TikTok Previews Coming Advert and Product Show Choices
TikTok plans to launch a number of new e-commerce ad offerings to maximize revenue potential. This is based on new evidence from a leaked pitch deck presented to various advertisers in the United States.
As reported by Business Insider, TikTok is looking to add a number of new in-stream shopping tools to further leverage its e-commerce potential.
The first new option is “Collection Ads,” which allows brands to combine their product catalog lists and branded videos to guide users from their video clips to relevant products. It’s similar to YouTube’s product lists for videos, so it adds to direct response.
TikTok also wants to add “Dynamic Product Ads” that will run automatically Retarget Users with relevant products according to their activities in the advertisers’ apps and websites.
Promo Tiles allows advertisers to add customizable sales and promotional messages to their in-feed ads, while Showcase Tiles allows developers to promote products in their videos and displays a link to relevant product thumbnails at the bottom of the screen.
The latter options are similar to TikTok’s e-commerce offerings in China in the Chinese version of the ‘Douyin’ app.
Douyin now generates most of its income So it’s no surprise that TikTok is trying to add the same thing and bring more product discovery and shopping activity into the app.
In fact, TikTok says it’s already a key platform for product discovery. In the attached notes, TikTok says that 47% of its users bought something they saw on TikTok, while the platform also claims that the US ad business has grown more than 500% over the past year.
That’s relative to audience growth, of course – TikTok also notes that there are now more than 100 million monthly active users in the US and 732 million worldwide. External estimates suggest that TikTok is now well on its way to becoming the next billion-user platform, and with this increasing user dynamic, the interest of advertisers continues to grow – what with the audience’s connection with pop culture and the Building up resonance at TikTok is related.
The majority of TikTok’s audience is under 24 years old (59%), with 17% of users being between 13 and 17 years old. This gives the platform an important foundation on which to build as it aims to establish itself as the main competitor in the social media space. Because of this, Facebook was keen to remove it, as the ability for users to develop such strong connection and personal networks within the app in such young age groups will position TikTok for continued expansion and growth as those users grow age.
Younger audiences also have a huge impact on spending, albeit indirectly. That is why these new ecommerce integrations are so important and will play an important role in the future development of the app.
They will also enable TikTok to create better revenue sharing opportunities to ensure that its top developers get paid. With that in mind, it’s no surprise that TikTok is making this a key focus, and it might be worth considering how these options might fit into your digital marketing approach.