As TikTok continues to grow in popularity, especially among teens, the company is attempting to make it easier for brands to advertise on the platform by testing three new Shopping Ads formats, including Video Shopping Ads, Catalog Listing Ads, and LIVE Shopping Ads.
“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,” explains TikTok.
Advertisers can use new Video Shopping Ads to highlight products in their in-feed video ads with smart targeting and optimized ad delivery, according to the company.
For example, TikTok users most likely to buy a pair of roller skates will in theory see a skate brand's shoppable video.
TikTok says that Video Shopping Ads combine the best of its current Dynamic Showcase Ads and Collection Ads solutions, two ad types that will likely be phased out in 2023.
Catalog Listing Ads invite advertisers to scale their products catalogs across TikTok, with the ability to promote products on shoppables areas like Recommended Products or Related Products. Users with relevant interests and higher purchase intent will be more likely to discover these products and buy them.
LIVE Shopping Ads allow advertisers to steer users from the For Your page and direct them toward their LIVE Shopping event where they can learn about their products. In this way, brand events can gain more viewership and engagement among shoppers who are most likely to buy.
According to a global research study conducted by TikTok, 56% of users say ads on the short-form video app lead them to discover new products or brands, 48% are interested in making a purchase on or from TikTok in the next three months, and 70% say it seems easy to purchase through the TikTok shopping-related ad they saw.
Shopping ads have been offered for years in Douyin, the Chinese version of TikTok, with in-stream (LIVE Shopping Ads) being the biggest earner there. It is still unknown whether the trend will be as popular in the West.
TikTok’s new shopping ads are still being tested, and are available to the app’s approved partners.