Lina Lennartsson

TikTok´s contribution to the new

way of marketing
A qualitative study about how Swedish
SMEs are using TikTok as a tool in their
marketing strategy

Business Administration
Master Thesis
30 ECTS

Term: Spring 2023

Supervisor: Ingo Oswald Karpen
Preface
I would like to start by expressing my gratitude to all the participants who took
part in this study, despite their busy schedules and time constraints. Without you,
this study would not have been possible. I am also grateful to my supervisor Ingo
Oswald Karpen, for his support and guidance throughout the thesis process.
Lastly, I would like to thank all the opponent groups for their constructive
feedback during the seminars, which has contributed to improving the overall
quality of this thesis.

I do below confirm that I take full responsibility for the information presented in
this thesis.

Karlstad University, June 2023

________________

Lina Lennartsson

3
Sammanfattning
TikToks bidrag till den nya marknadsföringsmetoden - En kvalitativ studie
om hur svenska SME:s använder TikTok som verktyg i sin
marknadsföringsstrategi.

Den ökande trenden mot digitalisering har resulterat i att marknadsföring på

sociala medier har blivit en vanlig praxis bland företag idag. Denna nya trend har
öppnat upp för nya möjligheter bland SMEs, som vanligtvis har mindre resurser
än större företag. En plattform som har blivit populär bland företag är TikTok och
det var därför intressant att undersöka hur SME:s för närvarande använder denna
plattform i sin marknadsföringsstrategi. Syftet med detta examensarbete var att
undersöka ett antal SME-verksamheter för att förstå och föreslå hur de kan
förbättra sin nuvarande strategi på TikTok.

Detta examensarbete är baserat på tidigare forskning om SMEs,

konsumentbeteende, marknadsföring i sociala medier, TikTok som
marknadsföringsverktyg, innehållsmarknadsföring, viral marknadsföring och
betald reklam. Vidare användes en kvalitativ forskningsansats där
semistrukturerade intervjuer genomfördes med totalt elva respondenter.
Respondenterna bestod av ett antal svenska mikro-, små och medelstora företag
från en B2C-kontext som för närvarande verkar på TikTok.

Resultaten av studien indikerar att SME:s är närvarande på TikTok på grund av

försäljningssyften, interaktionsmöjligheter och på grund av dess stora räckvidd.
Plattformens huvudsakliga egenskaper var det personliga innehållet, videornas
korta format och den unga publiken. Men trots den växande närvaron av SME:s
på TikTok tyder studien på att få har en tydlig strategi på plattformen, vilket
indikerar ett potentiellt behov av ökade ansträngningar för att förbättra deras
framgång.

Nyckelord: SMEs, Marknadsföring på sociala medier, TikTok, Marknadsstrategi,

Målgrupp

4
Abstract
The increasing trend towards digitalization has resulted in social media marketing
becoming a common practice among companies today. This new trend has opened
up new opportunities for SMEs, which typically have less resources than larger
companies. One platform which has become popular amongst businesses is
TikTok, and it was therefore of interest to investigate how SMEs are currently
using this platform in their marketing strategy. The purpose of this thesis was to
investigate a number of SME operations in order to understand and suggest how
they can improve their current strategy on TikTok.

This thesis is based on previous research on SMEs, consumer behavior, social

media marketing, TikTok as a marketing tool, content marketing, viral marketing,
and paid advertising. Additionally, a qualitative research approach was used
where semi-structured interviews were conducted with a total of eleven
respondents. The respondents consisted of a number of Swedish micro, small and
medium-sized firms from a B2C context currently operating on TikTok.

The results of the study indicate that SMEs are present on TikTok due to selling
purposes, interaction opportunities and because of its large reach. The main
characteristics of the platform were the personal content, the short format videos,
and the young audience. However, despite the growing presence of SMEs on
TikTok the study suggests that few have a clear strategy on the platform,
indicating a potential need for increased efforts to improve their success.

Keyword: SMEs, Social media marketing, TikTok, Marketing strategy, Target

audience

5
Table of contents
1. Introduction.................................................................................................... 9
1.1. Background .............................................................................................. 9
1.2. Problem Discussion ................................................................................ 10
1.3. Aim ......................................................................................................... 11
1.4. Research question ................................................................................... 11
2. Theory ........................................................................................................... 12
2.1. Small and medium-sized firms (SMEs) ................................................. 12
2.2. Consumer behavior in a digital world .................................................... 12
2.3. Social media marketing .......................................................................... 13
2.4. TikTok as a marketing tool .................................................................... 14
2.4.1. The audience ................................................................................... 15
2.5. Marketing strategy .................................................................................. 15
2.5.1. Content marketing ........................................................................... 16
2.5.2. Viral marketing ............................................................................... 17
2.5.3. Paid advertising .............................................................................. 18
3. Method .......................................................................................................... 19
3.1. Research strategy .................................................................................... 19
3.2. Research approach .................................................................................. 19
3.3. Sample choice......................................................................................... 20
3.4. Data collection ........................................................................................ 21
3.4.1. Interview guide ................................................................................ 22
3.4.2. Conducting the interviews ............................................................... 22
3.5. Data analysis........................................................................................... 23
3.5.1. Transcribing .................................................................................... 23
3.5.2. Coding ............................................................................................. 23
3.6. Quality of method ................................................................................... 24
3.6.1. Credibility ....................................................................................... 24
3.6.2. Dependability .................................................................................. 24
3.6.3. Transferability ................................................................................. 24
3.6.4. Confirmability ................................................................................. 25
3.7. Ethical considerations ............................................................................. 25
4. Empirical results .......................................................................................... 27
4.1. TikTok characteristics ............................................................................ 27
4.1.1. Personal and informal content ........................................................ 27
4.1.2. Short format .................................................................................... 29

6
 4.1.3. Young audience ............................................................................... 29
4.2. The intentions for operating on TikTok ................................................. 30
4.2.1. Sale purposes .................................................................................. 30
4.2.2. High reach ....................................................................................... 31
4.2.3. Interaction ....................................................................................... 31
4.3. Tensions surrounding the strategic use of TikTok ................................. 32
4.3.1. Tensions between experimenting with- and intentionally using
TikTok ......................................................................................................... 32
4.3.2. Tension between cost and profit ...................................................... 33
4.3.3. Tension between expected resources and actual resources ............ 34
4.4. Risks and challenges with TikTok as a marketing tool .......................... 36
4.4.1. Data security ................................................................................... 36
4.4.2. Toxic environment ........................................................................... 37
5. Discussion ..................................................................................................... 38
5.1. TikTok as a marketing tool .................................................................... 38
5.2. How are SMEs using TikTok? ............................................................... 39
5.3. TikTok and strategic tensions................................................................. 40
6. Conclusion .................................................................................................... 43
6.1. Answering the research question ............................................................ 43
6.2. Contribution of study.............................................................................. 44
6.3. Limitations.............................................................................................. 45
6.4. Suggestions for future research .............................................................. 45
References ................................................................................................................
Appendix ..................................................................................................................
Appendix 1: Interview guide .................................................................................
Appendix 2: Additional data table ........................................................................

7
8
1. Introduction
In the first chapter of this thesis, digitalization’s effect on marketing will be briefly
explained, along with the increased usage of social media in marketing contexts.
Further, an introduction to the chosen platform TikTok will be presented.
Thereafter, this is followed by a problem discussion of the chosen subject, where
previous research is presented, as well as the gaps that have been detected in the
research field. The chapter concludes with a presentation of the study's aim and
research question.

1.1. Background

In modern society the utilization and availability of internet and electronic devices
have increased notably and are today perceived as the new normal. People today
are using services such as internet-based medical care, digital lectures and virtual
fitness centers, which wouldn't have been foreseeable a few years back (Kelestyn
& Henfridsson, 2014). Furthermore, customers are currently preferring to
purchase products from digital platforms instead of physical stores (Hagberg et
al., 2016).

When consumers are making decisions today, they use the internet as their first
alternative to search for information. According to Suciu (2022), people spend
about three hours on the internet daily, searching for information, communicating
with other users and for entertainment. As a consequence of this, marketing has
changed and developed into a much more digitized and complex phenomenon
than before, which in turn has forced businesses to change their strategy. In
addition to the marketing environment developing, a new trend has emerged,
referred to as social media marketing (Hajli, 2015). This is a result of social media
platforms being a major part of consumers' lives today, spending much of their
time on these platforms daily (Dimofte et al., 2016). In accordance, statistics have
established that a person worldwide 2022 spent on an average 147 minutes per
day on different social media platforms. Consequently, social media is becoming
an important tool for businesses to be able to keep up with competitors. Social
media are contributing with opportunities for businesses to communicate, attract
new customers and maintain relationships (Chen et al., 2021). Social media is not
only useful for larger companies, but also for small- and medium sized firms, also
referred to as SMEs (Chen et al., 2021). This is of particular value due to SMEs
often owning a limited amount of resources compared to larger companies, both
financially and in the form of human resources. This does in turn result in them
facing a lot of challenges in today's development. This can be perceived as
concerning since SMEs stand for 99,9 percent of all firms in Sweden
(Ekonomifakta, 2022).

9
Additionally, one social media platform that has flourished in recent years is
TikTok. This platform reached over 1 billion monthly active users by 2022 (Cesi,
2022) and the usage of the young generation was dominant, since 38,9 % of these
users were 18-24 years old (Cesi, 2023). It was also discovered that users
worldwide spent about 19,6 hours per month on the platform (Cesi, 2022).
Additionally, in 2021 TikTok reached over 2,7 million monthly active users in
Sweden, surpassing the user numbers of all other Nordic countries (Frick, 2021).
However, there are only 18% of businesses that are currently using TikTok for
marketing purposes (Stelzner, 2022). The platform provides a number of
opportunities for businesses and could contribute with several advantages for
smaller businesses who have less resources. The platform is highly attractive for
marketers due to its fast expansion, being both much accessible while also
providing higher engagement rates amongst users than what has been previously
detected (Guarda et al., 2021).

1.2. Problem Discussion

SMEs are constantly encountering a number of challenges from the growing

digitalization and social media expanding. Social media marketing is today a quite
recognized concept and has altered the way many businesses operate (Parviainen
et al., 2017). There are multiple studies about social media marketing, and it has
been a highly popular subject in research for many years now (Chaffey, 2006;
Chen et al., 2021; Dimofte et al., 2016). However, despite much research within
the field, there is an ambiguity of research in regards to how SMEs are operating
and using different social media as a marketing tool (Chen et al., 2021).

Additionally, Chen et al. (2021) state that the variety of social media platforms,
with somewhat lower costs, are providing features for SMEs to use in marketing
purposes. However, Sikandar (2021) has established that certain SME firms are
avoiding having a social media presence as a consequence of not understanding
how to operate on these platforms. On the contrary, Carter and Wamba (2014)
have found that there has been an increase of SMEs on social media. The study
does however also mention that it is only effective if SMEs are strategically
integrating social media into their business approach (Carter & Wamba, 2014).

The main practical issue detected is that SMEs are struggling to be seen and
communicate with the market today. However, with the growing digitalization
and social media expanding, it has become easier to reach not only national but
also foreign markets (Chaffey & Ellis-Chadwick, 2019). However, this
development has also led to rising competition on the market. To be able to
communicate with consumers and to be prominent on the market, there is a need
for resources which many SMEs are missing. TikTok and other social media

10
platforms do however provide the opportunity for businesses to market
themselves with the use of less resources than which is needed in traditional
marketing (Chaffey & Ellis-Chadwick, 2019). Due to this, further research is
needed in regards to how SMEs are managing the new marketing techniques that
social media have contributed with, to be able to help these companies evolve
further and differentiate themselves in this growing market.

Further, TikTok is of interest due to its rapid growth in recent years, and the
opportunities this result in for businesses. It has been found that TikTok can
increase consumer engagement, creativity and reach (Guarda et al., 2021), making
it an attractive platform for marketers. It has however been detected that there is a
significant lack of research about TikTok as a marketing tool, due to it being a
quite new platform, resulting in research being in its initial stage. It is therefore of
interest to investigate how SMEs are using TikTok currently and how it has
affected their business, to contribute to the research field.

