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This post was updated in February 2025 to provide you with the latest information.

How TikTok Shop Transformed Buying Habits From Discovery to Purchase

Social media advertising platforms have now transformed beyond mere communication tools to bustling centers for e-commerce activities. TikTok Shop, introduced to the US market in September 2023, has rapidly gained traction, generating $363 million in consumer spending by November 2023 — just two months after its launch. It’s remarkable how the platform has evolved from a simple music and video-sharing app to a magnet for brands seeking advertising opportunities.

Keep on scrolling to discover the surge of TikTok shops and their significance for advertisers. Get amongst the lineup and seize the opportunity to maximize the capabilities of your TikTok shop ads.

The Rapid Ascent of TikTok Shops

TikTok’s share for video ad spend is currently at 7.0%, lagging behind YouTube and Meta at 8.2% and 30.4%, respectively. Now, TikTok Shop emerges as another avenue to increase the platform’s total ad spend.

Brands are flocking to TikTok Shops to tap into its engaged user base and create shoppable channels directly within the app. Integrated seamlessly into the platform, TikTok Shop ensures users are exposed to e-commerce opportunities, whether through showcased brands or live streams. With just a few clicks, users can browse and purchase products, all without leaving the app.

TikTok’s UX Simplifies Shopping Without Leaving the Platform

TikTok Shop’s integration into the main tabs of the app underscores its significance as a core feature, with users able to effortlessly transition between content viewing and shopping within the platform. While the concept of shop integration has faced challenges on other platforms, TikTok Shop demonstrates its resilience by providing easy access to customers.

As an example, when we looked up NYX Cosmetics on TikTok, the top results appeared on the first page. Additionally, we can browse through shops offering NYX products, videos, hashtags, and users. By selecting the users tab, we found our way to the NYX Cosmetics main TikTok channel and viewed their content. Furthermore, since their TikTok Shop is linked, we got to browse through their products without needing to return to the search results. Overall, TikTok excels in user experience with this integration.

The #TikTokMadeMeBuyIt Movement

The surge of influencer marketing on TikTok coupled with the introduction of TikTok Shop has provided brands new opportunities to connect with consumers. With a quick search of the hashtag #TikTokMadeMeBuyIt, users can find genuine reactions, recommendations, and reviews of products that other users and influencers have purchased. TikTok’s integration of shop listings and affiliate links has opened new avenues for influencer marketing, with over 100,000 creators already tapping into TikTok Shop’s affiliate program.

Discover how #TikTokMadeMeBuyIt has empowered brands to collaborate with influencers and boost their presence on the TikTok shopping ad trends:

Dyson Airwrap

This hairstyling tool has become an instant sensation, accumulating over 5.1 billion views and sparking waves of enthusiasm from influencers and users alike. The Airwrap’s success lies in its ability to showcase its effectiveness through captivating video content.

L’Oréal

By utilizing the hashtag #TikTokMadeMeBuyIt, L’Oréal orchestrated its highest-volume sell-out to date by creating an exclusive box labeled with the hashtag and distributing it to 200 influencers. The campaign generated 4.5 million clicks and 1.7 million engagements.

Is Gen Z Redefining Consumer Behavior?

TikTok Shop and TikTok Live stand out as crucial features of the TikTok app where Gen Z’s preferences shape purchasing habits and brand perceptions. Here are key highlights of Gen Z’s dominance:

• Research suggests that Gen Z is more inclined to make purchases influenced by TikTok than any other channel. Moreover, 95% said that their last #TikTokMadeMeBuyIt purchase was worth the hype.
• Gen Z places high trust in TikTok influencers, surpassing other channels by nearly 40%.
• Evidence shows that products going viral on TikTok experience substantial growth, with one brand noting an 85% month-on-month increase in sales on Amazon.
• TikTok’s impact extends to eCommerce giants like Amazon, where dedicated features like Amazon Finds highlight products that have gained traction on TikTok, underscoring its influence throughout the customer journey.

TikTok Shop’s Growing Appeal to Buyers and Advertisers

As TikTok Shops gain momentum, the number of buyers continues to climb steadily. With an anticipated 35.8 million US social buyers in 2024, TikTok has quickly caught up to Facebook, with both platforms boasting a 37% user base making purchases. 

Here’s why the trend toward TikTok Shop purchases is expected to persist, and why brands should take note:

Valuable Insights from Actual Customers

• TikTok Shops offer valuable insights by showcasing how many people have purchased a product. This provides social proof to consumers and enables brands to evaluate market trends and competitors’ success.
• Integrated shop features allow customers to leave reviews after their purchase, providing prospective buyers with firsthand information about the product’s quality and suitability.

