TikTok tests new ad format ‘shop now’ button; links advertisers

TikTok New Ad Format Shop Now Button
Smartphone with TikTok logo | Image credit: Depositphotos

According to reports, TikTok is trying out a new ad format namely the shop now button. This would link advertisers to its leading influencers by allowing those creators to display a prominent call-to-action button in their videos. Market experts suggest that the ad revenue generated will be divided between the brand advertising platform and the influencer.

Currently, the creator call-to-action ad format is in the testing phase. It is available only to a few advertisers and agencies. Reports suggest that the major revenue-share (up to 80 percent)will be taken by TikTok. The new ad model would help the company to earn revenue previously available only to the advertiser and its influencer.

TikTok has increased its focus on Creators. For this, it had launched Creator Marketplace in the later part of last year. The Creator Marketplace assists advertisers to filter out the platform’s top creators. This is achieved through various metrics: audience demographics, no of followers count, and subjects of content creation.

The TikTok ‘Shop Now’ button

Earlier this month we saw an example of TikTok’s new ad format. Levi’s shared information about its collaboration with TikTok influencers Everett Williams, Cosette Rinab, Gabby Morrison and Callen Schaub to promote its “Future Finish” customizable denim technology on the platform. It reported that the influencers’ in-feed ads included TikTok’s very recent “Shop Now” buttons. The call-for-action button basically influences the user to shop the product promoted by the influencer.

Levi’s reported a huge increase in page views for the product which it had advertised on TikTok.

According to a TikTok spokeswoman, the “Shop Now” button has been made available to all advertisers to influence and direct traffic towards their product websites. However, there is a separate creation-call-to action beta test in progress.

Jude Rajanathan, a global director at media agency Zenith stated that TikTok will improve the CTA buttons as it pushes for more performance and direct-response ads.