Will TikTok Take Over Facebook for Lead Generation?

Will TikTok Take Over Facebook for Lead Generation?

Smart auto dealers should be considering the future of TikTok and how we can use it to our advantage to sell more vehicles.

We have all heard of the phenomenon that is TikTok. TikTok is good at inspiring new meme trends, promoting the latest music and making fun videos. (You were probably introduced to it by your pre-teen niece or daughter who was recreating dance videos.) But what you might not have heard about is the possibility of utilizing TikTok as a lead generation tool for your car dealership.

If you want to prep your car dealership for the future of auto retail, you need to consider TikTok. But can TikTok really help auto dealerships sell more cars? Whether you are brand-new to TikTok or already using it for auto sales, we have a complete overview of what to expect — including if TikTok will take over Facebook for lead generation in the automotive industry.

Before we go down that path though, let’s answer some common questions about TikTok and the auto industry.

Back Up — What Is TikTok?

If you haven’t already heard, TikTok is a social network that was developed by the Chinese company Douyin. It was at first popular only in Asian countries, until about 2018. But once TikTok merged with Musical.ly, its user numbers soared in the United States. Now, it is used by mostly young people and has less of a musical emphasis.

Is TikTok Going to Take Over?

You don’t have to worry about TikTok taking over Facebook for lead generation, at least in the near future. Facebook continues to dominate the social media landscape. But that doesn’t mean that smart auto dealers and auto marketers like ourselves shouldn’t be considering the future of TikTok and how we can use it to our advantage to sell more vehicles.

Who Uses TikTok?

TikTok has about 80 million monthly active users in the United States. But let’s take a look at the demographics of these TikTok users: 60% are female and only 40% are male, and more than half (60%) are between the ages of 16 and 24.

TikTok Sales for the Auto Industry

You are probably wondering, but will TikTok sales really work? While Facebook is a great tool for lead generation, TikTok is an excellent platform for building brand awareness and creating customer loyalty. There are whole channels you can follow on TikTok dedicated to automotive content. Some auto companies like BMW, Hyundai and Mercedes-Benz have already jumped onto TikTok automotive marketing. 

While you may or may not make any actual car sales directly via TikTok, it never hurts to explore new technology and use it for other purposes, like marketing your dealership and connecting with new demographics that you might not otherwise. After all, there are some TikTok users who are in the market for a new ride. TikTok also offers plenty of automotive marketing options including in-feed ads, spark ads, branded hashtag challenges and branded effects.

Facebook Still Wins the Race

Facebook remains the best place to generate leads for auto dealerships because most Facebook users are the best candidates to buy a vehicle. We know for a fact that the group that buys new vehicles at the lowest rate is 16-34-year-olds. So, how much time do you want to spend targeting this age range? The answer is, probably not much. Unless you are targeting car buyers under 30, you are probably not looking to spend your advertising budget on TikTok. Facebook offers excellent lead generation, builds brand awareness, helps you reach new customers and offers an excellent ROI.

How to Generate Leads on Facebook

Is your dealership struggling with leads? Facebook probably isn’t the problem. There is a possibility you are doing your auto advertising completely wrong. Facebook leads are still one of the most effective in auto sales. That’s because Facebook helps you reach a wide breadth of potential leads in your local area.

Facebook ads can allow you to get your dealership in front of anyone in your geographic area that is considering buying a car, upgrading their current vehicle — or who might not even realize yet that they want a new car or truck until they see your ad!

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