TikTok invests in user engagement, small business ads with new local feed

TikTok, a platform that has distinguished itself by feeding users highly relevant content, is taking its personalization even closer to home.

Users who share their location are now able to access a local feed of content on the social media platform. This sits alongside the main “For You” page and a followers’ content feed, aiming to sustain consumer engagement while collecting the audience data that intrigues advertisers.

TikTok is a clear sales engine, but consumer attention has gotten harder to hold.

  • Some 54% of users aged 25-44 have gathered more information about a product after seeing it on TikTok and 47% have made the purchase, according to an October 2025 Edison Research survey.
  • The average TikTok user will spend 52 minutes (0:52) on the platform this year, down from 1 hour (1:00) in 2023, EMARKETER forecasts.

The new feed is an investment for TikTok to bring in more ad dollars, satisfy audience demand for local content, and continue ramping up its commerce engine. As more marketers experiment with community-based content over splashy creator partnerships, TikTok's access to hyperlocal content could elevate that strategy.

Responding to offline needs

“Being a localized ecommerce platform where brands can offer a discount on a boba tea in real time as a user walks down Michigan Avenue is a compelling proposition,” said Allison Arling-Giorgi, head of brand at Method1.

Feeding users local content helps TikTok support this ambition while fueling its advertising model. This wouldn’t be a major mindset shift for consumers, as search trends suggest they already use the platform for neighborhood recommendations, said Benjamin Diedering, founder and CEO of BDX MEDIA.

“TikTok is slowly turning into a digital storefront for physical places,” he said. “A well-performing video can reach people who are actually nearby, not just random viewers around the world.”

Small business staple

TikTok Shop’s growth has established TikTok as a commerce engine, giving small businesses with tighter budgets the confidence to market there. The added layer of local consumer data adds to that appeal.

“TikTok is ensuring it doesn't fall behind in this space, given how powerful local behavior data can be,” said Nitin Sinha, head of media planning at Noble People.

TikTok has steadily attracted small businesses: 33% now use the platform, which is up from 17% in 2023, according to the SBE council.

“This is a tremendous opportunity for small businesses and advertisers to address their local audiences at a more personal level,” said Courtney Lee, associate director of paid social at agency Copacino Fujikado.

Filling creator content gaps

A creator might fit a brand’s target demographic, but that doesn’t mean their audience does. A location-filtered feed could reduce ad waste and targeting gaps for advertisers.

This is even true for micro and nano influencers who post niche content and appear to have a qualified audience, said Mike Hayward, chief creative officer at Copacino Fujikado.

“Even though their content may be hyperlocalized and they say they focus solely on restaurant reviews in Seattle, our audience analysis tools often show only a small percentage of their audience from the Seattle area,” he said.

Small towns on the marketing map

When marketers rely solely on creator partnerships, they miss out on user-generated content that builds brand advocacy. This was McCo Beauty’s mantra when partnering with Escapology to launch escape rooms nationwide where attendees receive free products.

@nickyycruz Plot twist: the real prize is GLAM 💄✨ The MCoBeauty Heist from @Escapology x @mcobeauty us is HERE. Win FREE makeup if you escape! 😍 Limited time. Select locations only. Book Online. #IYKYMCo ♬ original sound - Nicky Cruz

“There’s this magic in going hyper local,” said CMO Meridith Rojas. “When things get highly digitized and focused on tech, you need to be shaking hands and kissing babies.”

While the brand has hosted successful New York City popups, it realized it’s only reaching “a specific type of community member” by defaulting to major cities. TikTok accessing more local data fuels campaigns in cities where heavy turnout isn’t guaranteed.

“It gives us an opportunity to not just do an influencer event, which we’ve seen is great for posting and visibility, but who really needs to touch and feel our brand and feel invited in is the community member,” she said.

By leaning on local data, this feed could encourage brands to consider these smaller players for content partnerships, said Arling-Giorgi.

“This feature also has the potential to foster a new ecosystem of ‘micro-influencers,’ creators with smaller but highly engaged local followings that can act as social proof for their communities,” she said.

This was originally featured in the EMARKETER Daily newsletter. For more marketing insights, statistics, and trends, subscribe here.

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