To summarize, there are several studies that have been performed on a variety of
topics in regards to SMEs. However, it has been detected that it has not been
clearly discovered how SMEs are using TikTok in their marketing strategy, and
which opportunities as well as challenges they are facing when operating on this
platform. This is critically important as a significant proportion of economic
activity is pursued by such SMEs (99,8%), and since TikTok represents one of the
fastest growing digital media platforms (Juergensen et al., 2020).

1.3. Aim

The aim of this thesis is to understand and assess the role TikTok plays for micro,
small and medium- sized firms in enhancing their business. In particular the
objective is the analyze opportunities or the potential for improving marketing
strategies based on using TikTok as a marketing tool. This is based on the
marketing challenges SMEs have in keeping up with the new marketing trends
due to limited resources. The purpose is thereby to investigate a number of SME
operations in order to understand and suggest how they can improve their current
strategy on TikTok.

1.4. Research question

From the above presented aim and problem discussion has the following research
question been constructed:

“How are Swedish SMEs currently using TikTok as a marketing strategy in a

B2C context?”

11
2. Theory
The following chapter begins with a description of the term SME. Thereafter, it is
explained how digitization has changed consumer behavior. Following, the next
section covers social media marketing and thereafter the chapter delves deeper
into the social platform TikTok. Further, different marketing strategies which are
commonly used on social media are presented, and these are; content marketing,
viral marketing and paid advertising.

2.1. Small and medium-sized firms (SMEs)

SMEs stand for small and medium-sized firms but do also include micro firms.
According to the European Commission, SMEs are businesses that have less than
250 employees and that have annual revenues that are up to 50 million euros or a
balance sheet up to 43 million euros per year (Juergensen et al., 2020). SMEs are
of majority and Juergensen et al. (2020) reveal that SMEs stand for two thirds of
all employment in Europe.

SMEs have a tendency to concentrate on creating new products and services,

which in turn are giving them the opportunity to more effectively respond to the
ever-changing consumer demands (Juergensen et al., 2020). SMEs often have
more flexible structures, allowing them to be more adaptable and respond quickly
to new opportunities, even if it involves taking risks (Aloulou & Fayolle, 2005).

Furthermore, SMEs are crucial for the European economy and are representing a
majority of all businesses in the world and are thereby offering a number of job
opportunities while also contributing to the economic development. SMEs do
however own much limited human and- financial resources, when compared to
larger businesses (Juergensen et al., 2020). Regardless of this, Bateman and Snell
(2010) have stated that the basic principles of marketing still remain relevant for
both smaller and larger firms. Chaston and Mangles (2010) do however argue that
marketing amongst SMEs have been viewed as an problematic area in research for
over 20 years back.

2.2. Consumer behavior in a digital world

Consumer behavior is related to a person's general opinion about a product or

service. A person's buying decision is influenced by social- and cultural- but also
other factors (Joshi & Rahman, 2016). These influences could for example be
friends, family but also society as a whole (Fernandes & Panda, 2019). Consumer
behavior is also affected by changed learning processes, which can be changed
due to previous experiences, goals and different needs that the consumer has. For

12
example, it could be the exposure of an ad which has influenced the consumer to
gain an interest or need for a specific product (Braun, 1999).

Another phenomenon changing consumer behavior is the growing digitalization in

society today. Consumers are no longer only using the internet to buy products
online but also to compare prices, features and for after sales services (Amanatidis
et al., 2022). Along with the digitalization, social media have emerged, offering
businesses the opportunity to reach a worldwide audience, while also providing a
number of benefits (Amanatidis et al., 2022). It is explained that social media has
a main function of creating interactions, which enables individual users to
influence others' purchasing decisions. Thus, companies are no longer the only
source of brand communication, as consumers are increasingly influenced by
social media in their purchasing decisions, leading to changes in their consumer
behavior (Amanatidis et al., 2022).

2.3. Social media marketing

What was previously perceived as the normal way of doing business has gradually
begun to change, and an increase in the use of digital platforms has now
emerged (Chaffey & Ellis-Chadwick, 2019). Along with digitalization taking
place, social media have risen as well. This has resulted in a wide variety of
different social media platforms which require lower costs than traditional
marketing (Chen et al., 2021). Social media marketing means using social
platforms as a tool to promote a brand, product, or service (Guarda et al., 2021).
Social media marketing has expanded at a very fast pace in recent years and is
today one of the most fast growing segments in the whole world (Guarda et al.,
2021). The development of social media has transformed traditional marketing
into more interactive marketing, whereby consumers are interacting directly with
the brand or its ambassadors, and are sharing their experiences directly (Dahl,
2018; Haenlein, 2020). Today, social media is not only used for communication
among users, but its function also works as an effective promotional tool for
businesses, especially for SMEs who want to introduce and grow their
brand (Baquita et al., 2021).

In line, social media is becoming widely adopted amongst SMEs, and one of the
reasons is that it does not require the same amount of financial resources to reach
a global audience as it does with traditional marketing (Chaffey & Ellis-
Chadwick, 2019). Nevertheless, SMEs are still facing a number of challenges,
such as a deficiency in employees, funds and technologies. This is a result of
SMEs having a compressed capacity to counterbalance different risks and costs
due to slowed down market operations (Juergensen et al., 2020). Despite these
risks existing, social media are generating plenty of opportunities for SMEs to

13
conquer these challenges and further enhance the way they are currently operating
(Juergensen et al., 2020). Eggers (2020) have discovered that those SMEs that
have digitized themselves tend to better counter the above mentioned risks.

Social media has changed how SMEs reach their audience as well as helping them
conquer the barriers from having reduced resources (Fang et al., 2022). With the
help of social media, businesses are reaching a larger number of consumers while
also interacting with them and maintaining relationships (Marolt et al., 2022). As
a result of this, an increasing amount of businesses are building a social media
presence.

2.4. TikTok as a marketing tool

The most recent revolutionizing platform within social media is TikTok (Guarda
et al., 2021). TikTok is a social platform launched in 2016 which originated in
China. The platform was originally named Duoyin and had as purpose to allow
users to practice languages (Guarda et al., 2021). Because of the target group
consisting primarily of younger people, they began to modify the platform and
entertainment did instead become its main purpose, and an internationalized
version was created, named TikTok (Hu, 2020). The concept of TikTok consists
of short format videos along with a wide range of sounds, music, effects, and
filters (Guarda et al., 2021). Further, TikTok also provides the opportunity to add
created videos directly on your phone, and it is also possible for users to record
and share their own reactions to other videos (Guarda et al., 2021).

TikTok has grown successively since its launch, in 2019 the platform surpassed
Instagram on the list of most downloaded applications of the decade. It is today
the fourth most downloaded application in the world with about 500 million active
daily users worldwide (Anderson, 2020).

There are various reasons for TikTok increasing in popularity in recent years. For
once, TikTok has simplified the way of creating and sharing videos (Xu et al.,
2019). Because of the short format of the videos, neither creating the video or the
viewing process are demanding in regards to time and effort. Additionally, these
videos are played at the same moment as the user opens up the application, these
videos are then getting played one by one, capturing the user in an ocean of
content. This type of content tends to be addictive in its nature and do commonly
result in the user spending multiple hours on the application watching these videos
(Guarda et al., 2021). The combination that TikTok are providing with video and
music are attracting users, where it is perceived as if they are interacting directly
with the brand (Tang, 2019). TikTok is becoming increasingly popular, and

14
Haenlein et al. (2020) explain that TikTok has grown 15 times between 2017 and
2019.

It can be determined that TikTok is a key performer within the field of social
media, despite being a newcomer. Along with TikTok growing, more brands are
deciding to operate on the platform making it a powerful marketing tool.
According to Wahid et al. (2023), there are multiple brands which have achieved
advantageous results when using TikTok for marketing purposes.

TikTok are proven to be useful for larger companies (Wahid et al., 2023), but the
platform also has large potential to help SMEs promote their brand (Genoveva,
2022). It has for example been detected that in terms of using content to promote a
SME brand, TikTok is more advantageous than its competitors (Genoveva, 2022).
Further, Meliawati et al. (2023) have found that SME marketing on TikTok is
influencing consumers’ buying interest in a product. In addition, TikTok has also
been proven valuable in providing information about a service which is tailored to
a customer's need (Meliawati et al., 2023).

2.4.1. The audience

TikTok mainly consists of users which belong to the age group referred to as
Generation Z, considering that 41% of the users on the platform are between the
ages 16 and 24 (Guarda et al., 2021). In accordance, does Vaterlaus and Winter
(2021) state that young adults are the most common age group on TikTok. In
2021, TikTok was available in 154 countries and 75 different languages, while
also being in the top 25 in 135 of all these countries. Additionally, the application
has around 800 active users every month and it has been downloaded over two
billion times worldwide (Guarda et al., 2021). Amongst these users, 32% are
located in Asia, 12% in North America, 11% from the Middle East and Africa,
10% from Latin America and 10% from Europe. Additionally, 55% of the users
are women, while the remaining 45% are men (Guarda et al., 2021).

2.5. Marketing strategy

According to Varadarajan (2010) marketing strategy can be defined as a

comprehensive set of decisions that guide an organization's choices regarding its
products, markets, marketing activities, and resources. The goal is to create,
communicate, and deliver products that provide value to customers in exchange
for achieving specific objectives. Additionally, Morgan et al. (2018) explains that
marketing strategy involves both formulation and implementation. Formulation
involves managers making decisions about goals, target markets, value offerings,
positionings, and timing. Implementation however translates these decisions into

15
detailed and integrated marketing tactics as well as taking relevant measures and
resource deployments.

Additionally, Mircea (2022) suggests that there is an increased interest from

companies in using Instagram and TikTok in their marketing strategies. Multiple
benefits have been detected with using social media for marketing, such as
increased brand awareness, improved brand image through targeted videos and
audio content, as well as the opportunity to reach the target audience both faster
and in a more cost-effective manner than traditional advertising approaches
(Mircea, 2022). When deciding to integrate social media into a company's
marketing strategy, there are various approaches to consider, including content
marketing, viral marketing, and paid advertising.

2.5.1. Content marketing

Content marketing is a rather new concept which has grown along with marketing
shifting from being internet based to instead increasing its presence on social
media platforms. Social media are enabling companies to tailor their message and
are making it possible to reach a specific target group. This type of strategy was
not previously possible within marketing but due to the new technologies and the
digitalization is it the new standard today (Du Plessis, 2017). Content marketing is
referred to as a strategic way of marketing where quality, relevance and continuity
is appealing and engaging a specific target group (Adams, 2015). Along with this,
the focus also lays on the distribution being purely digital, which is a prerequisite
for it to be content marketing (Du Plessis, 2017). Adams (2015) explains that
content marketing often appears on social media, blogs and on different webpages
and that it is a natural way of building relationships with customers and increasing
the chances of a purchase taking place. Content marketing is a valuable tool in
reaching a high level of awareness since it for example increases audience
engagement (Genoveva, 2022). Because of this, it is of importance that marketers
are able to create a market plan that engages users for it to contribute to brand
awareness while also being valuable for the customers (Genoveva, 2022). In order
to reach the desired target audience, the marketing has to be published on the
platforms where these consumers spend most of their time online (Du Plessis,
2017). In line, Ansari et al. (2019) has established that content marketing is the
technique within marketing on TikTok that has the highest influence on
Generation Z.

Research has established that short-format videos are more effective in digital
media today, compared to longer format (Liu et al., 2018). It is suggested that
marketers should produce shorter clips to create engagement and attract
consumers. Liu et al. (2018) convey that the main reason for short format

16
becoming more popular is that consumers' patience has decreased. Because of
this, TikTok is a preferable tool for creating engagement due to its concept being
short format videos (Guarda et al., 2021).

