TikTok data shows beauty brands operate at 50% of optimal spending levels

On December 2, 2025, TikTok launched findings from a complete two-year marketing mix modeling examine performed with NIQ inspecting how media investments translate into offline gross sales for Romania’s main magnificence manufacturers. The analysis, masking the interval from January 2023 by means of December 2024 within the face care class, used store-level gross sales knowledge to isolate the incremental affect of every media channel throughout the whole advertising and marketing combine.

Advertising combine modeling has skilled renewed focus as conventional attribution faces limitations from privateness adjustments and fragmented shopper journeys. The methodology employs statistical evaluation to guage all advertising and marketing actions’ contribution to enterprise outcomes, offering holistic views that disentangle media interactions whilst particular person consumer monitoring turns into more and more restricted. NIQ utilized full-spectrum modeling to find out which platforms ship the best returns and the way optimized finances allocation can maximize ROI.

The examine targeted on two unnamed Romanian magnificence manufacturers throughout the face care class—recognized within the analysis as “Premium Magnificence Model” and “Skincare Model.” NIQ analyzed precise store-level gross sales knowledge fairly than counting on self-reported metrics or platform-provided attribution, creating what the analysis described as exact isolation of incremental affect throughout competing media channels.

TikTok delivered between 29% and 33% of all media-driven incremental gross sales for each manufacturers regardless of comparatively modest funding ranges in comparison with different channels. The platform’s ROI efficiency considerably exceeded competing media, reaching as much as 170% increased returns versus conventional tv (representing a 2.7x multiplier) and as much as 185% increased returns versus different digital channels (a 2.86x multiplier).

The disconnect between incremental gross sales worth and ROI effectivity proved notably putting. Whereas TV Conventional drives 37% to 40% of incremental gross sales for each manufacturers, TikTok delivers superior ROI effectivity at 100% listed efficiency with solely 29% to 33% of gross sales worth. This sample signifies extra environment friendly use of selling funding regardless of producing decrease absolute gross sales quantity.

Response curves demonstrated vital untapped potential with exact scaling projections. The examine revealed that each manufacturers at present make investments at roughly 50% of optimum TikTok spending ranges, representing what NIQ characterised as a big alternative for additional funding. Growing TikTok funding by 20% wouldn’t attain saturation factors, probably elevating ROI from an index of 100% to between 190% and 300%.

Model-specific development potential diverse significantly based mostly on present positioning and class dynamics. The Skincare Model may obtain a 6x enhance in gross sales affect by doubling TikTok funding from present ranges. The Premium Magnificence Model may notice a 3.7x enhance in gross sales affect with the identical spending adjustment.

These projections stem from response curve evaluation exhibiting how incremental funding interprets into incremental returns throughout totally different spending ranges. The modeling demonstrated that each manufacturers function properly beneath the purpose of diminishing returns, with substantial headroom remaining earlier than reaching saturation thresholds the place further funding generates progressively smaller incremental returns.

Inventive format efficiency revealed vital variations between advert sorts past primary channel allocation choices. Spark Adverts delivered 37% increased ROI in comparison with common advert codecs, demonstrating the affect of leveraging natural content material kinds in paid media executions. This discovering aligns with broader business recognition that genuine, user-generated content material usually outperforms polished model inventive in social environments.

Seasonal TikTok campaigns achieved 130% increased ROI than non-seasonal campaigns, highlighting the significance of alignment with key retail moments. The wonder class experiences pronounced seasonal patterns tied to vacation gifting, skincare routines affected by climate adjustments, and promotional occasions all through the retail calendar. Campaigns timed to coincide with these moments captured heightened shopper curiosity and buying intent.

The examine explicitly really helpful that manufacturers creating content material technique ought to think about these format variations to maximise media funding effectivity. The 37% efficiency hole between Spark Adverts and common codecs suggests significant returns from adapting inventive approaches fairly than merely rising spending ranges.

