TikTok Shop Mastery: Use TikTok Shop Ads for business growth
Learn more about the various TikTok Shop Ad solutions, the differences between GMV Max and Custom Shop Ads, and how they can be applied across the full funnel through the PACE framework.
TikTok Shop is a full-service (end-to-end) e-commerce solution that combines entertainment and shopping, allowing merchants to sell directly from their TikTok account. Once you have created your TikTok Shop on Seller Center, you can start selling your products organically to drive sales and run TikTok Shop Ads later on to reach new customers, increase sales, and grow your business.
TikTok Shop Ads are paid solutions to help you reach a wider audience and drive better brand awareness and sales conversion. While you can drive sales and increase your GMV organically to your TikTok Shop through your livestream and video content, there are ways to elevate your sales through TikTok Shopping Ads.
Statistics have shown that sellers who pair their organic content with ads observed a 27% increase in brand recall², and the usage of Shop Ads saw a greater increase in their monthly and organic GMV.
Running Shopping Ads on TikTok Shop are especially powerful and promising for advertisers like yourselves, as you now can:
Maximize signals with the least effort, accelerating ads learning and maximizing ads performance without ever needing to install a pixel.
Reach highly relevant audiences with shopping intent based on their shopping behaviors on TikTok Shop or prior interaction with the advertiser's content and TikTok Shop
Advertise your products with ease with the latest addition of
Product Shopping Ads which require no video creative production and low touch ads management
Affiliate Creative for Ads^ allowing sellers to access affiliate creatives at ease and scale their ads with increased creative supply.
PACE: Your step-by-step guide to GMV growth
GMV = Shop Traffic x Conversion x Average Order Value (AOV)
As mentioned in our "3 Tips to drive organic GMV growth" blog, we will always look at Gross Merchandise Value (GMV), when measuring the success of a TikTok Shop. Gross merchandise value (GMV) is the total value of products that are sold over a given period. GMV is primarily made up of 3 key levers. Shop Traffic, Conversion Rate, and Average Order Value (AOV).
With that, we would like to introduce the PACE framework. By following this framework, you can strategically optimize your shop traffic, conversion rate, and average order value systematically—adding up to a boost in your GMV. Built on four pillars—Persona, Assortment, Content, and Empowerment—PACE offers a data-driven way to boost your brand’s performance on TikTok Shop.
Persona - Develop a clearer understanding of your customers' needs that defines your assortment, content, and empowerment strategy.
Assortment - The curated product mix that helps to uplift average order value and GMV
Content - The usage of short videos and livestreams as the magnetic force that inspires consumers to progress from discovery to purchase
Empowerment - The enblers to empower sustainable GMV growth through Advertising, Marketing, Customer Ops and the right Operating Model
You can read more on PACE here.
Types of Shopping Ads
There are currently 5 types of shopping ads that you can use across the marketing funnel to promote your products and drive sales. Get started on Product Shopping Ads (PSA) as your entry point to build awareness and explore the other ad solutions to build that consideration and ultimately drive conversions.
Depending on the Ad Creation Platform of your choice, you will have access to different ad solutions. If you are running ads directly from Seller Center, you will have access to our 2 latest TikTok Shop Advertising Automation Solutions - Product GMV Max and LIVE GMV Max that optimizes for a seller’s total channel ROI for TikTok Shop. If you are running ads from TikTok Ads Manager, you have access to our Custom Shop Ads solutions - Product Shopping Ads, Video Shopping Ads and Live Shopping Ads.
Product GMV Max is an automated solution for TikTok Shop Ads that uses all of your available creatives and optimizes them to achieve your target ROI. Through automation, it determines the most effective placements, including feed, search, and the shop tab, to serve your ad. It also assists in automatically creating and pausing ads, selecting the best-performing creatives to drive overall product ROI.
Read more on Product GMV MaxLIVE GMV Max is an automated Shop Ads solution which takes charge of both paid and organic LIVE placements and optimizes your overall LIVE ROI. It is highly suitable for you if you run LIVE on a regular basis and would like to grow your LIVE GMV while maintaining a good ROAS.
Read more on Live GMV MaxProduct Shopping Ads (PSA) is the easiest Custom Shop Ads solution to help you get started on your ads journey as it allows you to promote your TikTok Shop products on Shop Tab and Search, by leveraging the assets from Product Details Page (PDP) without additional effort to create ad creatives.
Video Shopping Ads (VSA) helps you extend your reach to TikTok's enormous and growing user base and allow users to interact and click into a product card (functions as a CTA button) to view product details and make purchases directly from the platform.
LIVE Shopping Ads (LSA) can help boost your livestream with high-quality traffic that has a high propensity to take action during a LIVE event, such as product clicks and purchases.
Which Shop Ads is suitable for my business
Depending on your ads proficiency level, we have a list of recommended solutions you can get started on. If you are a beginner and new to paid media, our recommendation is for you to start with GMV Max solutions found in the Seller Center. However, if you are ads savvy and would like full control over your ads set up and optimization, you should use our Custom Shop Ads solution found in TikTok Ads Manager.
Start your TikTok Shop Ads Journey Today
Sign up as a TikTok Shop seller now! Regardless of your follower count or experience in video creation, TikTok Shop provides you access to learning materials and support after you join to help you drive business goals.
Sources:
*TikTok Shop is only available in Malaysia, Philippines, Singapore, Indonesia, Thailand, and Vietnam for the APAC region.
^Affiliate Creative for Ads (ACA) is currently on Alpha stage.
Internal TikTok Analysis, Sep-Dec, 2022, SEA: TikTok Shop Sellers who did not use TikTok Shop Ads versus TikTok Shop Sellers who used TikTok Shop Ads
Neurons, TikTok Marketing Science Global Organic + Paid Study, 2021