Recently, the popular social media application TikTok, which has 1 billion monthly active users, introduced numbers of new advertising formats for brands to use.

TikTok announced in its commerce keynote that TikTok's newest commerce ad solution "Shopping Ads" is designed to turn your products into TikTok experiences that users will rush to check out.

What is TikTok shopping ads?

Shopping Ads combines three different solutions to help brands harness the power of TikTok community and audience to convert them into sales, drive traffic, and increase conversion rates. it includes three different types of shopping ads: video shopping ads, catalog listing ads, and live shopping ads.

How effective is the TikTok shopping ads?

According to TikTok, there are some interesting stats regarding user behavior that shows the potential of these new advertising formats and how effective they could be as follows:

• 56% of TikTok users say that ads on TikTok lead them to discover new products or brands.

• 48% of TikTok users are interested in making a purchase on or from TikTok in the next 3 months.

• 70% of TikTok users say it seems easy to purchase through the TikTok shopping-related ad they saw.

What are the three types of shopping ads?

TikTok continued to provide different types of advertising solutions to its advertisers and allow them to creatively target different objectives for their marketing campaigns. However, they've recently introduced new advertising solutions that focus on e-commerce. These ads are:

1- Video Shopping Ads

The first type of shpping ads are designed to allow advertisers to place their shoppable video in front of users who are more likely to buy, it combines features from existing TikTok ads, collection ads and dynamic showcase ads.

It will dynamically combines videos and products into different variations. It can be either a specific product to drive sales or a broader brand message to drive consideration.

As TikTok Collects data. it will optimize the campaign's performance by dynamicallly choosing the compination that convert the most.

When user tab on the ad, it will direct the user to a landing page created by TikTok to encourage the user intent to buy. The landing page will include the detail of the product and will direct the user to the brand site when ready to buy and it does not require setting up TikTok Shopping.

2- Catalog Listing Ads

The second type of ad introduced by TikTok allow advertisers to use the power of product feed with TikTok's recommendation algorithm to create and showcase product-centric ads to shoppers across TikTok.

it doesn't require a video and completely powered by the product catalog, meaning that a new shopping experience for TikTok Users to connect with the brand via their products.

3- LIVE Shopping Ads

The last type of shopping ads introduced are specifically designed for brands that uses live stream to sell their products, setting up TikTok Shopping is essential for this type of ads. it allow advertisers to direct TikTok's users from For You page to their live shopping stream.

How to use shopping ads?

As of now, shopping ads are available for testing and requires advertisers to reach “level one” status by integrating advanced signals and linking their product catalogs. Check this TikTok's guide on how to start testing shopping ads.

Conclusion

TikTok continues to integrate e-commerce into their platform, allowing users to combine entertainment with online shopping, giving more room for creativity for advertisers to promote their products.

Following a global research study which found that almost half of TikTok users are interested in buying products through the app, we are extremely excited to explore the effecency of these new ads format and discover different creative ways on utilizing shopping ads.

The new Shopping Ads are available for test, giving advertisers enough time to test, learn and analyze these new features to get ready for their next holiday season.

So, what do you think of these new ad features? have you check them out already? How much return you can get with these new ad features? Are you ready to start a campaign with shopping ads? Share your comment down below!

Need help with TikTok ads?

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