TikTok recently launched “Shopping Ads,” a more advanced ad solution that can help brands increase the demand and sales of their products. Moreover, the new Shopping Ads contain three advertising formats: Video Shopping Ads, Catalog Listing Ads, and LIVE Shopping Ads.
As per 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.”
Tiktok Added Video Shopping Ads, LIVE Shopping Ads & Catalog Listed Ads
Image Source: Tiktok
The first solution, video shopping ads, allows brands to add relevant videos on the platform’s “For You” page to enhance product discovery. It will help users discover products they will most likely purchase from the platform.
Next, the “LIVE Shopping Ads” solution helps drive engagement by allowing advertisers to guide their users from a “For You” page to the brand’s LIVE moments. It primarily aims to inform users about different products, showcase relevant products to users, plus encourage more traffic to a brand’s event. Currently, this solution is in the testing stage in countries including the UK, Malaysia, and Singapore.
Lastly, the “Catalog Listed Ads” is meant to help advertisers enhance their product catalog throughout the platform and promote product advertising beyond TikTok’s “For You Page.” As a result, 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 purchase possibilities by displaying similar products that interest users. Currently, this solution is in the testing stage in the US.
‘Douyin’ (TikTok’s Chinese version) has already been using these solutions for quite some time and has become a significant trend. However, Live shopping has not seen similar success yet 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 with the help of these ads. Also, about 48% of users might be interested in completing a purchase from the platform in the following three months. Furthermore, about 70% of TikTok users find it convenient to purchase via shopping-related ads.
Some shopping ad solutions remain in a limited testing stage, and interested Brands can collaborate with TikTok’s approved partners such as Productsup, Smartly.io, and Shopify to test them.