The Real Reason Brands Are Leaving TikTok

Why brands are leaving TikTok UGC.

Let me tell you something that might make you uncomfortable: Your TikTok strategy isn't working anymore.

Not because you're doing something wrong, but because the platform itself has fundamentally changed.

I noticed this shift about three months ago.

Our agency's clients were spending more on ads but seeing less return.

Their organic reach was plummeting, and engagement rates were half what they used to be.

At first, I thought it was just us. Then I started talking to other brand owners.

Turns out, we weren't alone. Not even close.

Let me share a conversation I had with Alex, an e-commerce brand owner who built his business on TikTok.

"Two years ago, we could post a product video and see $10,000 in sales overnight," he told me. "Now? We're lucky if we break even on our ad spend."

The numbers tell a brutal story.

In 2022, the average cost per thousand impressions (CPM) on TikTok was $6.20.

Today? It's hovering around $14.80.

That's a 138% increase in just two years.

But that's not even the real problem.

The real issue runs much deeper, and it's something most marketers aren't talking about.

See, TikTok's algorithm used to reward creativity and authenticity.

Now it rewards frequency and ad spend. It's become a pay-to-play platform, but with a twist - even paying doesn't guarantee results anymore.

Numbers talk. Why TikTok UGC is slowly fading.

Let me break down what's actually happening:

First, there's the content saturation.

Two years ago, about 5 million videos were uploaded to TikTok daily.

Today?

That number has exploded to over 20 million daily uploads.

Your content isn't just competing with other brands anymore - it's drowning in a sea of noise.

Then there's the algorithm change that nobody wants to acknowledge.

TikTok's AI used to push content based on engagement rates.

Now it heavily favors watch time and completion rates. This might sound minor, but it's killing brand content.

Sarah, a beauty brand owner, explained it perfectly: "We used to get 100,000 views easily with product demonstrations. Now those same videos die in the FYP (For You Page) because people scroll past them too quickly. The algorithm thinks they're not engaging enough."

But here's what's really interesting - and what finally convinced me that brands needed to rethink their TikTok strategy.

We analyzed data from 100 e-commerce brands and found something shocking:

Brands that were killing it on TikTok in 2022 (averaging 5-7% engagement rates) are now seeing rates below 2%.

Their customer acquisition costs have tripled.

And their conversion rates?

They've dropped by 60%.

The platform isn't dying - it's evolving into something that just doesn't work for most brands anymore.

Think about it this way: When was the last time you actually bought something you saw on TikTok?

The platform has become entertainment-first, commerce-second. That's great for TikTok, but terrible for brands trying to drive sales.

Some quick numbers that might surprise you:

• Average video completion rate: Down 47% since 2022
• Organic reach for business accounts: Decreased by 71%
• Ad click-through rates: Dropped from 1.5% to 0.5%

But here's the thing - smart brands aren't just accepting this new reality.

They're adapting. They're diversifying. And most importantly, they're being honest about what works and what doesn't.

The brands that are succeeding now?

They're treating TikTok like a brand awareness tool, not a sales channel.

They're cross-posting content to emerging platforms like RedTag and Lemon8.

And they're building direct relationships with their audiences instead of relying on algorithms.

I'll be honest - this isn't what most brands want to hear.

It's easier to keep doing what we've always done, hoping things will improve.

But hope isn't a strategy, and the data doesn't lie.

What's the best way to use TikTok for your UGC in 2025.

So what's the solution?

It starts with accepting that the TikTok we knew is gone.

The platform that helped countless brands explode in 2021-2022 has evolved into something different.

Not better or worse - just different.

The brands that will thrive in 2025 aren't the ones with the biggest TikTok budgets.

They're the ones who understand that social media is cyclical, and they're already positioning themselves for what's next.

Remember MySpace? Facebook? Snapchat? Each platform has its golden era.

TikTok's isn't over, but it has evolved.

The question is: Will you evolve with it, or will you be left behind trying to make an outdated strategy work?

The choice, as always, is yours.

You could be a smart brand and switch to modern solutions like UGC.Farm, or ignore numbers and see what happens yourself...