Du Plessis (2017) explains that quality and ability to create engagement is of

importance for companies who use content marketing. Additionally, a study by
Hutchins and Rodriguez (2018) found that using emotions in content marketing
can result in both competitive advantage and increased brand awareness.
However, Ansari et al. (2019) argue that content marketing is more focused on
brands sharing valuable information frequently in order to gain market share and
thereby achieve positive response. The same study found that content marketing
contributes to increased awareness of a brand which then consequently
encourages consumers to purchase a product. It was also found that 63,5 % of the
brand awareness amongst SMEs was determined by content marketing. Because
of this, SMEs are suggested to create content which is attractive, consistent and
involves user participation (Ansari et al., 2019).

2.5.2. Viral marketing

Along with the presence on social platforms increasing, several new
phenomenon’s have emerged. It is becoming more essential to understand how the
dissemination of information between users occurs on these platforms, in order to
succeed with a campaign or to be able to reach many people with a message
(Bhattacharya et al., 2019). Viral marketing is a concept that can be described as
content who have the ability to spread from one individual to another, similar to a
virus. Viral marketing is a result of the features on social platforms which makes
it possible to share the content both on one specific medium but also between
different platforms. This enables companies to spread a message globally
overnight (Bhattacharya et al., 2019). This opportunity has previously not been
possible. Sometimes this viral content is carefully planned with a clear strategy
but there are also cases where the phenomenon is purely a coincidence
(Bhattacharya et al., 2019). Viral marketing is by nature uncontrollable, but there
are two main strategies which can be used by companies. Companies can choose
to show their relationship to the material they have produced and thereby make it
clear that it is advertisement, but it is also possible to initially hide their
involvement to instead make it visible later (Gulati et al., 2022). There is however
a risk with the last tactic, which is the potential of the consumer feeling betrayed
or deceived. However, regardless of which strategy is being used, the sender
should avoid too high frequency of posts, in order to prevent that the content is
being perceived as spam. Among many advantages of viral marketing, one main
benefit is the low costs in relation to the reach that can be achieved (Bhattacharya
et al., 2019).

17
Viral marketing is an effective tool, but it does also involve some risks. Yuqing et
al. (2019) claims that viral content which is published without the ability from the
sender to control the spread, can lead to great damage for a company's brand. The
reason for this is that the content reaches audiences that do not belong to the
intended target group and who potentially could view both the content and the
brand negatively (Yuqing et al., 2019). Additionally, it is also stated that there is a
higher possibility that a campaign becomes successful if the content is created in a
way that attracts the intended target group, meaning already existing- and
potential customers (Gulati et al., 2022).

2.5.3. Paid advertising

At the same time as social media are providing marketers an attractive way to
reach consumers for free, paid advertising is also increasing on these social
platforms (Noguti & Waller, 2020). There are several different types of paid
advertising on social media, such as pop-ups, banner advertising, sponsored ads
and native advertising (Noguti & Waller, 2020). Today, most paid advertising is
identified as ‘sponsored content’ but this is not always beneficial for the brand in
question. Noguti and Waller (2020) state that 98% of the respondents in a study
expressed that they believed that there is an excessive amount of branded content
displayed on their social media platforms. To avoid this, marketers could benefit
from instead using a native advertising format. Native advertising can be
explained as content that is adapted to the platform it is published on, it is adapted
in a way that makes it seamlessly fits into the natural environment of the platform
(Noguti & Waller, 2020). Paid ads in social media that are displayed on the
newsfeed could be considered as a type of native advertising, since it emerges in a
similar format to the one used on the specific platform (Lee et al., 2016).

Additionally, TikTok is one of many social platforms that are providing several
alternatives and payment models for marketers to choose between for advertising.
These include cost per click, cost per thousand impressions and cost per view
occasion (Guarda et al., 2021). Along with this, TikTok are also offering a
number of advertising alternatives which a marketer can choose to purchase.
These include biddable ads, brand takeover, hashtag challenge and branded lenses
(Guarda et al., 2021). Biddable ads could be considered native advertising since
these are visible on the user’s feed. Brand takeover appears as the first thing the
user sees when opening the application, this ad covers the whole screen of the
used device. Hashtag challenge is an option which could be both promoted
organically and through influencers, it is simple and effective and involves
challenging users to upload content using the chosen hashtag. Lastly, branded
lenses are a type of sponsored filter and are much alike to those on Snapchat and
Instagram (Guarda et al., 2021).

18
3. Method
In this chapter the various approaches used in the implementation of the study
will be presented. The chapter begins with the motivation of the research strategy,
approach and sample choice. Thereafter, the data collection process is explained
along with the data analyzing process. Lastly are the quality of the research
reviewed as well as a demonstration of the ethical considerations.

3.1. Research strategy

This study used a qualitative research method since it was considered most
appropriate for the chosen research question. Denscombe (2018) explains that a
qualitative study is useful when feelings, opinions and experiences are being
studied, which makes it suitable for this study. Additionally, a qualitative research
method is appropriate when the research is of small-scale and where the purpose
is to gain a deeper understanding of the chosen concept, instead of a more
generalized result (David & Sutton, 2016). The purpose of this study was to
understand how SMEs are currently using TikTok to market themselves and how
it potentially could be improved. In order to gain a deeper understanding of how
SMEs operate on TikTok, this study focused on a limited number of companies,
which is typical for qualitative research (Denscombe, 2018). David and Sutton
(2016) explain that a qualitative study provides a more detailed and nuanced
interpretation on the chosen research field, this since the respondents get the
opportunity to give more detailed answers.

According to Denscombe (2018), qualitative research is beneficial in creating a

holistic perspective of the chosen research field since it provides an understanding
of reality with a wide spectrum of factors from different individuals. This study is
based on a research gap and the goal is to reduce this gap by providing new theory
to the research field. In line, David and Sutton (2016) explains that a qualitative
study is associated with creating new theories.

3.2. Research approach

This study has used an abductive research approach, which enabled the use of
both theoretical and empirical data (Alvesson & Sköldberg, 2017). According to
David and Sutton (2016), having prior knowledge is of importance before the
collection of data begins. Therefore, it was considered necessary to seek relevant
information about the chosen topic by reviewing previous research, followed by
collection of empirical data to be able to answer the research question. Alvesson
and Sköldberg (2017) suggest that theoretical knowledge can contribute to a more
nuanced interpretation of the empirical data. Thereby, a abductive approach was

19
opted to facilitate a deeper understanding of how SMEs are utilizing TikTok for
marketing purposes.

3.3. Sample choice

Since the aim of this study was to understand how SMEs use TikTok in marketing
purposes to enhance their business, a specific sample was necessary in order to
achieve the best possible outcome of the study. The research population was
limited to micro, small- and medium sized companies from a B2C context in
Sweden, which are operating on TikTok. With research population means that the
researcher chooses individuals or companies that are considered to have relevant
knowledge and experience for the study, and that can contribute with valuable
data (Denscombe, 2018). Micro, small and medium sized companies were chosen
since the term SME consists of these three types of companies according to the
European Commission (2003). Companies with less than ten employees and a
yearly revenue of less than two million EUR were labeled as mikro-firms. Those
with less than 50 employees and a yearly revenue of less than ten million EUR
were labeled as small-sized firms. Companies with less than 250 employees and a
yearly revenue of less than 43 million EUR were labeled as middle-sized firms
(European Commission, 2003). A number of companies from each of these
categories were chosen to represent the collective term SMEs. Choosing a smaller
number of respondents from the whole research population are according to
Denscombe (2018) referred to as a sample.

In this study, an explorative sample was used, which according to Denscombe

(2018) also is connected to a qualitative research method. This method is common
when the goal is to reach new theories and ideas (Denscombe, 2018). An
explorative sample is also useful when a research field is relatively unexplored
and in need of new theories and understandings (Denscombe,
2018). Additionally, the sample of this study was a nonprobability sample. In a
nonprobability sample, the researcher decides who will be included in the chosen
sample. By choosing a nonprobability sample when using an explorative sample,
the respondents can be chosen according to their knowledge and experience
(Denscombe, 2018). In this specific study, the companies were chosen based on
their yearly avenue, amount of employees and their presence on the platform
TikTok.

The goal was to reach around ten respondents for the study, this since Ekengren
and Hinnfors (2012) stated that this is the amount necessary to achieve theoretical
saturation. This did in turn mean that approximately ten companies were required
to assure that more respondents would not add any new perspectives that would
mean a significant difference for the study. Additionally, the sample size was

20
thereby not determined beforehand, but instead dependent on the amount of
information and knowledge received from the respondents. Denscombe (2018)
explains that this strategy is a cumulative approach, where the sample size is
determined once the aim of the study is considered fulfilled. To maintain the
anonymity of the respondents, each has been assigned a number which they are
identified as instead of their real name (see Table 1). The table also presents the
respondents professional title, length of experience within digital marketing, the
company's turnover of 2022 and number of employees.

Table 1: Presentation of respondents

Respondent Profession Experience of Turnover Employees
digital (SEK)
marketing

R1 Content creator 1 year 471 million 247

R2 Feature and- social 10 years 170 million 75

media manager

R3 Head of young 18 years 150 million 65

editorial

R4 Content creator 1 year 145 million 37

R5 Communicator 4 years 17 million 5

R6 Co-owner 5 years 2 million 3

R7 Co-owner 6 years 2 million 2

R8 Business owner 4 years <2 million 1

R9 Co-owner 6 years 300 000 2

R10 Business owner 6 years 35 000 1

R11 Digital marketer 2 years 15 000 3

3.4. Data collection

The chosen data collection method for this study was interviews, as it was deemed
the most appropriate approach for gaining insights into how SMEs are currently
utilizing TikTok as a marketing tool. Denscombe (2018) clarifies that interviews
are appropriate to adopt when complex phenomena such as privileged
information, opinions and experiences are being studied, which made it suitable
for this study. In order to gain in-depth answers, semi-structured interviews have
been conducted since it enabled the respondents to elaborate their answers

21
(Denscombe, 2018). Semi-structured interviews consist of a combination of
structured- and unstructured interviews and enable detailed answers while
simultaneously following the structure of an interview guide (Denscombe, 2018).
By being open to the respondents developing their own reflections, they had the
opportunity to share their own reflections and experiences and thereby contribute
to the interview gaining more of a depth.

3.4.1. Interview guide

Prior to conducting the interviews, an interview guide was created (see Appendix
1) which was constructed based on the theory chapter. David and Sutton (2016)
explain that an interview guide is of advantage to use since it simplifies the
interview process for the researcher by for example making him or her more
aware of the central themes. Additionally, an interview guide can also facilitate
the goal to meet the purpose of the study since the prepared questions are
connected to the subject (Bryman & Bell, 2017). The format of the interview
guide has been based on recommendations by Denscombes (2018) on how a
researcher conducts an appropriate interview. Denscombe (2018) declare that the
structure of the interview is crucial in achieving insightful answers from the
respondents. The first section of the interview guide covered questions concerning
the respondents profession as well as some brief information about the company.
In the remaining part of the interview guide were open questions used in
combination with follow-up questions in order to give the respondent the
opportunity to give more developed and deeper answers. Bryman and Bell (2017)
state that the use of open questions enables the respondents to answer freely and
to give complete answers based on their knowledge and experience.

3.4.2. Conducting the interviews

The interviews were conducted personally with each of the respondents through
the video communication platform “Zoom”. Denscombe (2018) explains that
personal interviews means that the researcher conducts a one-on-one interview
with each of the respondents. The reason behind using personal interviews is
based on several advantages. For once it makes it easier to organize since the
interviewer only has to adapt to one respondent's schedule, and secondly it's also
easier for the researcher to collect different opinions and viewpoints since only
one respondent's thoughts and experiences need to be taken into account at once
(Denscombe, 2018).

Internet based interviews were chosen since it made it possible to efficiently

communicate with people from other geographical areas than the one where the
researcher was located. Additionally, Denscombe (2018) also states that internet-

22
based interviews are both time and cost efficient which was valuable in this small-
scale study, since it made it possible to conduct as many interviews as possible in
the relatively short timespan, while also contributing to a more geographical
spread.

Further, audio recording was used when conducting each of the interviews, which
Saunders et al. (2019) explain is appropriate to use since it gives a permanent and
almost complete documentation of what is conveyed between researcher and
respondent.

