For a long time TIkTok has allowed large companies like Levi’s and other to run product ads across influencer videos. TikTok’s commerce feature is getting a total revamp as it’s currently undergoing a testing phase that’ll enable creators to upload ad videos that include call to actions buttons such as “Shop now”.
According to the latest news released, all profits gained from creator ad-enabled videos will be split between creators and TikTok. TikTok has been slowly and steadily rolling out new features related to ad displays within the past year alone, so this new move is not surprising.
In the later part of 2019, TikTok began enabling users the ability to insert external links to e-commerce stores directly in their profiles and videos. Just last summer, TikTok released the Hashtag Challenge Plus feature, which enabled creator and brand videos to promote an integrated hashtag that will ink to an external e-commerce website.
What it means
This is a major step for the short-form video sharing company as it’s currently going through a lot of changes. Recently, it was announced that Microsoft had placed a bid to acquire all of TikTok’s Chinese assets. Part of the deal will include allowing Microsoft to transfer TikTok’s entire app code over to their U.S. servers.
Looking at it from another angle, this is also a strategic move by the short-form video company to compete with industry-leaders in the space such as Facebook and Instagram. The two aforementioned platforms have robust ad marketing systems in place that allows users to create ads, gain insights, and engage with their core consumers.
By TikTok making the leap to enable ads for all creators on the platform and not just big brands, they will definitely make a big splash in the near future. CEO & co-founder of the popular influencer marketing platform Influential had the following to say about TikTok’s latest feature roll-outs: “Every social platform has had to introduce commerce and outside links to strike a balance between content and conversion, there is definitely an appetite for commerce in addition to video views.”
Statically speaking, a very minute portion of all e-commerce sales come from social media platforms. However, with an increase in younger people on-boarding to these various apps, that number is expected to grow substantially in the near future.
What to expect
Zoe Galindo who is a strategic partner at Swift said the following about the new additions to the TikTok platform: “As TikTok rolls out shopping features within the platform, itâ€™s important that the user experience isn’t disrupted too much, thatâ€™s why itâ€™s great to initially lean in with influencers and creators. If they had a great experience with the content, itâ€™s more likely theyâ€™ll click through and see what’s next.”
TikTok provides the perfect platform for intertwining entertainment and effective marketing strategies that marketers can really exploit. As more details have yet to be released about the new feature implantation, we can expect to hear more developments very very soon.