TikTok recently launched “Shopping Ads”, a more advanced advertising solution that can help brands increase demand and sales for their products. Additionally, the new shopping ads contain three ad formats: shopping video ads, catalog listing ads, and live shopping ads.
According to the company:
“Shopping Ads is a simpler, smarter and more advanced advertising solution that helps brands meet shoppers wherever they are in the buying journey, driving demand and driving sales.”
Image source: Tiktok
The first solution, video shopping ads, allows brands to add relevant videos to the “For You” page of the platform to enhance product discovery. This will help users discover the products that they will most likely purchase from the platform.
Second, the “LIVE Shopping Ads” solution helps drive engagement by allowing advertisers to guide their users from a “For You” page to LIVE brand moments. It mainly aims to educate users about different products, introduce relevant products to users, and encourage more traffic to a brand’s event. Currently, this solution is in the testing phase in countries such as the United Kingdom, Malaysia and Singapore.
Finally, “catalog listing ads” are intended to help advertisers enhance their product catalog across the platform and promote product advertising beyond TikTok’s “for you page.” Therefore, without any video assets, brands can now promote the entire product catalog with new placements such as “Recommended Products” plus “Related Products”. This will ensure higher shopping opportunities by displaying similar products that users are interested in. Currently, this solution is in the test phase in the United States.
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‘Douyin’ (the Chinese version of TikTok) has already been using these solutions for quite some time and has become an important trend. However, live shopping has yet to see similar success in other countries, but TikTok still wants to provide these options to its creators to help them generate more revenue.
TikTok even revealed that about 56% of its users could find the latest products and brands using these ads. Also, around 48% of users might be interested in making a purchase on the platform within the next three months. Additionally, around 70% of TikTok users find it convenient to purchase through shopping-related ads.
Some shopping ads solutions remain in a limited testing phase, and interested brands can work with TikTok’s approved partners such as Productsup, Smartly.io, and Shopify to test them.