3.5. Data analysis

In the following section, a description of the chosen methods and approaches used
to analyze the collected data will be presented.

3.5.1. Transcribing
After the interviews, a transcription process was conducted in order to facilitate
the data analysis and provide a more comprehensive understanding of the
gathered information. After each of the interviews, the transcription process
began. The reason for transcribing the data directly after the interviews was
because it was easier to memorize different impressions that were obtained during
the interview. Denscombe (2018) explains that transcription of interviews is
necessary to make it easier to compare and observe the data, but it is also
simplifying the analyzing process when the data has been transcribed beforehand.
Additionally, David and Sutton (2016) suggest that the transcription process is not
solely used to simplify the data analysis, but also an essential part of it. Through
the process of transcribing the data, connections and common themes can be
identified, which in turn leads to a more detailed and insightful analysis.

3.5.2. Coding
After completing the transcription process, the following step was to code the
data. Denscombe (2018) explains that the coding process consists of coding and
categorizing the data. The type of coding used to analyze the data in this study is
called inductive doing, which means that the coding is completed after the
collection of data (David & Sutton, 2016). Since the coding was completed
continuously during the transcription process, it was necessary to reformulate the
coding several times during the process. The initial stage of the inductive coding
process was open coding, as described by David and Sutton (2016). In this stage,
the initial codes were identified based on the data’s descriptive characteristics. For
instance, codes related to the content SMEs posted on TikTok were identified in
this stage, such as humoristic and personal. Thereafter, axial coding was

23
implemented to be able to identify key components, by placing the codes under
broader categories. For example, the codes connected to type of content were
grouped under TikTok characteristics. Lastly, selective coding was completed
where the core codes were developed based on the previous composed categories.
Here the most important codes related to the research question were identified,
such as the tensions SMEs faced when using TikTok as a marketing tool.

3.6. Quality of method

In this section, the quality of the chosen method will be described. The quality will
be based on credibility, dependability, transferability and confirmability.
According to Korstjens and Moser (2018) these four criterias are the most
common when analyzing the quality of qualitative research.

3.6.1. Credibility
Credibility covers to which extent the results from the qualitative research can be
perceived as trustworthy (Denscombe, 2018). To ensure that credibility has been
achieved in this study, a few considerations have been taken into account in order
to achieve a trustworthy result. One method which has been used is respondent
validation, which means that the respondents have the opportunity to approve if
the collected data has been understood correctly or if it needs to be changed in the
transcription (Bryman & Bell, 2017). After each interview, a copy of the
transcription material has been sent out to all respondents. All of the respondents
approved of the transcripted material, and no respondent decided to change their
answer, which thereby increased the credibility of the study.

3.6.2. Dependability
According to Denscombe (2018), the researcher's identity, values and beliefs are
essential in qualitative research, specifically if interviews have been conducted.
Dependability measures whether the result would be the same if different
researchers conduct the same study (Korstjens & Moser, 2018). This criteria can
be hard to assure, but it can be considered by clearly showing the different stages
and choices that have been made throughout the research, to make it possible for
other researchers to assess these (Bryman & Bell, 2017). Another tactic to
increase the dependability of the study was to be open towards supervisor and
seminar members during the process of the thesis.

3.6.3. Transferability
Since qualitative research often has a quite small sample, it is a common
discussion whether it is possible to transfer the results from the study to other

24
settings and studies (Denscombe, 2018). Small-scale projects often result in
inadequate and limited transferability, since the number of respondents is quite
low and because the purpose is to achieve a depth rather than width (Bryman &
Bell, 2017). This is the case for the study in this research, with the sample being
relatively low since the research is small-scale, along with the respondents having
different lengths of experience within digital marketing. This does in turn limit the
transferability of this study. All respondents are however B2C companies which
are active on TikTok and operate for marketing purposes which could increase the
transferability. With a sufficient amount of data within the units being studied,
there is a possibility that the result can be applied in studies similar to this
research (Denscombe, 2018).

3.6.4. Confirmability
Confirmability is about the extent to which the research is unaffected by the
researcher (Korstjens & Moser, 2018). Qualitative data always consist of some
type of interpretation process which in turn means that it at all times is somewhat
affected by the researcher. The confirmability of qualitative research could
therefore be questioned (Denscombe, 2018). Because of this it is of importance
that the researcher attempts to assure that the interviews are conducted in a way
where theoretical insights and own values do not affect the interview process
(Bryman & Bell, 2017). This has been considered during the interviews in this
study by preparing an interview guide beforehand where the questions have been
constructed with a neutral approach. Following, the supervisor also got access to
this interview guide to provide an even more unbiased view of the questions.
Additionally, confirmability was also considered during the interviews by having
focus on giving the same conditions to all respondents, by asking the same main
questions and in the same manner as all the interviews.

3.7. Ethical considerations

Denscombe (2018) explains that it is of importance that ethics are considered in

research, and that there are four main principles which the researcher should take
into account. All these principles have been considered during the research
process of this thesis. The first principle about the protection of the respondents
and their interests has been taken into account by treating all information provided
by the respondents with confidentiality, as well as allowing all respondents to be
anonymous when presented in the thesis. The second principle about informed
consent has been assured by providing the respondents with information regarding
the study and its purpose along with the rights that the participants have. The third
principle about the researchers' openness and clarity about their work has been
considered by sending out information about the study beforehand, but also by

25
including a short introduction in the beginning of each of the interviews. By doing
this, an open and honest approach was achieved. The fourth principle about
following national legalization was fulfilled by considering the data protection act
in the study. Thus, the data has been collected in a legitimate manner, as well as
stored securely. Additionally, has the data only been available for the researcher,
to prevent dissemination of personal data.

26
4. Empirical results
In this chapter, the findings that have emerged during the interviews will be
presented. The information has been analyzed and coded to find relevant themes
which are highlighted in this chapter.

Figure 1: Visual of themes

In the figure above, a visual presentation of the different themes and subcategories
identified are displayed. This figure can be perceived as a summary of the
conducted analysis, which also lay as the basis for the structure of this empirical
chapter. To further corroborate the emerging themes, additional quotes and data
points have been included in Appendix 2.

4.1. TikTok characteristics

From each of the conducted interviews, a number of characteristics for how the
respondents perceived TikTok were distinguished. The main characteristics
identified, which either were expressed directly or indirectly were the personal
and informal content on the platform, the short format of the videos as well as the
younger target group on the platform.

4.1.1. Personal and informal content

Each of the respondents are in different ways expressing that TikTok is more
personal content wise, along with being less strict and formal than other platforms
they are operating on. Several of the respondents mention that they are much more
unfiltered on TikTok and that they do not deliberate as much on the content they

27
publish on this platform. Furthermore, most of the respondents highlight the
importance of being more relaxed, informal and “fun” when using TikTok.

TikTok is something we started doing when I started working here and we don't
really have a strategy for TikTok, it's just to showcase ourselves without any kind
of filter. On this platform we don't have to focus on sales, we don't have to focus
on our products, we can focus on the company itself and all the characters we
are. (R5)

When I started working with TikTok I kind of thought like, here you have to be
genuine. You kind of want to see back in the scenes, it's supposed to be pretty
raw material, as how TikTok works. And I sort of started to work a little based
on that and show more clips like “now I'm in my studio” and “come with me for
a day” or such. (R8)

It is also implied to be a pattern between this personalized content and gaining

more views and succeeding with a video. The respondents explain that the type of
content that usually becomes the most successful are those that are more personal,
interactive and where the recognition factor is high.

They feel more involved in my content. Because otherwise if I just post a video
of when I make the product, they don't know why I make them and who I make
them for, but if I make a packaging video, they can recognize “it looks like my
order" and then another one usually comment "can you pack mine" and then
their order number and then I make a new video packing that one. (R10)

What we've felt all along is that when you integrate with the camera, that is, talk,
really talk to the camera or to the person behind the camera, eh then it usually
goes better. (R9)

Additionally, a vast majority of the respondents are in agreement that content that
is more impersonal usually does not become as successful. Content that is not
contributing with anything more than a visually pleasing video with well editing
usually gains fewer views. When there is an absence of a clear idea or personal
touch behind the video, it usually tends to be less successful compared to those
that have a more personal and well-defined concept behind them.

Sometimes you may have filmed something without thinking, just filming various
garments and a nice video but afterwards you may realize yourself that you are
not really creating any value, like why should someone even look at that. (R9)

We published a video, it was a great video, but it didn't capture the audience at
all. It fell flat and I'm not really surprised. It was a nice movie, simply put. It was
a good message, but you have to have something more that gets people hooked.
There was no focus on any particular person, you didn't get close to any people,
there were mixed people. People laughed in the movie, it was a nice clip, but it
doesn't engage. (R2)

28
 4.1.2. Short format
Further, the typical short and rapid format on TikTok is something that was
detected as a clear characteristic for the platform based on the respondents'
answers. The respondents explain that the rapid pace on TikTok and the ability to
create interest immediately is one of the most dominant differences between
TikTok and the other platforms they are using.

There is a huge difference. It's the speed on TikTok, the way you express
yourself, that things have to happen quickly in a completely different way than
on the other two. That's probably the biggest thing. (R3)

Exactly, but on TikTok, it's a completely different case and you must be a lot
more rapid on TikTok too. You can't speak too slowly, you cannot begin with a
long description. You have to start with something that captures, since you have
half a second to create interest. (R1)

One respondent explains that more traditional media often requires that you build
the mood, that you have something in the beginning of the video that creates the
interest slowly, but on TikTok it is the complete opposite. The respondent
highlighted an example of when the company advertised themselves on TV.

When we work with TV, in ordinary cases, we might want to build up a

dramaturgical start, but that doesn't work on TikTok, it has to start immediately.
(R3)

4.1.3. Young audience

Another clear characteristic for TikTok is the young audience which is present on
the platform. When asking the respondents what age group amongst their viewers
that is dominant on TikTok, the respondents expressed that a majority are quite
young. Additionally, a vast majority of the respondents express that their
followers on TikTok are younger than on their remaining platforms.

On TikTok I have a much younger target group than remaining platforms and...
Yes, so I think it's a good complement as well. (R8)

I have a lot of children, teenagers and girls who have just moved from home. I
don't think I have that many older ones, more teenagers or young adults. (R10)

The age range included in this group of people referred to as ‘young’ appears to
vary among different respondents, but generally includes children around the age
of 12 up to individuals in their thirties.

Between 18 and 24. I think it's much younger too, but you can't have TikTok if
you're under 18. So that target group can't really be localized. But if I were to
guess, I absolutely believe it is already from maybe 12. (R6)

29
 You get older and older on the channel. People think that only 13-year-olds are
there and there are a lot of 13-year-olds but 25-35 is also a huge target group on
the platform. (R4)

It is also stated by several respondents that the young target group is one of the
intentions behind creating an account on the platform. Besides increasing sales
and brand awareness in general, it is indicated that one main reason for why
almost all of the companies have chosen to operate on TikTok is to reach the
younger target group.

But then we also use it as a way to reach the younger target group. (R3)

So, it's mainly the target group, I would say. We feel that the audience on TikTok
is so much younger, we can reach a group that we wouldn't otherwise reach. (R1)

4.2. The intentions for operating on TikTok

From the gathered data from each of the respondents it was detected that TikTok
was used for different purposes. The different purposes identified were sale
purposes, the high reach on the platform and the interaction opportunities.

4.2.1. Sale purposes

A number of the respondents stated that they use TikTok for sales purposes. It is
explained that a few respondents show their products and publish content on
TikTok to increase their sales. There were however only two respondents which
stated that sales were their main purpose for using TikTok.

TikTok can be more to promote us to people and to sell. Then people have the
opportunity to bid, for example, in the comment section or go to our Instagram
and bid there. But mostly to market to the people. Because they become
interested and buy our product. (R11)

[…] We work with TikTok as a revenue channel, you could say. So it is partly to
brand us and of course come out and show us but mainly to sell our services.
(R6)

Although a few respondents acknowledged using TikTok to sell their products or

services, it was not the primary motivation for the majority. A number of
respondents did instead emphasize TikTok's ability to increase brand awareness,
which indirectly could lead to higher sales. However, most respondents joined the
platform for other reasons than direct sales.

