BK Beauty bets big on TikTok despite rising ad costs

BK Beauty has resumed its presence on TikTok Shop after stepping away temporarily, placing confidence in the platform’s ability to attract new customers for its direct-to-consumer makeup line. This decision follows earlier worries about increasing ad expenses and the possibility of a U.S. ban on TikTok in 2025. Founder Paul Jauregui insists the platform remains vital for growth, even while expanding sales through other channels like Ulta Beauty and Amazon.

The company’s strategy addresses a widespread difficulty faced by smaller cosmetics brands: maintaining unpaid exposure alongside paid promotions. During its early years, TikTok Shop delivered strong sales with minimal advertising costs, but the introduction of GMV Max, a paid advertising model, altered that advantage. Jauregui admits the higher costs, both for ads and product samples, but argues the investment is essential. “Without investing in GMV Max, our customer acquisition would likely go nowhere,” he says.

BK Beauty’s current approach prioritizes expanding collaborations with content creators. The brand has boosted monthly product samples from 200 to 1,000 to encourage more user-generated content, while avoiding overloading top influencers. Jauregui notes that the top creators already have their products, making it less beneficial to continue sending the same items repeatedly.

TikTok’s influencer tier system, from L1 to L7, helps determine which partnerships to prioritize. Although L7 creators drive the highest sales, Jauregui highlights that mid-level influencers (L3 and above) also contribute significantly. The priority is sustaining long-term engagement rather than chasing temporary spikes in visibility.

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Ulta Beauty has emerged as a key secondary sales channel, representing roughly 10% of BK Beauty’s total revenue. The retailer’s carefully selected product lineup and annual promotions, such as the 21 Days of Beauty event, create concentrated buying periods. In March, BK Beauty’s placement on Ulta’s homepage during this promotion resulted in over 20,000 units sold in a single day, its best-selling item.

Jauregui compares Ulta’s predictable demand with the unpredictability of social commerce. By securing a spot on Ulta’s shelves, BK Beauty ensured its products remained accessible during periods when creator coverage dipped, such as around Ulta’s annual tentpole events.

The company’s revenue breakdown reflects its diversified approach: 50% comes from its own website, 20% each from TikTok Shop and Amazon, and 10% from Ulta. Jauregui has considered developing a wholesale channel but remains cautious, noting that no other company understands their brand, business, and customers as well as they do.