Affiliate & Influencer Marketing Opportunities

• Consumers tend to trust personalities they admire, which is why major brands often enlist top celebrities like Jennifer Aniston for their advertisements. Today, influencers have become equally influential choices for brands.
  • Affiliate marketing: Influencers can feature products in their video content and provide direct purchase links through their TikTok Shop basket, simplifying the buying process for their viewers and followers.
  • Influencer marketing: Brands can collaborate with influencers for video ads or live streams, effectively showcasing products and driving engagement. Another prevalent strategy is sending PR boxes to influencers, allowing them to feature products on their TikTok channels and reach a broader audience.

Drive More Views and Sales to Your TikTok Shop with These Strategies

Given TikTok’s primary focus on video content, it’s only right to capitalize on video ads to promote your TikTok Shop effectively. So, how exactly can you boost your TikTok Shop by seamlessly integrating ads into the platform’s video stream? 

Steal the spotlight with captivating video content

• The key to visibility on TikTok is consistent content creation. Showcase your products, business, and team in engaging videos. Incorporating human elements into your ads can significantly enhance their appeal.
• As an example, Cult Beauty leverages user-generated content (UGC) and hosts various series showcasing their products, like “Swatch This Space ”. In these videos, they demonstrate swatches of lip products and foundation palettes, helping buyers find the perfect color to match their preferences.

UGC: Unlocking great content

• While you create your own content, your customers can also do it for you! Engage with your community by featuring content created by your buyers and consumers. UGC not only builds trust but also extends your brand’s reach as it connects with the creators’ communities.
• NYX Cosmetics, for example, heavily relies on UGC to promote its brand, showcasing real users’ experiences with their products.

Utilize Video Shopping Ads

TikTok offers a range of advertising options designed to enhance your TikTok Shop and drive sales. Here’s how you can maximize these innovative ad formats:

Spark Ads

Take your existing videos to the next level with TikTok Spark Ads. By boosting your content, you can expand your reach beyond your current followers and tap into a broader audience.

Product Catalog

Get started on building your TikTok Shop by adding your products manually or using the provided templates.

TikTok Video Shopping Ads

These ads allow viewers to shop directly from captivating video ads featured on the For You page. Combining the best features of Collection Ads and Dynamic Showcase Ads, TikTok Video Shopping Ads offer an engaging and efficient shopping experience for users.

Is Your Brand Ready to Move to TikTok Shop?

Are you prepared to make the leap to TikTok Shop for your brand? Now that you’ve learned about the unique features and advantages of TikTok Shop, it’s time to consider integrating them into your marketing strategy. 

While transitioning to a primarily video-based platform like TikTok may seem daunting for e-commerce brands, adaptation is key. Remember, your consumers are your audience, and increased visibility builds trust in your brand. Ultimately, embracing new opportunities like TikTok Shop can enhance your brand’s reach and credibility, leading to greater success in the long run.

The post Exploring the Rise of TikTok Shop in Modern E-commerce appeared first on Strike Social.

With the Infinite Loop marketing funnel, the retail path to purchase is not linear and has four customer journey stages. And TikTok is winning at every step of the purchase funnel:

1. Discovery – 1.7x more likely to drive product discovery, leveraging campaigns’ Reach and Engaged views, resulting in lower CPMs.
2. Consideration – As search intent increases on the app, TikTok is 1.4x more likely to boost product research. At the same time, ads are receiving more clicks and page visits.
3. Review – 1.4x more likely to encourage purchases through consumer content behavior and product reviews.
4. Participation – 2x more likely to inspire purchases and post engagements.

TikTok’s infinite loop algorithm for conversion campaigns creates more meaningful and dynamic engagement with users based on their interests and content behaviors. 

Related article: Advertisers Convert Facebook Ad Money to More TikTok Ad Spending

TikTok Shopping Ads Consumers’ Path: Catalog to Check out

The enthusiasm of TikTok fanatics can be converted into sales, harnessing the power of Shopping ads. Brands can benefit from the new commerce ad suite on TikTok by:

1. Streamline purchase experience by unlocking three new ad formats through TikTok Ad’s Product Sales objective.
2. Unleash more opportunities through the Product Catalog. TikTok is boosting organic content by adding links to the digital storefront, making shopping easier.
3. Meeting shoppers throughout the buying journey through advanced targeting and fully automated creative features that reach audiences most likely to convert.

TikTok is launching Shopping Ads to bind its community, entertainment, and e-commerce. Through the three latest formats, it can help brands market and sell their products by promoting them on the profile page’s product showcase tabs.

Related Article: Elevate Organic Growth with TikTok Spark Ad

How to set up TikTok Catalog?