30
 4.2.2. High reach
Another occurring reason for using TikTok amongst the respondents was the
opportunity to reach a large audience. A significant number of the respondents
mention that TikTok is making it possible for them to reach out to many people
all over Sweden, but also international audiences. Two of the respondents explain
that they have experienced that it is easier to reach a larger audience on TikTok
compared to the competing platform Instagram.

Yes, most of it is to reach out, because it is so easy to, or easier, not that easy,
but easier to reach out to the crowd, on the for you page, compared to Instagram
where you almost only reach those who follow you. (R9)

We mostly get our customers from TikTok. We don't get them from Instagram.
After all, we gained them from TikTok, you get a lot of views there immediately.
We put up our other video and got like 140,000 views. That was the one who
helped us the most. We got a good start and several customers from different
cities and such. Even people from abroad. (R11)

Most of the respondents are in agreement that TikTok is beneficial in reaching a

large number of people but the question of whether all these views actually are
potential consumers were also discussed.

On TikTok, you can get as much reach as possible. But we are really primarily
interested in the local reach, in the long term. We think a lot about local reach.
It's very fun, it's fun with a lot of views, but what does it really mean to us? (R2)

Exactly, TikTok has the opportunity to hit far and wide on a very good level. But
what we offer is more targeted advertising, and there are other platforms still
better. (R7)

4.2.3. Interaction
A majority of the respondents also expressed the importance of interaction on
TikTok. Almost all of the companies stated that they either used TikTok to engage
with users or to gain ideas and increase brand awareness. It is mentioned that it is
important to keep the comment section alive and to frequently look over and
answer the comments. Many of the respondents find the interaction with the users
valuable since they gain feedback on how to improve their product or services as
well as generating new ideas and suggestions. The interaction with users is
achieved by asking open questions and being active in the comment section.

TikTok is a lot of fun because people interact a lot. This is what the platform is
somewhat known for. People like, comment, share. There will be a lot of
commitment, and you want to take advantage of that. Of course we try to do
that. (R4)

31
 I think it's fun when they comment on things, so I get feedback too. Of course,
I also want to sell, but I also want to improve the company. (R10)

While most respondents expressed that they believed that TikTok was a much
interactive and personal platform, one respondent mentioned the complete
opposite. This respondent stated that TikTok had much less interaction than
Instagram that she used more frequently. It was explained that TikTok brought
more one-time users while those on Instagram were more loyal, recurring and
interactive.

And then there's... You can't be the same, there's no interaction in the same way
with TikTok. So that's why I think that Instagram is a complement because there
I can still discuss and talk with my followers. Because on TikTok, you know that
you don't have the same kind of conversation. The interaction with the viewers
does not become personal at all. It becomes very impersonal because they just
look, comment and then continue to scroll. (R8)

4.3. Tensions surrounding the strategic use of TikTok

Based on the interviews conducted, a tension has been detected between the
expectations of the respondents regarding TikTok and the actual level of effort,
knowledge and strategy that the platform requires. It is inclined that a majority of
the respondents find it challenging to operate on the platform and constantly face
obstacles due to its complexity.

4.3.1. Tensions between experimenting with- and intentionally

using TikTok
A majority of the respondents expressed that they were new to the platform, and
that they are currently in the testing phase. As one respondent stated: "We can
start by saying that we are very new to TikTok. The account was created quite a
while ago, but we didn't start publishing until November last year. So we are
pretty much in the testing stage" (R1). It is suggested that these companies may be
uncertain about how to effectively leverage the platform to achieve their
marketing goals.

Additionally, there is a tension between the respondents desire to be present on

TikTok, due to the platform's growing popularity, and their lack of knowledge and
strategy for efficiently operating on the platform, a tension regarding their
strategic approach on TikTok. Several respondents expressed that they are not
currently using TikTok as their primary marketing channel and are not investing
as many resources into the platform as they are on their remaining platforms, as
one respondent stated:

32
 TikTok is not my primary channel, but Instagram is what I really focus on the
most. But then, like recently, I have understood that TikTok... Or it's a fact that
TikTok is growing and is the biggest channel, and therefore I felt that I had to
be there to attract that target group to my Instagram as well. (R8)

Thereby, there appears to be a tension between the respondents' use of TikTok as

a marketing tool and their prioritization of other social media platforms. While the
companies are recognizing the importance of having a presence on TikTok, they
might be uncertain about how to effectively incorporate it into their social media
marketing strategies.

TikTok is something we created when I started working there and we don't really
have a strategy for TikTok [...] It kind of doesn't have a real purpose like LinkedIn
or Instagram have. It's an extra format we have that we think gives us a lot. (R5)

We haven't been doing it for that long. It actually started with us creating our
brand there, it felt important to be there and have a place. We should spend more
time selling our content on social channels than we are doing today, which we
don't really have time for, and TikTok is probably what's coming… (R2)

Overall, the findings suggest that the respondents are struggling with how to
effectively integrate TikTok into their marketing strategy while also being
uncertain about the extent to which they should prioritize TikTok as a marketing
channel.

4.3.2. Tension between cost and profit

It was discovered that a majority of the respondents used organic content to
market their brand while only a few also used paid advertising. A few of the
respondents have tried paid advertising but almost all are in agreement that it is
too expensive. “If you're going to test an ad and it costs 1 000 SEK and 5 000 in a
week, that's quite a lot of money in our phase... but absolutely, what works, works
of course but on Facebook and Instagram you can test with a much lower budget”
(R9). The same respondent does however also state that although it is more
expensive to use paid advertising on TikTok compared to other platforms, you
also get more back in return. “Yes, it is more expensive in terms of money to invest
if you say so, but then you get all the more in return, the result is usually better
there with clicks and such on TikTok” (R9).

This tension between the high costs of advertising on TikTok and the profit it
results in if completed successfully appears to be recurring for several
respondents. A majority of the respondents have however decided to not use paid
advertising on TikTok considering it is too expensive, especially since it is hard to
determine what type of video that will gain traction on the platform.

33
 Communication is definitely a challenge. And should one then invest money in
communication and buy space in the feed, then you also want it to be something
really good. What I told you before, that campaign, there we bought space for
that film. It didn't help one bit, I can say, it really was a mistake. (R2)

Another respondent similarly explained that they have decided to not use paid
advertising in terms of marketing a campaign due to it being too expensive in
relation to the profit, this since they have determined that the target group on
TikTok do not have enough purchasing power. However, the respondent states
that they most likely will promote organic content in the future, but they will not
use any pure paid advertising due to the costs.

We can, of course... Boost or sponsor, like pay to promote posts that are already
being made, so organic content. We have started talking about doing that and we
will certainly try that. When it comes to... running pure advertising, like marketing
a campaign... We see some difficulties there, because we use TikTok to reach
younger target groups and we have decided that they are not particularly strong
in purchasing power. So that… we've felt that given the cost of TikTok
advertising that… it's not really profitable. (R1)

There were however a few participants who reported using paid advertising on
TikTok, and they found it to be successful. One participant stated that while they
primarily use organic content to promote their brand on TikTok, they also invest
in paid advertising to expand their reach.

I would say the majority of the material we create is organic, but we boost it and
do spark ads to spread it. It's more because we want as many people as possible
to see it than anything else. (R4)

4.3.3. Tension between expected resources and actual resources

The responses varied a lot when asked if they perceived TikTok as a platform that
required less resources for a firm their size compared to both traditional media but
also to other social media platforms. A few of the respondents did however state
that a clear benefit with TikTok is the opportunity you have to reach a large
audience if you for example manage to make a video go viral, without actually
having to pay anything for it.

Yes, it costs nothing to post a TikTok. You can promote it if you want, but you
don't have to because it's very easy to reach out and everyone can get a video that
goes viral too. (R10)

However, the same respondent also explained that it also requires some
experience and strategy to be able to make a video go more viral. “It depends a lot
on one's own abilities and what one knows about marketing beforehand. Those

34
who don't know that and don't have much of a strategy behind their videos, may
not reach as many people, you need to know which hashtags to use and so on, and
then it can go well” (R10).

As stated in the previous section, a majority of the respondents expressed that

TikTok is more expensive than other platforms when considering paid
advertising. One respondent stated the following: “The paid ads, we feel that it
costs a lot more with TikTok. Uh… Period. It is very expensive compared to other
channels” (R1). Although the same respondents also explain that producing
organic content varies more, that sometimes it is very profitable compared to the
effort but sometimes it is not. The respondent highlighted an example of a video
that reached over 500 000 views, where the effort of producing the video was very
low from her side but it gave a lot of dividends in return. The respondent does
however also explain that this is not always the case.

But sometimes you do similar things and there is no dividend at all. Sometimes
you do things that have required much more and it does not give great results.
So that... I don't know, I haven't quite found the formula for that. (R5)

Several respondents also express that TikTok takes less resources in regards to
time and effort due to it being an easy platform to work with, along with the
content not requiring very much effort either for it to become TikTok material.

It doesn't really take much effort, that's the thing, what you have to remember is
to remember that "oh now I have to film" kind of like that, it doesn't take a lot
for it to be good material. (R6)

It's an easy way to reach out and I also think TikTok itself as an app is very easy
to work with, in terms of editing as well. (R8)

There appears to be a tension between the effort required to succeed with a video
and the expected effort. Although many respondents express that a video on
TikTok has the ability to go viral and reach a large audience without any larger
effort, it is also revealed that the respondents find it hard to determine which
video will succeed beforehand. A vast majority of the respondents did one way or
another incline that they perceived TikTok as unpredictable and that it in general
was hard to have a clear strategy on the platform. Many of the respondents stated
that it is hard to calculate which videos will go well and which will not succeed at
all. Several respondents touch on the fact that a video which has much more effort
behind it can fail completely while one with no thought behind it at all goes viral.

There's no guarantee what will go well, I think it's a bit too fragmented. You can
sit and edit a video all day and think it's great, record and then it gets 300 views
[...] there's another video where there was no editing or anything planned or
nothing, so it was a bit sad when that went so well. (R9)

35
 It's quite interesting that way, because some clips that I feel like I haven't put any
energy into, suddenly get a lot of views and vice versa. (R8)

One respondent explained that the difficulties with actually succeeding on TikTok
is increasing due to the platform becoming more popular which thereby also leads
to a rising competition. To achieve many views and a high reach, you have to
create something that creates interest immediately for the viewer. It is indicated
that it is no longer as easy to succeed on TikTok as it was a few years ago.

It is very difficult to create material. There are more and more people on the
platform, and there are more people advertising. It is becoming more and more
of a competition for those views. It's not the same thing as it was a year or two
ago, back then you could get an enormous amount of views, kind of for no
reason. That part is a little different today, it's not that simple. (R4)

4.4. Risks and challenges with TikTok as a marketing tool

When the respondents were asked if they had perceived any specific risks or
challenges with using TikTok as a marketing tool, all of the respondents had at
least one challenge with the platform which they had encountered during the time
they had operated there. Besides the platform being unpredictable and difficult to
strategize as mentioned in the above section, the risks with data security and the
toxic environment on the platform were recurring during a vast majority of the
interviews.

4.4.1. Data security

Several respondents mention that data security issues are one of the dominant
risks with operating on TikTok. It is explained that the platform can be considered
uncertain, due to the ongoing debate about how TikTok are collecting data from
its users, with China also being a problematic country according to several
respondents. It is also stated that there is a risk that the platform will not exist in
the future due to all these ongoing debates and uncertainties.

Yes, it's actually a quite difficult platform, because all of this with China and all
what it means. Many may also want to ban TikTok, so it's a risk where you build
up a platform and then you might not be allowed to use TikTok soon, for
example. So you put a lot of energy into something that perhaps will disappear,
or something that you won't be able to use. (R6)

However, it is expressed by the respondents that they will have to partly ignore
these risks to be able to reach the younger target group. It is stated that you have
to be visible on TikTok to reach this target group because it is where they are
dominant.

