TikTok has announced five new advertising solutions to help brands achieve better business results. These tools aim to position TikTok as more than just an entertainment platform but also as a key driver of consumer actions and purchases. The new solutions include Smart+, an automated performance advertising tool that optimizes targeting, bidding, and creative selection.
This tool encompasses campaigns for web traffic, catalog ads, app installs, and lead generation, with early adopters reporting significant improvements in cost per acquisition and return on ad spend. GMV Max automates TikTok Shop campaign creation, helping merchants grow their gross merchandise value (GMV). This tool simplifies ad operations and optimizes traffic across organic content, paid ads, and affiliate posts.
Initial testing showed an average 30% GMV uplift for merchants.
TikTok’s new ad tools unveiled
Out of Phone: Retail is an in-store digital advertising solution that showcases TikTok content in retail locations, aiming to bridge the gap between online and physical shopping experiences.
Conversion Lift Studies (CLS) measure TikTok’s business impact beyond last-click attribution, available to businesses of all sizes. Studies indicate an average conversion lift of at least 25% compared to users not exposed to TikTok ads. Privacy-Enhancing Technologies (PETs) offer advanced privacy measures for advertisers using first-party data, ensuring a balance between effective advertising and user privacy.
TikTok’s new tools are designed to optimize campaigns, improve conversion rates, increase return on ad spend, and boost revenue. According to TikTok’s internal data, 61% of users have purchased something after seeing content on the platform, and 79% of purchases driven by TikTok are not attributed to the platform through traditional measurement metrics. TikTok’s new advertising tools mark its ambition to become a more robust advertising platform, posing a potential challenge to established players in the digital ad space.
