TikTok has rapidly transformed from a platform for viral dance trends into a major advertising channel for ecommerce brands and beyond. With its highly engaged user base and powerful algorithm, TikTok offers a unique opportunity for businesses to reach their target audience in a creative and authentic way through the use of organic video content, UGC, live shopping, Tiktok shop and influencer marketing.
In this guide, we’ll explore how TikTok ads work, the benefits they offer, which businesses can get the most out of them, and how they are reshaping digital marketing.
How do TikTok ads work?
TikTok’s advertising platform operates on a bidding system, similar to Facebook and Google Ads. Advertisers set campaign objectives, choose targeting parameters, and bid for ad placements. The platform provides various ad formats designed to engage users in a natural, non-intrusive way.
Types of TikTok ads
- In-feed ads: Appear as native video content in users’ “For You” feeds, blending seamlessly with organic posts. These allow for likes, shares, and comments from users and customers from across the world
- TopView ads: Full-screen video ads that appear as the first piece of content when users open TikTok, ensuring high visibility and exposure
- Branded hashtag challenges: Encourage user participation by prompting them to create content around a specific theme. This is excellent for viral marketing or for products which are aimed towards the younger generations
- Branded effects: Custom stickers, filters, and augmented reality (AR) effects that users can engage with in their videos and create fresh content that brands can use as UGC
- Spark ads: Promote existing organic content from your brand or influencers, boosting visibility while maintaining authenticity
- Carousel ads: Available within TikTok’s news feed apps like Pangle, allowing multiple images to be displayed in a single ad. These are well suited for product collections or packages.
The benefits of TikTok ads for ecommerce
Engagement and reach
TikTok’s algorithm is designed to push relevant content to the right audience, making it easier for brands to go viral. Unlike traditional ad platforms, TikTok’s content is discovery-driven rather than follow-based, meaning brands can reach new audiences more effectively without needing them to actively follow them or keep up with the brand on a regular basis.
Lower cost compared to other platforms
TikTok ads can be more cost-effective than Facebook or Instagram ads, particularly in terms of engagement. The platform also allows brands to start with small budgets and scale up based on performance so they can decide what is and isn’t working, and work their budget around it.
Strong ROI and conversion potential
With features like TikTok Shopping and seamless integrations with ecommerce platforms such as Shopify and WooCommerce, TikTok enables a direct path from discovery to purchase, simplifying the customer journey and making it easier than ever for customers to purchase their products on the go.
Authentic and user-generated content
TikTok thrives on creativity and authenticity, making it ideal for brands that want to showcase their products in a relatable way. User-generated content (UGC) has proven to be a powerful driver for brand trust and conversions as it shows real life people, using real life products. Not only does this type of content display items in a natural and accurate way, but it also gives room for opinions, advice and feedback. Businesses can then reuse content created by others, taking away the need for them to constantly develop new marketing materials.
Advanced targeting
TikTok’s ad platform allows businesses to target users based on demographics, interests, behaviour, and even lookalike audiences, ensuring your ads reach the right people and those who are most likely to engage with your brand and products.
Businesses that would benefit from Tiktok ads
Are you an e-commerce brand wondering whether or not to invest in tiktok ads? If your brand thrives on visual storytelling, creativity, and engagement, then TikTok Ads are well worth exploring. Whether you’re looking to drive brand awareness, boost conversions, or tap into a younger, highly engaged audience, TikTok’s advertising platform offers a unique opportunity to grow your ecommerce business.
TikTok isn’t just for Gen Z—it now attracts a wide demographic of users, and a variety of different business types can benefit from introducing ads into their next marketing campaign:
- Fashion and apparel
- Beauty and skincare
- Home and lifestyle products
- Health, fitness and wellbeing
- Food and beverages
- Technology, applicants and gadgets
- Direct-to-consumer (DTC) brands