36
 And then you can be even more crass and say that... if we want to reach the
younger people and build this relationship... Then we can't just hang out on
Instagram and Facebook. We have tried to reach them via the other channels and
it doesn't work. (R5)

I think it's amazing and it's great and fun, but you also put your business in the
hands of another company that we can't really control and that is the downside.
Right now, we have no alternative, you have to try to find the best of what is
available. (R3)

4.4.2. Toxic environment

Another recurring risk and challenges which were expressed by the respondents
were the toxic environment on the platform. It is explained that people have a
more abrasive language on TikTok compared to other platforms. Several
respondents mention that the reason for this could be that a majority of the users
on TikTok are anonymous, without their real name or profile picture.

The climate on TikTok is generally much harsher than what people would write
in a comment section on Instagram. Maybe because you are more anonymous,
you can sort of write whatever you want. (R8)

People are harsh on TikTok, and it's really far from the same thing on Instagram,
it's like, on Instagram people usually have their names too, on TikTok you can
be completely random. (R9)

A few respondents do however express that they do not perceive the toxic
environment on TikTok as a significant risk and explain that negative comments
will always exist and that it is something you have to adjust to.

No, we don't care. No matter what you do in life, there are always people who
are against you. We get negative comments sometimes, but we keep going. (R11)

I don't see any big risks. It depends on how strong you are in your mind. If
anyone questions my prices for example, then I know that my prices are logical.
They are not bad. And then I just answer back why it costs like... Why it can't be
cheaper right now. (R10)

37
5. Discussion
In this chapter, the results from the above section will be analyzed further. What
is above only an overview of the result will be further discussed in this section.
This will be conducted by connecting the empiric results to the theory chapter, in
order to be able to compare, understand and explain the given results.

5.1. TikTok as a marketing tool

From the empirical results a few common themes were detected when using
TikTok in marketing and business purposes. One of the most significant
observations was the personal and informal nature of the platform. The
respondents reported that content that featured individuals speaking directly to the
camera or other personal videos tended to receive more views and engagement.
This finding is consistent with the research of Hutchins and Rodriguez (2018),
who demonstrated that emotional content is particularly effective in capturing the
attention of social media users. By creating content that is personal and relatable,
businesses can trigger the emotions of their audience and foster a sense of
connection and engagement. On TikTok, the emphasis on personal content may
be particularly important, as the platform appears to be known for its informal and
humorous tone.

The short format on TikTok was also displayed to be a common theme in the
empirical results. To succeed on TikTok and gain views, businesses must capture
the users' interest immediately when their video starts playing. TikTok's short
format means that there is a limited amount of time to make an impression on
viewers, and businesses must create content that immediately captures their
attention. If the content fails to engage the audience within the first few seconds,
there is a significant risk that users will lose interest and scroll past the video. The
advantage of this short format is that it is time efficient both for the viewer and the
creator, as explained by Xu et al. (2019). Further, previous research by Liu et al.
(2018) has discovered that this short format is most effective in all digital media
today, which thereby makes TikTok a much more relevant tool. It is explained
that consumers' patience has decreased which thereby have led to a higher
popularity in these short-format videos (Liu et al., 2018). These findings are
consistent with the empirical results obtained, supporting the importance of
utilizing TikTok for marketing purposes.

The third theme detected when observing TikTok as a marketing tool, where the
younger target group of the platform. The empirical results demonstrate that the
audience on TikTok is generally younger compared to other popular social
platforms. It is also implied that this younger demographic is one of the main

38
reasons why the companies choose to operate on TikTok, as they are able to reach
and engage with a younger audience. The audience being younger on TikTok has
also been established in previous research. It has been declared that younger
people, or more specifically, that Generation Z is dominant on TikTok (Guadra et
al., 2021; Vaterlaus & Winter, 2021). Consequently, TikTok presents a valuable
marketing tool for those seeking to connect with a younger target group.

5.2. How are SMEs using TikTok?

The empirical results of the study suggest that one intention for using TikTok is
for selling purposes. However, the majority of the respondents did not prioritize
selling as their main reason for using the platform, as they emphasized other
benefits. Nonetheless, it could be argued that this factor might have been more
prominent if the number of respondents were higher, as two respondents did
mention it as their primary motive for the platform. Therefore, it can be
determined that selling purposes can be considered as one of the main intentions
for using TikTok in business purposes.

It was also discovered that the SMEs mainly were utilizing TikTok to reach a
larger audience and to interact and build relationships with the users. The findings
show that the respondents found TikTok to be a prominent platform in reaching a
broad audience, both nationally and internationally. However, the appeal of this
reach depended on the type of company. Those with a more local target group did
not find the reach as beneficial, as these users were unlikely to purchase their
products or services. Therefore, it is implied that TikTok is more suitable for
companies with less specific target groups, such as those who are focused on a
particular region and might find other platforms more appropriate for that specific
purpose. As Baquita et al. (2021) suggests, is TikTok a much appropriate platform
to use for SMEs who want to expand or introduce themselves to a new audience.
One respondent mentioned how TikTok have helped their small business grow,
with the majority of their customers coming from the platform. In summary, the
results indicate that TikTok can be an effective tool for SMEs to increase their
reach and build relationships with a broad audience, particularly for those with a
less specific target group.

As mentioned in the theory chapter, are Marolt et al. (2022) explaining that social
media are facilitating reaching more people while also having the opportunity to
interact and build relationships. It is also mentioned that these benefits have led to
more companies becoming present on different social platforms (Marolt et al.,
2022). This is consistent with the findings from the empirical chapter, where it is
understood that the main intentions for using TikTok is the large reach but also
the interaction opportunities the platform provides. Other previous research, such

39
as Dahl (2018) and Haenlein (2020) have also found that social media have
changed marketing, making it more interactive than before, which also is
displayed in the empirical findings since a vast majority of the respondents
express that they value and take advantage of TikTok’s interactive nature.

There was however one respondent who did not agree with TikTok being an
interactive platform, and instead found Instagram more beneficial in terms of
personal interaction. This view could be connected to the short attention span
people have on TikTok, as described by Liu et al. (2018). The benefits of content
marketing, which can create a high level of engagement if performed correctly, is
emphasized by Genoveva (2022). If the content is not sufficiently engaging, it
could potentially result in less personal interaction with the users, as expressed by
respondent 3. However, it should be noted that the remaining respondents found
the platform interactive, consistent with previous research which describes
TikTok as a platform with high engagement rates (Guarda et al., 2021).

5.3. TikTok and strategic tensions

TikTok is a platform that is constantly expanding, yet only 18% of businesses are
currently utilizing it for marketing purposes (Stelzner, 2022). In the empirical
findings a number of tensions, challenges and risks has been identified, which
potentially could be an underlying reason behind businesses hesitance against
TikTok. It appears to be a restraint of strategic planning even amongst those
companies that have chosen to operate on the platform. It was discovered that
many of the companies were new to the platform and have not developed a clear
market plan or strategy. This absence of a strategy could be considered
particularly concerning given the importance of engaging and delivering value to
the customer when creating content marketing, as highlighted by Genoveva
(2022). However, these results could also be considered predictable, as previous
research by Sikandar (2021) has established that SMEs often avoid a social media
presence in general due to a lack of knowledge on how to operate on these
platforms. This finding can be supported by the results of this study, as the
respondents showed hesitation towards using TikTok as a marketing tool and
putting effort into creating a strategy for the platform.

Moreover, limited resources among SMEs could be a potential reason for them
being restrained towards TikTok since it makes them more cautious about
potential risks. As noted by Juergensen et al. (2020), SMEs do not have the same
capacity to handle various risks due to these limited resources. Previous literature
does however argue that social media, including TikTok, tend to require less
financial resources than traditional marketing methods (Chaffey & Ellis-
Chadwick, 2019; Chen et al., 2021). This can however be discussed as the

40
empirical findings suggest that TikTok can be quite expensive and financially
demanding due to high costs of paid advertising compared to other commonly
used social media. Previous research by Noguti and Waller (2020) state that paid
advertising on social media is increasing, but the costs on TikTok appear to have
led to more companies relying on organic content rather than paid advertising on
this platform. The findings also revealed that those who did use paid advertising
tended to use it to boost already existing organic content, due to it often being
cheaper and more effective. This could potentially be connected to Genoveva
(2022) observation that TikTok is dominant in terms of content marketing,
compared to its competitors. In other words, posting relevant and engaging
content might be sufficient on this platform, and it may not be necessary to use
paid ads to get noticed.

TikTok is providing the opportunity to market a company at no cost through the

use of solely organic content, which according to several respondents was a
beneficial approach. However, generating high-quality content on TikTok is still
demanding in regards to time and effort. One recurring challenge from the
empirical results was the unpredictability of the platform. It appeared to be
difficult to understand the pattern of the platform, as the same type of video could
either perform well or struggle to gain attraction. This implies that success on the
platform can sometimes be achieved with minimal effort, while at other times it
may require significantly more effort. If a company manages to create a viral
video, it may require quite small efforts while the profit is significantly higher.
This could be especially advantageous for a SME with limited resources, although
it is of importance to note that viral success is not always guaranteed. According
to Bhattacharya et al. (2019), viral marketing has the potential to reach a large
audience in a short time, with minimal costs. This is consistent with the findings
of this study, which also established that a viral video could reach a large
audience without any additional costs or efforts. Bhattacharya et al. (2019) also
state that viral content is uncontrollable by its nature, yet it can at times be
carefully planned. However, the empirical findings indicate that the viral content
on TikTok is consistently unpredictable and difficult to plan, contradicting this
theory. Instead, these findings suggest that planning successful content on TikTok
is both complicated and challenging. From these findings a tension was revealed
between the expected- and actual resources required for SMEs to succeed on
TikTok. The viral nature of the platform resulted in expectation of achieving
success with minimal effort, which, although possible in certain occasions, where
proved challenging in reality. Understanding how to make a video go viral and to
achieve success is difficult, resulting in more effort and resources than initially
expected. This tension also extended to the balance between cost and profit. Costs
were significantly low if a video managed to go viral without any essential effort,

41
but they could also result in higher costs if a video that requires considerate effort
did not succeed. The potential for high profits in terms of reach and success made
the investments in paid advertising appear worthwhile, but it depended heavily on
the video's success, which was unpredictable, resulting in another strategic tension
on the platform.

In addition to TikTok being unpredictable, the findings also established two other
potential risks associated with using TikTok as a SME, which is data security and
the toxic environment on the platform. These risks could be contributing factors to
why several of the companies are hesitant to strategize themselves on the platform
or why they are not fully invested in the platform. However, regardless of these
concerns, the negative aspects of TikTok do not prevent the companies from
continuing to operate on the platform, but it may however affect to what extent
they are willing to invest in the platform. A number of respondents mentioned that
they are considering these risks, but that they have decided to be present on the
platform in order to reach the younger audience which are present mainly on
TikTok.

Given TikTok’s wide reach and reputation of viral content, some might assume
that small efforts are required to succeed on the platform, leading many
companies to simply maintain a presence and post videos without a
strategy. However, in reality it appears to be different, as achieving success on
the platform is not as easy as initially thought. The empirical findings suggest that
the companies have to learn how to understand TikTok and its nature and not only
rely on luck. As one respondent explained, TikTok has become more difficult to
understand due to the platform growing and the competition becoming stronger.
This could explain why many of the companies lack a strategy or plan for TikTok,
since it previously might not have been as necessary as it is today. According to
Gulati et al. (2022), a successful social media campaign requires content that
effectively targets the intended audience, which also is applied to TikTok.
Companies must develop a strategy and plan to create content that fits into
TikTok, and which will attract the users present there, potentially leading to more
viral content.

42
6. Conclusion
Here, the thesis will be summarized and its main conclusions will be highlighted,
along with the research question being answered. Limitations detected from the
study will also be mentioned to thereafter give suggestions for future research.

6.1. Answering the research question

The research question which this research aims to answer is the following: “How
are Swedish SMEs currently using TikTok as a marketing strategy in a B2C
context?”. The results from the study reveal that the chosen SMEs are having
quite similar intentions, techniques and challenges when currently operating on
TikTok.

