Hashtag challenges are a great way to boost engagement with your followers and solicit creative user-generated content. With hashtag challenge videos racking up thousands, if not millions of views, these campaigns have proven to increase follower counts, improve brand awareness, and produce high ROI. Here’s what you need to know about hashtag challenges and how to create one for your business.

What is a hashtag challenge?

A hashtag challenge is one in which the challenge creator (either an individual or a brand) asks people to perform a certain task and tag their video or image with a given hashtag.

Hashtag challenges come in two flavors: organic and sponsored. Anyone can start a hashtag challenge with creativity and a bit of momentum. But a sponsored, or branded, hashtag challenge is created by a company. Usually, with the help of influencers, brands create online hashtag challenges on Instagram, TikTok, X, and Facebook to encourage users to share how they use a product or service.

Hashtag challenges are the most popular on TikTok. Early hashtag challenges were inspired by specific dances or songs, such as the artist The Weeknd’s #blindinglightschallenge. This challenge consisted of TikTok users doing a few simple dance moves while the song "Blinding Lights" played in the background. Videos created around this particular hashtag have racked up over 486 million views.

Since hashtag challenges first started going viral, TikTok has taken steps to monetize these videos for brands. Today, the platform offers Branded Hashtag Challenges: sponsored campaigns that companies can use to boost awareness, drive engagement, and build a bigger fanbase.

[Read more: How to Use Hashtags to Promote Your Small Business on Instagram and TikTok]

How do branded hashtag challenges work?

TikTok’s Branded Hashtag Challenge (HTC) allows brands to create opportunities for engagement with their audiences. These ads consist of a three- to six-day campaign in which user-generated content appears on the TikTok hashtag challenge page.

Setting up the challenge is relatively straightforward. TikTok will lead you through the steps, which include selecting music, creating contest rules, and setting up a hashtag of no more than 70 English characters. Sponsoring your campaign using TikTok’s Hashtag Explorer Plus program ensures your challenge is seen by more users.

“[You] can place your branded HTC on the ‘Discover Page’. This is where TikTok users go to find trending sounds and hashtags. A banner here for your HTC will direct traffic to the hashtag page, the central hub for the challenge,” wrote Tribe, an influencer marketing company.

Hashtag challenges should be fun, relevant, and memorable. Try to pick a challenge that is both easy to complete and leaves lots of room for creativity.

Tips for setting up a hashtag challenge

Of course, it’s not imperative that you spend big to run a sponsored hashtag challenge. Many brands keep it organic, encouraging their existing followers to participate and working with some influencers to help the campaign spread.

Hashtag challenges should be fun, relevant, and memorable. Try to pick a challenge that is both easy to complete and leaves lots of room for creativity. For example, shoe retailer DSW launched a challenge for users to share videos of themselves wearing shoes with the hashtag #TooManyShoes to be entered for a chance to win a full closet of shoes.

The #improvisewithJUKE campaign, posted by Nissan Australia, aimed to raise awareness of their new crossover car, the Juke. The brand provided users with music and challenged them to make their own car commercial voiceover. The grand prize: actually being featured in a Juke commercial on TV.

Work with influencers to make sure your hashtag challenge gets seen. “You can ask them to participate in the challenge and share it on their respective TikTok accounts. This will introduce the challenge to their followers, some of whom will participate in the challenge,” wrote Influencer Marketing Hub. “Influencers can also cross-promote on other platforms and get more people to participate in your challenge.”

[Read more: 4 Smart Ways to Boost Engagement With Social Media Followers]

Top examples of successful branded hashtag challenges

Chipotle ran one of the most successful branded hashtag challenges on TikTok for National Avocado Day. Participants could coordinate their own dance and tag it with #GuacDance to get free guacamole at participating locations. This challenge was a massive success, garnering 250,000 video submissions and 430 million video starts during a six-day run.

e.l.f. Cosmetics ran a simple campaign called the #EyesLipsFace challenge. The makeup retailer asked users to show their best makeup looks for a chance to win $250 worth of e.l.f. products. The hashtag racked up more than 6 billion views and also built brand recognition, since many existing customers weren’t aware that e.l.f. stands for eyes, lips, face.

There are dozens of other examples on TikTok. Pringles challenged TikTok users to get creative with a Pringles can in #PlayWithPringles. Moncler asked followers to show off their bubble-themed style with #MonclerBubbleUp. And candy brand Chupa Chups challenged users to dress up in lollipop-inspired Halloween costumes with #Chupalloween.

Tools to track and measure hashtag performance

Most major social media channels offer some native hashtag tracking features, but they are generally limited compared to dedicated third-party tools. Look for a hashtag tracking tool that balances usability, affordability, and valuable insights. KeyholeHootsuite, and RiteTag each offer tools for generating and tracking hashtag performance.

Note that not all platforms support hashtags the way they used to. Instagram, for instance, has removed the ability to “follow” hashtags. As a result, you can’t see all posts from a hashtag in your feed. X also limits its tools for tracking hashtag performance over time or comparing multiple hashtags to premium users. TikTok and Threads, however, are still supportive of hashtag use and worth exploring for your next challenge.

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