Synergistic results emerged when a number of channels executed collectively, with patterns various by model. The Magnificence Model noticed a 3.31% incremental gross sales elevate when combining TV and TikTok, valued at 22,809 items within the modeling interval. The Skincare Model achieved a 5.16% gross sales uplift by means of Different Digital and TikTok synergies, valued at 46,863 items.

These synergy findings recommend that manufacturers ought to think about TikTok as a part of an built-in media technique fairly than an remoted channel. The complementary results with each conventional and digital media point out that TikTok can improve general marketing campaign effectiveness when correctly coordinated with different touchpoints. The modeling remoted these synergistic results by evaluating precise efficiency in opposition to anticipated efficiency if channels operated independently.

ROI efficiency diverse considerably throughout the measured media combine. TikTok achieved 100% listed ROI effectivity within the examine’s framework. Different Digital Media channels ranged from roughly 30% to 45% listed ROI. Conventional TV delivered roughly 40% to 50% listed ROI. Out of Residence promoting registered the bottom listed ROI at roughly 15% to twenty%. A class recognized as “TikTok Halo” measured further attributed worth at roughly 10% to fifteen% listed ROI.

The halo impact captures oblique worth attribution the place TikTok publicity influences shopper habits even when last conversions happen by means of different channels. This phenomenon has develop into increasingly documented throughout digital promoting platforms, the place upper-funnel publicity drives lower-funnel conversions that conventional attribution assigns elsewhere.

Gross sales contribution affect informed a special story than ROI effectivity. Conventional TV generated the best absolute incremental gross sales at 37% to 40% throughout each manufacturers. TikTok contributed 29% to 33% of incremental gross sales. Different Digital channels delivered 20% to 27% of gross sales worth. Out of Residence promoting contributed roughly 4% to six% of incremental gross sales.

This divergence between gross sales quantity and ROI effectivity displays totally different optimization targets. Manufacturers searching for most absolute gross sales quantity may preserve heavy TV funding regardless of decrease effectivity. Manufacturers optimizing for cost-effective development would shift finances towards higher-ROI channels like TikTok even when absolute gross sales contribution stays smaller.

The analysis arrives throughout vital shifts in advertising and marketing measurement approaches. Recent research from TransUnion and EMARKETER confirmed that 54.1% of selling professionals reported no change of their measurement confidence in comparison with the earlier yr, whereas 14.3% mentioned confidence really declined. Platform-provided attribution stays the most typical methodology at 65.8%, however entrepreneurs more and more complement it with superior approaches together with incrementality testing (52.0%) and marketing mix modeling (49.5%).

Funding plans replicate this measurement evolution. Almost half (46.9%) of entrepreneurs plan to extend funding in MMM over the following 12 months, representing the best funding precedence amongst measurement methodologies. The strategy addresses persistent challenges the place last-touch attribution usually fails to seize full marketing campaign affect, notably for platforms like TikTok the place inspiration can linger far longer than a single click on or session.

Central European magnificence markets face distinctive aggressive dynamics that affect media effectiveness. The Romanian market represents a developed promoting ecosystem with robust retail infrastructure supporting each conventional and digital channels. Magnificence class spending demonstrates pronounced sensitivity to financial situations whereas sustaining constant development throughout premium and mass-market segments.

NIQ’s confirmed methodology brings credibility to findings that recommend dramatic reallocation from conventional channels. The analysis agency operates as a worldwide chief in shopper intelligence, offering knowledge and analytics to shopper packaged items producers and retailers worldwide. Advertising combine modeling represents certainly one of NIQ’s core measurement capabilities, deployed throughout a number of markets and classes.

The timing coincides with broader platform competitors for magnificence promoting budgets. Recent data from Pentaleap confirmed Neutrogena rising sponsored presence 182% year-over-year in retail media, whereas L’Oréal and Revlon maintained robust positions with 98% and 120% development respectively in sponsored product placements. Magnificence manufacturers display willingness to shift budgets towards channels proving incremental effectiveness.