The results established a number of main characteristics which have to be taken

into account by the SMEs when marketing themselves on TikTok, and one was
the young audience. The results indicate that no other platform provides the same
opportunity to reach what is referred to as ‘the young audience’, due to them
mainly being present on TikTok rather than other social media platforms. Not
only was the young target group a clear characteristic of TikTok but also a reason
why the SMEs are using TikTok as a marketing tool, to be able to reach this
audience.

Another characteristic which appeared to be predominant on TikTok was its short

format videos and the need to take advantage of that by creating videos with a fast
pace and without any extended build-ups. Therefore, it is indicated that creating
compelling, attention-grabbing content is crucial to the success of marketing
efforts on TikTok.

The personal and informal nature of the platform was also a significant
observation, and the SMEs appeared to have capitalized on this by trying to create
relatable and personal content on the platform, which also appeared to be
successful. The results also suggested that well-made videos that lack
personalisation are not as effective on TikTok as they would be on other social
media platforms. To succeed on TikTok, SMEs need to focus on creating content
that resonates with the platform's unique culture and values, while also
encouraging a sense of connection and engagement with their audience. By
creating content that feels authentic and unpolished, businesses can tap into the
unique culture of the platform and establish a sense of genuinity with their
audience.

The intentions behind creating a presence on the platform was mainly due to its
capability to reach a larger audience and the interaction opportunities but also, to

43
some extent, because of selling purposes. The study suggests that TikTok can be
an effective marketing tool for SMEs looking to expand their reach and connect
with a broader audience, particularly for those with less specific target groups.
The study also highlights the importance of the interactive nature of TikTok in
engaging with users and building relationships. This suggests that SMEs can
benefit from developing a presence on TikTok for interaction and relationship-
building with users, as well as the potential for national and international reach.
The study also indicates that sales purposes is a reason behind SMEs utilizing
TikTok, however it was not considered as important as the reach and interaction
opportunities.

However, there were also a number of challenges that the SMEs had faced during
their time on the platform. The unpredictability of the platform as well as
concerns regarding the toxic environment and the data security issues on the
platform were highlighted. Despite these risks, the opportunity to connect with a
younger audience was considered to be more important by many businesses.
However, the results indicate that these risks could be a potential reason why
many of the SMEs were resistant to devote more effort into the platform. The lack
of strategy, fear, and unwillingness to put effort and resources into TikTok was
prevalent among SMEs. This does in turn highlight a need for businesses to
develop a more comprehensive and well-thought-out strategy in order to succeed
and to manage the risks and tensions on the platform. TikTok is a relatively new
platform, and many of the SMEs appeared to be hesitant towards investing time
and resources into an unfamiliar channel. In relation to this, a tension was
detected where the companies found themselves balancing between experimenting
on TikTok and intentionally using the platform. However, as the results of the
research suggest, TikTok presents a valuable marketing opportunity for those
seeking to connect with a younger target group. Therefore, businesses need to
overcome their fear of the unknown and embrace the potential benefits of TikTok.
This could be achieved by gaining more knowledge about the platform, its unique
culture and values, and the preferences and behaviors of the younger audience.

6.2. Contribution of study

This study has contributed to a deeper understanding of how SMEs are using
TikTok for marketing purposes, since there beforehand was an insufficiency of
research in this regard. This research is also contributing with suggestions on how
SMEs potentially could improve their current strategy on TikTok and could
thereby be used by SMEs to improve their current operation on the platform. The
study shows that TikTok presents a unique opportunity for SMEs to reach a
younger audience with relatively low financial investment, but it requires careful
planning and effort. The platform's unpredictability and potential risks such as

44
data security and a toxic environment can be challenging, but they do not
necessarily prevent companies from using TikTok.

Furthermore, one of the main implications of this study is the new perspective on
TikTok as a marketing tool, where various tensions have been uncovered which
have not received adequate emphasis in previous research. The study suggests that
there are a number of strategic tensions when using TikTok as a marketing tool as
a SME. The study identified a tension between the expected resources that SMEs
intend to invest in TikTok, and the actual resources required for success. The viral
nature of the platform might create expectations of effortless success, but in
reality, understanding how to make a video go viral and actually succeed require
more effort and resources than anticipated. Another tension was detected between
costs and profit on TikTok. While low costs are possible if a video goes viral
without any significant effort, there is also a risk for higher costs if the video fails
to gain traction. Additionally, the study also revealed a tension between the
companies wanting to maintain a presence on- and experiment on TikTok without
a clear strategy and the need for considerate planning and intentional use of the
platform. The findings emphasize a need for developing a strategy and creating
content which effectively targets the intended audience to thereby increase the
chances of generating viral content. Overall, this research contributes to a deeper
understanding of TikTok as a marketing tool, by shedding light on the challenges,
tensions, and strategic considerations that businesses face when utilizing the
platform.

6.3. Limitations

The result of this study is limited from its population. The study aims towards
SMEs (Micro, small and medium-sized firms) who are currently operating on
TikTok. This does in turn mean that there are many candidates who potentially
fall within the framework of the population and the number of chosen respondents
are also quite few in relation to the size of the population. It is therefore of
importance to note that the study only gives an indication of how SMEs are
utilizing TikTok in marketing purposes since it cannot establish a result for the
entire population due to its limitations.

6.4. Suggestions for future research

This research investigated a number of SMEs in Sweden within a B2C context.

However, conducting a similar study with SMEs in a B2B context could be of
interest to explore potential differences in the results. Furthermore, a more
targeted study could be conducted by selecting SMEs from a specific industry to
obtain a more precise understanding of how TikTok could benefit companies in

45
that particular industry. Moreover, future studies could further explore a specific
characteristic or intention identified in this research to gain a more comprehensive
understanding of these. It could also be beneficial to investigate how the identified
risks can negatively impact SMEs along with providing potential risk
management strategies. Furthermore, this study highlighted three strategic
tensions, and it could therefore be of interest to investigate these further in future
research to gain more research on these relatively unexplored factors. As
mentioned in the limitations, the findings from this study are not fully
representative of a broader population due to the sample size and data collection
method. Hence, to enhance the credibility and applicability of the findings, future
studies could focus on further validating the results from this study. By
conducting large-scale studies as well as utilizing diverse data collection methods,
researchers can further validate and strengthen the findings, and thereby ensure
their transferability and relevance across different contexts.

46
References
Adams, A. A. (2015). Digital Word of Mouth: Motivating and Engaging
Millennials with Shareable Content. Marketing Undergraduate Honor
Thesis, University of Arkansas.

Aloulou, W., & Fayolle, A. (2005). A conceptual approach of entrepreneurial

orientation within small business context. Journal of Enterprising, 13(1),
21-45. https://doi.org/10.1142/S0218495805000045

Alvesson, M. & Sköldberg, K. (2017). Tolkning och reflektion vetenskapsfilosofi

och kvalitativ metod. Johanneshov: MTM.

Amanatidis, D., Mylona, I., & Dossis, M. (2022). Social Media and Consumer
Behaviour: Exploratory Factor Analysis. Design Automation, Computer
Engineering, Computer Networks and Social Media Conference, 1–5.
https://doi-org.bibproxy.kau.se/10.1109/SEEDA-
CECNSM57760.2022.9932979

Anderson, K. E. (2020). Getting acquainted with social networks and apps: it is

time to talk about
TikTok. Library Hi Tech News, 37(4), 7–12. https://doi-
org.bibproxy.kau.se/10.1108/LHTN-01-2020-0001

Ansari, S., Ansari, G., Ghori, M. U., & Kazi, A. G. (2019). Impact of
Brand Awareness and Social Media Content Marketing on Consumer
Purchase Decision. Journal of Public Value and Administration Insights,
2(2), 1-5. https://doi-org.bibproxy.kau.se/10.31580/jpvai.v2i2.896

Bateman, T. S., & Snell, S. A. (2010). Management: Building Competitive

Advantage (3rd edn). Chicago: Irwin

Baquita, N., Putra, R. D., & Al Farres, S. (2021). The Implications of TikTok as a
Social Media on Customer. Attraction. Research Gate, 1-7.

Bhattacharya, S., Gaurav, K., & Ghosh, S. (2019). Viral marketing on

social networks: An epidemiological perspective. Physica A: Statistical
Mechanics and its Applications, 525, 478-490.
https://doiorg.bibproxy.kau.se/10.1016/j.physa.2019.03.008

Braun, K. A. (1999). Postexperience Advertising Effects on Consumer

Memory. Journal of Consumer Research, 25(4), 319–334.
https://doi.org/10.1086/209542

Bryman, A. & Bell, E. (2017). Företagsekonomiska forskningsmetoder.

(Upplaga 3). Stockholm: Liber.

47
Cesi, L. (2023). Distribution of TikTok users worldwide as of January
2023, by age and gender. Statista.
https://www.statista.com/statistics/1299771/tiktok-global-user-age-
distribution/

Cesi, L. (2022). Monthly time spent on TikTok per user in selected markets
worldwide in 2020 and 2021. Statista.
https://www.statista.com/statistics/1294986/time-spent-tiktok-app-
selected-countries/

Chaffey, D. & Ellis-Chadwick, F. (2019). Digital marketing. (Seventh

edition). Harlow: Pearson.

Chaffey, D. (2006). E-Business and E-Commerce Management (3rd edn).

Financial Times Prentice Hall. Harlow

Chaston, & Mangles, T. (2010). Relationship marketing in online

business-to-business markets. European Journal of Marketing, 37(5/6),
753–773. https://doi.org/10.1108/03090560310465134

Chen, Y., Harncharnchai, A., & Saeheaw, T. (2021). Current and Future
Direction of Social Media Marketing in SMEs: A Systematic Literature
Review. International Conference on e-Business Engineering, 144–149.
doi: 10.1109/ICEBE52470.2021.00017

Dahl, S. (2018). Social Media Marketing: Theories & Applications (Vol.

2nd edition). London: Sage Publications Ltd.

David, M., Sutton, C, D., & Torhell, S-E. (2016). Samhällsvetenskaplig

metod (1. uppl). Student literature.

Denscombe, M. (2018). Forskningshandboken: För småskaliga

forskningsprojekt inom samhällsvetenskaperna (4:3 uppl.). Student
literature.

Dimofte, C, V., Haugtvedt, C, P., & Yalch, R. (2016). Consumer

psychology in a social media world. New York: Routledge

Du Plessis, C. (2017). The role of content marketing in social media

content communities. South African Journal of Information Management,
19(1), e1–e7. https://doi-org.bibproxy.kau.se/10.4102/sajim.v19i1.866

Eggers, F. (2020). Masters of disasters? Challenges and opportunities for

SMEs in times of crisis. Journal of Business Research, 116, pp.199-208.
https://doi-org.bibproxy.kau.se/10.1016/j.jbusres.2020.05.025

Ekengren, A. & Hinnfors, J. (2012). Uppsatshandbok: hur du lyckas med din

uppsats. (2., [rev.] uppl.) Student literature.

48
Ekonomifakta. (2022). Företagens storlek.
https://www.ekonomifakta.se/fakta/foretagande/naringslivet/naringslivets-
struktur/

European Commission. (2003). SME definition.

https://single-market-economy.ec.europa.eu/smes/sme-definition_en

Fang, G. G., Qalati, S. A., Ostic, D., Shah, S. M. M., & Mirani, M. A.
(2022). Effects of entrepreneurial orientation, social media, and innovation
capabilities on SME performance in emerging countries: a mediated–
moderated model. Technology Analysis & Strategic Management, 34(11),
1326–1338. https://doi-
org.bibproxy.kau.se/10.1080/09537325.2021.1957816

Fernandes, S., & Panda, R. (2019). Influence of Social Reference Groups

on Consumer Buying Behavior: A Review. Journal of Management
Research, 19(2), 131–142.

