TikTok's billion-dollar boost to Aotearoa's economy - Idealog
Video platformTikTokboosts the New Zealand economy by an estimated $1. 2 billion and supports over 9,700 local jobs, according to a new report by economic consultancy, Infometrics. The inaugural report, ‘The. . .
Video platformTikTokboosts the New Zealand economy by an estimated $1. 2 billion and supports over 9,700 local jobs, according to a new report by economic consultancy, Infometrics. The inaugural report, ‘The economic impact of TikTok in New Zealand’, examines how local businesses, creators, and audiences – which account for two million Kiwis across the country – have embraced the platform to fuel economic opportunity. Around 309,000 Kiwi businesses are using the platform each month to promote themselves, connect with customers, and support their livelihoods. It found that despite the economic downturn, each month, 671,000 New Zealanders are visiting restaurants and cafes, purchasing goods or services, attending cultural or sporting events, or visiting somewhere new, after discovering it on TikTok. Spending upliftAn estimated $434 million of the GDP contribution comes directly from spending at local businesses. The median self-reported sales uplift from TikTok activity is 20-30%, with an average uplift of 24%. Infometrics chief executive & principal economist Brad Olsen says TikTok has helped boost the country’s economic recovery at a time when local businesses are looking to expand their customer base. “TikTok’s economic contribution to New Zealand is substantial, and the breadth of businesses that use the platform – around half of Kiwi businesses – and generate activity based on that use is remarkable,” Olsen says. “You don’t have to have a large marketing budget or a huge follower count to get attention on TikTok, and small businesses and new operators are embracing this access and opportunity. “This is paying off for businesses, with an estimated 671,000 New Zealanders seeing the latest products or services on TikTok and spending money in the real world – at places like restaurants and cafes or on clothing, cosmetics, and accommodation. ”Businesses big and smallBusinesses of all ages have embraced TikTok, from those that have started in the last five years through to long-established, iconic Kiwi brands. The Warehouse, one of New Zealand’s most recognised national retailers, credits TikTok with “putting them ahead of the game. ”The report also shows 15% of businesses on TikTok rely solely on organic content. Samantha Goos from Wanaka Horse Trekking (@wanakahorsetrekking) says, “Making a video is free, and if you make the right one you can reach millions of people straight away. The sky’s the limit!”TikTok AUNZ general manager for global business solutions Amy Bradshaw says the report demonstrates the real and tangible power of TikTok as a tool for business growth. “Not only are two million New Zealanders showcasing Kiwi creativity and culture to the world, over 300,000 local businesses are thriving thanks to TikTok,” Bradshaw says. “As TikTok has grown, our role in the New Zealand economy has shifted. What started as a platform for content discovery has fast become much more, and is now one of the most effective commerce and growth channels available to New Zealand businesses, from local founders scaling their first product to established brands finding entirely new customer bases. The economic contribution is real, measurable, and growing. ”TikTok AUNZ general manager for global business solutions Amy Bradshaw