TikTok’s Shopping Ads allow advertisers to create a catalog of products they want to promote. It will enable brands to showcase specific products with up-to-date information, such as price and availability.

How to set up?

1. Log in to TikTok Ads Manager. Select Assets > Catalog

2. Enter the following information:

• ​Industry
• ​Catalog Name
• Catalog Owner
• Default Currency
• Targeting Location

3. Once filled out, click Create.

How to add products?

There are three different methods to add products to your catalog:

Three ways to add products to the catalog include:

• Manually Add Products: Insert products to the catalog by filling out a form
• Data Feed Schedule: Upload products from an online file to the store
• Upload file: Attach products through the provided template

Add products to a catalog by:

Select a catalog to add products.

• To do this, select the catalog from the catalog home page
• Once the catalog is opened, pick another one from the drop-down menu on the left

1. Under Manage, click Products > Add Products

2. Download a CSV, XML(RSS), or XML(ATOM) version of the standard product template after bringing up the Upload Product module.

3. Add the products to a catalog by brands’ preference 

What are TikTok Video Shopping Ads?

Video Shopping Ads recognize shoppers’ intent to purchase through user behavior. With TikTok’s hyper-relevant targeting, highly-engaged audiences are more motivated to create action toward the ads. TikTok developed this with hyper-targeting and a better user experience. This new ad format provides benefits to advertisers such as:

• In-feed video ads target smaller, more distinct audience units, making it easy for advertisers to highlight different products, and encourage viewers to take action 
• It shows videos of products on the For You page that shoppers can click to see more information and purchase.

How to set up TikTok Video Shopping Ads?

Brands can create Video Shopping Ads with a catalog as a product source. There are five main steps to do this:

1. ​Use TikTok Business Center to create a catalog.
2. Upload the products to the catalog
3. Generate or upload the products videos in the catalog
4. Brands can do events integration between the catalog and TikTok pixel or measurement partner
5. Publish a campaign using the products in your catalog.

Who can use this ad format?

• Available globally. 
• Video ads are only available to selected advertisers for beta testing

What is TikTok Catalog Listing Ads?

TikTok has created Catalog Listing Ads, which enable brands to promote products with shoppable listings without video assets. By showcasing campaigns on other app sections, “Recommended” or “Related Products,” brands can leverage their presence to users with high intent to take action. 

How can advertisers benefit from it?

• To get started, upload the product catalog. Video assets are not required.
• Reach millions of potential shoppers who have similar interests and preferences.
• Get insights and analyze the top customers and products to use for sales.
• Promote products by boosting product visibility in prominent positions.
• This ad format automatically engages shoppers by showing products across their TikTok journey.
• ​Use best-in-class automation solutions to optimize ads for clicks or conversions.
• Improve spending efficiency to lower costs, and boost traffic and conversions.

How does it work?

Catalog Listing ads allow users to discover products from brand catalogs. These products are then shoppable on the For You page. This ad format is still in beta testing and is currently being tested in the US.

What are TikTok LIVE Shopping Ads?

Live shopping ads promote live shopping streams through the For You page by directing people to the event.

How does it work?

• Direct integration or partner integration can be used to set up TikTok Shopping

How to set up TikTok LIVE Shopping Ads?

1. Go to TikTok Ads Manager > Create New Campaign > Objective: Shop Purchases

2. Choose the brand’s Shop and select a TikTok account as Identity.

3. Schedule ad delivery to match the start and stop time of the LIVE video

4. Pick an Optimization Goal > Choose Standard or LIVE Video > Submit

• Standard – shoppers will see the ad before entering the live stream 
• LIVE – shoppers will see the live stream directly in the ad

Who can use TikTok LIVE Shopping Ads?

• Beta testing in the UK, Indonesia, Malaysia, the Philippines, Singapore, Thailand, Vietnam, and invited accounts in the US

Related Article: TikTok Analytics: Marketers’ Guide to Understanding TikTok Ads Targeting

Reimagine e-commerce with TikTok Shopping Ads

By 2026, eMarketer estimates that 39.9% of US TikTok users will purchase on the platform. The growth of US app buyers is more than 10x  compared to 2020. TikTok presents a concept called the “Infinite Loop,” which makes TikTok advertising more versatile in creating a more hyper-personalized and impactful marketing experience. Despite being new to social advertising, TikTok gave marketers reasons to move advertising dollars to the platform. This trend will likely continue as TikTok’s number of users and highly engaging video inventory grows.

The post TikTok Shopping Ads: Advertisers’ Solution to Creating Meaningful Digital Shopping Experience appeared first on Strike Social.