In July 2024, the social media platform TikTok announced it would start beta-testing advertisements featuring alcoholic brands, which were previously banned from engaging in any paid advertising on the platform. For an industry that has been facing headwinds, this could prove advantageous.
TikTok gained widespread popularity in the U.S. in 2018, when it surpassed Facebook, Instagram, Snapchat, and YouTube in downloads. Today, it’s estimated there are 1.6 billion TikTok users, and of those, 170 million are American, according to TikTok CEO Shou Chew. While TikTok had a reputation for being popular with teenagers when it first launched, demographics are shifting: in 2022, 35 percent of users were between the ages of 18 and 24, but, in 2024, that age range had dropped to 25 percent. Meanwhile, users aged 35 and older are getting turned on to the app.
Even though the U.S. government has passed legislation banning TikTok in the country—which could go into effect by January 2025, should its parent company ByteDance decline to sell it to a government-approved company—users and brands alike continue to invest in the platform. Companies are devoting large amounts of ad dollars to TikTok, with brands spending nearly $4 billion on TikTok ads in 2023.
Don’t miss the latest drinks industry news and insights. Sign up for our award-winning newsletters and get insider intel, resources, and trends delivered to your inbox every week.
By allowing alcohol brands to advertise, will TikTok help attract new consumers to the drinks space? SevenFifty Daily explores the platform and what brands need to know about advertising on TikTok.
Why Advertise on TikTok?
As these younger demographics come of legal drinking age, it opens up opportunities for alcohol brands. According to YouGov’s 2024 U.S. TikTok report, 64 percent of TikTok users agree that advertising helps them choose what to buy.
Brands currently posting organically on TikTok say its biggest virtue is that it gets their product in front of new eyes. “TikTok is amazing because you can reach a larger audience,” says George Walker, the brand ambassador for Wade Cellars, a California-based brand owned by former basketball star Dwayne Wade. The winery started posting on TikTok in 2022. “It’s very different as far as platforms go; the algorithm is different and things can go viral randomly,” says Walker. TikTok’s algorithm does a great job of helping people discover the brand and puts the winery in the feed of people who may not be familiar with Wade Cellars, he adds.
Wade Cellars is also active on Instagram, but they’ve never paid to boost a post on the platform. However, Walker says they would be interested in advertising on TikTok based on the response they’ve seen to their organic videos.
Tank Garage Winery in Calistoga, California, has been on TikTok since 2020. General manager Ed Feuchuk saw the value of TikTok early on when a video they posted about foot treading grapes went viral. Since then, he’s incorporated TikTok and Instagram into their marketing plans and started experimenting with advertising over the summer.
“TikTok is less so a social media platform; it’s more of an entertainment app,” says Feuchuk. “People aren’t going on there to see what their high school classmates did for summer vacation or what their new baby looks like. They’re going on there to be entertained. TikTok is really good at finding out things that will pique your interest or entertain you.”
Tank Garage advertises on Meta’s platforms (including Facebook and Instagram) and TikTok. Feuchuk says that TikTok’s current tools are not as advanced as Meta’s business suite, which helps them target by location or affinity groups. But given how TikTok—and its algorithm—brings new eyeballs to brands, he’s excited to continue trying it out.
How to Start Advertising on TikTok
It’s important to note that alcohol advertising on TikTok is still in its beta phase, and a number of steps need to be taken before running that first video.
“Just because it is legal in the U.S. as of today, brands still need to go through an approval process that has to happen through the platform itself,” says Alisha Zaveri, the account director of digital at Colangelo and Partners, a public relations and communications agency.
The first step is to have an active TikTok account and to post organic content for at least 90 days prior to applying. Those 90 days allow TikTok to make sure brands are adhering to community guidelines, such as respecting others and preventing harm.
Once the 90-day period is over, brands have to apply to be approved for advertising. “Part of the application process is working with a TikTok sales representative or a brand representative on their end to determine eligibility,” says Zaveri. Expect TikTok to request a number of documents about your business, as well as a close examination of your current TikTok content.
Finally, anticipate a waiting period. Zaveri says the agency has applied for advertising approval on behalf of a number of clients, and many are still waiting for feedback from TikTok.
The Nuts and Bolts of a TikTok Ad
Once approved for advertising, TikTok outlines several overarching, as well as country-specific, requirements for ads. Ads must only target consumers aged 25 and older, even though the legal drinking age may vary from country to country. Furthermore, they cannot feature people under the age of 25.
Ads also cannot feature pregnant women, nor portray excessive drinking or reckless behavior. Alcohol also cannot be promoted as a prize or reward, and discounts on alcoholic products are verboten. Finally, TikTok currently does not allow advertising for retail or ecommerce sales of alcoholic products.
What’s also important to note—and where TikTok widely differs from advertising on Meta platforms such as Instagram—is that ads must include the alcoholic strength of the featured product, and clearly state a responsible drinking disclaimer.
“It is a best practice and rule of thumb [on Meta], but it’s not necessary,” says Zaveri. “Whereas on TikTok, you do have to include a message on responsible drinking, and that needs to be done in a legible format.” That means placing the message at the beginning of the caption or ad copy, not buried at the end, she advises.
Types of Ad Content for TikTok
What type of content works best for advertising on TikTok? As a relatively new option, brands are still finding their way, but there are a few best practices from organic content that some brands feel will work well with ads.
“The stuff we’ll post on TikTok will be different from what we post on Instagram in that it will be slightly more educational and more to do with wine or winemaking in general,” says Feuchuk. Because of TikTok’s “discovery” nature, he believes this strategy will get Tank Garage in front of people interested in the beverage. On the other hand, he says Instagram is better for branding, event promotion, and speaking to people who are familiar with the winery.
But “educational” doesn’t mean boring. Feuchuk says the first second and a half of a video are vital in capturing people’s attention. “Videos have to be fun,” he says.
According to Halee Bernard, the digital marketing manager for Keeper’s Heart Whiskey, “The content that resonates most includes behind-the-scenes clips, cocktail recipes, and authentic collaborations with influencers. On the flip side, overly polished, ad-style content hasn’t been as effective.” Although the brand doesn’t currently advertise on TikTok, they plan to start.
“I think the biggest difference is that the ads will include clear calls to action and a stronger focus on product promotion, but we’ll make sure they still feel natural and engaging on the platform,” says Bernard.
All sources cite one key element as the most important: “Be authentic to what your brand is,” says Walker. “Highlight who you are.”
Dispatch
Sign up for our award-winning newsletter
Don’t miss the latest drinks industry news and insights—delivered to your inbox every week.
Shana Clarke is a wine, sake, and travel writer, and the author of 150 Vineyards You Need To Visit Before You Die. Her work has appeared in Saveur, Fortune, NPR, Wine Enthusiast, and Hemispheres. She was shortlisted for the Louis Roederer 2020 International Wine Writers’ Awards and ranked one of the “Top 20 U.S. Wine Writers That Wineries Can Work With” by Beverage Trade Network in 2021. She holds a Level 3 Advanced Certificate from Wine & Spirit Education Trust and is a Certified Sake Sommelier. She will always say yes to a glass of Champagne. Learn more at www.shanaspeakswine.com and follow her @shanaspeakswine.
