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Key Takeaways
62% of TikTok's incremental impact occured on Amazon
+90% increased incremental conversions (vs traditional last-click models)
71% increased iROAS for Web & Shops Ads (vs Web Ads alone)
Uncovering the Hidden Value of TikTok
Eager to build on their initial success, the brand set out to test the impact of TikTok Shop and understand how TikTok ads were influencing sales on other e-commerce platforms.
With distribution expanding to major retailers like Walmart, online marketplaces like Amazon, and pharmacies like Walgreens, the team suspected a halo effect: TikTok spend was likely driving lift beyond just Shopify, and they wanted a way to measure it.
A 3-Cell Geo Lift Test with WorkMagic
Liquid I.V. turned to WorkMagic and the TikTok Marketing Science team, and with their help, decided to conduct a 3-Cell Geo Lift Test. This methodology isolates TikTok’s impact by comparing DMAs (Designated Market Areas) exposed to TikTok ads with control DMAs where ads were withheld. As compared to a standard incrementality test, a 3-cell test has two control groups, each varying slightly in their treatment.
In the case of Liquid I.V., the two cells receiving TikTok Ads differed in that one cell received only TikTok Web Ads, while the other received all TikTok ad types. This approach allowed Liquid I.V. to measure and compare the impact of TikTok Shop ads to that of TikTok Web Ads.
Real Impact Beyond Platform Metrics
Within 5 weeks, the Liquid I.V. team had their answers. Here's what they learned:
Amazon Captured 62% of TikTok's True Impact
While robust, platform-provided metrics were unable to measure the incremental impact on non-Shopify channels like Amazon. By pairing data from Amazon to the DMAs in the treatment group, WorkMagic identified that 62% of TikTok's incremental impact occurred on Amazon—meaning a large portion of the impact of TikTok ads had previously not been captured.
With the implementation of incrementality testing, Liquid I.V.'s measurement was no longer happening in a DTC vacuum, but was able to measure real consumer behavior patterns, such as purchasing at retail channels like Amazon that they found more convenient or where they can directly make purchases happen like TikTok Shop.
TikTok Ads Were More Efficient Than Reported
The geo lift test gave Liquid I.V. team the clarity they were looking for: the upper-funnel nature of TikTok Ads did indeed lead to conversions across Amazon, TikTok Shop, and Shopify. With WorkMagic's help, they quantified that the true impact was 2.5x higher than the TikTok platform reported, cementing their decision to keep investing in the channel.
The measured efficiency of TikTok Ads also surprised the team—with incremental CPA (iCPA) less than half of the platform-reported CPA, they learned that TikTok Ads were 62% more cost-effective at acquiring customers than they had previously believed.
Higher iROAS When Adding TikTok Shop Ads to the Mix
WorkMagic designed the experiment as a 3-cell geo lift test to break down the impact of adding TikTok Shop Ads to an existing Web Ads mix.
The team found that the combination of TikTok Shop and Web Ads performed 3.53x better than just TikTok Web Ads, most likely due to their ability to quickly capture and convert awareness into product sales. The ad dollars that went to Shop Ads were also more efficient, with a 49% lower iCPA, and a 71% higher iROAS.
For a successful D2C brand that had crossed the chasm to distribute their product on multiple retail channels, Liquid I.V. now had clarity over how ad conversions were distributed across their channels and which type of campaign delivered the greatest impact. The WorkMagic team will continuously support the brand with incrementality testing and budget recommendations to find where the next wave of impact lies!