TikTok vs. Traditional Media: Where Should Local Businesses Invest?

Let’s cut straight to the chase. You’re a local business owner, and you’ve got £5,000 burning a hole in your marketing budget. Should you blow it on a radio campaign that your dad swears by, or take the plunge into TikTok where your teenage nephew insists all the cool kids hang out? It’s the million-pound question that’s keeping business owners up at night—and honestly, the answer might surprise you.

Here’s what you’ll discover in this close examination: exactly how to calculate your return on investment for both traditional and TikTok campaigns, which audiences you’re actually reaching (spoiler: it’s not always who you think), and most importantly, where to put your hard-earned cash for maximum impact. We’ll crunch the numbers, bust some myths, and give you the straight talk about what’s really working in 2025.

Understanding Media Investment ROI

Right, let’s talk money. Because in the end, that’s what matters to your bottom line. ROI isn’t just some fancy acronym accountants throw around—it’s the difference between thriving and barely surviving in today’s market.

You know what drives me mental? When marketing agencies promise you “brand awareness” and “increased visibility” without showing you the actual numbers. That’s like a chef telling you the food tastes good without letting you have a bite. We need hard data, not fluffy promises.

The truth is, measuring ROI has become both easier and more complex. Easier because we’ve got tracking pixels, analytics dashboards, and attribution models coming out of our ears. More complex because customers now bounce between channels like pinballs before making a purchase. They might see your radio ad, check you out on TikTok, then finally buy after Googling your business name.

The Real Cost of Marketing Decisions

Here’s something most marketing guides won’t tell you: the biggest cost isn’t always the media spend. It’s the opportunity cost of choosing the wrong channel. Every pound you spend on a dud campaign is a pound you can’t invest in something that actually works.

I once worked with a bakery owner who spent £3,000 on newspaper ads because “that’s what we’ve always done.” Meanwhile, her competitor down the street was killing it on TikTok with videos of their croissant-making process that cost nothing but time. Guess who’s still in business?

The key to understanding ROI is breaking it down into measurable components. You need to track not just sales, but also foot traffic, website visits, phone calls, and even those harder-to-measure metrics like customer lifetime value. Because here’s the thing—a customer who discovers you through TikTok might spend less initially but come back every week for a year. That newspaper reader? They might pop in once and never return.

Setting Up Your Measurement Framework

Before you spend a single penny on any marketing channel, you need a proper measurement framework. This isn’t rocket science, but it does require some planning. Start by defining what success looks like for your business. Is it more foot traffic? Online sales? Phone enquiries? Brand recognition in your local area?

Once you’ve nailed down your goals, you need to establish baseline metrics. How many customers do you currently get per day? What’s your average transaction value? How often do customers return? Without these baseline numbers, you’re essentially flying blind.

The beauty of modern marketing is that almost everything can be tracked. Traditional media has caught up too—radio stations now offer digital tracking through unique URLs and phone numbers, while print publications provide QR codes and custom landing pages. The days of “spray and pray” marketing are thankfully behind us.

Understanding Attribution Models

Attribution is where things get properly interesting. It’s essentially the art of figuring out which marketing touchpoint deserves credit for a sale. Think of it like a football match—who gets credit for the goal? The striker who tapped it in, or the midfielder who made the brilliant pass?

In marketing terms, you’ve got several attribution models to choose from. First-touch attribution gives all the credit to the first interaction (like that initial TikTok video view). Last-touch attribution credits the final interaction before purchase (maybe a Google search). Linear attribution splits credit equally across all touchpoints. And then there’s data-driven attribution, which uses machine learning to figure out which touchpoints actually influenced the purchase decision.

For local businesses, I typically recommend starting with a simple last-touch model and gradually moving towards more sophisticated tracking as you grow. The perfect attribution model is the enemy of good-enough data that you can actually act on.

Calculating Traditional Media Returns

Traditional media—newspapers, radio, TV, billboards—isn’t dead. Far from it. But calculating its return on investment requires a different approach than digital channels. Let me walk you through the nitty-gritty of making these old-school channels work in a measurable way.

Radio Campaign Measurement Tactics

Radio remains surprisingly effective for local businesses, especially if your target audience commutes by car. But how do you track something that happens over the airwaves? The secret lies in creating trackable response mechanisms.

First up, unique phone numbers. Services like CallRail or CallTrackingMetrics let you set up specific numbers for each campaign. When someone calls the number they heard on the radio, you know exactly which ad drove that enquiry. It’s simple, effective, and gives you hard data on response rates.

