ICT Tac announcement today, it’s launching a new suite of commercial ads called “Shopping Ads” to make it easier for brands to advertise on the platform. The company is currently testing three shopping ad formats, including shopping video ads, catalog listing ads, and live shopping ads.
The new shopping video ads allow advertisers to highlight one or more products in their in-app video ads in a way that amplifies product discovery and purchase intent. According to TikTok, Video Shopping ads deliver dynamic experiences based on shopper purchase intent, with smart targeting and optimized ad delivery. Video shopping ads essentially put brands’ shoppable videos in front of users who are more likely to buy them. Ads will also automatically create a landing page to better determine a user’s purchase intent. Video Shopping ads are currently available to select advertisers for beta testing.
The company claims that Video Shopping Ads combines the best of its current Dynamic Showcase Ads and Collection Ads solutions. Although Dynamic Showcase Ads and Collection Ads are still available for the rest of 2022, TikTok plans to phase them out next year.
TikTok’s new catalog listing ads allow advertisers to scale their product catalogs on the app and expand advertising reach beyond the For You page. With Catalog Listing Ads, advertisers can promote their products on buyable surfaces such as “Recommended Products” or “Related Products” on TikTok, where users with relevant interests and higher purchase intent can discover and purchase them. . Catalog Listing Ads are currently being tested in the United States.
Finally, Live Shopping Ads allow advertisers to direct For You Page users to their Live Shopping event, so they can participate and learn more about their products. LIVE Shopping Ads drive traffic to a brand’s event and are designed to showcase their products to shoppers most likely to purchase them. Live shopping ads are testing where TikTok Shop is available, including the UK, Indonesia, Malaysia, Philippines, Singapore, Thailand, and Vietnam.
“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,” the company said in a blog post.
As part of today’s announcement, TikTok revealed that 56% of users say ads on TikTok lead them to discover new products or brands, according to a global research study conducted with Material. The company also notes that 48% of users are interested in making a purchase on or from TikTok within the next three months. Additionally, TikTok notes that 70% of users say it seems easy to buy through the TikTok shopping-related ad they saw.
The launch of the new advertising solutions comes as TikTok has expanded its advertising products over the past few months. In May, the company launched an ad product called “Branded Mission” that allows creators to connect with brands and potentially earn rewards for videos. The product allows advertisers to crowdsource content from creators and turn top-performing videos into ads.
Also in May, TikTok launched a contextual advertising solution called TikTok Pulse to attract advertisers to its platform by giving them the opportunity to showcase their brands’ content alongside top videos on TikTok. The advertising solution ensures that brand ads are placed next to 4% of all videos on TikTok.
Given TikTok’s interest in establishing itself as an e-commerce platform, it’s no surprise that it’s looking to woo advertisers and grow its ad following. However, it’s worth noting that not all of TikTok’s e-commerce plans are going as planned, as the company has reportedly dropped plans to expand its TikTok Shop live e-commerce initiative to the US and other countries. parts of Europe after seeing below average performance. United Kingdom