social conversation translated into retail behavior.
This case underscores the unique power of TikTok’s creator-led communities — where:
cultural relevance, authenticity, and shared enthusiasm can rapidly turn attention into action. (18)
Creators also play a critical role in the discovery and education phase of the customer journey. Nearly 45% of users say creators introduce them to new products and services, while 44% say they help them understand how a product fits their needs(18). This makes creators not only effective storytellers
AI powered performance solutions
One of TikTok’s most powerful brand-building tools lies not just in its community or creativity but in its intelligent technology. TikTok’s AI-powered solutions, including Smart+ and GMVMax, are redefining what performance marketing can achieve by making every ad more personalized, efficient and impactful. Smart+ and GMVMax are built to reduce creative fatigue and to show the most relevant creative, meaning your ads will resonate more with your consumers on the deeper level.
Across campaigns, Smart+ consistently outperforms manual campaign execution. On average, brands using Smart+ see a 36% higher return on ad spend(19), driven by more relevant creative delivery. The impact is even stronger at the lower end of the funnel, where Smart+ delivers a 5.1x higher incremental ROAS compared to manual campaigns(20)- proving its ability to drive both efficiency and measurable business growth.
GMVMax takes this a step further integrating signals from paid, organic, and affiliate channels to optimize delivery across TikTok’s entire ecosystem, from the For You feed to the Shop Tab, search, and beyond. Campaigns using GMVMax saw a 30% uplift in Gross Merchandise Value(20).
But it ’s not just about optimizationit ’s about sustaining creative quality at scale. With Symphony solutions, brands can continuously generate or remix content to ensure a steady supply of creative assets. This enables always-on, full-funnel campaigns with the volume, variety, and relevance needed to stay ahead of shifting audience expectations and keep driving results.
Together, these AI-powered tools make TikTok more than a platform for short-term wins. They turn media execution into a strategic growth engine-balancing conversion with consistency, performance with brand building, and creative efficiency with cultural impact .
Maximize ROI even further
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Go Full-Funnel
While performance marketing remains a powerful lever for immediate results, relying on it alone limits long-term potential. The most successful brands are those that invest in full-funnel- the entire customer journey-from first impression to final conversion. When brand and performance work in tandem, the results are not just incremental-they’re transformational.
Advertisers who shift from a purely performance-led approach to a more balanced brand-performance mix are seeing substantial gains, with overall revenue returns increasing by 25% to 100%, and a median uplift of 90%(21). On TikTok, campaigns that combine brand and performance efforts see a 14% lower cost per acquisition and a 15% higher conversion rate compared to performance-only campaigns. (22)
One standout example comes from Domino’s, which implemented a full-funnel strategy on TikTok. The result? A 2.6x increase in ROAS and a 55% lift in purchases compared to the control group running performance-only activity.
Source: TikTok Meta Analysis - Stat Sig @ 95% confidence level
A full-funnel approach ensures that you're not just capturing demand, but also creating it . It builds mental availability, strengthens emotional connection, and makes every conversion more efficient by warming the path long before a click. In a market where attention is fragmented and consumer trust must be earned over time, this level of brand-building is not a luxury- it ’s a necessity.
Today’s shoppers don’t wait for sales-they buy when it suits them. With 5% of consumers making purchases outside of major sale periods (23) ,
ds can no longer afford to rely on short bursts of activity. An always-on strategy ensures your brand is present whenever consideration strikes.
Recent findings from Dentsu confirm that TikTok delivers stronger, more sustained sales impact when used consistently.Advertisers who maintained a regular presence saw significantly higher returns compared to those running isolated campaigns. In a world of fragmented attention and unpredictable buying behavior, consistency is the competitive edge.
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Lead with Creativity
Success on TikTok starts by leaning into the platform’s core strength: creativity. The most effective brands create authentic, approachable content that introduces their products in ways that feel natural, personal, and native to the experience. This isn’t about repurposing ads- it’s about showing up with purpose and cultural relevance.
On TikTok, standout creative assets consistently achieve 2–3x higher ROI(24)
confirming what we already know: performance doesn’t have to be predictable-it can be powerful. To unlock this potential, brands must embrace the creative language of the platform.
Capture and sustain attention with emotional intensity and creative surprise.
Lead with content that evokes emotion or delivers the unexpected to immediately engage viewers and keep them watching.
Make your brand clearly recognisable within the first two seconds.
Integrate brand cues early through visual identity, product placement, or distinctive assets to drive instant recall without disrupting authenticity.
Prioritize storytelling over tactical messaging through the creator’s POV.
Shift from product-heavy, transactional formats to creator-led narratives that build connection, context, and brand meaning. Stories engage, tactics inform. Use platform-native elements: music, trends, and cultural cues—to drive relevance.
Tap into hummable sounds, viral formats, and recognizable characters to create content that feels organic and amplifies engagement.
When you align creative excellence with performance strategy, you don’t just drive clicks-you build brand. On TikTok, creativity is more than expression. It’s how performance scales and how brand growth can be built.
From Surviving to Thriving
In a landscape defined by economic headwinds and heightened ROI expectations, it’s more than a test of efficiency, it’s an opportunity to lead with performance without compromising your brand.
On TikTok, with the right blend of creative excellence, cultural relevance, and precise execution, we have the ability to transform this quarter into more than a short-term revenue spike, it can become a strategic turning point for brand growth. TikTok uniquely empowers marketers to drive conversions today while deepening consumer trust, loyalty, and emotional connection for tomorrow. Strong performance campaigns here don’t just sell- they build brand growth that compounds over time.
So let’s navigate this period not with hesitation, but with intention. Let’s move beyond reactive marketing and into purposeful storytelling that converts and connects. Let’s ensure that when the tide goes out, we are not left exposed but standing stronger. Ready to perform, ready to endure.
Let’s turn ery cart into a heart
TikTok
TikTok