Promo codes work brilliantly too. “Mention ‘RADIO25’ for 25% off your first order” not only tracks responses but also incentivises immediate action. The key is making the code easy to remember—avoid alphabet soup like “RD2024SPRG”. Think simple, catchy, and relevant to your offer.

Timing analysis provides another layer of insight. By comparing sales data during and after your radio campaign to your baseline, you can identify lift patterns. Most radio campaigns show immediate spikes during ad times, followed by a gradual decay over the following days or weeks.

Here’s a real kicker though—radio often works best as part of a media mix. According to TikTok’s case study with Boots, combining TikTok with traditional media like television created powerful synergies, with each channel amplifying the other’s effectiveness.

Print Media Performance Analysis

Print might seem like a dinosaur, but for certain local businesses and demographics, it still packs a punch. The trick is choosing the right publications and tracking meticulously.

QR codes have revolutionised print tracking. These little squares can direct readers to specific landing pages, allowing you to track not just how many people responded, but what they did next. Pro tip: make your QR code worth scanning. A boring “visit our website” won’t cut it—offer exclusive content, discounts, or useful tools.

Split testing in print requires patience and budget, but it’s worth it. Run different versions of your ad in different publications or regions. Change one element at a time—headline, image, offer—and track which performs best. Yes, it’s slower than digital A/B testing, but the insights can be gold.

Don’t forget about editorial coverage either. A well-placed story in your local paper can outperform paid ads by miles. Track the impact through website traffic spikes, social media mentions, and direct customer feedback. Sometimes the best ROI comes from relationships, not ad spend.

Television and Out-of-Home Metrics

TV advertising for local businesses isn’t what it used to be. With regional targeting and programmatic buying, even small businesses can now access television audiences without breaking the bank. But measurement remains tricky.

The best approach combines multiple data sources. Media mix modelling (MMM) has become the gold standard for understanding TV’s impact. It uses statistical analysis to tease out the contribution of each marketing channel to your overall results. Fancy? Yes. Necessary? For bigger campaigns, absolutely.

Out-of-home advertising (billboards, bus stops, digital displays) presents unique measurement challenges. You can’t click on a billboard, after all. But modern solutions exist. Geofencing technology can track when people who’ve been exposed to your billboard visit your store. Mobile location data providers like Foursquare and PlaceIQ offer attribution services that connect outdoor exposure to store visits.

Weather plays a surprising role in outdoor advertising effectiveness. A billboard for ice cream performs differently on sunny versus rainy days. Smart local businesses adjust their messaging seasonally and even weekly based on weather forecasts. It’s these little optimisations that separate successful campaigns from money pits.

Measuring TikTok Campaign Performance

Now we’re entering the wild west of marketing—TikTok. If traditional media is a well-mannered tea party, TikTok is a rave where anything can happen. But don’t let the chaos fool you. Behind the dancing and lip-syncing lies a sophisticated advertising platform with metrics that would make a data scientist weep with joy.

TikTok Analytics Detailed look

TikTok’s native analytics are surprisingly solid for a platform that started as a teen dance app. You’ve got your basic metrics—views, likes, comments, shares—but the real gold lies deeper. Watch time percentage tells you if people are actually watching your content or swiping away faster than you can say “viral.”

The “Traffic Source Types” breakdown is where things get interesting. It shows whether viewers found you through the For You Page (organic reach), following feed, search, or external sources. If most of your traffic comes from search, you’re doing something right with your hashtags and descriptions. If it’s all from the following feed, you’re preaching to the choir—time to expand your reach.

Here’s something most guides won’t tell you: TikTok’s algorithm rewards completion rate above almost everything else. A 15-second video watched to the end outperforms a 60-second video where people drop off at 30 seconds. This isn’t YouTube—brevity wins.

Profile views might seem like a vanity metric, but they’re actually a strong indicator of purchase intent. Someone who watches your video and then checks your profile is showing genuine interest. Track the ratio of video views to profile views—anything above 1% is solid, above 3% is exceptional.

Conversion Tracking on TikTok

This is where the rubber meets the road. Pretty videos are nice, but sales pay the bills. TikTok’s pixel (now called TikTok Events API) lets you track what happens after someone sees your content.

Setting up conversion tracking requires a bit of technical know-how, but it’s worth every minute spent. You can track everything from page views to purchases, form submissions to app downloads. The pixel even supports advanced matching, using hashed email addresses and phone numbers to improve accuracy while maintaining privacy.