Frick, H. (2021). Nya siffror visar Tiktoks framfart i Sverige.

https://www.dagensmedia.se/medier/digitalt/nya-siffror-visar-tiktoks-
framfart-i-sverige/

Genoveva, G. (2022). TikTok platform opportunity: How does it influence

SMEs awareness among Generation Z?. Sriwijaya International Journal of
Dynamic Economics and Business, 5(3), 273–282.
https://doi.org/10.29259/sijdeb.v5i3.273-282

Guarda, T., Balseca, K., Garcia, J., González, J., Yagual, F., & Castillo-
Beltran, H. (2021). Digital Transformation Trends and Innovation.
Materials Science and Engineering. doi:10.1088/1757-
899X/1099/1/012062

Gulati, A., Sahgal, N., Narayan, N., Atrey, A., & Jadon, J. S. (2022).
Mining Influence of people on Viral Marketing. 2022 12th International
Conference on Cloud Computing, Data Science & Engineering,
(Confluence), 2022 12th International Conference On, 228–233.
https://doi.org/10.1109/Confluence52989.2022.9734146

Haenlein, M. e. (2020). Navigating the New Era of Influencer marketing:

How to be Successful on Instagram, TikTok, & Co. California
Management Review, 63(1), 5-25.
https://doi.org/10.1177/0008125620958166

Hagberg, J., Sundstrom, M., & Egels-Zandén, N. (2016). The

digitalization of retailing: an exploratory framework. International Journal
of Retail & Distribution Management, 44(7), 694–712.
https://doi.org/10.1108/IJRDM-09-2015-0140

49
Hajli, N. (2015). Social commerce constructs and consumer’s intention to
buy. International. Journal of Information Management, 35(2), 183–191.
https://doi-org.bibproxy.kau.se/10.1016/j.ijinfomgt.2014.12.005

Hu, L. (2020). Chinese digital and mobile platforms. In: International

Digital Marketing in China. International Digital Marketing in China, pp.
31–47. doi:10.1007/978-3-030-38160-8_3

Hutchins, J., & Rodriguez, D. X. (2018). The soft side of branding:

Leveraging emotional intelligence . Journal of Business and Industrial
Marketing, 33(1), 117-125. https://doi.org/10.1108/JBIM-02-2017-0053

Joshi, Y. & Rahman, Z. (2016), “Predictors of young consumer’s green

purchase behaviour”, Management of Environmental Quality, 27(4), 452-
472. https://doi.org/10.1108/MEQ-05-2015-0091

Juergensen, J., Guimón, J., & Narula, R. (2020). European SMEs amidst
the COVID-19 crisis:assessing impact and policy responses. Journal of
Industrial and Business Economics, 47(3), pp.499-510.
https://doi.org/10.1007/s40812-020-00169-4

Kelestyn, B., Henfridsson, O. (2014). Everyday digital entrepreneurship:

The inception, shifts, and scaling of future shaping practices. International
Conference on Information Systems

Korstjens, I., & Moser, A. (2018). Series: Practical guidance to qualitative

research. Part 4: Trustworthiness and publishing. European Journal of
General Practice, 24(1), 120–124.
https://doi.org/10.1080/13814788.2017.1375092

Lee, J., Kim, S., & Ham, C. D. (2016). A double-edged sword? Predicting
consumers’ attitudes toward and sharing intention of native advertising on
social media. American Behavioral Scientist, 60(12), 1425–1441.
https://doi.org/10.1177/0002764216660137

Liu, X., Shi, S. W., Teixeira, T., & Wedel, M. (2018). Video Content
Marketing: The Making of Clips. Journal of Marketing, 82(4), 86–101.
http://dx.doi.org/10.1509/jm.16.0048

Marolt, M., Pucihar, A., & Zimmermann, H. D. (2022). Social Media Use
and Business Performance in SMEs: The Mediating Roles of Relational
Social Commerce Capability and Competitive Advantage. Sustainability
(Switzerland), 14(22). https://doi.org/10.3390/su142215029

Meliawati, T., Gerald, S. C., & Aruman, A. E. (2023). The Effect of Social
Media Marketing TikTok and Product Quality Towards Purchase
Intention. Journal of Consumer Sciences, 8(1), 77–92.
https://doi.org/10.29244/jcs.8.1.77-92

50
Mircea, F. (2022). Social Media Profiling for the Development of Online
Marketing Strategies. Studies in Business and Economics, 17(3), 80–89.
https://doi.org/10.2478/sbe-2022-0047

Morgan, N. A., Whitler, K. A., Feng, H., Chari, S. (2019). Research in

marketing strategy. Journal of the Academy of Marketing Science, 47, 4-
29. https://doi.org/10.1007/s11747-018-0598-1

Noguti, V., & Waller, D. S. (2020). Motivations to use social media:

effects on the perceived informativeness, entertainment, and intrusiveness
of paid mobile advertising. Journal of Marketing Management, 36(15/16),
1527–1555. https://doi.org/10.1080/0267257X.2020.1799062

Parviainen, P., Tihinen, M., Kääriäinen, J., & Teppola, S. (2017). Tackling
the digitalization challenge: how to benefit from digitalization in practice.
International Journal of Information Systems and Project Management,
5(1), pp.63–77. https://doi.org/10.12821/ijispm050104

Saunders, M., Lewis, P. & Thornhill, A. (2019). Research methods for

business students. (Eighth edition). Harlow: Pearson Education.

Sikandar, A. Q., Li, W., Ahmed, N., Manzoor, A. M., & Khan, A. (2021).
Examining the Factors Affecting SME Performance: The Mediating Role
of Social Media Adoption. Sustainability (Basel, Switzerland), 13(1), 75.
https://doi.org/10.3390/su13010075

Stelzner, A, A. (2022). 2022 Social media marketing industry report: How

marketers are using social media to grow their business. Social media
Examiner.
https://static1.squarespace.com/static/525c34f6e4b09199c2c2a427/t/62837
74405877a23dd6fbe49/1652782925631/Industry-Report-2022-final.pdf

Suciu, P. (2022). What Is The Value Of Going Online And Using Social
Media?. https://www.forbes.com/sites/petersuciu/2022/05/13/what-is-the-
value-of-going-online-and-using-social-media/?sh=7402231715dc

Tang, D. (2019). The New Situation of Marketing in the Self-Media Era-

Taking Tik Tok as an Example. 2nd International Workshop on Advance
in Social Science. pp. 1557-1560. doi:10.25236/iwass.2019.281

Varadarajan, R., Yadav, M. S., & Shankar, V. (2008). First-mover

advantage in an internet-enabled market environment: Conceptual
framework and propositions. Journal of the Academy of Marketing
Science, 36(3), 293–308. https://doi.org/10.1080/09537325.2021.1957816

Vaterlaus, J. M, & Winter, M. (2021). TikTok: an exploratory study of

young adults uses and gratifications. The Social Science Journal.
doi:10.1080/03623319.2021.1969882

51
Wahid, R., Karjaluoto, H., Taiminen, K., & Asiati, D. I. (2023). Becoming
TikTok Famous: Strategies for Global Brands to Engage Consumers in an
Emerging Market. Journal of International Marketing, 31(1), 106–123.
https://doi.org/10.1177/1069031X221129554

Wamba, & Carter, L. (2014). Social Media Tools Adoption and Use by
SMES: An Empirical Study. Journal of Organizational and End User
Computing, 26(2), 1–17. https://doi.org/10.4018/joeuc.2014040101

Xu, L., Yan, X., Zhang, Z. (2019). Research on the causes of the “Tik
Tok” app becoming popular and the existing problems. Journal of
Advanced Management Science 7 (2). doi: 10.18178/joams.7.2.59-63

Yuqing, Z., Ping. Y,. Deying, L. & Bill, Lin. (2019). Strengthening the
effects of viral marketing. International Conference on Distributed
Computing Systems, pp. 1941-1950, doi:10.1109/ICDCS.2019.00192.

52
Appendix
Appendix 1: Interview guide

I start with introducing myself and give the respondents an introduction and
explanation of the aim of the study and what the interview will be covering. The
respondents anonymity is also emphasized, and that it is voluntary to answer all
questions, as well as the option to end their participation and withdraw their answers if
wanted.

General questions:
1. Do I have your permission to audio record the interview?

2. What is your professional role? What are your main tasks?

3. How long experience do you have in digital marketing?

4. What was your approximate annual turnover in 2022?

5. How many employees does the company have?

Main questions:
6. How are you currently using TikTok to engage with and reach markets
(consumers)? (Ex. reach, interaction, paid advertising, influencer marketing)
• If paid advertising is used, which of the services offered on TikTok are
used?

7. To what extent do you use TikTok to generate feedback, ideas or otherwise

interact with users/customers?

8. Which target group are you trying to reach with your marketing on TikTok?

9. What differences have you seen between TikTok and other media that you use
for Marketing?
• What do you see as an added advantage for a company of your size, (if
any), with TikTok versus other platforms?
• Differences between TikTok and traditional media? (If used)

10. Can you tell us about a time when you were proud of a successful TikTok
campaign? What made it special? Why was it successful?

11. Has any TikTok campaign been less successful than expected? And in that
case, what do you think caused it?

12. What risks or disadvantages do you see in using TikTok? Why?

13. What are your future plans on TikTok?

53
Appendix 2: Additional data table

The table below includes additional quotes that contribute to the number of themes discussed
in this thesis.

Theme Sub-theme Quote

Characteristics Personal/Informal “Yes, a little more fun, maybe a little more behind
the scenes, ehh not so polished” (R9)

“What seems to go the best is our behind-the-

scenes videos, which are really like “this is what
we do”, they usually go really well. And it usually
goes a little worse when we use graphics and
maybe make something moving out of a still image
rather than it being a video.” (R7)

Short format “It is very good to be able to use the short format
on Instagram and TikTok. It is the short format
that has went home” (R2)

“I think it's because you're on TikTok because you

want to be entertained quickly. You want funny
and suitable videos for your mood right then and
there, it should go fast.” (R4)

Young audience “It'a lot more younger people on TikTok, it's

mainly them who are heard, commenting and stuff,
it's usually younger people.” (R9)

“[...] Our focus is that we want to reach younger

people.” (R2)

Intentions Selling purposes “Yes, TikTok is what affects our sales the most."
(R11)

“Then of course I want to sell as well, but I also

want to improve the company.” (R10)

Reach “Yes exactly, reach is probably one of the main

things” (R9)
 “As I stated, we can reach half a million views on
a video, but how many live in the desired region?”
(R3)

Interaction “No, but that's a huge part of it, of course. We

want to be as engaged with our followers as
possible. So we often encourage people to
comment what they think or if they have questions.
And of course we want to answer them. It's a big
part.” (R6)

“From what I have learned, it is very important

that there should be living comment sections. I'm
also trying to be in there and kind of answer, or
show a presence.” (R1)

Tensions Strategic “I'm kind of in the exploratory TikTok phase. It's

approach not like I put all my strength and energy into it, it
will turn out the way it will.” (R8)

“I think that is very difficult, because the

algorithm sends out a little… It is difficult to
predict that ‘this will go well’.” (R5)

“I think TikTok is a bit unpredictable. I don't

really understand what it is, what makes some go
viral and others not?” (R3)

Cost-profit “[...] We can spend the same amount on two

videos. One gets 300,000 views and the other gets
2 million.” (R4)

“[...] but it's a great chance for small to medium-

sized companies to invest some money in this and
get a lot back.” (R7)

Resource “You have to like it yourself too. You have to be

discrepancy there a lot in your spare time, partly to understand
the thing, and then it also becomes easier and
takes less time.” (R4)
 “So to say that, yes of course, some things maybe
you didn't spend a lot of time on and it gave a lot
of effect, while other things we really spent a lot of
time checking what kind of sound it is, what kind
of trend it is and how it should move in the
picture? Many people say that it goes so fast, I
disagree, because you have to know what you are
doing there as well.” (R3)

Risks Data security “Otherwise with disadvantages, is the whole

TikTok discussion about security with TikTok and
data [...] That discussion is recurrent within our
group and what is said about it.” (R3)

Toxic “Yes, you could say that because we still get a lot
environment of comments that are... It's a bad attitude.” (R4)

“Yes, if there's anywhere we can get a kick back,

it's there. It's probably what I can find as a
challenge.” (R5)