Beyond ROI: TikTok Study Reveals How Premium Ad Formats Drive Real Sales Impact

This analysis was originally reported by Social Media Today. For daily updates on social media marketing, subscribe to the free Social Media Today newsletter.

In a move that reframes the digital advertising conversation, TikTok has released a comprehensive study questioning the industry's singular focus on Return on Investment (ROI) as the ultimate success metric. Conducted in partnership with media consultancy Ebiquity, the research delves into data from major UK brands to isolate the true sales impact of different ad formats on the platform.

The core finding? Not all impressions are created equal. While cheaper inventory can generate a high ROI figure, it may not move the needle on actual sales volume. Conversely, TikTok's premium, higher-cost formats—like the full-screen TopView and curated Pulse placements—are shown to drive what the report calls "breakthrough impact," essential for brand growth.

"For too long, ROI has been treated as the be-all and end-all," the report states. "In reality, it is just the starting point. A high ROI from cheap inventory can mask a lack of actual sales uplift, while a lower ROI on premium formats might be driving the breakthrough impact a brand needs to grow."

The data provides a stark comparison: TopView and Pulse generated three to four times the revenue per thousand impressions (RPM) compared to the automated Brand Auction format. TopFeed delivered double the impact at roughly double the cost.

Perhaps the most critical insight is the direct statistical correlation between average play duration and revenue impact. Simply put, ads that hold viewer attention longer sell more, making creative engagement a paramount concern for performance.

"This isn't just about spending more; it's about spending smarter," said marketing analyst David Chen of Stratos Advisory. "The study validates a shift we're seeing across digital media: brands are prioritizing quality of attention over cheap, passive reach. TikTok's premium formats are engineered to capture that deep focus."

However, the report has sparked debate. Maya Rodriguez, a small business owner, expressed skepticism: "This feels like a slick sales pitch from TikTok to justify their most expensive ad products. They're telling us to ignore a good ROI number and just trust them that 'impact' is better. For businesses on a tight budget, that's a risky and expensive leap of faith."

Social media strategist James K. Lee offered a more measured take: "The key takeaway is alignment. Brand Auction delivers volume for broad awareness. Premium formats deliver impact for consideration and conversion. The mistake is using one metric to judge all campaigns. This report gives marketers a framework to match objectives with the right format."

The report concludes by urging advertisers to: 1) Define clear campaign objectives beyond ROI, 2) Allocate budget across a mix of formats tailored to those goals, and 3) Invest in creative that maximizes watch time to leverage the engagement-revenue link.

The full "Measurement Spotlight" report by TikTok and Ebiquity can be accessed here.