One clever trick: use different landing pages for organic versus paid TikTok traffic. This lets you compare the quality of users from each source. In my experience, organic TikTok traffic often converts better because viewers chose to engage with your content rather than having it pushed to them through ads.

UTM parameters are your best friend for minute tracking. Create unique parameters for each video, campaign, or even individual influencer partnerships. Yes, it’s tedious. Yes, you’ll need a spreadsheet to keep track. But when you can pinpoint exactly which dancing barista video drove £10,000 in coffee sales, you’ll thank yourself.

Engagement Rate Calculations

Engagement rate on TikTok isn’t just likes divided by followers. That’s Instagram thinking. On TikTok, you need to factor in the algorithm’s distribution patterns.

The most accurate engagement rate formula for TikTok is: (Likes + Comments + Shares) / Views × 100. This accounts for the fact that TikTok shows your content to non-followers extensively. A video with 100,000 views and 5,000 engagements (5% engagement rate) is performing well, regardless of your follower count.

But here’s the twist—not all engagements are created equal. Shares carry more weight in the algorithm than likes. Comments, especially longer ones, signal high interest. And saves? They’re the holy grail, indicating content valuable enough to revisit.

Response time matters too. TikTok rewards creators who engage with comments quickly. Set aside 30 minutes after posting to respond to early comments. This initial engagement burst can significantly boost your video’s distribution.

Cost-Per-Acquisition Comparison Analysis

Let’s talk turkey. Cost-per-acquisition (CPA) is where marketing theory meets business reality. It’s the ultimate scorecard that tells you exactly how much you’re paying to get each new customer through the door.

Breaking Down Channel Costs

Traditional media often has higher upfront costs but potentially lower CPAs for certain demographics. A £5,000 radio campaign reaching 100,000 listeners might seem expensive, but if it brings in 50 new customers, that’s £100 per acquisition. Not bad if your average customer lifetime value is £500.

TikTok’s cost structure is more variable. Organic content can have a CPA of essentially zero (just your time investment), while paid campaigns typically range from £5-50 per acquisition depending on your targeting and competition. The platform’s self-serve ad system means you can start with as little as £50 and scale based on performance.

Here’s where it gets interesting though. According to CNBC’s reporting, small business owners have found TikTok’s organic reach so valuable that they’re actively fighting against potential platform bans, citing significantly lower customer acquisition costs compared to traditional advertising.

The hidden costs matter too. Traditional media often requires professional production—hiring copywriters, voice talent, or graphic designers. TikTok content can be created on your phone, but don’t underestimate the time investment. Those “effortless” videos often take hours to plan, shoot, and edit.

Lifetime Value Considerations

CPA only tells half the story. A customer acquired through traditional media might have a higher lifetime value (LTV) due to different demographic profiles and purchasing behaviours.

Radio and newspaper customers tend to be older, more affluent, and more loyal once acquired. They might cost more to get initially but stick around longer. TikTok customers skew younger, might spend less per transaction, but could become brand advocates who bring in their friends.

I worked with a jewellery store that discovered this firsthand. Their newspaper ads brought in customers buying engagement rings (high value, one-time purchase). Their TikTok presence attracted younger customers buying affordable pieces monthly. Same CPA, completely different LTV profiles.

The key is calculating LTV:CPA ratios for each channel. If your TikTok CPA is £20 and average LTV is £200, that’s a 10:1 ratio. If traditional media has a £100 CPA but £1,500 LTV, that’s 15:1. Both can be winners, just for different reasons.

Hidden Costs and True ROI

The costs you don’t see on the invoice can kill your ROI. Let’s get real about what each channel actually demands from your business.

Traditional media’s hidden costs include long lead times (radio ads need to be produced weeks in advance), minimum spend requirements, and the inability to quickly adjust messaging. Made a typo in your newspaper ad? Too bad, it’s already printed. Want to capitalise on a trending topic? Your radio spot was recorded last month.

TikTok’s hidden costs are different but equally real. The platform demands constant content creation—posting once a week won’t cut it. You need someone who understands the platform’s culture, trends, and unwritten rules. Hiring a 22-year-old intern might seem like the solution, but managing social media is a real skill that deserves proper compensation.

Then there’s the emotional cost. Negative comments on TikTok can sting more than a poor response to a radio ad you never hear about. Your content might get roasted, parodied, or worse—ignored. Not every business owner has the thick skin required for social media marketing.

Testing costs add up too. Traditional media often requires larger test budgets to get statistically substantial results. You can’t really A/B test a billboard. TikTok allows micro-testing with £20 ad spends, but you’ll need dozens of creative variations to find what works.

