A recent TikTok outage provided a glimpse into a future without the platform, and it has prompted several beauty brands to rethink their reliance on the app for marketing. Jolie Skin, a company known for its water-purifying showerheads designed to protect skin and hair, has decided to pause its paid TikTok campaigns temporarily. The company, which was spending approximately $150,000 per month on ads, is now reassessing its advertising strategy after a 24% drop in website traffic, although revenue has remained steady with a 3% increase. Founder and CEO Ryan Babenzien stated that the company would withhold ad spending for at least one to two weeks to evaluate the platform’s value.
The disruption occurred following a Supreme Court ruling that upheld a law forcing TikTok’s parent company, ByteDance, to sell its U.S. operations or face a potential ban. This decision, based on concerns over national security linked to Chinese control, was later delayed after U.S. President Donald Trump signed an executive order allowing TikTok an additional 75 days to finalize a deal.
TikTok has proven invaluable to the beauty industry, with 170 million U.S. users driving significant sales. According to social media management company Dash Social, TikTok ranked among the top 10 largest beauty e-commerce platforms in the U.S. last year. Additionally, data from Statista revealed that the platform was the leading social media source for online beauty purchases in the U.S. in 2023. Major beauty brands like L’Oréal and Estée Lauder have also mentioned TikTok in their earnings calls.
TikTok’s influence has been particularly notable in the skincare segment. 4AM Skin, a brand specializing in undereye masks, experienced a $20,000 sales spike in a single day after a TikTok video by co-founder Jade Beguelin went viral. The video, posted in September 2023, garnered 2.2 million views, with the masks available for purchase directly through TikTok’s e-commerce feature, TikTok Shop. Beguelin emphasized that initial success was largely organic, with no ad spending required.
As TikTok’s role in the beauty market becomes more uncertain, some brands are shifting their strategies. “The best companies will adapt,” said Oliver Chen, managing director at TD Cowen. “It’s like pizza; we’ll find another place to eat pizza,” he added, suggesting that flexibility will be key to survival.
Some companies, like Jones Road Beauty, have already begun diversifying their marketing efforts. Founder Bobbi Brown’s early TikTok success, which included a video on contouring that garnered millions of views, helped the brand generate more than 30% of its revenue from the platform. However, CEO Cody Plofker noted that the brand’s return on investment from TikTok had diminished over time, leading to a reduction in TikTok spending.
Influencers are also reconsidering their reliance on the platform. Beauty, fashion, and lifestyle content creator Lexi Rosenstein, with over 50,000 followers, described the TikTok ban as a wake-up call to diversify her presence on other platforms like YouTube and Pinterest. She acknowledged that while TikTok remains the best platform for monetization, the risk of over-reliance on one platform is clear.
Other alternatives, such as YouTube Shorts and Instagram Reels, are gaining traction as creators seek to spread their content across multiple channels. However, some brands believe TikTok’s unique algorithm, which tailors content to user preferences, is difficult to replicate on other platforms. Milani Cosmetics, which earned over $200 million in sales last year, has been one of the beneficiaries of TikTok’s viral power. A TikTok video by makeup artist Jeffree Star praising Milani’s Conceal + Perfect primer reached nearly 13 million views and helped the brand gain significant visibility.
Jeremy Lowenstein, Milani’s Chief Marketing Officer, credited TikTok’s algorithm with helping the brand reach wider audiences more rapidly than on other platforms. “Other platforms require you to opt-in, but TikTok serves you content based on what they think you’ll want to see,” he explained, underscoring how the platform’s unique approach has enabled indie brands like Milani to achieve viral success.
As TikTok’s future remains uncertain, the beauty industry is facing a critical juncture. While many brands have embraced the platform’s ability to generate quick viral success, others are diversifying their strategies to safeguard against the potential loss of a key marketing channel.
Related Topics