About OxfordEconomics Australia Oxford Economics Australia is a leadingeconomic advisory firm. Following theacquisition of BIS Shrapnel in 2017, OxfordEconomics Australia have unparalleledcapabilities in helping clients to navigate localeconomic issues in the context of the globaltrends shaping the world economy. research techniques and thought leadershipcapabilities from econometric modelling,scenario framing, and economic impactanalysis to market surveys, case studies,expert panels, and web analytics. Oxford Economics is a key adviser tocorporate, financial and governmentdecision-makers and thought leaders. Ourworldwide client base now comprises over2,000 international organisations, includingleading multinational companies and financialinstitutions; key government bodies andtrade associations; and top universities,consultancies, and think tanks. Oxford Economics, the parent company,was founded in 1981 as a commercialventure with Oxford University’s businesscollege to provide economic forecasting andmodelling to UK companies and financialinstitutions expanding abroad. Since then,we have become one of the world’s foremostindependent global advisory firms, providingreports, forecasts and analytical tools onmore than 200 countries, 100 industries, and8,000 cities and regions. Our best-in-classglobal economic and industry models andanalytical tools give us an unparalleled abilityto forecast external market trends and assesstheir economic, social and business impact. April 2024 All data shown in tables and charts are OxfordEconomics Australia’s own data, except whereotherwise stated and cited in footnotes, andare copyright © BIS Oxford Economics PtyLtd trading as Oxford Economics Australia. Headquartered in Oxford, England, withregional centres in New York, London,Frankfurt, and Singapore, Oxford Economicshas offices across the globe in Belfast,Boston, Cape Town, Chicago, Dubai, Dublin,Hong Kong, Los Angeles, Mexico City, Milan,Paris, Philadelphia, Stockholm, Sydney, Tokyo,and Toronto. We employ 450 staff, includingmore than 300 professional economists,industry experts, and business editors—oneof the largest teams of macroeconomistsand thought leadership specialists. Ourglobal team is highly skilled in a full range of This report is confidential to TikTok andmay not be published or distributedwithout their prior written permission. The modelling and results presented hereare based on information provided by thirdparties, upon which Oxford EconomicsAustralia has relied in producing its reportand forecasts in good faith. Any subsequentrevision or update of those data will affect theassessments and projections shown. Contents Executive Summary 1. Introduction06 2.1 Profiling Businesses on TikTok09 2.2 How Businesses Use TikTok for Advertising and Marketing15 3. The Economic Impact of Businesses Using TikTok for Advertising and Marketing26 3.1 The Impact of Business Activity on the Australian Economy27 4. TikTok’s Community of Users36 4.2 How TikTok Creates Impact from the Platform52 5. Appendix A – Economic Impact of Australian Businesses Methodology58 Executive Summary TikTok is a global entertainment platform, and one of theworld's most popular destinations for watching, creating,and sharing content. Released originally in September 2017,it has experienced rapid growth in recent years, benefitingfrom high engagement with users aged 16 to 44. TikTok hasbeen particularly well received by consumers in the Australianmarket. It is the fourth most used digital platform in thecountry1 with 8.5 m. Australian users,2 which equates to 33.6%of all Australian internet users.3 $1.1b Contribution to GDP supportedby business advertising andmarketing on TikTok in FY23. TikTok’s reach, its breadth of content, and its emphasis on userengagement present an opportunity for businesses acrossAustralia in a broad range of sectors to use the platform as aninnovative route to growth. The platform recently announced350,000 business users in Australia.4 Businesses, of all sizesand categories, are increasingly using TikTok as a channelto reach new customers and markets. In fact, nearly half ofbusinesses that reported using TikTok for marketing andadvertising purposes, used the platform at least once perday. TikTok’s unique recommendation system that focuseson user engagement and interests, as opposed to numbersof followers, allows for both new and established businessesto tap into popular trends and culture without the need forexorbitant marketing resources. 38% The share of users who havepurchased a product or servicerecommended on the platform inthe past month. This research aims to provide an evidence base on how TikTokcreates value for businesses and users in Australia. In doingso, it considers how users interact with TikTok both on theplatform and off the platform in ways that impact businessesand communities. The research also considers the value usersplace on TikTok and contributes to evidence on the dive