TikTok part 1: Now that TikTok wine ads are legal, marketers are bullish on the platform's potential to reach new audiences

Friday, 30 August, 2024
Wine Business, Pam Strayer
Could wine ads on TikTok be a game changer for flagging wine sales?

Social marketers at agencies and big brands are optimistic about the new rules allowing them to advertise on the platform–a social media giant with 170 million U.S. users, many of whom are wine lovers with money to spend.

“The people who are on TikTok are an ideal audience for wine brands to introduce themselves to new consumers,” said Mike Wangbickler, president of the independent northern California agency, Balzac Communications and Marketing.

A recent 2024 Wine Market Council study that found that 40 percent of wine drinkers already use TikTok more than once a week.

What’s making it more relevant for wine marketers is the fact that as the platform has aged, its users have, too, growing in number and income levels.

According to YouGov data, compared to the general population over the age of 25, TikTok users “are more than twice as likely to report having more than $2,500 in household monthly disposable income.”

Alcoholic beverage ads are a huge source of ad revenue for social platforms but are not legally allowed in the U.S. on a social platform unless the platform has more than 75 percent of users over the age of 25. TikTok crossed that threshold and today 76 percent of TikTok users in the US are over the age of 25.

Current revenues in the U.S. for the Chinese-based social media j (with a total reported revenue of $120 billion) are $16 billion, a number which is expected to increase from new alcoholic beverage ads.

Restrictions for advertising apply–starting first with getting a TikTok ad rep from the company to help advertisers get an advertising account–but getting on TikTok enables social marketers in wine to break out of Meta’s virtual monopoly (with its two leading social platforms, Facebook and Instagram) over their social media spending.

Top wine marketers say wineries need to get on the platform and get familiar with its potential as a tool for growth in brand awareness, engagement and sales.

Marketers ready to test and learn

“The opportunity now for us to be able to advertise is really exciting,” said Lauren Alamo, vice president of marketing and operations at Miami based Kabookaboo. The firm’s website lists big names in wine – Constellation Brands, E&J Gallo, The Miller Family (Bien Nacido, Reciprocity) and Louis M. Martini–as clients.

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