Long-Term Value Assessment

Short-term wins feel great, but long-term value builds empires. Let’s examine how traditional media and TikTok stack up when we zoom out beyond the quarterly report.

Brand Building Through Traditional Channels

Traditional media excels at brand building in ways that are hard to measure but impossible to ignore. There’s a reason Coca-Cola still buys Super Bowl ads—consistent traditional media presence creates mental availability that pays dividends for years.

Local businesses can tap into this power on a smaller scale. That weekly radio spot during morning drive time? It’s not just selling today’s special—it’s embedding your business name in commuters’ minds. When they need what you offer six months later, you’ll be their first thought.

Print advertising in community publications builds local credibility. There’s an implicit trust that comes with seeing a business in the local paper. It signals stability, community investment, and legitimacy. You can’t buy that perception with TikTok views.

The compound effect of traditional media is real. Each exposure builds on the last, creating familiarity and trust over time. It’s why estate agents still put their faces on bus stops—not because it drives immediate calls, but because it builds recognition for when people are ready to move.

Viral Potential and Network Effects

TikTok offers something traditional media can’t—the possibility of explosive, organic growth. One video can transform a business overnight. But let’s be honest about the odds.

Pew Research data shows that 17% of Americans regularly get news on TikTok, indicating the platform’s growing influence beyond entertainment. This presents unique opportunities for businesses to become part of cultural conversations.

The network effects on TikTok are powerful. When someone shares your content, their entire network sees it. When they duet or stitch your video, you get exposed to their audience. This multiplicative effect doesn’t exist with traditional media—nobody’s resharing your radio ad with their friends.

But viral isn’t a strategy—it’s a lottery ticket. For every business that goes viral, thousands post daily to crickets. The real TikTok opportunity lies in consistent, valuable content that builds a engaged community over time. Think compound interest, not jackpot.

Sustainability and Scalability Factors

Sustainability is where the rubber meets the road for long-term planning. Can you maintain this marketing approach for years, not just months?

Traditional media offers predictability. Once you’ve found a radio spot or print placement that works, you can often lock in rates and run indefinitely. The creative requirements are manageable—update your ad quarterly, maybe monthly. It’s sustainable for businesses without dedicated marketing teams.

TikTok demands constant feeding. The algorithm favours fresh content, trending sounds change weekly, and audience expectations evolve rapidly. What worked six months ago might flop today. This creates sustainability challenges, especially for small teams.

Scalability differs dramatically between channels. Traditional media scales linearly—double your spend, roughly double your reach. TikTok scaling is more complex. Organic content might plateau regardless of effort, while paid campaigns can scale rapidly but require constant optimisation to maintain effectiveness.

The skill requirements for scaling also vary. Growing traditional media presence mainly requires budget. Scaling TikTok success requires platform know-how, creative capabilities, and cultural fluency that’s harder to hire for or outsource.

Audience Demographics and Reach

Who are you actually talking to? It’s the foundational question that too many businesses gloss over. Your perfect customer might be scrolling TikTok right now, or they might be listening to Classic FM while sitting in traffic. Let’s dig into who’s really where.

Traditional Media Age Segments

Traditional media skews older, but not uniformly. Radio listeners span generations, with different stations attracting vastly different demographics. Classic rock stations pull in 45-65 year olds, while Top 40 stations reach 18-34 year olds. The key is matching your business to the right programming.

Newspaper readership tells a clearer story. Print readers average 50+ years old, with higher education and income levels than the general population. They’re homeowners, established in their careers, and have disposable income. If you’re selling luxury goods, professional services, or anything targeting affluent older adults, newspapers still work.

Television viewership has bifurcated. Traditional broadcast TV skews heavily 55+, while streaming services capture younger audiences. Local TV news—a sweet spot for many local businesses—maintains strong viewership among 35-65 year olds who are engaged with their community.

But here’s the twist—Reuters Institute’s 2024 Digital News Report reveals that trust in traditional media sources remains higher among all age groups compared to social media, which could translate to higher trust in advertisements placed there.

TikTok User Base Analysis

TikTok’s demographics are evolving faster than most marketers realise. Yes, it started as a teen app, but the user base has matured significantly. As of 2025, roughly 40% of users are over 30, with the fastest-growing segment being 35-44 year olds.

The platform’s gender split is relatively balanced—slightly more female (54%) than male (46%). But engagement patterns differ. Female users tend to engage more with lifestyle, beauty, and educational content, while male users gravitate towards comedy, sports, and gaming content.

