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For the People Apparel

Advertisement Business Proposal


Fisher Hudak
Instagram ads have been unsuccessful
● After 3 months, we’ve seen a negative
return on our investment
(February 2022 Income Statement).
● Free advertising streams are performing
significantly better
(February 2022 Income Statement).
● Influencers are charging increasingly higher
prices for advertisements on their pages,
making it even harder for us to return a
profit (“Influencer Marketing Costs”).
By the Numbers
Average ROI on Engagement on Money Spent on
Instagram Ads Instagram Ads for All Other Advertising
Business Pages
(February 2022 Streams
(McLachlan)
Income Statement) (February 2022
Income Statement)

-22% 0.83% $0
Solution: TikTok Ads
TikTok is clearly our stronger
account, and is a more effective
advertising platform.
TikTok: Instagram:

● 1500+ followers ● 40 followers


● 20k+ likes ● ≈400 likes
● 350k+ views ● 0.83% average
● 18% average engagement
engagement (Sheikh) (McLachlan)
Potential Concerns
Cost:
TikTok ads cost a minimum of $500
(Geyser), compared to the $50 we
spend on each Instagram ad campaign
(February 2022 Income Statement).
Solution:
We have the resources to make the
$500 investment. Considering Instagram
is currently returning a negative ROI, and
the massive growth of our TikTok
account, the risk makes sense.
Potential Concerns cont.
Time Spent on Instagram:
We have already dedicated a lot of time and
resources to Instagram, do we really want to
give up on it?
Solution:
Yes, Instagram ads are currently a black
hole for us. It is time to move on and
stop the bleeding. 3 months was a long
enough trial period.
Potential Concerns cont.
Demographics and
Analytics:
We are very familiar with the people we
were marketing to on Instagram. How will
we effectively market to our audience on
TikTok?
Solution:
TikTok has very impressive Creator Tools.
These include an analytics page that show
the age, gender, interests, and popular
times on the app of our viewers (Sheikh).
Next Steps
Tik Tok ads are the next logical step for our advertising department.

● Assign a group to handle the production, purchase, and distribution of


advertisements, led by Connor James.
● Create ads incorporating techniques that have been successful in the past, such
as memes, voiceovers, and other similar satire.
● Purchase an ad campaign, using the lowest price point available.
● Post the ads when our audience is most active, according to TikTok analytics.
● Record the traffic to the site from the ads, which is to be done by Todd Reimet.
Works Cited
Geyser, Werner. “How Much do TikTok Ads Cost?” Influencer Marketing Hub, Sep. 22, 2021. https://influencermarketinghub.com/how-much-do-tiktok-ads-cost/

“Influencer Marketing Costs.” BusinessOfApps. https://www.businessofapps.com/marketplace/influencer-marketing/research/influencer-marketing-costs/

McLachlan, Stacey. “35 Instagram Stats That Matter to Marketers in 2022.” Hootsuite, 18 January 2022. https://blog.hootsuite.com/instagram-statistics/

Sheikh, Mahnoor. “30 TikTok Stats Marketers Need to Know in 2022.” SproutSocial, 17 March 2022. https://sproutsocial.com/insights/tiktok-stats/

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