The examine’s suggestions align with business tendencies exhibiting the rising effectiveness of platforms that mix leisure with commerce. As conventional media continues to fragment, figuring out channels that ship each attain and effectivity turns into more and more crucial for magnificence entrepreneurs searching for sustainable development. Research from Tracksuit and TikTok demonstrated that prime consciousness manufacturers obtain 2.86 occasions the conversion fee of low consciousness manufacturers on TikTok, suggesting that platform effectiveness compounds as manufacturers set up presence.

Inventive optimization extends past easy format choice to embody timing, content material fashion, and integration with natural methods. The 37% ROI premium for Spark Adverts signifies that paid media borrowing indicators from natural content material outperforms conventional promoting inventive even when concentrating on similar audiences. This sample displays platform algorithm preferences that reward content material matching consumer expectations and engagement patterns.

Seasonal alignment delivered much more dramatic outcomes than inventive format optimization. The 130% ROI enchancment for seasonal campaigns versus non-seasonal execution means that timing probably issues greater than message for magnificence manufacturers working inside established buy cycles. Romanian magnificence customers observe predictable patterns round gift-giving events, seasonal skincare changes, and promotional intervals that savvy entrepreneurs can anticipate and amplify.

The analysis gives concrete proof that strategic reallocation towards higher-performing channels can ship substantial returns. For manufacturers searching for to maximise advertising and marketing effectivity, the examine demonstrates that exact media combine optimization results in tangible gross sales development fairly than theoretical enhancements in summary metrics.

Price range reallocation carries dangers that advertising and marketing combine modeling helps quantify. Decreasing TV spending to fund TikTok funding means accepting decrease absolute incremental gross sales from tv in alternate for extra environment friendly development by means of digital channels. The synergy results complicate this calculation—lowering TV may get rid of the three.31% incremental elevate noticed when combining TV and TikTok for the Magnificence Model.

Optimum allocation depends upon enterprise targets past pure ROI maximization. Manufacturers prioritizing market share growth may preserve heavy TV funding for max attain regardless of effectivity trade-offs. Manufacturers going through margin strain or searching for worthwhile development would shift towards TikTok’s superior ROI even at the price of slower absolute gross sales development. Strategic context determines whether or not the 6x gross sales affect potential from doubling TikTok funding justifies diminished spending elsewhere.

Implementation requires capabilities past finances reallocation. Scaling TikTok funding from 50% to 100% of optimum ranges calls for corresponding will increase in inventive manufacturing, marketing campaign administration, and efficiency optimization. The 37% ROI premium for Spark Adverts requires figuring out and amplifying natural content material fairly than merely rising paid inventive output. Seasonal marketing campaign execution calls for exact timing and coordination throughout content material calendars.

The disconnect between present spending and optimum allocation raises questions on organizational obstacles stopping environment friendly finances deployment. Magnificence manufacturers working in Romanian markets possess subtle advertising and marketing capabilities with entry to a number of measurement distributors. The persistence of suboptimal allocation regardless of obtainable knowledge means that components past pure efficiency analytics affect media planning choices.

Contractual commitments with media businesses and broadcasters can lock manufacturers into spending ranges that persist regardless of altering effectiveness patterns. Annual upfront commitments to tv networks present value ensures however restrict flexibility to reallocate towards rising high-performance channels. Company compensation constructions tied to media spending create misaligned incentives the place lowering TV budgets impacts company income.

Attribution challenges previous to rigorous advertising and marketing combine modeling implementation might need obscured TikTok’s true affect. Platform-reported metrics usually understate upper-funnel affect when purchases happen days or perhaps weeks after preliminary publicity by means of totally different channels. The 2-year examine period allowed NIQ to seize these delayed results that shorter measurement home windows miss.

Organizational inertia favors established channel relationships over newer platforms no matter efficiency knowledge. Advertising groups comfy with tv planning processes face studying curves when increasing digital capabilities. The inventive necessities differ considerably—tv promoting depends on 30-second narratives whereas TikTok success calls for adapting to short-form vertical video optimized for cell consumption.

