Business

Instagram vs TikTok: A Luxury Brand’s Guide

Instagram and TikTok differentiates in engagement, algorithms, and marketing potential that help luxury brands achieve their various goals.

Jul 30, 2024 | By Natalie Chan
Luxury Brands Embrace TikTok: Navigating Trends and Influencer Strategies
Luxury brands are increasingly leveraging on social media platforms like Instagram and TikTok to engage with diverse audiences and achieve successful marketing campaigns through tailored social media strategies.

In the ever-evolving landscape of social media, luxury brands are constantly seeking the most effective platforms to engage with their audience. Instagram and TikTok have emerged as leading contenders, each offering unique advantages in terms of engagement, algorithms, and overall experience. LUXUO delves into the intricacies of these two platforms, drawing on analysts’ insights and statistics to help luxury brands make informed decisions about their marketing strategies.

Engagement

Engagement is a critical metric for luxury brands as it directly correlates with brand awareness and consumer loyalty. According to a study by Influencer Marketing Hub, TikTok boasts an impressive average engagement rate of 5.3 percent per post, significantly outpacing Instagram’s 1.1 percent. This heightened engagement is largely due to TikTok’s vibrant, short-form video content that successfully holds on to users’ short attention span.

Instagram, however, remains a stalwart with its visually appealing content and diverse format options, including posts, stories, reels, and IGTV. Famed luxury brands like Gucci and Louis Vuitton have mastered Instagram’s multifaceted formats to maintain high levels of engagement through a blend of polished imagery and behind-the-scenes glimpses.

Algorithm

The algorithms of Instagram and TikTok are finely tuned to enhance user experience by showcasing content that resonates most with each individual. Instagram’s algorithm zeroes in on user interactions (likes, comments, shares), post-recency, and direct interactions (messages, profile views). This ensures that content from users with whom one frequently engages surfaces at the top of their feed.

The Instagram algorithm curates your feed to show you content tailored to your interactions.

TikTok’s algorithm, on the other hand, is celebrated for its sophisticated and highly personalised approach. It considers an array of factors, including user interactions, video details (captions, sounds, hashtags), and device or account settings. The result is a “For You” page uniquely tailored to each user, elevating content from both prominent creators and emerging talents. This virality potential is a game-changer for luxury brands aiming to expand their reach rapidly.

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System and User Base

Understanding the demographics of Instagram and TikTok is crucial for luxury brands in choosing the right platform. Instagram’s user base skews slightly older, with a significant portion aged between 18 and 34. This demographic tends to be more affluent and brand-conscious, making Instagram a prime venue for luxury brands targeting established consumers.

@dior Guess who else is on the #DiorCouture Autumn-Winter 2024-2025 show guest list? #TikTokFashion ♬ son original – Dior

TikTok, conversely, attracts a younger crowd, with a substantial percentage of users aged between 16 and 24. This youthful audience is highly engaged and eager to discover new brands, offering luxury brands a golden opportunity to cultivate future consumers. TikTok’s emphasis on creativity and authenticity allows brands to connect with users in a more informal and relatable manner.

Why Some Celebrities Dominate on Instagram While Others Shine on TikTok

Celebrities’ following statistics on Instagram and TikTok often reflect the distinct characteristics and user demographics mentioned above. Instagram, with its emphasis on high-quality visuals and curated content, tends to attract a slightly older, affluent audience that appreciates polished aesthetics and aspirational lifestyles. This has resulted in celebrities like Kim Kardashian (361M on Instagram versus 9.7M on TikTok) and Kylie Jenner (398M on Instagram versus 56.2M on TikTok) amassing massive followings due to their glamorous posts and brand endorsements that align well with Instagram’s image-centric nature.

Kylie Jenner has amassed a grand total of 398M followers on her Instagram page.

Conversely, TikTok’s rapid growth among younger users, driven by its focus on short, engaging videos and viral trends, has catapulted personalities like Charli D’Amelio (155.4M on TikTok versus 43.7M on Instagram) and Addison Rae (88.8M on TikTok versus 34.9M on Instagram) to stardom. These TikTok influencers thrive on their ability to create relatable, authentic content that resonates with Gen Z’s preference for real-time, interactive experiences. Consequently, celebrities who excel in spontaneous, creative, and often humorous content find greater success on TikTok, while those who can maintain a meticulously crafted online persona tend to dominate Instagram.

The interlink between music and fashion is a dynamic synergy that continually shapes and redefines cultural trends. Luxury brands are increasingly leveraging viral music “audios” on both platforms to amplify their reach and resonate deeply with younger audiences. By incorporating trending tracks into their campaigns, fashion houses become more relatable, tapping into the cultural zeitgeist that music often defines. This strategy not only enhances the appeal of their visual content but also fosters greater engagement, as users are more likely to interact with content that feels current and familiar. This harmonious blend of music and fashion epitomises modern marketing strategies, where reliability and cultural relevance drive consumer connection and brand loyalty.

@katespade Green, the official color of brat summer 💚 #katespadeny #bratsummer ♬ 360 on a hello kitty boombox – stephen

An excellent example of this phenomenon is Charli XCX’s latest album, which has popularised “brat culture” through its edgy and playful tracks. Capitalising on this trend, Kate Spade released a “Brat Summer Starter Pack” on TikTok, aligning their brand’s green collection with the youthful, rebellious spirit encapsulated by Charli XCX’s music. This move not only increased Kate Spade’s visibility among younger consumers but also demonstrated how effectively brands can utilise viral music trends to enhance their reliability and engagement across both Instagram and TikTok platforms.

@charlidamelio a tb dance for the mems dc @spencerrrrr :) ♬ We Not Humping – Remix – Monaleo & Flo Milli

TikTok, a widely used app for posting short dance videos, thrives on its catchy music and simple choreography, making dance trends highly shareable and easy to replicate. For instance, Charli D’Amelio’s TikTok dances have gone viral, often catapulted to fame when celebrities join in. These trends drive user engagement and participation, which TikTok’s algorithm amplifies by increasing the content’s visibility. This promotion cycle ensures that these dances go viral, extending their reach and encouraging even more interaction.

Case Studies

Luxury brands have harnessed the distinct strengths of Instagram and TikTok with remarkable success. On Instagram, brands like Chanel and Dior have maintained a consistent presence through visually stunning campaigns and exclusive product launches. Their adept use of Instagram “stories” and “reels” has facilitated real-time interaction with followers, creating a sense of exclusivity and immediacy.

@gucci Fit check in #Gucci with @Kit Price and @Calum Harper #GucciReWeb ♬ Fadeaway – Official Sound Studio

On TikTok, brands such as Burberry and Gucci have embraced the platform’s playful and innovative spirit. Burberry’s creative use of augmented reality filters and influencer collaborations has driven significant engagement, while Gucci’s experimental campaigns and participation in viral challenges have helped the brand connect with a younger, more dynamic audience.

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Maximising Impact Through Platform Selection

Both platforms each offer unique advantages for luxury brands. Instagram’s varied content formats and older, more affluent user base make it ideal for established brands aiming to uphold their prestige and engage with existing customers. TikTok’s higher engagement rates and younger, dynamic audience present an excellent opportunity for brands to cultivate new consumers and achieve rapid, widespread visibility.

Dior leverages Instagram features by inviting followers to watch their haute couture show directly from the link embedded in their Instagram Stories.

Brands increasingly leverage Instagram’s shopping features to drive traffic directly from their posts to their websites, transforming the platform into a powerful commerce tool. Dior, for instance, curates its social media pages with stunning editorial campaigns that seamlessly integrate shopping links, allowing followers to purchase items directly from their feed. This strategy not only enhances the visual appeal of their platform but also promotes a “see now, buy now” effect, encouraging immediate purchases rather than having customers wait months for in-store availability. By blending visually captivating content with direct shopping opportunities, Instagram serves as both a marketing and sales channel, streamlining the consumer journey from discovery to purchase.

Dior also revolutionises shopping by seamlessly listing their newest collections on Instagram for users to explore and purchase directly.

However, the key to maximising impact lies in leveraging both platforms strategically for different products and purposes. Instagram’s polished aesthetics and diverse content formats are perfect for high-end product launches, brand storytelling, and maintaining brand prestige. TikTok, with its trend-driven and informal nature, is ideal for reaching younger audiences, showcasing behind-the-scenes content, and experimenting with creative campaigns.

By understanding the distinct strengths and limitations of each platform, luxury brands can craft a nuanced and effective social media strategy that ensures they resonate with their target audience in the most impactful way possible. This dual-platform approach not only broadens reach but also fosters deeper engagement across various consumer segments, ultimately driving brand loyalty and growth.

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