- Shopify and TikTok make it possible for merchants to include products into In-Feed video ads
- TikTok’s has extraordinary potential that is attractive to a lot of world-known names
- Is there an uncertain future ahead of TikTok?
How Shopify and TikTok transform video advertising
With the speed in which TikTok quickly won over the younger generation of the world, it was expected that the platform would soon attract a lot of interest from names looking to innovate in the advertising and e-commerce space.
Shopify and TikTok announced their partnership yesterday, opening doors to new opportunities for Shopify’s merchants, which today exceed one million. The e-commerce platform that finished 2019 with a revenue of $1.6 billion will offer its merchants the chance to connect to a TikTok For Business account and create In-Freed video ads that will motivate TikTok users to spend more.
Users active on TikTok will be exposed to personalized video ads that Shopify merchants can create directly via the e-commerce platform. The user will be able to click on the ad directly from the video and purchase the product via Shopify. Targeting will be based on gender, age, user behaviour, as well as video category. Merchants will be able to track the campaigns via the TikTok Pixel.
Additionally, Shopify’s integrations with Amazon, Walmart Marketplace, eBay, Facebook Messenger, and Instagram will make the shopping experience even more complete.
TikTok – The new place to be
Despite the conflicts of interest that TikTok has been involved in as the Trump administration threatened to ban the platform in the USA, it already has an audience of 100 million users in the US alone. TikTok is popular for attracting younger people, with the average user age spanning between 18 and 24. The app is perfect for spending and has been calculated to have a buying power of more than $140 billion – a potential that can’t be ignored.
Walmart and Oracle have also shown an interest in TikTok and have tried to acquire stakes in the company. There is an ongoing discussion regarding a possible joint acquisition that will result in TikTok Global. The merger hasn’t yet received the green light from the U.S. and Chinese governments but if it does go through, the TikTok services will be accessible anywhere in the world.
TikTok has also shared its intentions of hiring 3,000 new engineers by 2023 and continue its expansion and growth across the world.
Will the partnership between Shopify and TikTok last?
TikTok is receiving a lot of pressure from Trump’s administration and the potential acquisition that Walmart and Oracle are planning could turn the tables for the newly formed partnership.
However, the current intentions are for Shopify to truly make TikTok e-commerce a reality and a seamless one too!
Satish Kanwar, the VP of Product at Shopify, appreciates TikTok as “one of the world’s fastest-growing entertainment platforms with over 100 million highly engaged users in the U.S. alone”. He also commented:
“The TikTok channel means Shopify merchants—even those without a strong TikTok following of their own yet—can connect with these new audiences using content that feels authentic and genuine to the TikTok experience,”
The new TikTok channel is already available for Shopify merchants throughout the U.S. and is expected to soon be open for use by North America, Europe, and Southeast Asia.
Seb’s background is more in the sales side of eCom & digital. Seb likes to write about eCommerce from the angle of conversions, driving sales, and sales strategy. This can include news around new sales platforms, changes to the big players in the industry, and more.