Income distribution on TikTok might surprise you. While it’s true that younger users typically have less disposable income, TikTok reaches across economic brackets. Many high-earning professionals use the platform for entertainment and discovery. Don’t assume TikTok users can’t afford your premium products.

The psychographic profile of TikTok users matters more than demographics. They’re early adopters, value authenticity over polish, and make purchase decisions based on peer recommendations rather than traditional advertising. They’re also more likely to support small businesses and values-driven brands.

Geographic Coverage Differences

Geography might be the most overlooked factor in the TikTok versus traditional media debate. Your local radio station reaches a defined geographic area. Your TikTok video could be seen anywhere—or nowhere near your business.

Traditional media’s geographic precision is a double-edged sword. Radio and local newspapers guarantee you’re reaching people who can actually visit your business. But you’re also paying to reach everyone in that area, including those who’d never be customers.

TikTok’s geographic targeting for organic content is virtually non-existent. The algorithm shows content based on interests, not location. This means your brilliant video might go viral in Scotland while you’re trying to fill seats in your Southampton restaurant.

Paid TikTok ads offer geographic targeting, but it’s less precise than traditional media. You can target by country, region, or city, but not by postcode or radius like radio’s signal coverage. For hyperlocal businesses, this limitation matters.

However, TikTok’s interest-based distribution can work in your favour. A specialty business might find their exact customers nationwide more efficiently than blanket local coverage. That vegan bakery in Bristol? They might do better reaching vegans across the UK than everyone within five miles.

Future Directions

Crystal ball time. Where’s all this heading? The media domain of 2030 will look different from today, but the smart money’s on convergence rather than conquest.

Traditional media isn’t dying—it’s evolving. Radio stations now podcast their shows, newspapers have digital editions with comment sections, and TV ads link to social media campaigns. As noted in Schaefer Marketing’s analysis, the most human commercial wins, regardless of platform. Traditional media is learning this lesson and adapting.

TikTok and similar platforms will mature. The wild west days of organic reach won’t last forever. As the platform monetises more aggressively, expect organic reach to decline and paid advertising to become necessary for consistent business results. It’s the Facebook playbook all over again.

Integration is the real future. Smart businesses won’t choose between TikTok and traditional media—they’ll orchestrate both. Imagine radio ads driving people to your TikTok for exclusive content, or viral TikToks reinforcing your traditional media presence. The boundaries between channels will blur.

New platforms will emerge. Remember when TikTok didn’t exist? The next big thing is probably in beta right now. But the fundamentals remain constant—know your audience, provide value, and measure everything. The businesses that master these basics will thrive regardless of where people consume content.

Regulation looms large. According to Vested’s 2025 media analysis, non-traditional media faces increasing scrutiny. Data privacy laws, content moderation requirements, and potential platform bans could reshape the sector overnight. Diversification isn’t just smart—it’s required.

The convergence of online and offline attribution will accelerate. Technologies that connect digital exposures to physical store visits will become standard. This will finally level the measurement playing field between traditional and digital channels.

Artificial intelligence will revolutionise both channels. AI-generated radio ads that personalise to individual listeners? TikTok videos created entirely by AI based on trending topics? It’s coming faster than most businesses are prepared for.

But here’s the thing—technology changes, human nature doesn’t. People still want to discover great local businesses, find solutions to their problems, and connect with brands that share their values. Whether that happens through a newspaper ad or a TikTok dance, the fundamental exchange remains the same.

The winners in 2030 won’t be the businesses that picked the “right” channel. They’ll be the ones who understood their customers deeply, tested relentlessly, and adapted quickly. They’ll use traditional media’s trust and reach when it makes sense, harness TikTok’s engagement and virality when appropriate, and always keep their eye on the only metric that truly matters—sustainable, profitable growth.

So, where should you invest? The answer, frustratingly, is “it depends.” But now you have the framework to figure out what it depends on. Test small, measure everything, and let your customers’ behaviour guide your decisions. Because in the end, they’re the ones who matter—not the marketing gurus, not the platform evangelists, and certainly not that nephew who insists TikTok is the answer to everything.

The future belongs to businesses brave enough to experiment, smart enough to measure, and flexible enough to evolve. Whether that evolution happens on TikTok, traditional media, or whatever comes next is less important than your commitment to meeting customers where they are with messages that matter to them.

Now stop reading and start testing. Your perfect media mix is out there waiting to be discovered.