A huge chunk of TikTok users already post content about things they have purchased due to other users recommending them on the app. However, TikTok wants to expand its e-commerce integration and it is launching three types of shopping ads to do so.
TikTok expands its e-commerce integrations
The three ad types include Video Shopping Ads Catalog Listing Ads and, Live Shopping Ads. As explained by the company:
Shopping Ads is a simpler, smarter, and more advanced ad solution that helps brands meet shoppers wherever they are in the purchase journey, sparking demand and boosting sales. It’s a three-in-one solution with new formats to adopt and combine: Video Shopping Ads, Catalog Listing Ads, and LIVE Shopping Ads
Video Shopping Ads allow advertisers to “Place hyper-relevant, shoppable videos across the For You page for people to check out your products.” These types of ads will put brands’ shoppable videos in front of users who are most likely to buy them. For example, ads for makeup products will be displayed to users who watch makeup-related content. Vide Shopping Ads are available for testing globally.
Final-year student Sumayah runs a modest wear business on the side while studying. Within two months of enlisting presenters to showcase her products on TikTok LIVE, her business became the UK’s top local-to-local fashion seller on TikTok. Sumayah saw GMV grow by 900% during a spring campaign, and 80% of GMV was attributed to LIVE Shopping.
Next, we have Catalog Listing Ads which allow advertisers to promote their products through new placement across the platform. No videos are required for this type of advertisement. These ads will be shown across surfaces like Recommended Products” or “Related Products” on the platform. These ads currently testing being testing in the United States.
An early adopter of TikTok’s commerce solutions in North America, American Eagle integrated its catalog and used Product Links and in-feed Shopping Ads to drive awareness of the brand’s presence and products on TikTok. The move paid off, generating 20,000 Product Link clicks across 21 campaigns.
Last we have LIVE Shopping Ads, which allow advertisers to “Drive engagement from the For You page to your LIVE moments and show your products to shoppers who are more likely to buy.” These ads are being tested where TkTok Shop is currently available including the United Kingdom, Malaysia, Thailand, Vietnam, Indonesia, Singapore, and invited accounts in the United States.
Co-creating with TikTok creators can build an ecommerce community that feels as authentic as the For You page. L’Oreal Maybelline and Garnier partnered with TikTok creators in Indonesia to leverage Video Shopping Ads, Product Links, and LIVE Shopping to drive purchases and sales via their TikTok profiles. Both brands saw a massive uptick in daily sales—12x for Maybelline and 11x for Garnier—and GMV targets were outperformed by 106%.
Advertisers can also direct shoppers to an external site if TikTok Shop is not available in their region.