TikTok takes on Facebook with US ecommerce push

TikTok plans an aggressive expansion in e-commerce in the US, where it will come head-to-head with Silicon Valley giant Facebook.

China-owned viral video app, a tool that allows its most popular users to share links to products and earn commissions automatically from anyone, has informed advertisers about a number of new features for 2021, according to several people who have seen their plans. sales.

“Old school affiliate marketing,” said a senior advertising executive, adding that video producers can connect with any product they love, even if they’re not officially sponsored by the brand.

TikTok, owned by China’s ByteDance company, said that it aims to expand the ability of brands to display catalogs of their products on the platform.

The app is also said to be launching “live streaming” shopping, a mobile phone version of television shopping channels, where users can purchase goods with a few taps after seeing the products showcased by TikTok stars. This follows the testing of the live shopping feature announced by Walmart last year. TikTok declined to comment.

“It feels like TikTok will jump [introducing a] desktop [experience] and enter the business directly, ”Jack Smyth, chief creative officer at WPP Mindshare.

“Culturally, TikTok is well positioned for live streaming commerce to capture the dissolving distinction between content and commerce as it doesn’t feel as flashy as other platforms,” he added.

The tools will bring the already announced TikTok a partnership With the e-commerce platform Shopify, increase the competition even more with Facebook.

Last year Facebook introduced tools on the photo-sharing app Instagram and a digital shopping channel on the main Facebook site to make it easier for people to buy goods in some countries. Meanwhile, Instagram has released a copy of TikTok’s scrollable video feed called Reels.

Some advertisers were wary of TikTok and suggested that the current advertising system is still a work in progress. “The product and content hasn’t turned into a place where sophisticated advertisers really want to make a commitment,” said an ad agency executive.

Two people said the platform plans to further develop its own advertising platform this year; this allows brands to place their own ads online by aligning their ads with larger competitors rather than manually with a salesperson. People also said that it aims to improve ad targeting tools, including user tracking.

The app ran into serious problems in the United States last year when former president Donald Trump threatened to ban the app due to Chinese ownership.

How Biden’s management will approach the company remains unclear, but some advertisers seem more comfortable with implementing it.

“Recent changes in political leadership in the US are making customers more comfortable on the platform,” said Kris Hoet, chief global innovation officer at advertising agency Foote, Cone & Belding. “Our largest offices [globally] Confirmed it [many brands] was already active or was considering activating this year. “

TikTok last week first big deal According to advertisers, with WPP, an advertising agency that will increase the share price of WPP and give the agency early access to the latest ad products in a move encouraging rival social media groups.

TikTok’s biggest draw is its large and partially undiscovered young user viewers. The company says that 40 percent of people on TikTok don’t have a Facebook account and 63 percent are not on Twitter, according to a marketer that recently went on sale.

“With TikTok, you are looking at multi-billion dollar campaigns. [of views]. Often on other platforms. . . Campaigns reach millions, ”said Karyn Spencer, marketing manager for influencer marketing group Whalar.