TikTok, the extremely popular social media platform, has been around since 2016 but within the last couple of years has been picking up traction with more mainstream adoption and use. The platform now has over a billion active users, with over 130 million of those active users residing in the U.S., making it especially appealing for businesses to consider using as the next big thing to advertise their brand and attract new customers.
The mortgage industry has always seemed to be a bit behind the curve when it’s come to marketing trends, so it’s no surprise that many companies in this space are not currently using TikTok, although that is slowly changing. It is extremely enticing to think about being able to get your company and brand in front of such a large audience almost instantly However, popularity aside, there are certain things companies in the mortgage industry should consider before hopping on the TikTok bandwagon.
Consider Your Target Audience
Over a billion active users is no small number of potential customers to be able to introduce your company to, however, it’s important to think about the average demographic of TikTok users. The largest portion of TikTok users, 60%, are between the ages of 16 and 24 (think Gen Z). For many companies in the mortgage industry, that is probably not their target demographic as this is not exactly the age range for individuals looking to purchase or refinance a home, or invest in real estate. However, Gen Z are not the only generation on TikTok.
The notorious Millennial generation also has a decent presence on the platform, and accounts for nearly 26% of users. Yes, that does seem like a large drop compared to Gen Z, but 26% of 130 million active U.S. users is still not too shabby, and for the last five years, millennials have made up the largest share of home purchase mortgage applications, reaching 54% of all purchase applications in 2020. This means there actually is a significant opportunity for companies in the mortgage industry to get in front of potential customers but, just like you must develop a unique strategy for other social media platforms, what exactly is the best way to engage with individuals on TikTok?