Shopping Ads: 5 Things You Need to Know About TikTok's New Feature for Businesses

Have you heard of TikTok’s new feature for businesses, but are still unsure how to use it? Don’t fret, let us help.

TikTok reached over $2.3 billion in consumer spending in 2021, so it’s definitely the place to be for any business with an online presence today. (And even those who are not online yet should consider getting started with a TikTok business account.)

But how can you convert these into actual profit for your business?

In this post, we’ll talk about TikTok’s newest Shopping Ads.

What are TikTok’s Shopping Ads?

“Shopping Ads are built different.” That’s how TikTok introduces their newest ads feature for businesses.

These include:

  • Video shopping ads
  • Catalog listing ads
  • LIVE shopping ads

(More details in a bit.)

So here are 5 things to know about TikTok’s Shopping Ads and how to best use them to benefit your business. 

1. What businesses are eligible to use TikTok’s Shopping Ads?

TikTok’s Shopping ads are still in the testing phase, and not all of them will be available to everyone. Here is where each type of ad is available:

  • Video shopping ads are available for testing worldwide. 
  • Catalog listing ads are only available in the United States at the moment, and to some eligible businesses that target the USA. 
  • LIVE Shopping ads can be tested by any business who can use the TikTok Shop (UK, Indonesia, Malaysia, the Philippines, Singapore, Thailand, Vietnam, and some invited accounts in the US).

2. Why are TikTok Shopping Ads different from simple ads and feed content?

If you have worked with user-generated content (UGC) before, you know its worth. Ads based on UGC receive 4 times higher click-through rates compared to average ads.

But what if you could pair UGC content with immediate access to your catalog?

By launching its Shopping Ads, TikTok is helping businesses get rid of the “link in bio” or “go to our website” CTAs, and instead creates a direct link to the product page.

The different types of Shopping Ads have different ways to do that, so let’s explore them in more detail.

1. Video Shopping Ads

The aim of the Video Shopping Ads is to help you highlight a product. By creating one, you will allow customers to purchase your product directly from the ad they’ve just watched.

2. Catalog Listing Ads

Group several of your products in a catalog that will be displayed on your target audience’s feed. You don’t even need a video asset to go with it!

3. LIVE Shopping Ads

Extend your reach to a wider audience reachable directly onto the For You Page while your profile is going live. TikTok presents your Live on FYPs, and users can see ads for the products you’re showcasing as soon as they come to your Live session.

3. How is the audience reach different and how do TikTok Shopping Ads help with customer retention? 

TikTok assures that the reach of its new Shopping Ads helps you get to your audience in a smarter, quicker way.

If you think about it, being able to access the product purchase page right from the video helps with reducing the effort and time invested in the purchase. You’re much less likely to lose customers on the way!

4. What is the best content to use for TikTok Shopping Ads?

All three types of TikTok Shopping Ads work in a different way. Catalog Listing Ads do not need any video-content support, and LIVE Shopping Ads have to be presented while the profile is ging live.

But what about Video Shopping Ads?

Ad content on TikTok tends to perform better if it is relatable to users, and statistics prove that UGC is the best you can do when it comes to ads on TikTok.



Here are some stats that prove it: 

  • Ads based on user-generated content receive 4 times higher click-through rates and a 50% drop in cost-per-click compared to average ads.
  • More than 86% of companies today use user-generated content as part of their marketing strategy.   
  • When users create and share content on social media channels, they get 28% higher engagement compared to standard company posts.

(Stats from TintUp.com)

90% of consumers say authenticity is important when deciding which brands they like and want to support. And what seems more easily authentic to a user than any type of over-produced content?

Something presented by a fellow user.

In fact, 84% of consumers say they trust peer recommendations above all other sources of advertising

5. How does uploading a TikTok Shopping Ad work?

Ready to get started with this amazing new feature? The easiest way to understand how to upload them is by using these guides from the very same platform that hosts them.

Take it away, TikTok!

1. Create a TikTok Video Shopping Ad

2. Create a TikTok Catalog Listing


3. Create a TikTok LIVE Shopping Ad

Wrapping up: Get started!

Now that you know why you should use TikTok's Shopping Ads and how to get started with them, there's not point in waiting any longer!

If you want to start making the most out of your presence on TikTok (and jumping on the $2.3 billion in consumer spending train), here are the first steps you should take: