TikTok vs Instagram for Business: Which Is Right for You?

Though both social media platforms are popular, well-established, and come with tools that are valuable for small businesses, I’ll break down the most notable differences between TikTok and Instagram, who they’re best suited for, all of the important features, and notable pros and cons.

Who Do I Recommend TikTok for?

If you’re interested in making TikTok a part of your social media strategy, here are my pointers on who the platform is most suitable for:

• Businesses with a younger target market – If your audience comprises of younger people, like Gen Z or Gen Alpha, TikTok is an apt choice since many users are aged between 16-24. You could even work alongside popular TikTok micro influencers to appeal to these groups even more.
• Businesses interested in short-form content – Short and snappy video content is TikTok’s specialty. Though it’s possible to make videos that last up to ten minutes long, short-form content is still most popular with users, for now at least. For longer or more diverse forms of content, Instagram is a better fit.
• Businesses interested in making creative content – TikTok inspires creativity with its built-in editing tools. You can access filters, special effects, templates, and trending sounds to bring your short-form videos to life.

Key TikTok Features

TikTok Shop

Account requirements: Providing multiple forms of documentation, such as valid ID confirming US residency, a physical address, and accurate bank account info, you will also need to meet TikTok’s product guidelines.

If you want to successfully sell on TikTok, you’ll need to sign up for TikTok Shop. This is the platform’s built-in ecommerce solution that allows businesses to sell products through the app.

Once your account is approved, you’ll receive these benefits: 

• A dedicated shop page that customers can use to browse your catalog
• Shoppable links that you can attach to your short-form content or TikTok live streams
• Shop Ads that can help you promote your store and items across TikTok

Though you don’t need an ecommerce site to start selling products on TikTok, it is possible to sync up a pre-existing store. For instance, in 2023, TikTok released a new feature where users could connect their Shopify Store with their TikTok account.

One thing to know about TikTok Shop is its fees. The platform currently has a 6% referral fee – the percentage taken off each order that has been successfully paid for and shipped – for most product categories.

TikTok LIVE

Account requirements: Have at least 1,000 followers.

With TikTok LIVE, which has its own dedicated tab on the app, you can engage with users in real time. I recommend looking into this feature, since it offers an effective way to engage with your audience and build a sense of community.

The feature allows you to start a livestream, collaborate with other TikTok accounts by letting them join your broadcast, and enable watchers to leave comments, donations, or virtual tokens called gifts. 

If you need some TikTok ideas when using this feature, popular livestreams on the app often include:

• Q&A sessions – An opportunity to connect with your audience, you can hold a Q&A session to answer pressing audience questions and let your watchers know more about you.
• Product or service demonstrations – If you’re a seller, it’s worth showing customers your product or service in action to give them a better understanding of what you’re offering.
• Behind the scenes – You can make your brand seem more personable to customers by giving them a glimpse into the day-to-day runnings of your business.

TikTok Ads

Account requirements: Create an Ads Manager Account, which is where you’ll manage your campaigns from.

To drive more attention to your business, you can create TikTok Ads that pop up on your target audience’s “For You Page.” This is a quick way to reach new customers, since you can target your ads towards specific TikTok users based on their demographics, devices, interests, and behaviors. 

For small businesses, the most common ads format for small businesses are in-feed video ads that appear on the “For You Page,” though other formats you’ll come across include:

• Brand takeovers 
• Top View ads that appear at the top of the screen when a user opens the app
• Branded hashtags
• Branded effects
• Collection ads that take users through a brand’s storefront
• Spark ads enabling you to leverage existing TikTok posts to reach new audiences

The price to run TikTok Ads varies depending on your budget. You’re in charge of how much money you want to spend on a campaign, which can vary from a few hundred dollars to thousands per month. The overall cost also depends on:

1. How long you want an ad campaign to run
2. How well your ads perform
3. How much you want to bid for a specific ad placement

TikTok Pros and Cons

When deciding if TikTok is right for your business, here are important pros and cons to consider:

Who Do I Recommend Instagram for?

If you’re inspired by Instagram, but still not 100% sure if it’s your ideal fit, here’s who I’d recommend the platform for the most:

• Businesses with a broader target audience – Similarly to TikTok, Instagram is popular with younger audiences. However, the platform is also favored by older groups like Millennials, allowing your business to target a wider age range if needed
• Businesses interested in multiple forms of content – With Instagram, you have a range of content types at your disposal, including reels, story posts, and carousel photos. If you’d like to represent your business through multiple forms of visual content, Instagram is fitting
• Businesses with a distinctive visual identity – Instagram, with its customizable profile pages and sleek feeds, is ideal for businesses who want to represent their brand identity online through thoughtful visual storytelling

Key Instagram Features

Similarly to TikTok, Instagram is home to various tools that can help you manage your professional online presence, while gaining some additional income along the way. Let’s take a look at some of its best features below.

Instagram Reels

Account requirements: Anyone can start creating and sharing reels once they’ve set up an account.

Following on from TikTok’s success with snappy video content, Instagram introduced reels to its platform in 2020. Today, with over 140 billion reels played each day, your business can use these short-form videos to showcase your brand’s identity in creative ways and tap into wider audiences.

When creating Instagram reels, you also have numerous tools at your disposal. This includes:

• Voiceovers if you’d like to add narration
• Stickers enabling you to add fun features like captions, gifs, location tags, or short quizzes to your reel
• Filters to change the visual style of your video
• A clip hub featuring a selection of short clips you can add to your reel
• Closed captions to add subtitles to your content (some users will browse reels without the sound on!)

Instagram Live

Account requirements: Your account must be at least 30 days old, be in good standing, and comply with Instagram’s Community Guidelines.

If you want to connect with your audience through a livestream, you can use the Instagram live feature.

Unlike TikTok LIVE, this tool doesn’t have its own tab. Instead, you’ll need to start a livestream from your profile, with viewers able to access your broadcast when it appears at the top of their feed. If needed, you can also add up to three co-hosts to your broadcast if you’re holding a collaborative stream.

Instagram Shopping

Account requirements: You need to comply with Instagram’s Commerce Eligibility Requirements to sell through Instagram Shopping. This includes being in a country that supports Instagram Shopping (like the US), and that you’re already running an ecommerce site with a domain you own.

If you already have an online store up and running and want to make money on Instagram, you can use Instagram Shopping and showcase your products to more people. The feature allows you to connect your store with your Instagram account and add shoppable links to your feed posts, reels, and stories. 

Once approved, your Instagram customers will benefit from:

• Product pages that pulls key information from your ecommerce site, including images, price, and item variants like color or size
• An in-app checkout that lets users make direct purchases from Instagram (currently only available in the US)

Instagram Ads

On Instagram, you can launch ad campaigns to promote your business and its content to more people. According to Meta, the parent company of both Instagram and Facebook, the ad formats you can choose from include:

• Static images 
• Short-form videos
• Carousel posts that users can swipe through
• Flexible ads that appear across all three different formats

Like TikTok, there are no set costs for Instagram Ads. Instead of paying a flat-fee, you’ll be a part of an auction-based bidding section. The more you bid for a specific ad placement, the more likely you are to show us on the feeds of targeted Instagram users. 

There are three different types of bids to choose from, which reflect what you want to optimize your ads for:

1. CPC (Cost Per Click) – How many clicks your ads get
2. CPE (Cost Per Engagement) – How many users interact with your content
3. CPM (Cost Per Mile) – The cost for your ad to get seen by 1,000 people

Instagram pros and cons

Still unsure if Instagram for business is the right platform for you? Here are the platform’s pros and cons to help you choose: 

For a summary of TikTok and Instagram’s key features and differences, refer to the table below:

Still wondering where you stand on the TikTok vs Instagram divide? If you need to come to a speedy decision about which one is right for you, my pointers below will help:

• Which forms of content are you most interested in? Think about the type of content you want to create. If you’re eager to film short-form videos, TikTok might be a better choice. Or, if you’re interested in creating a variety of content, Instagram accommodates a diverse range of content, from carousel photos to story polls.
• Who is your target audience? It’s no use choosing a platform that your target audience isn’t already using! Whether you opt for TikTok or Instagram, make sure that it appeals to your customer base.
• Will you be selling items too? If you own an online store, you may be looking for a platform that can help you sell your goods. On both TikTok Shop and Instagram Shopping, you can add shoppable links to your products. Weigh up both options and see which one is a better fit.
• Do you need any creative tools? You might have limited resources or budget when creating content, so it helps if a platform already comes with free creative tools. I suggest testing out TikTok and Instagram by creating mock content first. See which platform has the best editing tools, sounds, and special effects for your needs.

Now that I’ve supplied you with all of the important information, it’s time to decide whether TikTok or Instagram for business is the best fit for you. As a reminder, here’s a summary of both platforms and who they’re most suitable for:

1. TikTok – With its energetic short-form content, TikTok is best for brands who want to connect with youthful audiences. Additionally, brands can also jump onto trends to reach new audiences fast, making TikTok effective for newer businesses who need to establish their online presence.
2. Instagram – This platform is ideal for businesses who want to develop a thoughtful, curated presence online. By combining a mixture of different content types – like story posts, photos, and reels – brands can demonstrate visual storytelling that appeals to their target audience.