Recently, we at SOCIALDEVIANT teamed with Digiday to dig into some of the biggest challenges facing the fastest growing app of the year, and every creative’s favorite new toy: TikTok.

While there’s no denying the popularity or the creative capabilities of the platform, there are two key challenges that TikTok still needs to overcome:

Searchability and advertising.

First, what do we mean by “searchability?”. Its beyond just the technical SEO standards of each piece of content that may be embedded on a page, but rather the lack of discovery methods. For example, you’re scrolling through TikTok and see a hilarious prank video you’d like to share with your friends. But you’ve already moved on to the next video in your feed, or even closed out the app. How do you go about finding it again to share it?

That’s the problem: You can’t.

Try searching natively on the platform by keywords you’d hope would help you find the video, and you’ll come up empty handed. Try the same on Google and you’ll find even less. Unless the user who uploaded the video was as intentional and direct as possible with their use of hashtags in the description, your chances of finding the same video over again are slim to none.

While other platforms like Instagram have recently introduced advanced search methods to combat this very issue, TikTok has struggled since its inception to allow users to dig through their mountains of video content, resulting in a social media version of searching for a needle in a haystack.

Some media vendors have identified this gap in TikTok’s functionality and tapped into their platform for advanced search options, however at this point these tools are on an invite only basis, exclusive to major brands and agencies. Until the common user can conduct productive searches within the platform, the true lifespan of the average TikTok video is on a shorter than ever timeline.

The second major issue TikTok is facing that could prevent true growth is one that has small to midsize brands nationwide hesitant to invest in the platform: Advertising.

TikTok’s growth and potential is undeniable at this point, but the key to real value in the eyes of brands will be the ability to advertise on the platform. Sure, TikTok ads are available, but why aren’t brands investing in them at the same rate as other social media platforms?

Let’s take a look at four key points holding advertiser’s back from investing in TikTok ads.

Budgetary constraints

• While the minimum ad spend is a modest $20 a day, to truly make an impact on the fastest growing social network will require a large scale investment.

• The current asking price for a full page take over is $1.4-2 million per day (109 million impressions at stake)

• Expected ad growth rate is 15% by the end of 2021, currently brignign in $40 billion globally a year.

• Costs of first ad spot after a full page takeover is about half the cost, but impressions average 50 million.

• Sponsored hashtag challenges are half a million for three days.

Targeting concerns

• Unlike major platforms like Twitter, Facebook, and Instagram--TikTok is still emerging when it comes to detailed and fine tuned targeting opportunities. Brands can create lookalike audiences and build with custom lists, however beyond your basic demographic targeting such as age, location, and gender, the only specifications advertisers can add are broad and generic interests categories such as “sports”, “beauty products”, “dancing”, and “music.”

Reporting Vs. Audience scale and engagement rate

• During and after a paid campaign, the metrics available to TikTok advertisers are limited to basic KPIs such as impressions, clicks, and conversions, saves, comments, etc.. There’s a clear gap between this and key metrics that organic videos use to measure impact, as well as the ability to trace TikTok’s influence on other owned properties such as a brand’s site.

Blending in

• TikTok and influencers have made it clear, the key to successful advertising on the platform is not sponsored content, but making things as seemingly natural and organic as possible. “Don’t make ads, make TikToks”

• Overall, brand’s presences on the app have been eclipsed by influencers, who the brands are now turning to for assistance with visibility and activation.

• The biggest change to come from influencer’s taking over is the new availability for brands to sponsor “creator content”. Thus benefiting from an already engaged and active fanbase, without disrupting the user’s feed with a blatant advertisement.

In short, the broad targeting capabilities, high price tag, and limited reporting metrics make this a platform for large-scale brands to see success, and SMB’s to attempt to fit in organically. While the app has partnered with Vimeo to create video content to help small businesses, TikTok is still light years away from having the necessary functionality to help those with modest, flexible budgets see true success.