TikTok Shopping expands with more partnerships, Live Shopping, new ads and more
TikTok is increasing its investment in ecommerce
TikTok is increasing its investment in ecommerce. In partnership with Shopify, TikTok launched TikTok Shopping in the U.S. and U.K. earlier this year. Shopify merchants who have a TikTok Business account were able to add a Shopping tab on their TikTok profiles. They could also sync their product catalogues to the app, creating mini-storefronts. TikTok has announced a new list of brand partners for TikTok Shopping. These include Square, Ecwid, PrestaShop and OpenCart. Wix, SHOPLINE and OpenCart will be coming soon. The company also announced a wider range of solutions for TikTok commerce including ad products, and, later in the year, a TikTok eCommerce API.
On Tuesday, the company presented its plans for TikTok shopping at an online event called TikTokWorld.
TikTok also shared the popularity of commerce on its platform. It noted, for example, that #TikTokMadeMeBuyIt has grown to 4.6 billion views. This hashtag is used by users when they share products they have discovered via TikTok videos. It also highlighted how the video can help users move from product awareness to action. TikTok users are 1.7x more likely to have bought products through the app than their competitors. This is according to a survey by Material that was conducted in August 2021.
According to the company, it is able to work in two ways with online merchants. One is direct integration. The other is full-service shopping solutions where TikTok handles everything, from fulfillment to shipping and point-of purchase. As TechCrunch reported, this is a system TikTok tested in Indonesia. It is also available in the U.K.
This second option involves working with third party commerce partners like Shopify who can provide essential backend tools for sellers and support.
TikTok announced that it will also launch a TikTok shopping API later in the year. This API will allow businesses to integrate product catalogues directly into TikTok and then include those products within their organic content.
TikTok will provide businesses with a few other tools to help them get their products before consumers.
The TikTok shopping pilot introduced Product Links. brands can highlight one product directly from an organic TikTok clip, which then directs users to their product detail pages. This is TikTok's version of Instagram's product tags and stickers.
Brands can now connect with TikTok users and share dynamic links while live streaming the content. Walmart was a pilot partner for the feature in the past and hosted a couple LIVE shopping events.
The company now offers three in-feed advertising products for online shopping: Collection Ads and Dynamic Showcase Ads.
Collection ads are a new product that allows brands swipeable product cards into their in-feed videos. Each card can be featured with a different product and when tapped, takes users to an instant gallery page that allows them to browse and make purchases. This type of ad is useful for limited-time sales, seasonal sales, and new launches. TikTok highlighted a case study with Princess Polly, a brand that saw a 6x return for ad spending and a more than 50% increase in overall product page views with the ad.
Dynamic Showcase Ads, another product that is new, allow brands to promote thousands or even millions of product SKUs through personalized video ads. DSA will create video ads targeting specific audiences based upon their interests and other commerce activities such as purchasing products or adding them to a shopping cart. TikTok's DSA templates are based on the platform's creative principles, which allow for creative clips with music or text overlays. TikTok claims that the templates have been generating higher click-through and conversion rates for advertisers in early DSA testing, but did not share any metrics. It has partnered with SHAKR video marketing company, as well as Productsup and feedonomics, which can integrate product catalogues.
In-feed video ads continue to offer lead generation. This gives brands an easy way for TikTok users to provide information via online forms. These ads work best for businesses with longer sales cycles like education and audio. It also has partnered with Zapier, LeadsBridge and other partners to connect a brand's CRM directly to TikTok to launch a lead-generation campaign. TikTok claims that nearly half of those who signed up for a form in the first week of a lead generation campaign were able to sell on the marketplace.
This combination is TikTok Shopping.
TikTok Shopping Head for Product Javier Irigoyen stated that the future of commerce on TikTok will be a shopping experience that allows brands to tap into our users' enthusiasm. The For You page is where TikTok's magic happens. Here, e-commerce content can be recommended to users just like short videos or live streams. TikTok allows users to connect with brands and create an organic shopping experience. He said that this is the foundation on which we are building a long-term business division.