Model security considerations probably constrain social media funding even when efficiency justifies growth. Magnificence manufacturers preserve cautious management over the place ads seem to guard premium positioning. TikTok’s user-generated content material surroundings introduces adjacency dangers that do not exist in managed tv environments, requiring further oversight and probably limiting scale.

The analysis methodology addresses these objections by means of rigorous isolation of incremental affect. Retailer-level gross sales knowledge eliminates questions on whether or not TikTok drives precise purchases versus engagement metrics that do not translate to income. The 2-year period captures differences due to the season and longer-term model constructing results fairly than short-term promotional spikes.

Response curves present particular steering about sustainable scaling trajectories fairly than extrapolating from small assessments. The discovering that 20% spending will increase would not attain saturation offers manufacturers confidence that growth stays viable fairly than risking diminishing returns. The brand-specific projections—6x affect for Skincare Model versus 3.7x for Premium Magnificence Model—acknowledge that optimum allocation varies based mostly on present positioning and class dynamics.

International magnificence promoting continues shifting towards digital channels as conventional media fragments and measurement capabilities enhance. Connected television has emerged as one beneficiary, with analysis exhibiting top-performing manufacturers allocate 23.7% of TV impressions to CTV in comparison with 17.4% common. Social commerce platforms characterize one other rising class, notably in markets the place mobile-first habits dominates media consumption.

TikTok’s place inside this aggressive panorama depends upon sustaining the efficiency benefits documented within the NIQ examine. Platform algorithm adjustments, elevated advertiser competitors, and artistic fatigue may erode ROI premiums over time. The analysis captured 2023-2024 efficiency throughout a interval when many magnificence manufacturers remained underinvested, probably creating alternatives that diminish as extra advertisers acknowledge platform effectiveness.

The methodology itself faces limitations that mood conclusions. Advertising combine modeling operates at combination ranges that obscure viewers section efficiency. The Romanian magnificence manufacturers may obtain totally different outcomes than opponents in different markets or classes. Two years of information gives substantial analytical basis however can’t seize all potential eventualities as markets evolve.

These {qualifications} do not invalidate findings however fairly set up acceptable context for making use of outcomes. Manufacturers contemplating related reallocations ought to conduct their very own market-specific evaluation fairly than straight extrapolating Romanian magnificence efficiency. The directional insights stay beneficial—advertising and marketing combine modeling can reveal underinvestment in high-performing channels that conventional attribution obscures.

Timeline

Abstract

Who: TikTok partnered with NIQ to conduct analysis inspecting two Romanian magnificence manufacturers within the face care class, offering findings related to magnificence entrepreneurs, media planners, and types working in Central European markets.

What: A two-year advertising and marketing combine modeling examine utilizing store-level gross sales knowledge revealed that Romanian magnificence manufacturers function at 50% of optimum TikTok spending ranges whereas the platform delivers 29-33% of media-driven incremental gross sales with superior ROI effectivity (as much as 185% increased than different digital channels). Spark Adverts achieved 37% increased ROI than common codecs, and seasonal campaigns delivered 130% increased ROI than non-seasonal execution.

When: The analysis coated January 2023 by means of December 2024, with findings printed December 2, 2025, throughout a interval of industry-wide adoption of selling combine modeling as conventional attribution faces privateness limitations.

The place: The examine targeted particularly on Romania’s face care class throughout the magnificence market, analyzing store-level gross sales knowledge throughout retail infrastructure in Central European market situations the place conventional and digital media compete for promoting budgets.

Why: Manufacturers searching for to maximise advertising and marketing effectivity can use rigorous advertising and marketing combine modeling to establish channels working beneath optimum funding ranges, with the analysis demonstrating that strategic reallocation towards higher-ROI platforms can ship substantial returns—together with potential 6x gross sales affect by doubling TikTok funding for the Skincare Model and three.7x affect for the Premium Magnificence Model.