The TikTok Effect

PepsiCo acquires Poppi for $1.95 billion.
e.l.f Beauty acquires rhode for $1 billion.
Olipop is valued at nearly $2 billion post-Series C funding round.
Hand sanitizer brand Touchland acquired for $700 million.
David Protein raised a $75 million Series A.

Recent billion dollar deals and soaring valuations have shifted the landscape for consumer brands. After years of stale marketing campaigns and recycled paid ads, it’s no secret that marketing teams have been forced to reinvent how consumers connect with products. In a world of ever-evolving consumer tastes, emerging brands have unlocked strategies that lead to viral products, high sales volume, and a loyal customer base. Behind this new wave of creative marketing and brand building is TikTok. Businesses that have boomed with TikTok’s rise to popularity have created an authentic presence and connection with users. The social media platform has paved the way to virality for products ranging from prebiotic soda cans to celebrity-backed face washes. In a single scroll, TikTok outpaces traditional marketing tactics for consumer brands through user-generated content (UGC), resulting in accelerated brand awareness and validation at scale.

For years, consumer brands spent millions on highly curated ad campaigns for their target audiences. Today’s “insurgent” brands gain the same visibility through instant TikTok videos shared by everyday users. Brand awareness enabled by TikTok’s algorithm has led to increased earned-media value (EMV) and engagement growth for scaling businesses. Brands like TIRTIR, rhode skin, and SACHEU Beauty accumulated hundreds of millions in EMV just this year. This kind of engagement goes beyond traditional social media campaigns, it gives consumers the power to control a brand’s narrative. Embedded TikTok features like video stitches/duets, personalized algorithms, and comments bring interactivity to the platform by allowing users to create their own conversations and opinions about a brand. From an LA-based influencer to a high school student from a small town, TikTok allows anyone to create a potentially viral video about a product. Unlike other platforms, TikTok’s algorithm boosts discoverability which makes it a valuable tool for new brands. A user’s viral video could be the turning point for a product, ultimately becoming the center of a brand’s identity online. Beyond building brand awareness, user engagement across short-form content helps small brands simplify product validation with real-time feedback.

Companies strapped for time and resources can keep a pulse on user sentiments, emerging trends, and viral opportunities through TikTok without overspending on traditional market research strategies. TikTok lowers the barrier for consumer brands to find product market fit by offering a direct feedback loop. Instead of relying solely on time-consuming R&D cycles, teams are able to instantly observe how they can adapt to customers’ reactions and feedback. This allows brands to test product enhancements, messaging, and positioning as needed. Consumer brands that lean into community-driven growth strengthen their connection with customers, fast-tracking a customer’s journey from discovery to conversion.

TikTok has redefined how consumers discover, engage, and shop for products online. Many early-stage consumer brands have leveraged this “TikTok effect” by accelerating growth through UGC and community-driven engagement. This effect has helped small teams make big waves across the internet. While TikTok may be a catalyst for discovery, media influence extends beyond 15-second videos. From blogs to podcasts, creators are expanding to long-form content as a way to create a sustainable image for themselves across channels. The community-driven platform Substack is investing in the success of creators and influencers, recently launching a $20 million Creator Accelerator Fund. With creators at the helm of user-generated growth, it is clear that crafting an authentic connection with customers is the way forward for consumer brands.

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