What is a Branded Hashtag Challenge?

A Hashtag Challenge on TikTok is launched when an action (e.g., a dance, humorous skit, or sports activity) is linked to a unique hashtag. Users are encouraged to recreate the action and repost their videos under the same hashtag. Ideally, the hashtag gains popularity and appears on many more users’ For You pages — where TikTok users spend most of their time discovering new content. This accelerates growth and can spark a new trend.

When brands sponsor such a challenge, it is called a Branded Hashtag Challenge (BHC). There are three main ways to launch one:

1. Organic Distribution

The challenge is started in the traditional way: a fun or interesting concept that is easy to replicate is created, paired with a catchy hashtag. Every hashtag also has a dedicated hashtag page where all related content appears. The community is then encouraged to participate and spread the trend. Influencers can be brought in to boost promotion.

2. In-Feed Ads

To drive more visibility, brands can promote their Branded Hashtag Challenge with paid ads. Through detailed targeting, the campaign reaches the right audience. The guiding video for the challenge appears in users’ feeds alongside other TikToks, inspiring them to participate and share their own videos.

3. Partnership with TikTok

For a full-scale approach, TikTok offers a package that includes creative consulting, creator collaborations, music selection, TopView placements, and a customized hashtag page.

Benefits of a Branded Hashtag Challenge

Community Engagement
Anyone can join in a Branded Hashtag Challenge, unlike traditional ads that users only view passively. This interactive element creates a deeper emotional connection, transforming the brand into an experience and helping to build a community. BHCs have an average engagement rate of 17.5% (source: TikTok), much higher than standard campaigns.

Effective Reach
Compared to regular ads, Branded Hashtag Challenges drive 4.5x higher brand awareness, and users remember them up to 4x better (source: TikTok). This makes them a powerful tool for building and spreading brand identity.

Long-Lasting Impact
According to TikTok, 90% of BHCs achieve at least a 2.5x higher ROAS (Return on Ad Spend) than standard campaigns, and 50% reach a 5x higher ROAS. About half of this performance comes from organic user activity, which often continues even after the challenge officially ends (source: TikTok & Nielsen).

Viral Potential
Branded Hashtag Challenges can go beyond popularity and become viral. In such cases, the challenge spreads rapidly, reaching a massive audience and generating high interaction. This moves it away from “just an ad” and creates a unique way to shape brand perception — particularly effective for TikTok’s young audience, which responds best to relatable, user-driven content.

Example: Commerzbank’s Branded Hashtag Challenge

The Commerzbank was the first German financial institution to launch a Branded Hashtag Challenge on TikTok. Under the hashtag #freshmoneyfever, young users were invited to post creative, humorous videos around the theme of money and finance. To boost participation, an iPhone was offered as a prize.

As Commerzbank had no TikTok presence at the time, the campaign relied on well-known German influencers to amplify its reach.

The results were remarkable: within just eight days, the hashtag reached over 1 billion views and generated engagement rates of up to 19%.

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