In an effort to maximize its revenue potential, TikTok is planning to launch a range of ad offerings focused on eCommerce, including in-stream shopping tools.
A part of this ad offerings range is Collection Ads, which are aimed at helping brands combine their product catalog listings and branded videos. This will guide users to relevant products from their video clips. The strategy is similar to YouTube's product listings on videos.
Next comes the Dynamic Product Ads, which will retarget users with relevant products based on their activities in the advertisers' apps and websites.
Then there is Promo Tiles, with the help of which, advertisers can add customizable sales and promotional alerts to their in-feed ads. Showcase Tiles, on the other hand, will help creators to promote their products in their videos, using a link with relevant product thumbnails displayed at the bottom of the screen.
TikTok claims to be an important platform for product discovery, which it has proved to be. According to the company, 47% of its users have bought something they've seen on the video-creating platform. TikTok also adds that its ad business in the US has grown more than 500% in the past year, which is linked to the rise in the platform’s audience growth. The company currently has over 100 million monthly active users in the US and 732 million users around the world.
TikTok is expected to become the next billion-user platform, according to external reports, in which case, the platform’s advertiser interest is expected to increase too. This is also related to TikTok's audience connection with pop culture and building resonance.
Moreover, since majority of TikTok's audience is aged under 24 and younger audiences have a major impact on spending, the company’s new eCommerce integrations are quite significant, and will definitely play a key role in the app's future development.